Firm with China roots thrives in US

Editor's note: Globalization has opened up a world of opportunities for both Chinese and foreign companies. China Daily will bring out a series of stories sharing the global companies' visions and strategies during a teatime chat with top executives.

At the crossroads of Southern California's two bustling commercial hubs Irvine and Tustin, a twostory building with roots in China is now planted in Irvine.

Gemdale USA, which owns the building, has a strong US presence.

"As a Chinese real estate company, we have not only established a reputable presence, but have also thrived in the industry," Wang Lei, executive vice-president at Gemdale USA, said. "This success depends on our strategy and profound understanding of cultural differences between the East and West."

Gemdale has developed 18 projects across the country, amassing assets worth $3 billion since it was established in 2014.

Successful projects include the 350 Bush office building in downtown San Francisco and a high-end apartment complex in downtown New York City.

At its peak, the company had 80 employees, with 80 percent being US citizens. Although the company has slowed its development pace and reduced its size during the pandemic, it still maintains a workforce of 50 employees.

"In China, real estate development often focuses on city centers of first-tier cities. However, in the US, first-tier cities like New York, San Francisco, Chicago and Los Angeles have city centers that are entirely different from those in China," Wang said.

Differences exist

"City centers in China are bustling, safe and clean, but in these large American cities, they are often neither safe nor clean. Many people do not want to live in city centers because they are unsafe, unclean and inconvenient."

Due to a lack of understanding of the business environment and real estate markets in the United States, some foreign companies bring concepts like "city center" from their home countries, he said.

However, those concepts do not always work in the US, which can result in unfinished projects, Wang said.

Gemdale has avoided building high-rises in city centers, instead choosing affluent, clean and safe areas near city centers for rental development, as well as developing projects in industry-focused areas.

Wang said the company's Chinese team followed the local culture and business and listened to the suggestions of its US team, selecting and evaluating project sites accordingly.

Suburban multifamily assets have continued to outperform in Southern California. In July 2022, Gemdale secured $94.3 million in financing for a multi-housing development in the East Bay suburb of Pleasant Hill, the first new apartment complex in the city's downtown in 30 years.

Last July, the company secured a $575 million construction loan for a life science campus project in San Diego that was fully preleased by US-listed biopharmaceutical company Neurocrine Biosciences for 12 years.

"These successes stem from two factors: correct decision-making by the head office and leveraging the American local team, developing projects based on American commercial operations and understanding. This is very important for Chinese companies to survive in the US market," Wang said.

Wang said he always has a "Chinese heart" and hopes to bring the knowledge he gained overseas back to China.

"The first half of my career was dedicated to assisting foreign companies in expanding within China, while the second half focused on facilitating the expansion of Chinese companies abroad," he said.