Tech Billionaires Investing in Real Estate

Tech Billionaires Investing in Real Estate

As briefly mentioned yesterday, several tech billionaires have been allocating significant amounts of their net worth to commercial and residential real estate as a vehicle to protect and grow their wealth, demonstrating the need to consider this asset class in our own investment portfolios.  Here, a quick summary of some of the world’s richest tech billionaires investing in real estate. 

Bill Gates – With a net worth of $67B, Bill Gates holds a diverse portfolio of investments. His personal fortune is managed under a company called Cascade Investment LLC. Cascade Investment LLC is a diversified investment company with an emphasis on commercial real estate private equity. Cascade Investment bought the Four Seasons Hotel Atlanta for $62 million, according to Hotel Management, and the Four Seasons Hotel Houston for $140 million, according to Bloomberg. His company also owns a golf course development near Palm Springs, and in the Cliveden hotels in England. In a more recent deal Cascade Investment was in the process of purchasing the Four Seasons Resort Punta Mita and an adjacent 48-acre parcel of development land for $200 million in cash, according to a filing with the U.S. Securities and Exchange Commission. The deal was expected to close in early 2014.

Larry Ellison – In the past years America's third richest man, has been on a real estate buying spree. Last June he bought 98% of the Hawaiian island of Lanai from David Murdock. That purchase, for a reported $500 million or more, gave Ellison almost the entire 141-square mile island, including two resort hotels and a housing development. He also owns a number of commercial assets in Malibu, California among other properties.

Michael Dell $15.3B, Michael Dell uses MSD Capital his vehicle to invest in commercial real estate assets. MSD has been actively acquiring commercial and multi-family properties, land development, and real estate-backed loan portfolios. MSD is where a good portion of Michael’s wealth is coming from, according to Forbes.

Jeff Bezos, Amazon CEO, is worth $25.2B and has recently been dubbed “America’s Land Baron” with nearly 300,000 acres of land. America's 25 biggest landowners own around 1% of the country, a staggering fact considering the vast size of the United States. In fact, these Land Barons will continue purchasing real estate according to the latest Land Report.

Sergey Brin – Worth $22.8B, Google’s co-founder through his company Passerelle Investment Company has paid tens of millions of dollars to purchase a half-dozen commercial buildings in the last three years.

Paul Allen, Microsoft’s co-founder, is worth $15B and owns Vulcan Real Estate actively manages and develops a diversified portfolio of $2.3 billion of commercial real estate investments. In late 2012 his Vulcan Real Estate sold to Amazon the 12-building campus the online retailer had been leasing in downtown Seattle. At $1.15 billion, it was the biggest U.S. commercial real estate deal of the year. * Some notes taken from Forbes & Business Insider.

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