Taylor Morrison and Kennedy Lewis Investment Management Agree to Financing Facility for Build-to-Rent Communities
Taylor Morrison (NYSE: TMHC) has secured a significant $3 billion financing facility agreement with Kennedy Lewis Investment Management (KLIM) to support its build-to-rent brand, Yardly. The facility will provide funding for land acquisition, development, and construction costs of build-to-rent communities.
KLIM, which manages approximately $30 billion in assets, will help Taylor Morrison optimize its capital structure and provide balance sheet relief. The agreement builds upon an existing land banking partnership between the two companies and aims to address housing affordability challenges while providing a pathway for renters to become future Taylor Morrison homeowners.
Taylor Morrison (NYSE: TMHC) ha ottenuto un importante accordo di finanziamento da 3 miliardi di dollari con Kennedy Lewis Investment Management (KLIM) per sostenere il suo marchio build-to-rent, Yardly. La linea di credito finanzier脿 l'acquisto di terreni, lo sviluppo e i costi di costruzione delle comunit脿 build-to-rent.
KLIM, che gestisce circa 30 miliardi di dollari in asset, aiuter脿 Taylor Morrison a ottimizzare la struttura del capitale e a fornire sollievo al bilancio. L'accordo si basa su una partnership gi脿 esistente per la gestione dei terreni tra le due societ脿 e mira ad affrontare le sfide dell'accessibilit脿 abitativa offrendo ai locatari un percorso per diventare futuri proprietari di case Taylor Morrison.
Taylor Morrison (NYSE: TMHC) ha asegurado un importante acuerdo de financiamiento por 3 mil millones de d贸lares con Kennedy Lewis Investment Management (KLIM) para apoyar su marca build-to-rent, Yardly. La l铆nea de cr茅dito proporcionar谩 fondos para la adquisici贸n de terrenos, desarrollo y costos de construcci贸n de comunidades build-to-rent.
KLIM, que administra aproximadamente 30 mil millones de d贸lares en activos, ayudar谩 a Taylor Morrison a optimizar su estructura de capital y a aliviar su balance general. El acuerdo se basa en una asociaci贸n existente para la gesti贸n de terrenos entre ambas compa帽铆as y tiene como objetivo enfrentar los desaf铆os de la asequibilidad de la vivienda, ofreciendo a los inquilinos un camino para convertirse en futuros propietarios de viviendas de Taylor Morrison.
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Taylor Morrison (NYSE : TMHC) a conclu un accord de financement important de 3 milliards de dollars avec Kennedy Lewis Investment Management (KLIM) pour soutenir sa marque build-to-rent, Yardly. Cette facilit茅 financera l'acquisition de terrains, le d茅veloppement et les co没ts de construction des communaut茅s build-to-rent.
KLIM, qui g猫re environ 30 milliards de dollars d'actifs, aidera Taylor Morrison 脿 optimiser sa structure de capital et 脿 all茅ger son bilan. Cet accord s'appuie sur un partenariat existant de gestion fonci猫re entre les deux entreprises et vise 脿 relever les d茅fis de l'accessibilit茅 au logement tout en offrant aux locataires une voie pour devenir futurs propri茅taires chez Taylor Morrison.
Taylor Morrison (NYSE: TMHC) hat eine bedeutende Finanzierungsvereinbarung 眉ber 3 Milliarden US-Dollar mit Kennedy Lewis Investment Management (KLIM) abgeschlossen, um seine Build-to-Rent-Marke Yardly zu unterst眉tzen. Die Finanzierung wird Mittel f眉r den Erwerb von Grundst眉cken, die Entwicklung und die Baukosten von Build-to-Rent-Gemeinschaften bereitstellen.
KLIM, das etwa 30 Milliarden US-Dollar an Verm枚genswerten verwaltet, wird Taylor Morrison dabei helfen, die Kapitalstruktur zu optimieren und Bilanzentlastung zu bieten. Die Vereinbarung baut auf einer bestehenden Partnerschaft im Bereich Land Banking zwischen den beiden Unternehmen auf und zielt darauf ab, Herausforderungen der Wohnraumerschwinglichkeit anzugehen und Mietern einen Weg zu bieten, zuk眉nftige Taylor Morrison-Hausbesitzer zu werden.
