Warren Buffett Reaches Out to Spanish Property Through His New Real Estate Firm
19/11/2014 – El Economista
U.S. magnate Warren Buffett wishes to take a piece of cake served by the Spanish property market. Some time ago, also other international big-name investors decided to invest in this country: George Soros and John Paulson.
Last week, Buffett set up a developer company in Spain called Berkshire Residential Assets 1, with an objective of buying all property types, principally dwellings put up for sale by the sector’s companies, banks and Sareb, the bad bank.
Known as the ‘Oracle of Omaha’, the investor plans to include rehabiliation and building construction services in its vehicle’s activities range.
The third richest man on the globe has bought Catalan firm Merquinsa and has come to an agreement with Caixabank on reinsurance of its policy portfolio valued at €600 million.
Now, he wants to take advantage of the situation on the market, where prices plummeted more than 40% since pre-recession peaks and started to stabilize or even rise in some areas.
Buffett has intrusted administration of its real estate company to Jose Maria Morencia, who used to manage the property of Botin family. Now he provides his services to another bank, Santander.
Through his holding Berkshire Hathaway, the U.S. tycoon could buy out Duracell from Procter & Gamble for around €5.1 billion. Berkshire Residential is a germ of a Socimi which could go public in the next two years.
Original article: El Economista (by F. Tadeo & A. Brualla)
Translation: AURA REE