David and Simon Reuben continue their string of big investments in US real estate, funding a $ 275 million loan for a large construction project in Los Angeles.
The British billionaire brothers have funded a senior mezzanine loan for the $ 2.5 billion redevelopment of the city’s Century Plaza site, according to a statement on Friday. They had previously acquired a stake in another loan for the project, which includes two residential towers, commercial spaces and a luxury hotel.
The siblings entered into a series of deals in the United States this year. In February, they finalized funding for the Time Hotel in New York City and the Apthorp, an apartment building on the city’s Upper West Side. Three months later, they acquired Manhattan commercial building near Rockefeller Center from SL Green Realty Corp. for about $ 170 million.
The Reuben’s control one of the world’s largest portfolios of commercial, office and residential properties. The sons of Iraqi Jews, they were born in India and moved to London as a teenager. They built a fortune in the metals trade and went on to invest in real estate, entertainment and technology companies. They have a combined net worth of around $ 12 billion, according to the Bloomberg Billionaires Index.
Many of the world’s wealthy, from Zara founder Amancio Ortega to bank mogul Joseph Safra, have long favored real estate, an asset with stable cash flow, tax breaks and leverage opportunities.
Meanwhile, those who lend privately – like the Reuben – often focus on real estate, with real estate developers turning to high net worth individuals or their investment firms for additional flexibility and faster access to liquidity than they do. most banks cannot offer. In return, private lenders usually get the security of an asset-backed loan that provides constant cash flow through interest payments.
The Reuben’s have also been active this year outside of the United States. They made a push in Madrid’s residential market, bought nearly 90 hectares (222 acres) in the Spanish Balearic Islands and backed a takeover bid for Newcastle United Football Club. They too donate about $ 100 million to the newest college at Oxford University, which will be named after them.