Some significant investors have shown interest in buying foreclosed properties being sold in bulk by Fannie Mae, the US home funding source, the Wall Street Journal said, writes Reuters. The journal named private-equity investor Colony Capital as a potential bidder.
Reuters – Some big investors have shown interest in buying foreclosed properties being sold in bulk by Fannie Mae (FNMA.OB), the largest U.S. home funding source, the Wall Street Journal said citing people familiar with the process.
Under the deal, the investors would have to rent out the properties they buy from Fannie and not sell them for several years, the Journal said.
The sale consists of 2,500 homes divided into eight regional pools that have a current market value of $320 million, and the bids are due by mid-April, the Journal said, citing an offering document prepared by Fannie’s adviser Credit Suisse.
Officials are looking to complete the first transactions by late May, the Journal said.
The Journal named New York-based broker-dealer Amherst Securities Group and a fund run by mortgage-bond pioneer Lewis Ranieri as interested bidders. Hedge-fund manager Paulson & Co and private-equity investors Colony Capital LLC are also considering bids, the Journal said.
Spokesmen for Fannie Mae and Credit Suisse declined to comment to the Wall Street Journal on the sale. Reuters could not immediately reach both parties for comments.
(Reporting by Arpita Mukherjee in Bangalore; Editing by Ramya Venugopal)