GTIS Partners And Hovnanian Enterprises Announce The Expansion Of Their Homebuilding Joint Venture Portfolio To $1B Of Equity To Build 12,600 Homes Valued At $6B

GTIS Partners ("GTIS"), a global real estate investment firm with a focus on residential and industrial/logistics investments, and Hovnanian Enterprises, Inc. (NYSE:HOV), a leading national homebuilder, today announced that they have expanded their partnership to develop, construct and sell homes in a new joint venture of eight additional for-sale homebuilding communities. To date, the partners have invested in approximately 70 homebuilding communities through multiple joint ventures.

The eight newly added communities comprise 1,392 homes located across New Jersey, Florida, Delaware, and South Carolina. In addition to being geographically diversified, these communities are diversified by product type, consisting of townhomes, condominiums and both market-rate and active adult single-family homes.

Approximately $115 million of capital will be invested in the joint venture, with Hovnanian contributing 30% of the capital requirement and GTIS Partners providing 70%, with total build out costs projected at approximately $800 million. Hovnanian will manage the day-to-day operations of the venture.

Tom Shapiro, Founder, President and Chief Investment Officer of GTIS Partners, said, "We are very pleased to announce a further expansion of our existing relationship with Hovnanian. With this transaction we have a partnership totaling $1 billion in equity across 15 joint ventures in high-growth markets across the United States, representing approximately $6 billion in total project costs across 12,600 homebuilding units. Hovnanian has proven to be a tremendous partner and we are thrilled to continue working with such a highly-experienced homebuilder."

Ara Hovnanian, Chairman of the Board of Directors, President and Chief Executive Officer of Hovnanian Enterprises, Inc. also commented, "This addition marks the expansion to over a decade's worth of successful joint venture partnerships and a strong working relationship between our two firms across multiple business cycles. GTIS' deep industry expertise and homebuilding investment experience has made them ideal institutional partners to collaborate with to grow our homebuilding portfolio."

Ed McDowell, Partner and Head of US Acquisitions for GTIS Partners, added, "The addition to the portfolio represents a mix of product types, price points, and a unique geographic diversity across eight communities in four states, many of which are follow-on investments to communities we are already invested in with Hovnanian. This dynamic, combined with the advanced development stage of several of the communities within the portfolio – many of which are already selling and delivering homes – provides excellent visibility into current home prices, absorption, buyer demand, and construction and development costs, and reduces the risks typically associated with development to generate strong risk-adjusted return for both parties."