Invitation Homes, advised by Latham & Watkins LLP, announced Monday the formation of a $200 million joint venture to acquire newly constructed homes, with plans to eventually expand the investment to $500 million.
invitation Homes $200M JV : Details of the New Joint Venture
Invitation Homes revealed in a press release that it has partnered with an undisclosed “leading global real estate investment partner” to establish the venture. While the identity of the partner remains confidential, the collaboration is set to begin with a $200 million investment, with Invitation contributing $50 million to the initial capitalization.
According to the announcement, the joint venture aims to acquire a portfolio of recently built single-family homes. The company expects to expand the total investment to $500 million over time as opportunities arise.
Management and Future Purchase Options
As part of the deal, Invitation Homes will manage the properties, earning management fees and additional financial incentives based on the performance of the joint venture. Furthermore, Invitation Homes retains the option to potentially purchase the homes within the joint venture portfolio in the future, offering additional flexibility and growth potential for the company.
