Do we smell a bottom? U.S. becoming an “emerging” market
Do we smell a bottom? (Pun unintended, but apt nonetheless.)
As the downsizing of the American dream continues, we noticed this Reuters story in our in-box:
Asia, Mideast to unleash “go west” property drive
Here’s a quote from the story, which, like a drop of water, seems to contain a world within it:
“Instead of talking about emerging markets in Asia, now emerging markets could be in the U.S.,” said Yu Lai Boon, chief investment officer of Dubai World, a state-owned investment firm. “As investors in the Middle East, we’re seriously looking at the U.S. and European markets right now as the beginning of investment for the next golden era.”
Could this be what our appetite for cheap foreign stuff and expensive oil, coupled with a manic housing market, has wrought: foreign buyers for our real estate. That should please The Blackstone Group, at the very least.
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Why would the Blackstone Group be interested in this? What do they do?
Good question Charles, and we apologize that you had to ask.
Blackstone is a hedge fund that bought a lot of real estate last year, such as the porfolio of Equity Office Properties owned by Sam Zell it bought in late 2006 for $39 billion that included many buildings in Silicon Valley. (Blackstone was wise enough to flip many of the properties to other buyers before the credit markets seized up last summer.)
Blackstone went on to sell shares of itself to the public for the first time a year ago at $31 a share, a price they haven’t seen since. They closed today at $18.71.
Mr. Zell has also hit some bumps since then, having bought the Tribune Co., owners of the Los Angeles Times.