CIC + US Govt financing + PPIP = "big" distressed real estate investments

this will be interesting

http://online.wsj.com/article/SB125243309793493085.html

The Wall Street Journal reports China's $300 bln sovereign-wealth fund is eyeing big investments in distressed U.S. real estate, according to people familiar with the matter. To finance some of the deals, China may rely on the U.S. government. In recent weeks, officials from China Investment Corp. have held talks with U.S. private-equity fund managers, including BlackRock (BLK), Invesco Ltd. (IVZ) and Lone Star Funds, about potential investments in beaten-down property assets, namely mortgage securities backed by office buildings, hotels, strip malls and other commercial property. CIC also is considering buying ownership interests in buildings, according to the people with knowledge of the matter.

In addition, CIC is weighing investing through one of the U.S. government's bailout programs, the Treasury's Public-Private Investment Program, known as PPIP. The program is designed to rid banks of toxic mortgage securities by enticing investors to buy these assets with financing from the U.S. government. Representatives for CIC, BlackRock, Invesco and Lone Star declined to comment.