TPG has made a $135 million investment in AV Homes, a developer and builder of adult and conventional home communities in Arizona and Florida. TPG’s ownership in the company will be approximately 41.9% on an as-converted basis at the closing of the transaction.
“AV Homes has assembled a strong management team with deep industry experience. The company is well-positioned to participate in the on-going recovery of the housing market, with real estate assets located in two healthy and growing Sunbelt markets,” said Kelvin Davis, senior partner at TPG.
AV Homes (NASDAQ:AVHI) is engaged in homebuilding, community development and land sales in Florida and Arizona. Its principal operations are conducted near Orlando and in the Phoenix markets. The company serves adults 55+ with its Vitalia brand and also builds communities for people of all ages under its Joseph Carl Homes brand. The company is based in Scottsdale, AZ (www.avhomesinc.com).
According to Roger Cregg, AV Homes’ President and Chief Executive Officer, the investment will allow the company to pursue new investment opportunities in its core markets in line with the company’s long-term strategy. “We’re delighted that a renowned global private investment firm such as TPG has confidence in our vision, and in our ability to execute that vision, as the housing industry continues its recovery. It’s an exciting time for AV Homes and I am confident that the implementation of our plans will drive growth and deliver long-term value to our shareholders,” said Mr. Cregg.
TPG is a private investment firm founded in 1992 with approximately $57 billion of assets under management. Sectors of interest include industrials, retail, consumer, financial services, travel and entertainment, technology, media and communications, and healthcare. TPG makes investments throughout North America, Europe, Asia and Australia. The firm has offices in San Francisco, Fort Worth, Austin, Beijing, Chongqing, Hong Kong, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, Paris, São Paulo, Shanghai, Singapore and Tokyo (www.tpg.com).
Moelis & Company is acting as financial advisor to AV Homes on this transaction.
© 2013 PEPD • Private Equity’s Leading News Magazine • 6-21-13