Patrick Lai’s Post

Did you know that Barry Sternlicht almost ran Blackstone's new real estate group in the early 1990s? “By late 1992, JMB Realty, which had once boasted $24 billion in assets, was in trouble as some of the highly leveraged deals it had engineered in the good times were unwinding, and many of its executives were looking for jobs." "Schreiber targeted one of them, Barry Sternlicht, to head up the new business at Blackstone. 'We had basically agreed on terms to bring Barry and his group,' Schreiber says, 'but at the last minute he changed his mind.' Sternlicht went on to form Starwood Capital, his own property investment firm. In his place, Schreiber in 1993 recruited Thomas Saylak, who had worked at Trammell Crow Company, another big property firm, and a year later hired another JMB alumnus, John Kukral, to be his field commanders.” “Schwarzman reckoned there was a windfall to be made in distressed real estate, as the property boom of the eighties came to a harsh end. Developers and lenders were struggling in the aftermath, and the government was shoveling billions of dollars of savings and loan property out the door to anyone who could make a solid bid." "The problem was that Blackstone had scant capital to invest in such deals. The firm tried in 1991 to persuade the investors in Blackstone’s first fund to plow up to $400 million—close to half the fund—into properties being auctioned by Resolution Trust. But because many of the limited partners were U.S. and Japanese institutions already freighted with troubled real estate, they nixed the idea. With a new team on board, Blackstone set out to raise hundreds of millions of dollars for a dedicated real estate fund.” Excerpt from "King of Capital" by David Carey & John E. Morris

🚨 Cala Group Acquired in £1.35 Billion Deal 🚨 The sale of Cala Group to Sixth Street Partners and Patron Capital highlights investor confidence in the UK housing market and the drive to address the undersupply of homes. Cala, set to deliver 3,000 homes in 2024, will benefit from fresh capital and strategic support. From a sector perspective, this acquisition emphasises the role of institutional investors in promoting sustainable growth and tackling the UK's housing challenges. Sixth Street and Patron Capital are not just financing growth—they’re shaping the future of UK housing. #RealEstate #PrivateEquity #HousingCrisis #Investment #Growth

UK's realty sector has had some massive reshuffling this year! 1. Earlier this year, Blackstone bought 20,000 homes worth £580mn from Vistry Group's new constructions. 2. Now, Blackstone has divested a part of its holdings & sold about 3000 homes worth £405mn to Universities Superannuation Scheme (Ltd). 3. Sage Homes has already committed £3.7 Bn to building 17000 affordable homes. This comes in the backdrop of one of the most ambitious plans of the new govt has been to build over 300,000 homes in the next five years. And if these numbers felt massive, here's a fun fact: Just 2% of the UK private rental sector is owned by institutional investors whereas this figure is over 35% in Germany and the US! The English are truly crazy for Property Investment. #CapitalFlow.

Dexus announces sale of three assets for a combined $383.2 million Dexus announces that it has unconditionally exchanged contracts to sell three assets for combined proceeds of $383.2 million1. Sale prices were reflected in the 30 June 2024 draft valuations announced on 20 June 2024. The assets include: Dexus Office Partnership’s 50% interest in 5 Martin Place, Sydney for $296.2 million, in which Dexus’s 25% share represents $148.1 million. 5 Martin Place is a Premium grade office building in the Sydney CBD with a WALE of 2.9 years2 and occupancy of 97%2. Settlement is expected to occur by 28 June 2024 130 George Street, Parramatta for $69.1 million. 130 George Street is a B grade suburban Sydney office building with a WALE of 1.2 years2 and occupancy of 73%2. Settlement is expected to occur in November 2024 18 Motorway Circuit, Ormeau for $17.9 million. 18 Motorway Circuit is an industrial asset located in South Brisbane with a WALE of 7.7 years2 and occupancy of 100%2. Settlement occurred on 17 June 2024 Sale proceeds will initially be utilised to repay debt. These divestments continue Dexus’s asset recycling initiatives, with further market updates expected as transactions materialise. More news on COMMO. https://lnkd.in/gD2WRuG3 Deborah Coakley Jonathan Davies Krista King Chris Mackenzie Peter Studley Alexandra Raymond Lorraine Lee James Dimsey Alex Berends Jeremy Manson Steve Printezis Mark Cuddy Andy Collins Ross Du Vernet Wayne Hall Matthew Miller #dexus #office #realestate #australianrealestate #sydneyre #officebuildings #commercialrealestate

Great move by SEBI. This will open up a whole new segment of investors looking at Real estate but not wanting the hassle of day to day management of the property.. While their were a few private players doing things in a similar fashion this regulates it for both the investors and the developers.. #realestate #realestatenews #realestateinvestors #reit

CapitaLand Integrated Commercial Trust (CICT) plans to acquire a 50% interest in Ion Orchard and Orchard Link from CapitaLand Investment (CLI). The agreed property value for the 50% stake is S$1.85 billion. The total acquisition outlay is estimated at S$1.1 billion after adjustments. Financing: CICT intends to finance the transaction through a private placement and a preferential offering. The aim is to raise gross proceeds of at least S$1.1 billion. Estimated issue prices: Private placement: S$2.038 to S$2.091 per unit Preferential offering: S$2.007 per unit CLI has committed to fully subscribe to its entitlement in the preferential offering. Timeline and Strategy: Expected completion: Q4 2024, subject to unitholder approval. Described as a "transformational move" in CICT's strategy. Aims to capture the luxury retail segment in Singapore. Financial Impact: The acquisition is expected to be immediately accretive to CICT's distribution per unit (DPU). Projected H1 FY2024 DPU accretion of 0.9% (from S$0.0543 to S$0.0548). CLI's Perspective: The divestment demonstrates CLI's support for CICT. Proceeds will be used to diversify CLI's portfolio and establish new fund products. Aligns with CLI's asset-light strategy to recycle assets and grow funds under management. Ion Orchard Details: Currently held in a 50:50 joint venture between CLI and Sun Hung Kai Properties Limited. Eight-storey mall with about 57,935 square meters of net lettable area. 96% committed occupancy rate as of end-June 2024. This acquisition represents a significant move in Singapore's commercial real estate market, potentially strengthening CICT's position while allowing CLI to pursue its strategic objectives. #REITs #Growth #Strategic #Investment #RealEstate #Acquisition #LuxuryRetail #ShoppingMall #Singapore I The Business Times I SPH Media I Michelle Zhu

