Canada’s largest conglomerate plans to raise billions to buy homes, office towers and shopping malls around the globe

(Source: The Globe and Mail)

There are 3,200 unfinished McMansions sitting in a suburban Los Angeles neighbourhood, where developers spent more than $150-million (U.S.) to build sewers, grade lots and pave roads for an upscale development, only to see the market crash.

These homes are at the heart of the real estate meltdown and Toronto-based Brookfield Asset Management Inc. recently bought this Riverside, Calif., development out of bankruptcy – for 20 cents on the dollar.

Canada’s largest conglomerate is betting the real estate market has hit bottom, and announced plans Tuesday to back its contrarian wager by raising a stunning $4.9-billion to buy homes, office towers and shopping malls around the globe.

Read Andrew Willis’ full article “Brookfield’s $4.9-billion bet on the bottom” in the Globe and Mail (August 12, 2009).

Further Reading:

Brookfield’s $4.9 billion Investment Unlikely to Perform” in Gerson Lehrman Group (August 14, 2009).

Brookfield sets up $4 billion real estate consortium

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