According to Nikkei, the operation of a public-private fund for struggling real estate investment trusts will be outsourced to DBJ Nomura Investment Co., a 50-50 joint venture between the Development Bank of Japan and Nomura Holdings Inc.
The fund is expected to total around $3-5 billion and will primarily provide financing to help REITS redeem bonds. About 80% of that figure will come from loans from major banks, while 13% will be provided by the DBJ through subordinated loans. Real estate companies and other entities will supply the remaining 7%. The fund will have a maximum investment period of five and a half years and will start providing financing to REITs within two and a half years of its establishment. It will target REITs with sound finances and provide loans in exchange for real estate as collateral.
July 29, 2009
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