“What Real Estate Cos. Need To Know About CFIUS Reviews”
Although CFIUS approves the majority of the acquisitions it reviews, deals that do not pass CFIUS muster may be vetoed by the president. CFIUS can even recommend that the president unwind a transaction after the fact. Accordingly, with ever-widening concern over the national security implications of foreign investment, it is an absolute must both to know the requirements of the laws governing CFIUS and to consult with professionals to help analyze the risks of a given deal. It has become increasingly clear that submitting a transaction for CFIUS review may be the most prudent action in certain real estate deals.
One headline-grabbing real estate deal in 2015 was the acquisition of the Waldorf Astoria Hotel by the Anbang Insurance Group of China. Not only the official residence of the U.S. Ambassador to the United Nations, the Waldorf is also a frequent venue for high profile political gatherings and hosts many senior U.S. and foreign government officials. For reasons not publicly disclosed, the Waldorf transaction was submitted to the Committee for review.