Home Partners of America mulls IPO

Company could start selling shares next year

National /
Nov.November 09, 2018 09:16 AM

(Credit: iStock)

A Chicago-based company, best known for its rent-to-own program, is considering an initial public offering as early as next year.

Home Partners of America has been in talks with banks including Goldman Sachs Group and Morgan Stanley, Bloomberg News reported. It could start offering shares in 2019.

The KKR and BlackRock-backed firm has acquired more than $2 billion in properties and leased them to more than 12,500 people. Under the company’s rent-to-own program, tenants select a home they want to live in before Home Partners buys it. The tenants then have five years to decide whether or not to buy the home from Home Partners.

In June, the company landed $460 million in financing from Citibank for its national rental portfolio. According to a report by Moody’s Investors Service, in a recent loan securitization backed by 1,800 of the company’s homes, 44 percent of tenants had a right-to-purchase contract. [Bloomberg] — Kathryn Brenzel


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