Blackstone’s single-family rental division files for IPO

Invitation Homes plans to sell $1.5B in shares

Dec.December 01, 2016 01:30 PM

From the New York website: Blackstone Group’s single-family home rental business Invitation Homes quietly filed to go public. In January, the firm plans to sell $1.5 billion in shares in an IPO that could value it at $7.5 billion.

The private equity giant plans to use the money to pay down debt, sources told the Wall Street Journal. Blackstone had previously indicated an Invitation Homes IPO was coming, but didn’t specify timing.

Blackstone has invested $10 billion in buying up 50,000 distressed homes, most of them in the wake of the 2008 crisis, and turned them into rentals.

“We said, ‘Oh my goodness, this could be huge. Nobody is going to be able to borrow, they’re going to need housing,’” Blackstone’s CEO Stephen Schwarzman told the Journal. “So we went out and started to buy houses to rent to people.”

Blackstone has also sold bonds backed by the homes’ rental income.

Other fund managers such as Barry Sternlicht’s Starwood Capital and Thomas Barrack’s Colony Capital also placed big bets on rental homes. The two businesses merged earlier this year and went public as Colony Starwood Homes. [WSJ]  — Konrad Putzier

Related Articles

Fordome Investment Group’s Kris Rodriguez and Blackstone’s Stephen Schwarzman (Credit: Getty Images, Google Maps)

Blackstone plans to build new Medley warehouse

Placeholder image

Blackstone sells Weston hotel for $12M

Industrial sales are up

South Florida’s industrial sales jump to over $1B in Q3 2019

Daily Digest Miami

Scaramucci slashes his sights on his Opportunity Zone fund, Florida’s first LGBTQ+ senior housing development breaks ground: Daily digest

Blackstone CEO Stephen A. Schwarzman and 5120 Northwest 165 Street

Blackstone buys two Miami Gardens industrial properties for $14M

3208 Northwest 72 Avenue and Blackstone CEO Stephen Schwarzman (Credit: Google Maps and Getty Images)

Blackstone buys industrial portfolio near Miami airport for $56M

Blackstone CEO Stephen A. Schwarzman and Southwest 13th Court (Credit: Google Maps)

Blackstone snags industrial site in Pompano Beach for $10M

Blackstone CEO Stephen A. Schwarzman, the Exchange Lofts apartments at 115 Northeast Third Avenue in Fort Lauderdale

Blackstone sells the Exchange Lofts in downtown Fort Lauderdale for $23M