Taylor Morrison, investment firm forge joint venture for land purchases

(Disclosure: Rose Law Group represents Taylor Morrison.)

By Mike Sunnucks | Rose Law Group Reporter

Scottsdale-based Taylor Morrison Homes partnered with investment firm Värde Partners on a $1 billion joint venture focused on land acquisitions for future residential developments.

“Through this strategic relationship, Värde will continue aligning as a significant financial partner in the acquisition and development of residential land and lots across the homebuilder’s markets of operation while Taylor Morrison will develop and manage the homebuilding projects,” the companies announced Wednesday.

Minneapolis-based Värde and Taylor Morrision said they have already “closed multiple projects in Texas, Georgia, Arizona and California” with additional acquisitions planned for Florida and the Carolinas. 

“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 homebuilding and development,” said 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. We have established a strong presence across the nation and already have a substantial pipeline of deals in place.”

The joint venture opens up “more than $1 billion in capacity” for land purchases and land banking for future projects, the companies said. 

Arizona-based Taylor Morrison is the fifth largest homebuilder in the U.S.

“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 Taylor Morrison Chairman and CEO Sheryl Palmer. “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 percent in 2022. By remaining disciplined to our rigorous underwriting processes and strategically utilizing these and other land financing tools, we are focused on acquiring return-accretive land parcels to transform into vibrant communities.”

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November 2021