Sunday, September 27, 2009
Real Estate Oppprtunity in Economic Struggles
By Adam Lindheim
In the wake of the U.S. economic struggles many investors are starting to see opportunity in cheaper real estate listings. Prices have dropped very low, and those who still have money are getting their best deals for their money. Emerging company Index Linked Properties and Russian tycoon Mikhail Prokhorov are two examples of those investing when it is cheap.
Index Linked Properties which is structured in New Jersey is a closed end investment firm who has reportedly bought a 400 million-pound ($ 638 million) property portfolio from Tesco PLC this according to the Financial Times. Index Linked Properties goal is to acquire real-estate assets at low cost during the cycle, and then to transform the property into a more lucrative investment listing.
Mikhail Prokhorov Russia's richest man has signed a provisional deal to buy a majority stake in the New Jersey Nets a professional basektball team in the U.S. Prokhorov is investing $200 hundred million dollars in exchange for 80 % stake in the basketball team as well as a 45 % stake in the Barclays Center which is due to be built in Brooklyn which is to house the team when in moves to the borough. Prokhorov is a huge basketball fan and is anxious to be "the only N.B.A owner who can dunk !" Prokhorov was also offered an opportunity to invest in real estate nearby the arena which is intended to rev up the Brooklyn borough.
Both investment opportunities are at a time where real estate is cheap, and therefore offer lucrative returns for both investors. Those who have extra cash lying around should invest now because of how in expensive it is to find lucrative oppourtunities.