A few years ago, Germany had one of its harmlessly amusing debates about the "locusts" (g) of American capitalism, the dreaded private-equity firms. Turnabout is fair play; now European "vultures" are buying up lots of California land at "Armageddon" prices:
Will California become the central feeding ground for real estate vulture investors?
That’s what was suggested today in a report from London describing something called the California Distressed Land Fund Ltd.
The fund’s manager, David Michelson, plans to raise $150 million from European investors to buy raw land from developers and banks in places like the Inland Empire where home values have sunk lowest….
The idea is to hang onto the property for six or seven years and then resell it….
Atrios thinks this is a good investment, and adds: "Maybe the described European investors will bring along some European land use planning."