Sovereign Funds To The Rescue?
Two of Downtown Los Angeles' most high profile high rise developments have been on life support since the start of this year. With ominous delays and rescheduling of groundbreaking dates, things were not looking good for landmark projects such as The Grand Avenue and Park Fifth. Other projects were formally placed on hold, such as LA Central. However, with the recent announcement that Istithmar, a Dubai sovereign fund, will be investing in the Grand Avenue Project, does this mean that other projects may be resuscitated as well? All it takes is one investor to brave the waters and others will jump in for fear that they will be missing the boat.
Here's hoping that we will here announcements from Park Fifth and L.A. Central that foreign investment is forthcoming so that these projects can be revived. It's nice to see foreign governments recognizing that Downtown Los Angeles is worthy of their attention. Maybe local residents should take notice and begin shopping around the Arts District and South Park with an eye to the future?
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This blog entry currently has 3 comments posted.
maria
With all the other cities also suffering from project cancellations and delays, I wonder why this sovereign fund felt that Grand Avenue was worth their investment? Maybe they're hoping to get an autograph from Johnny Depp?
purplehaze
Hahahaha, SUCKERS!
dave
Shocking is the only way to describe this news.
1. Real estate market is depressed
2. Real estate investment is considered a fools play by American analysts and economists
3. The smart money is running away, far away from U.S. real estate until things "settle down"
And yet, we have foreign investors jumping in to revive the largest real estate project in the history of Downtown Los Angeles. I can only hope this optimism will spur more foreign money into the local LA economy. I'm all for it! Let's reverse some of that flow of cash from consumers to oil family pockets.