Le mie ricette per la real estate communityInvitation Homes, the single-family-rental property owner created by Blackstone, is to merge with competitor Starwood Waypoint Homes, creating a $11bn (€9.53bn) real estate investment trust (REIT).
The creation of the largest single-family-rental REIT highlights how the sector is becoming a major institutional asset class as US home ownership remained out of reach for many since the global financial crisis.
The deal combines two of the largest owners and operators of single-family homes in the US to create a single landlord for approximately 82,000 homes in 17 metropolitan areas, with heavy concentrations in and around Atlanta, Miami, Tampa Bay and Southern California.
The scale of the Invitation Homes transaction marks a turning point for the sector, which had initially been seen as an opportunistic investment to be exited when homeownership rates rebounded.
The combined company will retain the Invitation Homes name and rank as the largest private owner of single-family homes, surpassing American Homes 4 Rent, which owns about 49,000.
Invitation Homes shareholders will own 59% of the combined company’s shares while Starwood’s investors will hold the remaining 41%.
According to the transaction announcement, the equity market capitalisation of the combined company would be approximately $11bn and the total enterprise value including debt would be approximately $20bn based on 9 August stock prices.
Source : IPE