Hovnanian Enterprises
GTIS Partners and Hovnanian Enterprises Announce the Expansion of their Homebuilding Joint Venture Portfolio to $1 Billion of Equity to Build 12,600 Homes Valued at $6 Billion (PR Newswire)
GTIS Partners and Hovnanian Enterprises Announce the Expansion of their Homebuilding Joint Venture Portfolio to $1 Billion of Equity to Build 12,600 Homes Valued at $6 Billion
PR Newswire
NEW YORK, May 2, 2024
NEW YORK , May 2, 2024 /PRNewswire/ -- GTIS Partners ("GTIS"), a global real estate investment firm with a focus on residential and industrial/logistics investments, and Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, today announced that they have expanded their partnership to develop, construct and sell homes in a new joint venture of eight additional for-sale homebuilding communities. To date, the partners have invested in approximately 70 homebuilding communities through multiple joint ventures.
The eight newly added communities comprise 1,392 homes located across New Jersey , Florida , Delaware , and South Carolina . In addition to being geographically diversified, these communities are diversified by product type, consisting of townhomes, condominiums and both market-rate and active adult single-family homes.
Approximately $115 million of capital will be invested in the joint venture, with Hovnanian contributing 30% of the capital requirement and GTIS Partners providing 70%, with total build out costs projected at approximately $800 million . Hovnanian will manage the day-to-day operations of the venture.
Tom Shapiro , Founder, President and Chief Investment Officer of GTIS Partners, said, "We are very pleased to announce a further expansion of our existing relationship with Hovnanian. With this transaction we have a partnership totaling $1 billion in equity across 15 joint ventures in high-growth markets across the United States , representing approximately $6 billion in total project costs across 12,600 homebuilding units. Hovnanian has proven to be a tremendous partner and we are thrilled to continue working with such a highly-experienced homebuilder."
Ara Hovnanian , Chairman of the Board of Directors, President and Chief Executive Officer of Hovnanian Enterprises, Inc. also commented, "This addition marks the expansion to over a decade's worth of successful joint venture partnerships and a strong working relationship between our two firms across multiple business cycles. GTIS' deep industry expertise and homebuilding investment experience has made them ideal institutional partners to collaborate with to grow our homebuilding portfolio."
Ed McDowell , Partner and Head of US Acquisitions for GTIS Partners, added, "The addition to the portfolio represents a mix of product types, price points, and a unique geographic diversity across eight communities in four states, many of which are follow-on investments to communities we are already invested in with Hovnanian. This dynamic, combined with the advanced development stage of several of the communities within the portfolio – many of which are already selling and delivering homes – provides excellent visibility into current home prices, absorption, buyer demand, and construction and development costs, and reduces the risks typically associated with development to generate strong risk-adjusted return for both parties."
About GTIS Partners
GTIS Partners is a global real estate investment firm in the Americas, headquartered in New York with offices in São Paulo, San Francisco , Los Angeles , Atlanta , Charlotte , Phoenix , Dallas , Houston and Munich . The firm was founded in 2005 and is managed by President and Founder Tom Shapiro and seven other partners. The firm manages $4.5 billion in gross assets and is active across a wide range of real estate sectors including single family and multifamily housing, office, industrial/logistics and hospitality as well as opportunity zone investments. The firm invests at various points in the capital structure including credit, common equity and structured equity. In the US, GTIS has invested in over 215 assets across 45 unique markets including growth areas such as Miami , Phoenix , Dallas , Houston , Denver , Atlanta , Tampa and Charlotte . In Brazil , GTIS is among the largest real estate private equity firms with holdings including office, residential, logistics, and hospitality investments. Marquee assets developed by GTIS Partners in São Paulo include the Infinity office building and Palácio Tangará, a five-star resort style hotel. For more information, please visit www.gtispartners.com .
About Hovnanian Enterprises
Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian , is headquartered in Matawan, New Jersey and, through its subsidiaries, is one of the nation's largest homebuilders with operations in Arizona , California , Delaware , Florida , Georgia , Maryland , New Jersey , Ohio , Pennsylvania , South Carolina , Texas , Virginia and West Virginia . The Company's homes are marketed and sold under the trade name K. Hovnanian ® Homes. Additionally, the Company's subsidiaries, as developers of K. Hovnanian's ® Four Seasons communities, make the Company one of the nation's largest builders of active lifestyle communities.
Additional information on Hovnanian Enterprises, Inc. can be accessed through the "Investor Relations" section of the Hovnanian Enterprises' website at http://www.khov.com . To be added to Hovnanian's investor e-mail list, please send an e-mail to IR@khov.com or sign up at http://www.khov.com .
Media Contacts
Mary Beth Grover / Keely Gispan
ASC Advisors
(203) 992-1230
mbgrover@ascadvisors.com / kgispan@ascadvisors. com
SOURCE GTIS Partners