Tuesday, April 19, 2016

Toll Brothers Forms New Financing JV; Sells Off Some Distressed Holdings

Toll Brothers Inc., a national home builder, through its Gibraltar Capital and Asset Management subsidiary created a venture with an unnamed large institutional investor to provide builders and developers with land banking and joint venture capital. 

The venture will finance builders' and developers' acquisition and development of land and home sites, and will pursue other complementary opportunistic investment strategies. 
The venture, which will be managed by Gibraltar, will have a total of $400 million of funding commitments: 75% from the institutional investor and 25% from Toll Brothers. 
"This exciting new platform will provide much needed acquisition and development capital to third-party residential builders and developers in lot constrained markets across the country,” said Roger A. Brush, Gibraltar's president and managing director. "Many builders require capital beyond the capacity of their balance sheets to fund land acquisition and development.” 
Gibraltar was originally formed in 2010 to acquire distressed real estate loan portfolios from financial institutions. On its own and in partnerships, it has been a successful investor and manager in the acquisition and workout of over $2.2 billion of residential and commercial loan portfolios, a portion of which Gibraltar directly managed. 
In conjunction with this transaction, the institutional investor and Toll Brothers have formed a separate 75/25 joint venture which acquired most of Gibraltar's wholly-owned portfolio of existing assets. 
As of Jan. 31, 2016, Gibraltar had investments in foreclosed real estate and distressed loans of $48.6 million. 


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