Fraser Forbes is partnering with Stirling Realty Advisors in order to source debt and equity for land purchases. In a previous interview with GlobeSt.com, Samit had identified about $5 billion in private equity that was ready to pull the trigger on investments at the market bottom.
With the venture now officially underway, Fraser Forbes will be targeting a wide range of opportunities from $5 million to $100 million. Because Sterling finances all aspects of commercial real estate, Samit says, the venture will also consider non land deals. "First and foremost, our pool of debt and equity providers care about getting a good deal – they are not necessarily interested in only investing in land." Land, of course, was a hot commodity during the real estate run up of the past decade – particular among home builders. For the last two to three years the market has been stagnant, to state the obvious. However there are stirrings among some home builders that suggest a new cycle is beginning – at least for investors in land. Another indicator, Samit says: the bid ask spread in land sales has been narrowing for some time.
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