Despite the "green shoots" propaganda, it seems top banker J.P. Morgan is not quite buying into the theory themselves. If they did, they probably would not be dumping 23 commercial properties onto the market as a rising economy would ensure hire rental incomes and property prices down the road. Even better is the fact that JPM does NOT want anything to do with the financing of such properties. To conclude, they want nothing more than good riddance with no strings attached. Even though mainstream media only spews the opposite, commercial properties are no doubt being classified as major hot potatoes by the bankers.
Or could it also be that JPM needs to acquire a few extra fire sale dollars in a hurry to cover their massive silver short position that is about to be unwound?
Regards - VHF
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For Sale: 23 JPMorgan Chase Office Properties
MoneyNews
Wednesday, August 12, 2009 8:39 AM
NEW YORK -- JPMorgan Chase & Co is looking to sell 23 office properties in what may be the country's largest office real estate sale this year, the Wall Street Journal said in a report on its Website on Tuesday.
The property on offer could raise more than $1 billion according to the report. A representative for JPMorgan was not immediately available for comment.
In order to sell some of the buildings, the bank will likely have to provide incentives, such as a sale-leaseback transaction, according to the report, which cited real estate experts and another bank's deal as an example.
Citing unnamed people familiar with the matter and materials obtained by the newspaper, the Journal said New York developers bid more than $290 million for HSBC's New York City headquarters because the bank agreed to lease back most of the building for the next 18 months.
A representative for HSBC was not immediately available for comment.
But JPMorgan has not explicitly offered financing for the properties it is selling, so buyers would have to look elsewhere for credit, according to the report, which cited people familiar with the matter.
