In an uninteresting turn of events last week, Congress has passed the Omnibus Bill, which contained a provision extending the EB-5 program until September 30, 2016, with no other changes to the program. As previously discussed, the last couple of months have been filled with substantial discussions and the introduction of potential legislation aimed at reforming the program, but at the end of the day, Congress has decided to “kick the can down the road” for another couple of months.
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The Death of EB-5 Has Been Greatly Exaggerated
Earlier this year we discussed the uncertain future of the EB-5 Visa Program, one of the most successful inbound investment programs of recent years, as evidenced by the $5.2 billion dollars the program has generated in the past ten years alone. Although the EB-5 Visa Program was set to expire on September 30, 2015, Congress approved a temporary extension that allowed the program to continue through December 11, 2015. But notwithstanding the growing popularity and success of the program and the enthusiasm about it from US domestic developers and property owners, it has always engendered some concerns and criticism. And so, here in early December, its future hangs in the balance. Supporters say the program should be renewed because it generates employment opportunities and funds domestic businesses that rely on these types of investments, but critics claim the program is poorly regulated and tainted by fraud and a certain odor of unseemliness. With the potential expiration of the program set to occur later this week, it is uncertain whether the program will lapse, become permanent, be temporarily extended “as is”, or extended with significant reformations.
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The EB-5 Visa Program: the Rebirth of the Immigration Investor Program
This is a good news story for once. But, of course, since the father of this soupcon of good news is our government, it’s almost unintended.
From the ashes of the economic recession of 2008 came the rebirth of the Immigration Investor Program, more commonly known as “EB-5 Visa Program.” This bit of social engineering has been around since the program was first introduced back in 1990 but got a second wind when everything else went to Hell. The purpose behind the program was to benefit the United States economy by attracting investments from qualified foreign nationals.
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CREFC New York City (June 2015) Conference Recap
For all of us in the commercial real estate industry, June has become synonymous with summer CREFC, a mid-year industry check-in and opportunity to mingle with industry participants. Like past conferences, this year’s conference, which was held earlier this week, was once again filled with informative industry updates and lively panel discussions.
On Monday, much of the morning and early afternoon was devoted to various industry forums. The day culminated with a panel titled “What Industry Titans Think of the Markets,” moderated by Citigroup’s Thomas M. Flexner, and panelist Richard LeFrak of the LeFrak Organization, Stephen M. Ross of Related Companies, and Robert S. Taubman of Taubman Centers, Inc. Monday evening was filled with receptions hosted by a number of industry players, including Dechert’s own reception at the Refinery Hotel Rooftop.
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Schrodinger’s Cat
We here at CrunchedCredit are getting ready, as we do each year at this time, to polish up the palantir and make our predictions and business projections about the coming year. While it can be a fun exercise, it’s actually serious business. To start with, you need a macro view of the geopolitical situation, the markets and the economy. To not start with a macro view is to make a choice, and a bad choice at that.
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Securitization in the Sand – ABS East Turns Twenty
By: Daniel Wohlberg and Sean Solis
On Sunday, September 21st through Tuesday, September 23rd, almost 3,500 industry insiders descended upon Miami Beach for the 20th annual ABS East Conference at the acclaimed Fontainebleau Hotel. The enthusiasm and excitement was palpable considering the record setting year the market had so far, especially in the CLO space. The general tenor was cautious optimism as many believe the roaring market would continue for the next few years, but saving a bit of hesitation for some of the regulatory pitfalls up ahead. Most were comfortable, however, considering the market’s resilience in dealing with the recent implementation of the Volcker Rule.
Continue Reading Securitization in the Sand – ABS East Turns Twenty