Obviously the person talking with us in the quote that follows did so off-record. The source describes how their company left its more conservative sector to start buying property in order to satisfy their investors’ hunger for higher returns.
Back in 2006, we were going to various investors and hedge funds telling them we had a €10m investment with a nice 20% IRR, regular cash flow, security. But everybody was saying “I don’t care about risk adjusted return, I’m not interested in just €10m.”
The problem was they all had money burning in their pockets. They said “come when you have a €50m ticket and something where I can make a huge absolute return.”
So we complied. What can you do? You make your decisions, you make your business case, you raise the capital. I make no apologies that we raised the money and presented the project because we still believe, even after the crisis, that it still makes sense.