Invesco Real Estate and Avanta Ink Deal for Strategic Investment in Single-Family Rental Platform

Rhea-AI Summary

Avanta Residential, a Hunt Companies affiliate, has secured a strategic investment from Invesco Real Estate, enhancing its build-for-rent platform. This recapitalization focuses on scaling operations to meet the growing demand for single-family rentals, influenced by changing lifestyles post-COVID-19. Invesco acquired 75% of the company, aiming to provide high-quality living experiences and strong returns for its clients. Avanta plans to develop over 40 neighborhoods, with 5,000 homes underway, leveraging Hunt's extensive real estate experience and expertise.

Positive

• Secured strategic investment from Invesco Real Estate, enhancing operational capabilities.
• On track to develop over 40 neighborhoods, representing approximately 5,000 homes.
• Investment aims to meet growing demand for single-family rentals post-COVID-19.

Negative

• None.

DENVER and DALLAS, Oct. 28, 2021 /PRNewswire/ -- Avanta Residential, the single-family rental affiliate of Hunt Companies, announced today that the firm has secured a recapitalization and strategic investment from Invesco Real Estate, a global real estate investment manager.  The commitment will further scale Avanta's operating platform and position it as a pre-eminent build-for-rent enterprise. 

"We could not ask for a better strategic partner to support the rapid growth of the Avanta platform," said Avanta President Jim Dobbie.  "We look forward to putting our complementary capabilities to work to deliver class-A neighborhoods and strong return potential for our current investor, Iron Point Partners, LLC, and other institutional capital partners."

Invesco Real Estate recognizes that the COVID-19 pandemic has increased the demand for single-family rentals as people's live/work/play boundaries become more blurred. This transaction further strengthens Invesco Real Estate's commitment to the fast-growing build-for-rent asset class, and it provides access to expertise from a seasoned team of real estate professionals in a truly vertically integrated model. Invesco Real Estate acquired 75% of Avanta Residential on behalf of a client with a high return strategy.

"We believe build-to-rent represents a tremendous opportunity to invest in an asset class that will allow us to provide a high-quality living experience to anyone looking for their next home," said Bert Crouch, Managing Director, Head of North America for Invesco Real Estate. "We look forward to partnering with Avanta as they expand their build-to-rent offering and make it possible for our client capital to grow in single-family rental portfolios."

Avanta was formed in 2020 to leverage Hunt's 30-year expertise in single-family rentals as well as the shift in mindset about home rentals.  Since then, Avanta has announced its first neighborhood at The Colony in Bastrop, Texas.  More than 20 neighborhoods are in the works representing approximately 5,000 homes. Avanta is on track to create over 40 neighborhoods in the next several years.

About Avanta
Avanta Residential is the single-family rental division of Hunt Companies, Inc. (Hunt).  Drawing on Hunt's extensive real estate background and more than $8.5 billion in completed real estate developments, Avanta is positioned to set the standard for the industry by creating neighborhoods comprised of single-family homes for lease.  For more information, www.avantaresidential.com.

About Invesco Real Estate
Invesco Real Estate is a global leader in the real estate investment management business with $85.2 billion in real estate assets under management, 592 employees and 21 regional offices across the North America, Europe and Asia Pacific (as of June 30, 2021). Invesco Real Estate has been actively investing in core, value-add and opportunistic real estate strategies since 1983. Invesco Real Estate is the real estate investment center of Invesco Advisers, Inc., an indirect wholly owned subsidiary of Invesco Ltd. an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; www.invesco.com.

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SOURCE Avanta Residential

FAQ

What is the significance of the recent investment by Invesco Real Estate in Avanta Residential?

The investment strengthens Avanta's platform for build-for-rent properties and enhances its operational capabilities to meet growing demand.

How much of Avanta Residential does Invesco Real Estate own after the investment?

Invesco Real Estate acquired a 75% stake in Avanta Residential.

What are Avanta Residential's plans for future developments?

Avanta plans to create over 40 neighborhoods, with around 5,000 homes in development.

What asset class is Avanta Residential focused on?

Avanta Residential focuses on the rapidly growing single-family rental asset class, particularly build-for-rent properties.

How does the investment impact Invesco Real Estate's strategy?

The investment aligns with Invesco's strategy to expand in the build-for-rent market and provide high-quality living experiences for renters.