Monday, August 19, 2013

PEU Rental Country


FT reported a crack in The Carlyle Group's 30% annual return meme from untimely real estate investing:

Carlyle told investors a few months ago that they should expect to receive no more than 40 cents on the dollar on its second €763m real estate fund focused on Europe. 
I expect journalist Henny Sender to pay the price for publishing anything negative about The Carlyle Group.

Consider the bizarre world Sender reveals, where PEU's invest in rental real estate:

Blackstone is moving on to apartment complexes, and in mid-August it bought a $2.7bn portfolio of them from a unit of General Electric.

To further lower Blackstone’s own cost of funds, it is looking at securitising the cash flows it receives from renting out the $6bn of single family homes it has bought, repaired and leased out. 

Next up, PEU towns and regions.  Will you live in Blackstone or Carlyle country?

Update 10-24-13:  Carlyle recently announced investing in trailer parks and up to $1 million housing in Atlanta's north side.