Scottsdale-based homebuilder Taylor Morrison Home Corp. entered into a $3 billion financing facility agreement for the company’s build-to-rent brand, Yardly, with a goal of building up even more land reserves for future projects.
In a July 23 announcement, Taylor Morrison (NYSE: TMHC), one of the largest homebuilders in the United States, detailed its deal with Kennedy Lewis Investment Management (KLIM), a New York-based investment manager with nearly $30 billion in managed assets. KLIM owns Kennedy Lewis Land and Residential Advisors LLC, which is the external manager of homesite purchase platform Millrose Properties Inc.
“We are pleased to support Taylor Morrison’s Yardly platform with this $3 billion financing commitment,” Darren Richman, managing partner of KILM and chief executive officer of Millrose Properties, said in a statement. “This transaction demonstrates another use case for land banking as a capital solution to meet the diverse needs of our homebuilder counterparties as they seek creative ways to address today’s affordability challenges.”
Taylor Morrison and KLIM have previously collaborated on an existing land-banking agreement for the homebuilder’s for-sale residential construction operations. The new arrangement will allow the company to continue its Yardly ramp-up in Phoenix and other markets “with improved capital efficiency and returns in mind,” a company spokesperson told the Business Journal. The joint project will finance existing and future build-to-rent (BTR) land and construction projects, the company said.
This story is posted in partnership with Phoenix Business Journal. Click to read the full story.
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