Private equity firm TPG is making a $135 million investment in AV Homes Inc. (Nasdaq: AVHI).
The equity investment will give TPG ownership of $41.9 percent of the company. The purchase price works out to $14.65 per share. AV Homes’ stock closed at $14.54 on June 18, before the deal was announced, and was trading at around $17 midday on June 19.
AV Homes, headquartered in Scottsdale, Ariz., develops and builds homes in Arizona and Florida, and specializes in developing communities for people older than 55 years.
TPG, headquartered in Fort Worth, Texas, and San Francisco, is a private equity firm that has more than $56 billion in assets under management. The firm has committed more than $2 billion to real estate investments since 2009, including investments in ST Residential, Catellus Development Corp. Taylor Morrison Home Corp. Parkway Properties Inc., Merin BV, M West Holdings LP and the Woolgate Exchange building in London.
Moelis & Co. LLC is AV Homes’ financial adviser, while Faegre Baker Daniels LLP is providing legal advice. Ropes & Gray LLP is TPG’s legal counsel.
Several PE firms have picked up real estate assets lately, including RLJ Lodging Trust (NYSE: RLJ), which bought a hotel in Hawaii, CBRE Group Inc. (NYSE: CBG), which purchased Sogesmaint-CBRE, and Standard Pacific Corp. (NYSE: SPF), which closed a deal for homebuilding assets.
For more on private equity’s interest in the real estate sector, see “Beyond Location.”