Asset management firm TPG has acquired a majority interest in homebuilder Lennar’s multifamily development and investment management platform and committed an additional $1 billion for the business, the companies said on Tuesday.
The acquisition of Quarterra comes when U.S. homebuilders are grappling with tepid demand as affordability remains pressured due to still-high mortgage rates.
“This partnership reflects our shared commitment to tackling one of America’s most pressing challenges: housing affordability,” Lennar CEO Stuart Miller said in a statement.
TPG expects to raise additional capital and focus on the development of Quarterra’s Emblem communities program, which builds attainable apartments for suburban middle-income markets.
Lennar in 2022 spun off its multifamily and single-family home unit for rent asset management businesses, together with some investment assets, by transferring them to a newly formed subsidiary, Quarterra Group.
Source: Reuters.com