It is really amazing to know that Lehman Brothers which itself was on the verge of bankruptcy continued to invest in troubled Real Estate sector in India. Lehman is the best example of - Once Bitten Twice Shy :-)
Lehman has already invested $200 million in DLF promoter group company DLF Assets last year and bought 50% stake in Unitech's Mumbai project for $175 million a few months ago. It had also invested $80 million in Bangalore-based SEZ Gandhi City and was likely to hike its share to $300 million. Lehman had commitments upto $500 million in the troubled real estate sector in India.
What will happen now ?
There will be parties interested to snap up Lehmans realty investments in India at rates far below prevailing market rates [which is already done since Lehman's investments]. This will put a lot of pressure on companies like DLF and Unitech who made money just by virtue of appreciating land prices.
Kindly note that Dow Jones has plunged the highest in Y'days trade, the highest since 9/11 attacks in 2001. The trouble is here to stay and wipe out speculation in realty, Thank God. Go with your cash and hold the realtor's collar for a brgain, he will budge :-)
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