By: Ismael Rodriguez
Warren Buffet’s Berkshire Hathaway has invested over $679 million on retail and residential companies within recent weeks, actively trying to establish itself as a major force in the real estate business, while standing confidently behind the future of the industry.
Berkshire Hathaway paid Store Capital, an investment trust company that focuses on properties like restaurants, veterinary offices and fitness centers, a whopping $377 million for 9.8 percent stake in the company, making it the third largest investor.
They also invested $302 million to help struggling Canadian mortgage lender Home Capital Group Inc., which holds a value of $5.5 billion and has a real estate portfolio that spans 1,750 locations in 48 states.
“Berkshire saw an opportunity to invest at an attractive price,” Christopher Holk, Store Capital’s CEO, told the press. “An investment in our company from one of history’s most admired investors represents a vote of confidence in our experienced leadership team and an affirmation of our profit-center real estate investment and management approach.”
Berkshire currently sits, as of March 31, on a net-worth of $96.5 billion in cash, and has been actively soliciting new investments to grow its presence.
The company even established itself as a major player in New York City by opening its first residential real estate office in Manhattan earlier this year.