BY Richard Summerfield
Private equity giant Blackstone Group has agreed to acquire Home Partners of America in a deal worth $6bn. The transaction is expected to close in the third quarter of 2021.
Home Partners of America is no stranger to private equity investment, having previously received backing from KKR & Co. and BlackRock. In recent years, Home Partners had explored the option of an initial public offering, but instead opted to sell to Blackstone Real Estate Investment Trust, known as BREIT, a non-public real estate investment trust externally managed by a Blackstone subsidiary.
The deal is a substantial bet on the US property market. In 2020, US home sales grew at their fastest pace in 14 years, when low mortgage rates and the rise of remote work during the pandemic drove market activity. Home Partners owns more than 17,000 houses in the US that it rents out to tenants who are eventually given the opportunity to buy them. Blackstone intends to continue this programme.
“The fundamental premise of the HPA platform is to provide residents with the opportunity to live in their chosen home with the option to purchase it – we intend to build on that goal and expand access to homes across the US,” said Jacob Werner, senior managing director of Blackstone Real Estate. “We look forward to working with HPA’s leadership team to further invest in the properties and continue its role as a valuable resource for people considering home purchases.”
“This partnership with Blackstone Real Estate and its consistent support of our business will ensure we are well-positioned to expand the reach of our program to provide access to more homes while also delivering on our commitments to our current residents for the long-term,” said Bill Young, co-founder and chief executive of HPA. “Our goal has always been to make homeownership a reality for more people, and now we can continue that mission, while providing even more flexibility and services for our residents.”
Blackstone previously owned Invitation Homes, currently the largest owner of single-family homes in the US with 80,000 homes, until it sold the last of its shares in the company in 2019 at $30.10 per share. Blackstone made about $7bn on its stake in Invitation, more than doubling its money, but shares in the company have increased by 25 percent since then, indicating the growing demand for suburban housing across the US.
News: Blackstone to buy Home Partners of America in $6 billion deal