It’s the reverse of a trend seen all too often in the U.S.: a business expansion taking place offshore. But in this case the business is China Railway Construction Corp., and the offshore location is Nevada, in the good old United States of America.
The Chinese company is said to be looking for Chinese funding for a real estate project on U.S. shores—or, more accurately, in one of its deserts.
The company is looking for a $100 million to $200 million loan from Chinese banks as it seeks to become eligible to build part of the $1.6 billion Union Village real estate project in Henderson City, Bloomberg reported Friday. The report cited unnamed sources as saying that China Railway could also invest a like amount of its own funds in the undertaking.
Wonderful Sky Financial Group Holdings Ltd., which handles media relations for China Railway Construction, said in the report that the construction company is in exploratory talks about a possible contract for the Union Village project, although the discussions have not yet yielded any “meaningful progress.”
Its website says that Union Village is planned to include retail spaces and entertainment centers, as well as senior residential communities and a hospital complex.
China Railway is one of China’s two largest rail builders, but is diversifying in the quest for growth. Already very successful—its Q3 profit increased a whopping 41% to 1.9 billion yuan ($304 million)—the company is branching out and is also in negotiations to build a new stadium for Italian soccer team Inter Milan.
The company isn’t afraid to spend to achieve that growth. According to a Nov. 1 bill prospectus, China railway intends to spend 69.6 billion yuan on property developments in the three years through 2014 in its pursuit of diversification. It also plans to spend 54 billion yuan on rail and other infrastructure projects during that same time.