Invitation Homes announces $200M joint venture

Invitation Homes (INVH) has entered into an agreement to form a new joint venture partnership with a global real estate investment partner. The JV will leverage the company’s homebuilder partnerships, management expertise, and scale to invest in newly-constructed homes and communities in several high-growth markets. The JV is expected to deploy approximately $500M , including debt, to acquire newly constructed homes. The JV will be initially capitalized with a total equity commitment of $200M, of which $50M will be committed by Invitation Homes, with potential to upsize equity commitments through follow-on investment tranches in the future. The company will provide various management services to the JV, for which the company will earn management fees in addition to the opportunity to earn a promoted interest subject to certain performance thresholds. Invitation Homes also has certain rights to potentially acquire the JV’s homes in the future.