Amherst sells portfolio of 4,262 homes to Altisource for USD652m
Amherst Holdings’ single family residential platform has completed the sale of a portfolio of 4,262 single family rental properties for USD652 million.
The purchaser is Altisource Residential, an operating partnership controlled by Altisource Residential Corporation, a publicly traded REIT, which has acquired a 100 per cent equity interest in the portfolio.
As part of the transaction, an Amherst sponsored entity is providing seller financing equal to 75 per cent of the purchase price. Amherst will remain the property manager for the portfolio through its subsidiary, Main Street Renewal.
This is Amherst's second major transaction this year with an institutional investor.
"This sale is a marquee transaction for our single family rental business and demonstrates key aspects of our unique business model. We are creating turnkey opportunities for investors globally to gain access to large portfolios of professionally managed and financed rental homes,” says Sean Dobson, chief executive officer at Amherst.
Drew Flahive, president of Amherst Single Family Residential, says: "We have built an integrated platform with the ability to acquire, develop and convert individual single family properties to rental use and then orchestrate the sale of large portfolios of these homes to institutional investors. We will continue to expand our acquisition and property management activities to meet the growing demand from both consumers and investors for high quality rental properties."
Amherst received legal counsel from Skadden, Arps, Slate, Meagher & Flom and Mayer Brown. Nomura Securities International served as the financial adviser on the transaction.