The fund will target office buildings, shopping malls andcenters, condo conversions, hotels, apartment rentals andunfinished condos. Sky anticipates that the fund will acquire aportfolio in excess of $1 billion in commercial and residentialproperties with an exit strategy of one to four years. Thetimetable for sale of individual properties will vary depending onthe property.

Toledano tells GlobeSt.com that a variety of investors fromEurope and the US have contributed to the fund. "We believe it isthe right time to focus on distressed investments given that creditmarkets are currently experiencing dislocation, and default ratesare expected to rise," Toledano says.

Toledano adds that the fund will target areas that have been hithard by the downturn in the housing market, such as Florida,California, Arizona and Georgia. Sky will target properties thatwill garner a 20% to 30% minimum return on investment. Heanticipates that the fund will begin considering acquisitionswithin the next 90 days. "Banks are closing their faucets," hesays. "There are a lot of sellers that have loans coming due thatwon't be able to pay them and be forced to sell properties."