News

August 14, 2018 News

Y. David Scharf Quoted on CFIUS Plan to Use Expanded Authority to Seize Chinese Company Share in New York Real Estate

August 14, 2018 – Morrison Cohen Partner Y. David Scharf was quoted in the August 9, 2018 issue of the Commercial Observer on the move by the Committee of Foreign Investors in the United States (CFIUS) to seize the majority stake in 850 Third Avenue held by the Chinese company HNA Group.  Congress expanded the authority of CFIUS recently to include intellectual property, technology and real estate to block the takeover of American companies by foreign investors with the goal of protecting national interest and security.

“Previously, the federal government could only take property from a foreign-owned entity if they were involved in criminal activity. The move to strip HNA of its stake is the first in the expanded CFIUS powers, according to Y. David Scharf, a partner and the chair of the real estate finance and restructuring at Morrison Cohen.

“We’re seeing this happen for the first time in real estate,” he said. “Real estate is a new add-on under the statute, literally eight days ago.”

Click here to read the article “Trump Administration Planning to Seize Stake from Chinese Company in 850 Third Avenue.”