Zoe Hughes
Lending by active financial institutions declined by $15bn between 2007 and 2008, according to Cushman & Wakefield Sonnenblick Goldman. Life companies have moved to fill some of the capital void but their 2009 originations will be 20% down on 2008 levels.
Opportunistic real estate fund managers need to underwrite potential deals with no leverage assumptions in the current environment. For deals to be attractive unlevered returns must be at least 15%.
Shareholders of the troubled German lender yesterday approved a government plan to nationalise the bank; JC Flowers has said it may take legal action to safeguard its investment.
Shareholders of the troubled German lender today approved a government plan to nationalise the bank by means of a capital increase. JC Flowers said it will try to safeguard its investments including possibly taking ‘legal steps’.
The New York-based private equity real estate firm, led by former Warburg Pincus executive Reuben Leibowitz, has joined forces with Carl Mulac to create Joseph Carl Homes targeting distressed infill land deals in Phoenix.
Citi Property Investors has seen the departure of another seasoned professional - global head of marketing and client relations John Bottomley. Bottomley has joined New York's Rockefeller Group. PERE June 2009
Interest by foreign investors in US real estate, particularly from German property funds, is bringing greater competition to the market. PERE June 2009
The US arm of the British property company led by the Duke of Westminster has also postponed its US multifamily fund amid ‘inauspicious markets’. The firm though has acquired a portfolio of senior loans on land and residential homes in Atlanta.
San Francisco-based Liquid Realty is targeting $800 million for its fifth vehicle. If successful the fund would be the largest-ever private equity real estate secondaries fund. PERE June 2009
As real estate investors go back to cash flow fundamentals, lenders are going one step further in underwriting loans by reviving the debt yield test.