John Paulson, who will forever be known as the guy who made a fortune bettting on the real estate bust, continues to play the long side of things. His latest in a string of real estate-related buys is a $100 investment in CB Richard Ellis (CBG), an international real estate services firm.
WSJ: CB Richard Ellis plans to sell $400 million in 10-year notes and $150 million in stock to repay other debt, joining a host of companies selling new debt to eliminate coming-due borrowings. Hosts of firms have been using the ongoing stock-market rebounds, and investors’ increased risk appetites, to raise tens of billions of dollars through stock and debt sales.
Meanwhile, CB Richard Ellis gave a cautious second-quarter outlook, but said actual results could be well different as much of the company’s revenue is recorded toward the end of each quarter.
Paulson will buy 13.4 million shares of CB Richard Ellis which plans to sell another $50 million directly into the market.
Besides real estate, Paulson has been an aggressive player in the gold market (through the miners) leading some to think that basically he’s making a big inflation, hard assets kind of bet.
Shares of CB Richard Ellis are up over 15% today.
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