- Secured $3 billion in financing capacity for build-to-rent development
- Partnership with established $30 billion asset manager KLIM
- Provides balance sheet optimization and cash flow efficiency
- Creates potential future homeowner pipeline through rental communities
- Expands existing successful partnership with KLIM
- Increased debt exposure through new financing facility
- Potential execution risks in scaling build-to-rent operations
Insights
Taylor Morrison secures $3B financing for build-to-rent growth, improving capital flexibility while maintaining land strategy diversification.
Taylor Morrison has secured a
The deal offers multiple financial advantages for Taylor Morrison. First, it creates enhanced balance sheet flexibility by moving some capital requirements off their direct books. Second, it preserves optionality for future monetization of these assets, potentially through portfolio sales or other exit strategies. Third, it likely improves projected return on invested capital by reducing direct funding requirements.
This facility represents an evolution of Taylor Morrison's sophisticated land strategy portfolio, which already includes joint ventures, seller financing, deferred payments, and land banking arrangements. The existing relationship with Kennedy Lewis suggests favorable terms and operational synergies, as the companies already collaborate on land banking for Taylor Morrison's for-sale operations.
The build-to-rent sector continues to gain momentum in residential real estate as a response to housing affordability challenges. For Taylor Morrison, Yardly represents both a revenue diversification play and a potential customer acquisition channel, with the stated goal of eventually converting renters to homebuyers. The
This arrangement demonstrates management's focus on capital-efficient growth while maintaining strategic flexibility in an evolving housing market. It aligns with broader industry trends of seeking innovative financing structures to maintain development pipelines while managing balance sheet exposure.
America's Most Trusted Home Builder secures a financial facility arrangement听
"To support the efficient growth of our unique Yardly brand, this strategic financial facility agreement dedicated to our build-for-rent business will help to scale our existing core competencies of land acquisition, land development and efficient home construction. As we target optimal exit strategies for our growing pipeline of Yardly communities, this vehicle enhances our capital flexibility and return expectations," said Sheryl Palmer, Taylor Morrison Chairman and Chief Executive Officer. "Ultimately, our hope is for Yardly renters to become future Taylor Morrison homeowners." 听
This new facility provides further cash flow efficiency and optimizes value as we contemplate dispositions of assets over time with greater optionality. Taylor Morrison is pleased to work again with Kennedy Lewis and its managed affiliates on this financing vehicle, offering another layer of sophistication to Taylor Morrison's existing land strategies, which include joint ventures, seller financing, deferred participation payments, land banking and more.
Taylor Morrison and KLIM have experience working together with an existing land banking agreement serving the homebuilder's for-sale operations. Both companies remain committed to bringing the single-family living experience to customers who might not yet be ready to buy a home through the Yardly brand. The flexible finance facility will provide balance sheet relief and greater optionality, serving both existing Yardly assets and new acquisitions.
"We are pleased to support Taylor Morrison's Yardly platform with this
Yardly elevates traditional apartment living through a thoughtful blend of form and function. Attractive community amenities, market leading interiors, and a focus on beloved pets with built-in private backyards allow for improved wellness and flexible living for renters and their pets.
About Taylor Morrison
Headquartered in
For more information about Taylor Morrison, please visit .
About Kennedy Lewis Investment Management (KLIM)
Kennedy Lewis Investment Management is an alternative investment manager founded in 2017 by Darren L. Richman and David K. Chene. KLIM's owned affiliate Kennedy Lewis Land and Residential Advisors, LLC is the external manager of Millrose Properties, Inc. (NYSE: MRP, "Millrose"), a publicly traded Homesite Option Purchase Platform for residential homebuilders.
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FAQ
What is the size of Taylor Morrison's (TMHC) new financing facility with Kennedy Lewis?
How will the TMHC financing facility affect their build-to-rent operations?
What is the purpose of Taylor Morrison's Yardly brand?
How much assets does Kennedy Lewis Investment Management manage?
What is the strategic benefit of TMHC's partnership with Kennedy Lewis?
