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American Homes 4 Rent and Värde Partners Enter $500MM Land Banking Facility Agreement

June 07, 2022, 07:27 AM
Filed Under: Real Estate

American Homes 4 Rent, a leading provider of high-quality single-family homes for rent, and Värde Partners, a leading global alternative investment firm, entered into a land banking facility agreement. This facility provides $500 million in initial capacity to acquire and develop new land opportunities as part of American Homes 4 Rent's internal development platform. The two firms have recently closed their first six land transactions into the facility, representing total acquisition and development costs of over $150 million, and due diligence is underway on additional sites.

"We are excited to combine Värde's extensive experience in U.S. housing with American Homes 4 Rent's reputable homebuilding and development platform," said Brendan Bosman, Senior Managing Director at Värde Partners. "The demand for high-quality single-family rental homes has never been higher despite a persistent shortfall in supply, creating opportunities to invest in segments that we believe are well-positioned for growth. We look forward to working with American Homes 4 Rent to capitalize on these trends and the strong dynamics in their core markets."

Värde Partners has 28 years of experience investing in real estate, with substantial equity and credit investments in residential land development and homebuilding transactions. This partnership further expands the firm's U.S. housing footprint in its target markets.

"Our facility with Värde Partners will enable us to continue the strategic expansion of our development pipeline while also maintaining our commitment to a best-in-class investment grade balance sheet and  reducing long-term risk," said David Singelyn, Chief Executive Officer of American Homes 4 Rent. "With a continued focus on our disciplined underwriting process and a robust pipeline of development opportunities, we are well-positioned to execute our three-pronged growth strategy in our diversified portfolio footprint while driving value for shareholders."

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