Zoe Hughes
As private equity real estate fund managers prepare their year-end valuation reports, how are GPs facing the challenge of marking to a rapidly declining property market? PERE magazine February 2009 issue
In India, Millennium Spire decided it had to become a developer as well as an investment manager. It is now targeting its second fund. PERE Magazine February 2009 issue
Student housing specialists Blue Vista and Place Properties are renegotiating two deals they put on hold last year. Sometimes, they argue, waiting for prices to drop further isn't always the best way of securing a good deal. PERE magazine February 2009 issue
Proposals to create a ‘bad bank’ to soak up the toxic assets clogging the US financial markets have been welcomed by real estate professionals. However, veterans of the RTC warn against simply ‘moving pieces round the board’.
Real estate executives predict more pain for the next 12 months, with fewer people believing the debt markets will improve significantly over the coming year.
Private equity and foreign investors will gain ‘traction’ in 2009 as the real estate markets deleverage. The US market will be a particular target, according to a Jones Lang LaSalle study. Borrowers could struggle to refinance loans in 2009 and 2010, even if the 'underlying property is performing'.
Wall Homes, the Warburg Pincus-backed homebuilder, has filed for Chapter 11 bankruptcy protection blaming falling home sales in Texas and the credit squeeze. Warburg Pincus’ eighth buyout fund is owed $42m.
In its outlook for 2009, Shuaa Capital warns that the Abu Dhabi real estate market will follow Dubai’s downturn, although to a lesser extent.
Nakheel, Dubai’s state-owned developer famed for building the palm-tree shaped islands Palm Jumeirah, has reportedly halted construction of Nakheel Tower for 12 months, as the region feels the impact of the world economic downturn.
The UK property company belonging to the Duke of Westminster has appointed Andrew Bibby as CEO of its US activities. Earlier last year, Grosvenor US said it had reversed an investment freeze on the residential sector following the credit crunch.