[Amerigomag]

For what it's worth here's an insider comment:

This article is incorrect.

Hines and partners have not actually bought this portfolio. They have simply been selected as CA's preferred buyer. They still have to enter into a contract, put up a deposit, and then close.

That will not happen. Hines is putting in almost no capital (they want the management contract), and the partners will not be able to raise the equity needed... likely, the partners / investors will require a change in deal terms, and CA's voters and legislature should be watching for that closely.

This will be a huge embarrassment for all involved.

[Carry_Okie]

This will be a huge embarrassment for all involved, with the exception of the completely shameless.

[calcowgirl]

Here is the LAO report. Their report assumes the deal is closed by the end of December.

http://www.lao.ca.gov/reports/2010/infr/sale_leaseback/sale_leaseback_110910.pdf

Toward the end, they go through a discussion of how DGS supposedly performed all sorts of due diligence to ensure the buyers “could meet the bid price with minimal risk.” So much for that. (It also talks about how DGS was exempt from following the normal process and operating with transparency.) I’ll be glad when the “Sunshine Governor” is out of office, despite the fact the new guy is probably worse.