Recent UK property deals reveal the market challenges and vulnerabilities of smaller real estate investment trusts. Segro's all-share offer for Tritax EuroBox and Starwood's cash offer for Balanced Commercial Property Trust reflect significant discounts to net asset value, underscoring market apathy towards smaller operators. These deals show the difficulties smaller REITs face, such as higher financing costs and the need to raise new equity for growth or debt reduction. In other words, smaller players are often at the mercy of larger, better-regarded rivals. #RealEstate #REITs #InvestmentTrends #PropertyMarket #UKRealEstate

The buyback scheme is a golden opportunity for investors to purchase properties from companies and sell them back to them with a pre-agreed understanding that the developer will repurchase the property from the investor at a specified future date at a guaranteed premium price, securing a substantial return on investment. Buyback schemes can be exceptionally lucrative when approached with the right strategy and partner. These schemes offer several advantages. However, the potential for profit largely depends on factors such as the property’s location, market conditions, and the terms of the agreement. The Key Benefits of Real Estate Buy-Back Schemes Apart from the fact that you know you’ll be generating lots of income from the property, buy-back schemes offer a myriad of advantages, ranging from stable cash flow to minimal risk exposure. Buy-back schemes provide a clear exit strategy, allowing you to anticipate and plan for your financial gains. You can enjoy attractive returns on your investment, making these schemes an appealing option for wealth creation. With developers handling most administrative tasks, you can enjoy a hassle-free experience. Real Estate Buyback Agreement A real estate buyback agreement is a legally binding contract between an investor and a real estate developer or company. This agreement outlines the terms and conditions of the investment, specifically the commitment of the developer or company to repurchase the property from the investor at a predetermined price after a defined period. This contractual guarantee provides investors with a secure exit strategy and an opportunity for predictable returns on their investment. Why You Should Invest With AYHOMES AND Properties Limited 👉High ROI 👉Reduced Risk 👉Expert Guidance 👉Stress-Free Investment: 👉Financial Security 👉Guaranteed Buy-Back 👉Competitive Pricing 📌Quick Transactions: ✅No Hidden Fees To learn more, click the link below. https://lnkd.in/ge4-n7gP #ayhomes #buyback #ayhomesbyback #affordablehomesinnigeria, #affordablelandsinnigeria, #affordablelandsinepe, #landsforsale, #Estatelands, #Epeproperties,#commercialplotsinEpe, #Africanresort,#Epe, #InvestinginEpe, #LekkiAirport,#trendingproperties,

🌍Arrow Global Group announces their further expansion into Germany, through the acquisition of INTERBODEN Gruppe, a leading real estate developer. "Interboden’s capabilities provide Arrow with immediate scale and presence in one of Europe’s largest real estate markets. [...] This acquisition, for a minimal outlay, is perfectly aligned with our objectives and leverages Interboden’s deep local expertise.” - Zachary Lewy, Founder, CEO, and Chief Investment Officer at Arrow Global This deal "will enable our business to grow by combining our local knowledge and expertise with an institutional approach to investment during a time of stress in the German real estate market." - Dr. Rene Maler, CFO of Interboden Read more about Arrow's expansion and how the two businesses plan to utilise the deal and continue growing in Germany and Europe, via the article linked below. 👇 https://lnkd.in/djkheT-F #Germany #PropTech #RealEstate ---- 💡 Follow PropTech Connect for daily Real Estate and PropTech news and insights.

Institutional investors are jumping back into the market! Stabilizing supply dynamics and continued demand for multifamily housing is providing support for future rent growth. This week, KKR solidified its bet that trend will continue with its $2.1 billion portfolio acquisition of over 5,200 apartments in markets nationwide. With institutional multifamily pricing down about 20% from its peak nearly 2 years ago, could this acquisition and others recently completed by private equity backers be a sign the institutional investment market more broadly is seeing a bottom in multifamily pricing? Private client multifamily has seen a similar decrease in value over the last 2 years but has enjoyed a pick-up in investment activity YTD, with investors lured in by various factors. Many times, this includes an attractive cost basis, potentially lower than replacement cost. Time will tell if wagers by these early movers pay off, but with stabilizing costs of capital, additional clarity looking forward, and the big fish beginning to bite, we could be in for a years-long bull market. What do you think? Looking at any potential investments yourself? Send me a message . I'll be happy to offer any insights CBRE has available to help you make the best investment decision you can. #SoCalPrivateClientLending #AgencyLending #FreddieMac #FannieMae #Multifamily #MultifamilyInvesting #MultifamilyRealEstate #MultifamilyFinance #CommercialRealEstate #CommercialRealEstateFinance #PrivateClient #PrivateClientLending #CRE #CREF #CREFinance #CBRE #CapitalMarkets #Debt #Finance #InvestmentProperty #1031Exchange #Refinance #Acquisitions #Loans #LoanOptions #MortgageBroker #MortgageBanking #CMBS #BankLending #DebtFunds #LosAngelesRealEstate #LARealEstate #CaliforniaRealEstate #CARealEstate #OrangeCountyRealEstate #OCRealEstate #SanDiegoRealEstate