Florida-based Kayne Anderson is having to turn investors away after raising $1.3B in two weeks
for a fund targeting distressed property sales. The company says it
would typically take 12-18 months to raise such an amount. According
to Preqin, in early April there were 939 commercial funds globally
looking to raise just shy of $300B.
Severe stress for commercial property is likely
going nowhere even after the economy begins to reopen. It’s hard to
imagine hotels and shopping centers operating at anything close to full
capacity for months, if not years. And if this work-from-home trend gets
a foothold, demand for office space isn’t looking good.
Among those who have made fortunes from a
distressed property in the past and who will likely do so again are Sam
Zell, Blackstone (NYSE:BX), and KKR (NYSE:KKR).
For those interested in investing alongside Zell, there’s Equity Commonwealth (NYSE:EQC),
where he’s board chairman. It’s market cap mostly in cash, the company
is more or less a vehicle for Zell and team to buy distressed assets on
the cheap.
https://seekingalpha.com/news/3562617-money-literally-pouring-distressed-real-estate-funds
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