This week the Associated Press online covered China’s latest move to invest in the Americas,writing about the purchase of major U.S. cinema chain AMC Entertainment Holdings for $2.6 billion by a Chinese conglomerate Dalian Wanda Group Co. Why is this important for Mexico real estate? Simple. In part because it shows just how impressive China’s recent commitment of more than $1.5 billion in Dragon Mart Cancun really is.
China has committed to investing a comparable amount in Mexico as it has in the U.S. due to its confidence that Mexico’s economy is on the rise,and Chinese businesses want to be ready to cash in on the growth. In fact,the recent Chinese acquisition of AMC also has certain ties to Mexico,through the company’s wholly owned subsidiary Grupo Cinemex,which operates dozens of theatres in Mexico City and other parts of the country,many of which show films in English.
“We support AMC becoming bigger,not only in the United States,but in the global market,” stated Dalian Wanda’s chairman Wang Jianlin at the signing ceremony. The recent acquisition represents the largest Chinese takeover of an American company to date.
Similarly,the new Dragon Mart development in Cancun is a monumental investment for the Chinese,and is expected to have an enormous impact on the region’s already booming economy when it opens later this year. Fact is,it represents “the single largest capital investment ever undertaken in the Mexican state of Quintana Roo,” according to a recent article in Forbes magazine.
Interestingly,many international and especially English-speaking investors don’t realize the significance of the Chinese commitment to Mexico,because the first article published about Dragon Mart contained a misprint,stating the amount to be only $150 million,instead of the actual number,which is around $1.58 billion. The reality is that its opening,and the subsequent 5,000-plus Chinese residents that are expected to come with the new development – will add a dramatic boost to real estate in Cancun and throughout the Riviera Maya.