Warren Buffett is making big bets on retail

Oracle of Omaha bought a major stake in REIT Store Capital

TRD NEW YORK /
Jun.June 27, 2017 07:30 AM

Warren Buffett

Warren Buffett’s Berkshire Hathaway was revealed Monday as one of the largest shareholders in the real estate investment trust Store Capital Corp., the second big bet the investor made on commercial real estate in as many weeks.

Store Capital, which focuses on single-tenant properties like restaurants, veterinary offices and fitness centers, revealed that Berkshire paid $377 million for a 9.8 percent stake in the company, the Wall Street Journal reported. That makes Berkshire its third-largest investor.

The move is a bet that some sectors of the retail market can buck the broader headwinds the industry faces, according to the Journal.

Just a few days earlier, Berkshire invested about $302 million in the struggling Canadian mortgage lender Home Capital Group Inc.

Store Capital’s real estate portfolio spans 1,750 locations in 48 states, and is valued at $5.5 billion.

“We’re devoted to doing service-sector investments…where you can’t buy these services through the internet,” company CEO Christopher Volk said. Berkshire “saw an opportunity to invest at an attractive price, and they believe in us.”

Berkshire, which held $96.5 billion in cash as of March 31, is actively seeking new investments for its growing war chest.

Locally, the company is looking to establish itself as a major force in New York City residential real estate after opening its first Manhattan office earlier this year. [WSJ] Rich Bockmann


Related Articles

arrow_forward_ios
Simon Property Group CEO David Simon David Simon (Credit: Mireya Acierto/Getty Images, iStock)

Retail rout continues as Simon furloughs a third of employees

Almost 50,000 retail stores have closed across the country, and the restaurant industry has lost $25 billion in sales since March 1, (Credit: Getty Images)

US will see $20B in retail loans come due starting this week

(Credit: iStock)

NY restaurants, hotels warn of mass layoffs as US sees record jobless claims

Charles and Jared Kushner and 229 West 43rd Street (Credit: Getty Images and Google Maps) 

Pandemic may finally push Kushner Cos’ Times Square retail space into default

Ben Ashkenazy, CEO of Ashkenazy Acquisition Corporation and 660 Madison Avenue (Credit: Google Maps)

Eataly in talks with Ashkenazy to gobble up some of Barneys space

Ample Hills Creamery co-founders Brian Smith and Jackie Cuscuna with Ample Hills Creamery Gowanus at 305 Nevins Street (Smith and Cuscuna by Ilya S. Savenok/Getty Images for NYCWFF; Google Maps)

Ample Hills Creamery files for bankruptcy

During de Blasio’s state of the city address last month, the mayor proposed a vacancy tax once again, in a bid to tackle the city’s 12,000 empty storefronts. (Credit: Getty Images, iStock)

San Francisco passed a tax on vacant storefronts. What does that mean for NYC?

American Dream Mall (Photo by TIMOTHY A. CLARY/AFP via Getty Images)

$5B American Dream to shut through the month

arrow_forward_ios
Loading...