00:00PGM announcing this week its partnership with Domain Real Estate Partners has raised about
00:04$4 billion for seven residential land banking projects. Scott Carpenter, Bloomberg's credit
00:09reporter, joins us now. First, the obvious question, what in the world is land banking, Scott?
00:15Land banking is when a home builder will temporarily sell an undeveloped plot of land
00:22to a land bank, which holds onto it while you do the logistical stuff, and then when the home
00:29builder is ready to build houses, they buy it back. So this is a way that they don't
00:35have to hold undeveloped land on their balance sheet. They say it's a way for them to be more
00:41efficient. So why is it getting bigger and why PGM? Well, PGM, first of all, is not a land bank.
00:48What they are doing is helping the land bank domain do these deals. Why is it getting bigger? PGM is
00:56interested in this kind of thing because it is part of asset based finance, which is which is the idea
01:02of financing specific assets rather than entire companies. And that is a major trend has been going on.
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