Housing Giants - October 24, 2008 - (Page 21)

may be more interest in the home builders from those firms who are more opportunistic in their investment thesis, or contrarian investors or wealthy families or sovereign wealth,” Hogan says. When these funds do come around, builders — as much as they want and need the cash to move forward with their developments — will want to be cautious. Private equity investors are not the same animal as the local community bank. “There are different cultures. Builders are entrepreneurial. Financing people are “at the end of the day, private equity is likely to sit on the sidelines until they feel there is a bottom.”— W. Hobson Hogan Fla. The lots were purchased from an affiliate of Beazer Homes USA. “Our strategy does not rest on simply purchasing lots at a discount to replacement cost,” says Thomas W. Brown, director of acquisitions for Brookwood. “You have to delve deeply into the local market and the type of product that will be the most in demand once housing comes back.” n n At the end of August, The Kolter Group, a Fla.based real-estate development firm, announced a joint venture with Och-Ziff Real Estate Acquisitions where it will be seeking to acquire up to $1 billion of assets ranging from raw land to finished condominium units using equity and debt. In June, Detroit-based private home builder Lombardo Homes purchased all of Centex Homes land assets in the Detroit market. The transaction was financed with private equity from an undisclosed local investor. In one of the highest profile private equity deals noted this year, Irvine, Calif.-based Standard Pacific Corp. received a $530 million investment from MatlinPatterson Global Advisors. n Also in September, Evergreen Real Estate Partners, a private real-estate equity fund managed by Chicago-based M3 Capital Partners, committed $750 million to Kitson & Partners, a Palm Beach Gardens, Fla.-based real-estate developer of residential and commercial real estate. Evergreen Real Estate Partners, capitalized with equity commitments of more than $1.5 billion, targets joint ventures with private real-estate operating companies. n www.Housinggiants.com 10.24.08.Housing giants 21 http://www.kolter.com/ http://www.beazer.com/ http://www.ozcap.com/ http://www.ozcap.com/ http://www.lombardohomes.com/ http://www.centex.com/ http://www.m3cp.com/ http://www.standardpacifichomes.com/index.aspx http://www.standardpacifichomes.com/index.aspx https://secure.reportingsystem.com/MatlinPatterson-home/ http://www.housinggiants.com

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