David Kaye and Eric Requenez Discuss Impact of SB 264 in Daily Business Review

Earlier this year, Florida approved SB 264, a bill banning foreign investors from specific countries from purchasing land that is agricultural or near critical infrastructure. The law specifically singles out Chinese investors and puts a broader ban on real estate purchases for them.

Asset management partner Eric Requenez and real estate partner David Kaye shared insight into how to navigate the wide-ranging statute that targets Chinese investors in a Daily Business Review article. The bill could affect investment funds containing Chinese investors.

“One of the things we’ve really been focused on has been … both impacts to investors and institutional investors as well as asset managers, who either invest in Florida real estate directly, or have portfolio companies that may own Florida real estate,” Eric said.

Eric and David outlined some of the challenges the law presents. “The confusion comes when you have an investor or a fund that owns a piece of raw land prior to July 1 [the bill’s effective date], then after July 1, they build a building on it. As drafted, there’s an interpretation that prior to July 1, it’s not a violation as long as you register, because that’s just the land. But after July 1, once the building is constructed, is that a violation?” David said. “As time goes on, and we’re presented with more fact patterns like that, it’s just creating more confusion and exposing some of the ambiguities that surround this bill.”

Montana Governor Greg Gianforte signed a similar bill in May; a Texas version of the bill died before it was signed into law.