Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national
homebuilder, and GTIS Partners LP, an international real estate
private equity firm headquartered in New York City, announced today
that they have entered into a joint venture agreement to acquire a
portfolio of homebuilding communities.
The venture intends to design, construct and sell homes on the
properties, which are located on approximately 2,340 lots across
thirteen communities in Arizona, California, Florida, Illinois,
Maryland, New Jersey, South Carolina and Virginia, and expects the
proceeds from home sales to exceed $1.0 billion in revenues. The
first tranche of the joint venture, consisting of eight
communities, has closed.
Approximately $160 million of capital will be invested in the
joint venture, with Hovnanian contributing 25% and GTIS Partners
providing 75%. Hovnanian will manage the day-to-day operations of
the venture.
“We are extremely pleased to announce another partnership with
GTIS Partners,” commented Ara Hovnanian, Chairman of the Board of
Directors, President and Chief Executive Officer of Hovnanian
Enterprises, Inc. “Our two firms have developed a strong working
relationship through our previous ventures and we look forward to
continued success working together.”
Tom Shapiro, President of GTIS Partners said, “We are excited to
enter into another joint venture with Hovnanian. Ara and his team
have been first-class institutional partners and, to date, GTIS has
invested with Hovnanian in a total of 21 communities comprised of
approximately 3,400 homes and lots. We are thrilled about the
prospects of this latest investment.”
Noted Robert Vahradian, Senior Managing Director and Head of US
Investments for GTIS Partners. “The portfolio represents a diverse
mix of geographies, product types and price points, and has a
significant concentration of finished and partially-finished lots,
with communities in some of the strongest residential sub-markets
in the country.”
Ed McDowell, Managing Director at GTIS Partners commented, “This
investment underscores our belief that, while the health of the
U.S. housing market has improved along with the general economy, a
persistent shortage of new home supply remains, and affordability
levels should allow for continued strength in the housing
market.”
ABOUT HOVANIAN ENTERPRISES, INC.
Hovnanian Enterprises, Inc., founded in 1959 by Kevork S.
Hovnanian, is headquartered in Red Bank, New Jersey. The company is
one of the nation’s largest homebuilders with operations in
Arizona, California, Delaware, Florida, Georgia, Illinois,
Maryland, New Jersey, Ohio, Pennsylvania, South Carolina, Texas,
Virginia, Washington, D.C. and West Virginia. The company's homes
are marketed and sold under the trade names K. Hovnanian® Homes®,
Brighton Homes®, and Parkwood Builders. As the developer of K.
Hovnanian's® Four Seasons, the Company is also one of the nation's
largest builders of active lifestyle communities.
Additional information on Hovnanian Enterprises, Inc., including
a summary investment profile and the Company’s 2015 annual report,
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 or fax lists, please send an e-mail
to IR@khov.com or sign up at http://www.khov.com.
ABOUT GTIS PARTNERS
GTIS Partners is a global real estate investment firm
headquartered in New York with offices in Los Angeles, San
Francisco, Atlanta, São Paulo, Brazil, Paris, France, and Munich.
GTIS Partners has 83 employees and currently has approximately $3.3
billion of assets under management. To date, the firm has committed
capital to residential, retail, industrial, office, hotel and
mixed-use projects in the U.S. and Brazil. In the U.S., GTIS has
committed over $1.3 billion of equity and debt to 85 projects in 22
states. In Brazil, GTIS has invested in 90 assets comprised of
approximately 13,000 residential units, 500,000 square meters of
office and industrial space, and over 9,800 hotel rooms acquired,
managed, or under development. By combining hands-on real estate
expertise with a disciplined investment approach, GTIS Partners
helps create value for its investors and partners. The firm pursues
opportunistic real estate investments through direct equity
investment and non-traditional lending activities and the firm
relies on macro-research as well as the hands-on industry knowledge
of its experienced investment and asset management teams. For
further information, please visit www.gtispartners.com.
FORWARD-LOOKING STATEMENTS
All statements in this press release that are not historical
facts should be considered as “Forward-Looking Statements” within
the meaning of the “Safe Harbor” provisions of the Private
Securities Litigation Reform Act of 1995. Such statements involve
known and unknown risks, uncertainties and other factors that may
cause actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such forward-looking statements include but are not
limited to statements related to the Company’s goals and
expectations with respect to its financial results for the current
or future financial periods, including total revenues, Adjusted
EBITDA and adjusted income before income taxes. Although we believe
that our plans, intentions and expectations reflected in, or
suggested by, such forward-looking statements are reasonable, we
can give no assurance that such plans, intentions or expectations
will be achieved. By their nature, forward-looking statements: (i)
speak only as of the date they are made, (ii) are not guarantees of
future performance or results and (iii) are subject to risks,
uncertainties and assumptions that are difficult to predict or
quantify. Therefore, actual results could differ materially and
adversely from those forward-looking statements as a result of a
variety of factors. Such risks, uncertainties and other factors
include, but are not limited to, (1) changes in general and local
economic, industry and business conditions and impacts of the
sustained homebuilding downturn; (2) adverse weather and other
environmental conditions and natural disasters; (3) levels of
indebtedness and restrictions on the Company’s operations and
activities imposed by the agreements governing the Company’s
outstanding indebtedness; (4) the Company's sources of liquidity;
(5) changes in credit ratings; (6) changes in market conditions and
seasonality of the Company’s business; (7) the availability and
cost of suitable land and improved lots; (8) shortages in, and
price fluctuations of, raw materials and labor; (9) regional and
local economic factors, including dependency on certain sectors of
the economy, and employment levels affecting home prices and sales
activity in the markets where the Company builds homes; (10)
fluctuations in interest rates and the availability of mortgage
financing; (11) changes in tax laws affecting the after-tax costs
of owning a home; (12) operations through joint ventures with third
parties; (13) government regulation, including regulations
concerning development of land, the home building, sales and
customer financing processes, tax laws and the environment; (14)
product liability litigation, warranty claims and claims made by
mortgage investors; (15) levels of competition; (16) availability
and terms of financing to the Company; (17) successful
identification and integration of acquisitions; (18) significant
influence of the Company’s controlling stockholders; (19)
availability of net operating loss carryforwards; (20) utility
shortages and outages or rate fluctuations; (21) geopolitical
risks, terrorist acts and other acts of war; (22) increases in
cancellations of agreements of sale; (23) loss of key management
personnel or failure to attract qualified personnel; (24)
information technology failures and data security breaches; (25)
legal claims brought against us and not resolved in our favor; and
(26) certain risks, uncertainties and other factors described in
detail in the Company’s Annual Report on Form 10-K for the fiscal
year ended October 31, 2015 and subsequent filings with the
Securities and Exchange Commission. Except as otherwise required by
applicable securities laws, we undertake no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events, changed circumstances or
any other reason.
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version on businesswire.com: http://www.businesswire.com/news/home/20160629006088/en/
Hovnanian Enterprises, Inc.J. Larry Sorsby,
732-747-7800Executive Vice President and CFOorJeffrey T. O’Keefe,
732-747-7800Vice President, Investor RelationsorWater & Wall
GroupScott Sunshine, 212-625-2364scott@waterandwallgroup.com
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