John Paulson Ready To Pounce On Cheap Real Estate

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There were always a lot of people sceptical towards real estate during the run up, but nobody did a better job of profiting from its collapse than hedge fund manager John Paulson.

And though he’s nibbled at going long real estate before — buying distressed mortgage-backed securities — now he’s opening a new, full-on real estate PE fund. News of this first came out in March, but new details have emerged

Telegraph: Although a cap on the fundraising has not been decided, it is expected that the initial size of the fund will be a couple of hundred million dollars.

Mr Paulson has hired Mike Barr, a former managing director in Lehman Brother’s $25bn-plus real estate private equity practice in New York, to manage the fund.

Mr Barr is being assisted by former colleague Jonathon Shumaker in managing the fund, which will be known as the Paulson Real Estate Recovery Fund.

The life of the fund is expected to be seven years, with investments to be made in both the residential and the commercial property sectors.

By investing at what Paulson appears to believe is the bottom of the market, the fund will hope to reap the evenutual upturn in ravaged property prices. Read the whole thing >

As well as investing in existing property, Mr Barr will work with Tom Noon, a former executive with US house builder DR Horton, who will source residential land developments.

(via DailyCrux)

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