DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/1447635
57 Industry Updates SFR SPECIALISTS THE PROMISE HOMES COMPANY SECURES 200 MILLION DEBT FACILITY e Promise Homes Company, one of the largest Black-owned managers of institutional- quality, single-family rental (SFR) homes, has closed on a $200 million institutional debt facility from Barings, a global investment management firm. is facility is part of a recapitalization to form a new joint venture with other institutional investors to grow Promise Homes' portfolio of SFRs to an institutional scale. Promise Homes' existing portfolio of 663 homes is seeding the new joint venture, as it continues to pursue additional institutional equity and debt capital to grow the portfolio to more than 10,000 homes over the next two to four years. Promise Homes Founder Chairman and CEO John Hope Bryant will continue to lead the organization as Managing Principal, and he is the largest individual shareholder of the new joint venture. "is transaction provides an unparalleled proof point that Promise Homes' mission of 'doing well by doing good' can in fact be profitable for all stakeholders. We are doing this by offering a quality roof over families' heads, providing the financial literacy skills to help residents enhance their creditworthiness and build wealth, rewarding residents for consistent on-time rent payments, and giving opportunities to small, local minority firms to provide critical maintenance services to our growing portfolio," Bryant said. "Now, Promise Homes is growing from an entrepreneurial concept to a scaled business. We are gaining momentum with large national institutional investors seeking to invest in our unique model, which empowers both residents and vendors, delivers attractive returns, as well as enhances corporate citizenship by providing steady income to minority small businesses." Deutsche Bank served as financial advisor, Kirkland & Ellis served as legal advisor, and Aprio and Ernst & Young served as tax and accounting advisors to Promise Homes on the transaction. "We are excited to partner with Promise Homes, which has proven that providing housing at affordable prices and free financial coaching and incentive programs for residents can be good business," said William Awad, Head of the Global Private Structured Finance Group at Barings. "Barings is proud to be a part of this company's mission and is committed to investing in attractive companies under strong leadership that also address a critical social need."