The big mistake of jw.org property management
Today I read some news story's about the property deals of jw.org in Brooklyn. They made good money and good connections.
But I'm sure jw.org made a very, very big mistake in Brooklyn. They did.
They sold and are selling all the property for money. Much money, some 2 billion, for sure.
But they had a change to make their balance much more stronger.
They had to keep the ownership of these building and leasing it for use on long term to property management corporations. Creating the same things they do now, but with long time ownership by jw.org. Nothing so good on a balance then property, with long time investors.
So, I'm for very sure, they made a big mistake, maybe the biggest mistake they could make.
Yes, the new country side paddocks they own won't rise in valuation nearly as much as land in Brooklyn. The sale was short sighted, as can be expected of doomsday cults.
We don't know what their financial situation is. We do know that they attended a number of seminars on futures investments and there is no reason to doubt that they invested in this, possibly losing many millions during the financial crash in 2008.
The big question is - did they mortgage the properties they had in Brooklyn? This is far from being considered an unwise financial tactic to take, especially amongst the big money makers, they've been doing it for decades. You mortgage the property you have to put that equity into buying new properties or invest it into futures. Your property portfolio increases substantially and after a number of years the value of the property increases so that the mortgages become relatively smaller in real terms.
Or maybe the organization has been functioning beyond it's means, spending more than it's making and requiring it to mortgage it's valuable properties to continue on, spending the equity in their current assets. Losing money on the futures market may have been the tipping stone where they were forced to sell their properties in order to meet mortgage payments. After all, Armageddon is imminent.
so if I've read this correctly they sold their property portfolio in Brooklyn for far less than they were worth? and had to keep long term freeholds because the properties were mortgaged?
so if I've read this correctly they sold their property portfolio in Brooklyn for far less than they were worth?
My POV is: Why sell Brooklyn real estate beginning in 2012, etc.? Nowhere near the peak of the market.
Who did they have doing the assessments'? some 'good spiritual brother' with no education? hmm
Why selling these big shot locations knowing it will have a big value in future?
Why not long term leasing them for devolpment by a third party?
There is something strange about it.
Very interesting topic and thanks for posting.
Just a guess however; maybe the Org was suffering cash flow problems due to most of the Orgs assets tied up in property and therefore had not enough readily available funds to complete Warwick and for other operating expenses. So one way of correcting the situation was the raid on all the congregations banking accounts, the closing down of some branches, and the selling off of KH's and Brooklyn property.
Any appreciation of their own cultural heritage evident? Were there any holdbacks for a small museum, for children to see "where it all began"? This is a major American originating religion, I would think these buildings would attract the attention of Historical Societies, even though Watch Tower enjoys abandoning her own history, I'm curious,