Monday, December 05, 2011

A new, questionable EB-5 project in China is being called "the new Atlantic Yards"

Would you believe that Atlantic Yards--after my reporting and other reasons for controversy--has now become a cautionary example in the international world of investment immigration?

From EB5info.com, Huge Chicago EB-5 Multi-Hotel Project Under Scrutiny by Investors:
Several Chinese agents and investors are calling into question the claims being made by a new EB-5 Visa Regional Center, The Intercontinental Regional Center Trust of Chicago.

Many are calling this project the new Atlantic Yards due to the extremely large size of the offering ($249.5 million) and the claims being made by its promoters and migration agents in China. The agents need to heavily promote issues of this magnitude in order to raise such an exceptionally large offering (most EB-5 visa project offerings are under $50 million) in a very short period of time.
The Atlantic Yards offering was $249 million, raised from 498 investors by the New York City Regional Center. Investors invest $500,000 in a purported job-creating enterprise, in exchange for green cards.

They also pay a fee to the regional center, a federally authorized private investment fund. The regional center also earns money on the spread between the relatively low interest paid by the borrower (say, 4-5%) and the no (or extremely low) interest paid to the investor.

2 comments:

  1. Is there some cutoff at $250 million (or 500 investors) that is causing both these projects to structure themselves to remain below that threshold?

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  2. Good question. I'm not sure. Will look into it.

    ReplyDelete