Relevant:
2008-06-11 — latimes.com
The California Public Employees Retirement System, the largest U.S. public pension fund, may sell part of its $2 billion in residential land holdings after the investments lost 31% last year amid falling home prices and forecasts of further declines.
Sacramento-based CalPERS hired investment bank Morgan Stanley to review seven land deals that it made with joint-venture partners and real estate advisors, fund spokeswoman Pat Macht said. The fund may sell some of the land, purchased to develop new homes, or renegotiate the partnerships.
...
One of the CalPERS ventures under review is LandSource Communities Development, a 15,000-acre tract north of Los Angeles known as Newhall Ranch, which filed for Chapter 11 bankruptcy protection Sunday after failing to restructure its debts with lenders. CalPERS paid $970 million in cash and property to home builder Lennar Corp. through advisor MacFarlane Partners for 62% of the development in January 2007.
The fools. We reported negatively on the Landsource deal when it happened. And now look. CalPERS let Lennar rob them in broad daylight. But it's ok, it's just the people's money.
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Comments:
BonitaBotrell at 08:39 2008-06-12 said:
Lennar also filed bankruptcy in Vallejo CA, with a former military base project on Mare Island. (turning it into a private retreat filled with homes) The city just filed bankruptcy and now a major builder has left them with a lot of half built buildings on mare island. As a matter of fact the same day they filed in LA, they filed in Vallejo and so now where else will a bankruptcy pop up. Doesn't CALpers provide retirement benefits to teachers, so who is garanteeing payments when CALpers runs out of dough. This is a mess. Permalinkadd a comment | go to forum thread
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