Thursday, April 10, 2008

New Carlyle JV to Go After EPA Brownfields Money?

The Carlyle Group just announced a $59 million joint venture with a real estate development outfit in North Florida. BizJournals (via Conde Naste Portfolio) reported:

D.C.-based Carlyle Group has committed $50 million of equity capital and Jacksonville, Fla.-based Hassan & Lear Acquisitions Ltd. has committed $9 million to the joint venture, which will mainly acquire, remediate and reposition old industrial properties, as well as explore a wide range of real estate investment opportunities throughout the Southeast.

The joint venture's first acquisition of 1,800 acres cost $15 million. The company plans to turn traditionally unusable and unprofitable properties into prime real estate development sites, according to the company.

They do so by acquiring "brownfields." The Environmental Protection Agency happens to have funding for cleanup and development of such areas. The feds provide tax incentives, capital attraction incentives, and financing support. There's even an opportunity to get Housing and Urban Development money! With Carlyle's connections, might an earmark be in order for that Jacksonville area property? Time will tell how big the bonanza is for the politically connected private equity underwriter (PEU).