Partners Group, a global private equity firm, has acquired a portfolio of single-family rental homes in the United States with a combined gross asset value of $1 billion, from subsidiaries of Fortress Investment Group and Kairos Living.
The portfolio consists of 2,528 newly built single-family rental homes and a pipeline of over 1,000 homes under construction spread across 17 Sun Belt states, with the majority located in Alabama, Georgia, Oklahoma and Texas.
“A growing number of businesses are moving to or relocating to the Sun Belt from higher-priced, higher-cost, higher-taxed metropolitan areas,” says Scott Egarian, member of management, Private Real Estate Americas, Partners Group. “As a result, the portfolio’s target demographic, which typically includes young families with stable incomes who are looking for more space, is growing. Our vision is to capitalize on the fragmented nature of the single-family rental market to build a platform across the region while ensuring superior tenant experiences.
Partners Group will work with Kairos Living to execute the pipeline of homes under construction. Kairos Living will handle portfolio management, including identifying potential residents. As part of its value creation plan, Partners Group will also provide growth capital to acquire additional homes and invest in the Kairos Living operating platform as the business expands.
“Millennials are raising families at a time when the high cost of living and a chronic housing shortage are making it difficult for many to buy a home,” adds Ron Lamontagne, Managing Director, Head Private Real Estate Americas, Partners Group. “Providing affordable rental housing for families who are not ready to buy their first home has therefore never been more important. We were seduced by this investment because it is in line with one of our strong conviction themes, residential for rent, and contributes to alleviating the constraints of the housing supply. »
Partners Group’s Private Real Estate business has $18 billion in assets under management and has to date acquired 280 real estate developments and properties worldwide.