Property tycoon, Feng, bites into Big Apple
NEW YORK - The Chinese real estate tycoon Feng Lun likes to say that when it comes to the property business: "I don't have any competitors - the only one I compete with is God."
The 52-year-old chairman of Beijing-based Vantone Holdings Co Ltd - one of China's largest real estate companies - was in New York this week to attend a business forum called "From Yabuli to New York". Organized by the China Center, more than 100 Chinese and US business leaders in the manufacturing, technology, insurance, finance and real estate sectors met to exchange ideas and explore business opportunities.
"The economies of China and the United States are growing more interdependent, and have a big effect on the global economy," Feng said. "What's lacking now is more business exchanges and more communication between the business leaders from both sides."
Even though China overtook Japan last year to become the world's second-biggest economy after the US, there is no comparison between the GDPs of China and the US, according to Feng.
"There is still a huge gap there. The GDP of the US is about 10 times higher than that in China," he said. "But the gap also shows there is room to grow."
China's economic growth both creates opportunities and new imbalances, Feng said. "The new imbalances will bring skirmishes and conflicts (between China and other economies). More than ever, it is paramount to enhance communication and understanding between China and the rest of the world," he said.
"This is where the China Center fits in," Feng said. The China Center is a platform for China-US business and cultural exchange, serving as a primary resource for Chinese companies looking to do businesses in the US, and for US businesses seeking new opportunities in China, he said.
"We provide a platform for opportunities that arise in the midst of the rapidly growing Chinese economy," he added.
As an industry innovator and pioneer, the Xi'an native - whose motto is: "Be bold to think ahead and act quickly." - initiated the first real estate strategic alliance in China called China Urban Realty Association.
He rode the booming Chinese real estate market when he set up Vantone Group in 1991, not only making a name in the industry but becoming a household name in China.
Throughout the years, the Vantone Group has established a portfolio of office buildings, shopping centers, high-rise apartments and luxury townhouses.
However, that was not enough for Feng. In the early 2000s, when other Chinese industries such as manufacturing and technology, were expanding overseas, Feng wanted to break into the overseas real estate market, but had no lead to follow.
At a Peking University seminar on the rebuilding of the World Trade Center site after the 9/11 terrorists attacks, Feng heard US experts speaking about the rebuilding plan and decided that he wanted to be part of it. In 2003, Feng spent some time at Columbia University in New York on a ground zero project.
That led to his first overseas real estate foray in New York City. In 2004, the China Center was established with joint investments from Vantone Holdings and the Investment Fund for New York City.
"Every time I visit New York, I see new things, I see more opportunities. There are more Chinese visiting and even more new Chinese immigrants coming here," said Feng who has visited the city more than 50 times in the past 10 years.
In 2006, after the China Center signed the initial lease for space in the World Trade Center following two years of negotiations, developer Larry Silverstein pulled out of the agreement, saying at first that he had found other tenants and then claiming that Vantone repeatedly reneged on a $45 million letter of credit.
The deal couldn't be saved even after Vantone provided a letter of credit, "It was a disappointment," Feng said.
He turned the page quickly and three years later, the China Center signed a lease with the New York Port Authority. It will become the first corporate tenant of the redeveloped 108-story One World Trade Center, which is scheduled for completion next year. The China Center will lease five floors with a total of 17,651.58 square meters for 22 years.
"The idea is to provide space and software services to other Chinese companies doing business in New York. Our business, cultural and dining facilities will offer a premier global corporate experience in the world's most dynamic urban environment," Feng said. "It will be quite something."
If Chinatown in New York is the history of immigrants coming to the city to live their dreams, the One World Trade Center will be a new chapter for a new generation of thriving Chinese business people, Feng said.
"For Chinese doing business here in the US, the most important thing is credibility," Feng said. "Adopting local concepts or localization is key," he said. His philosophy for doing business in the US is: "Eat like a Chinese; do business like an US citizen."
Vantone has hired professional teams from the US to work on Feng's projects in Beijing, but his target clients are always Chinese, at home or abroad.
"The core purpose of setting up the China Center has not changed over the years, nor has Vantone's business model," Feng said. "We know who we serve; we know who our target clients are; they are Chinese, either in the Chinese market or the overseas market. No matter where we set up the business, this strategy will never change."
China Daily
(China Daily 04/08/2011 page17)
