Taylor Morrison and Värde Partners, a global alternative investment firm, have entered into a land banking facility agreement and joint venture, opening more than $1 billion in capacity, with the intent to grow, for new land opportunities.
Through the relationship, Värde will continue aligning as a financial partner in the acquisition and development of residential land and lots while Taylor Morrison will develop and manage the home building projects. Värde and Taylor Morrison have already closed multiple projects in Texas, Georgia, Arizona, and California. In the coming months, additional developments will begin in the Carolinas and Florida.
“Consistent with our commitment to capital efficiency and strategic growth, we believe our new relationship with Värde enhances our ability to cost-effectively acquire land, manage our portfolio, and reduce long-term risk over the course of a housing cycle,” said Sheryl Palmer, Taylor Morrison chairman and CEO, in a press release. “This collaboration with Värde is a meaningful evolution of our existing asset-light land strategies and is expected to help us achieve our goal of increasing our optioned land position to at least 40% in 2022.”
Värde has 28 years of experience investing in real estate, with substantial equity and credit investments in residential land development and home building transactions. This partnership further expands the firm’s U.S. housing footprint in its target markets.
“This relationship combines Värde’s speed and flexibility of capital, as well as our deep experience in U.S. housing, with Taylor Morrison’s trusted reputation in home building and development,” added Brendan Bosman, managing director at Värde Partners. “The significant growth in demand for suburban housing has exposed a persistent shortfall in supply, creating substantial opportunities to invest in segments that we believe are well-positioned to outperform the broader market.”
