Anyone active in the real estate industry over the last few decades, has seen a few cycles, some hot product types, innovative financing techniques, and best-practice progressions such as green technologies and LEED techniques. And of course, the swing from “normal” debt/equity leveraging, to high leveraging, to the current conservative leveraging of properties.
In all this, we seem to be situated in a golden age of “feasibility,” where real estate “triage” requires careful attention to the possible in workout situations, and investors in projects focus on local market basics (supply, demand, buyers, customers, tenant mix, co-tenancies, pricing) as they evaluate new investment.
This is a great sensibility for the real estate industry, and hopefully not short-lived once the pain subsides and property product markets return to health. Certainly only the strong players, and the smart players, will survive this downturn. If capital investment in real estate stays with conservative leveraging, it will leave an industry for the professionals to prosper in, a place a little more difficult for the “fast buck” operators to play in.
We’ll see.
(article created to test our social media account links)
Tags: Due Diligence, Feasibility, Investors, real estate
State-owned DUBAI WORLD has a “friendly” deal in place with its banks to restructure and pay off $23.5bn in debt over eight years.
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Blackstone Group (private equity) (w/ Emeritus Sr Living) buys 145 senior-living centers in U.S. from Sunwest Management for $1.25 billion
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Europe’s wealthiest families ready to ramp up private equity deals this year, per study by Listed Private Equity (European trade group)
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Ferrari is the theme of new theme park to open at end of this year in Abu Dhabi, 3 weeks before the second Abu Dhabi Formula 1 Grand Prix.
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QATAR HOLDING buys Harrods from Mohamed al-Fayed, for $2.2 billion and a pledge re: pensions. QH is looking at roll-out to global cities.
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What recession? The Irvine Company (Orange County, CA), creates first time buyer homes in its preimier planned community, and selling out.
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Big guys teams up- Abu Dhabi Investment Auth, Macquarie Capital, Canada Pension Plan, others, all team up to buy French EDF elect. grid. WOW
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Nice article about Global Private Equity firms active in real estate during 2009, recommend by Hedy Heng – http://bit.ly/9easYr
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Recovery assumed – Merlin Entertainment’s purchase of Cypress Gardens (Florida) to create 5th LEGOLAND in U.S., bodes well, shows confidence
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