Thursday 25th March 2010 ‐ Second Annual European Distressed Real Estate Forum, One Great George Conference Centre Today the Second Annual European Distressed Real Estate Forum was held for the benefit of major investors who are seeking access to risk‐adjusted mortgages and prime real estate that was held by financial institutions which have gone under the hammer. The major theme that was expressed was the inability to gain access to the distressed assets here in the EU. The day’s final panel was reserved for special guest Brian Valente, a Supervisory Financial Analyst for the US Federal Reserve Board of Governors, who started the discussion by explaining the role of regulators and the present view of banking regulations in applying mark to market accounting to real estate valuations. The panel discussed the 149 banks that were taken over by the FDIC in 2009, the 37 banks that have been taken over so far in 2010, and the need for the FDIC to market USD 1.4 trillion of these toxic or legacy assets which the FDIC now has on their books from these failed institutions in the next 18 months. Mr. Valenti then introduced Mr. David Michelson, the follow up speaker who is an advisor to a private asset manager in the US, Three Arch Investment Corp I, and has funds from EU investors via the California Distressed Land Fund. The Moderator informed the audience that Mr. Michelson has been one of the original private asset managers, both back in the early 1990’s under what was then the RTC, and also is bidding on assets currently. Mr. Michelson is one of the private asset managers who are gaining access to bid on these failed banks assets via both the legacy loan program as well as the structured loan program. In a Wall Street Journal article on Friday 25 March “Chairman Bernanke Nudges Fed towards Mortgage sales” the article confirms the major theme of this forum. For the next 12‐18 months at least the majority of Distressed Real Estate Assets will be coming from the FDIC, which appears now to be the only game in town. http://online.wsj.com/article_email/SB10001424052748704094104575143603769198216‐lMyQjAxMTAwMDIwNjEyNDYyWj.html As an investor through CDLF you will today be able to allocate funds to a sector that has been risk adjusted and will likely produce outsized returns for the next five to six years. CDLAF’s Sponsor and Portfolio managers have been producing excellent results for more than 25 years in the physical ownership of real estate, having completed 300 past partnerships for over USD 7 billion of past projects. We are now seeking to repeat the same success we have seen in past markets where a recovery is in the initial stages. Meetings with the Fund Manager are now underway in London and Europe for the CDLAF initial first closing on 31st May 2010. Please contact IGS Group to make an appointment + 44 (0) 207 395 6800
The California Distressed Land Assets Fund Ltd
The California Distressed Land Assets Fund Ltd
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