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Hovnanian, GTIS Partners Extend Joint Homebuilding Venture to VA,
MD and PA
05/09/2011
RED BANK, N.J. and NEW YORK -- Hovnanian Enterprises, Inc.and GTIS
Partners announced that they have expanded their December 2010 joint
venture to acquire five additional homebuilding communities. The venture
intends to design, sell, and deliver homes in the communities, which
contain 745 lots across three communities in Northern Virginia, one
community in Maryland, and one community in Pennsylvania. Inclusive of
the three properties acquired in December, two in California and one in
Virginia, the joint venture now owns 1,168 lots in eight communities,
and expects its gross home sellout to exceed $500 million.
Approximately $123 million of capital has been invested in the
overall joint venture, with Hovnanian contributing 25% and GTIS Partners
providing 75%. Hovnanian will manage the day-to-day operations of the
venture. If certain financial targets are met, Hovnanian will receive a
promoted share of the cash returns from the venture. Additional details
related to the joint venture are not being disclosed.
"Expanding our partnership with GTIS Partners is an important step
forward in an already successful relationship with two organizations
that share a demand for excellence," stated Ara Hovnanian, Chairman of
the Board of Directors, President and Chief Executive Officer of
Hovnanian Enterprises, Inc. "Within the joint venture, and our earlier
partnership with GTIS, we now expect to deliver over 2,700 homes in 19
communities. Our efforts to execute additional joint ventures with GTIS
or with others do not end here, as we continue to seek opportunities to
leverage our homebuilding expertise with financial partners' desires to
invest in for-sale residential communities."
Tom Shapiro, President of GTIS Partners said, "We are pleased to
upsize our investment with Hovnanian. They are a first class partner and
homebuilder. All of these communities are located in specific submarkets
in the U.S. where our underwriting validates a continued and sustained
demand for new homes."
Added Robert Vahradian, Senior Managing Director and Head of US
Investments for GTIS Partners, "The portfolio is now geographically
represented in both Northern and Southern California, and in the greater
Washington D.C. and Philadelphia areas. It is further weighted toward
finished and partially finished lots. This investment provides our
investors with an attractive risk-reward profile, with a concentration
in markets that have consistently outperformed the overall country in
terms of employment, home pricing, and absorption."
About Hovnanian 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, Kentucky, Maryland,
Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania,
South Carolina, Texas, Virginia and West Virginia. The Company's homes
are marketed and sold under the trade names K. Hovnanian Homes, Matzel &
Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes and
Oster Homes. As the developer of K. Hovnanian's Four Seasons
communities, the Company is also one of the nation's largest builders of
active adult homes.
For more information, visit: www.khov.com
From: A. Papazian
MD and PA
05/09/2011
RED BANK, N.J. and NEW YORK -- Hovnanian Enterprises, Inc.and GTIS
Partners announced that they have expanded their December 2010 joint
venture to acquire five additional homebuilding communities. The venture
intends to design, sell, and deliver homes in the communities, which
contain 745 lots across three communities in Northern Virginia, one
community in Maryland, and one community in Pennsylvania. Inclusive of
the three properties acquired in December, two in California and one in
Virginia, the joint venture now owns 1,168 lots in eight communities,
and expects its gross home sellout to exceed $500 million.
Approximately $123 million of capital has been invested in the
overall joint venture, with Hovnanian contributing 25% and GTIS Partners
providing 75%. Hovnanian will manage the day-to-day operations of the
venture. If certain financial targets are met, Hovnanian will receive a
promoted share of the cash returns from the venture. Additional details
related to the joint venture are not being disclosed.
"Expanding our partnership with GTIS Partners is an important step
forward in an already successful relationship with two organizations
that share a demand for excellence," stated Ara Hovnanian, Chairman of
the Board of Directors, President and Chief Executive Officer of
Hovnanian Enterprises, Inc. "Within the joint venture, and our earlier
partnership with GTIS, we now expect to deliver over 2,700 homes in 19
communities. Our efforts to execute additional joint ventures with GTIS
or with others do not end here, as we continue to seek opportunities to
leverage our homebuilding expertise with financial partners' desires to
invest in for-sale residential communities."
Tom Shapiro, President of GTIS Partners said, "We are pleased to
upsize our investment with Hovnanian. They are a first class partner and
homebuilder. All of these communities are located in specific submarkets
in the U.S. where our underwriting validates a continued and sustained
demand for new homes."
Added Robert Vahradian, Senior Managing Director and Head of US
Investments for GTIS Partners, "The portfolio is now geographically
represented in both Northern and Southern California, and in the greater
Washington D.C. and Philadelphia areas. It is further weighted toward
finished and partially finished lots. This investment provides our
investors with an attractive risk-reward profile, with a concentration
in markets that have consistently outperformed the overall country in
terms of employment, home pricing, and absorption."
About Hovnanian 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, Kentucky, Maryland,
Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania,
South Carolina, Texas, Virginia and West Virginia. The Company's homes
are marketed and sold under the trade names K. Hovnanian Homes, Matzel &
Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes and
Oster Homes. As the developer of K. Hovnanian's Four Seasons
communities, the Company is also one of the nation's largest builders of
active adult homes.
For more information, visit: www.khov.com
From: A. Papazian