RUSSELL, Utah (AP) A Utah family-owned real estate investment fund was sold for a record $1 billion Wednesday after the fund’s assets plunged from a record high of $1,829 million in April.
The $2.5 billion sale of the Utah River Valley Development Fund, a $6 billion portfolio, came as the value of the market slumped from a five-year high of nearly $9 billion to $831 million after the Federal Reserve and the Bank of England cut interest rates.RVDF is owned by a couple of wealthy Utahans and is one of the biggest U.S. real estate portfolios.
It is valued at $5.6 billion and has more than $1 trillion in assets under management.
The fund’s market value has dropped from its record high in April of $2,988 million, when the market peaked.
The fund’s portfolio value dropped by $300 million, from $2 billion in April to $1 million today.
The market value of Utah River River Valley’s real estate portfolio fell by more than a third to $564 million in a week.RUSSEll said Wednesday it is selling the fund.
It will continue to manage the portfolio until the end of 2019.
The company did not say how much it paid for the fund or when it planned to close it.RVS is a diversified fund that includes investments in real estate, technology, energy and technology, consumer and hospitality, and other assets.RVC was founded in 1980 and has assets totaling more than 10 times its total assets.
The portfolio includes $2 trillion of real estate and $1-billion of technology assets.