Related execs kill plans to invest in lenders

Miami /
Sep.September 29, 2011 02:35 PM
alternate
text
From left: Related Companies Chairman Stephen Ross and partners Jeff Blau and Bruce Beal

Only 18 months ago, Miami Dolphins owner and developer Stephen Ross thought U.S. banks were a wise investment. Now, it seems, he’s changed his mind.

According to the Wall Street Journal, Ross and partners in the New York-based Related Companies, Jeff Blau and Bruce Beal, each put $100 million of their own money, in addition to $1 billion raised from investors, into a fund called SJB Escrow Corp. in 2009, and spent a year researching U.S. banks, hoping to buy or invest $1.1 billion in lenders. The deeper they looked however, the more worrying things became; they saw troubled assets, weak loan demand, rising regulatory costs and few growth prospects.

“We’re disappointed to see the opportunity evaporate,” Ross said. “If you look at the environment today, I feel even more comfortable that we made the right decision [not to invest].”

Blau added: “It was a lot of work, and it was hard to make the numbers work.” [WSJ]


Related Articles

arrow_forward_ios
Related's Stephen Ross and a rendering of One Flagler (Getty, Related Southeast)
Stephen Ross’ One Flagler office tower in West Palm preserves 100-year-old church, scores tenants, including Estiatorio Milos
Stephen Ross’ One Flagler office tower in West Palm preserves 100-year-old church, scores tenants, including Estiatorio Milos
Stephen Ross and Esperanté Corporate Center
Stephen Ross becomes king of West Palm offices
Stephen Ross becomes king of West Palm offices
Formula 1 hasn't raced in Florida since 1959. (Getty, Related)
Real estate industry to kick it into high gear, as Miami joins F1’s circuit
Real estate industry to kick it into high gear, as Miami joins F1’s circuit
Vladislav Doronin (Credit: Gesi Schilling via Wikipedia)
Billionaire developer Doronin buys Fort Lauderdale assemblage for $63M
Billionaire developer Doronin buys Fort Lauderdale assemblage for $63M
Seth Wise, Co-CEO of The Altman Companies, Altís Ludlam Trail
Altman scores $55M construction loan for Ludlam Trail project
Altman scores $55M construction loan for Ludlam Trail project
Joseph Swedroe (Corcoran, iStock)
Corcoran agent in Miami loses job over “racist and fear-based” marketing
Corcoran agent in Miami loses job over “racist and fear-based” marketing
Vanessa Grout with Vladislav Doronin
Vanessa Grout leaves Ugo Colombo’s firm to lead OKO Group’s real estate arm
Vanessa Grout leaves Ugo Colombo’s firm to lead OKO Group’s real estate arm
Rendering of the project with Jon Paul Pérez (top) and Jorge Pérez 
Related switches gears on Terminal Island project, now plans low-rise offices
Related switches gears on Terminal Island project, now plans low-rise offices
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...