Invitation Homes Inc. (INVH), a company specializing in home leasing and management, announced on Monday the formation of a new joint venture with a real estate investment partner. CEO Dallas Tanner expressed confidence in the initiative, stating, "Our strategy of partnering with builders to invest in new homes positions Invitation Homes to achieve optimal risk-adjusted returns while providing high-quality housing where it is most needed."
This joint venture is set to deploy approximately $500 million, including debt, to purchase newly constructed homes. It will be initially funded with a total equity commitment of $200 million, with Invitation Homes contributing $50 million and the opportunity for increased equity commitments in the future.
The joint venture plans to focus its investments on newly-built homes and communities in several rapidly expanding markets. Additionally, Invitation Homes retains certain rights to potentially acquire the joint venture's properties down the line.
Financial advisory services for the arrangement of the joint venture were provided by Eastdil Secured, while legal advice was rendered by Latham & Watkins LLP.
