ALISO VIEJO, Calif.--(BUSINESS WIRE)--The New Home Company Inc. (NYSE:NWHM) today announced it has entered into a joint venture agreement with Tricon Capital Group Inc. (“Tricon”; TSX:TCN), a leading residential real estate investment company, for the planned acquisition of Arantine Hills, a 276 acre master planned community site in Corona, California, for approximately $74 million. NWHM and Tricon intend to re-plan, re-entitle and develop Arantine Hills into a master planned community containing over 1,300 homes. The acquisition of the property is expected to occur in December 2014.
The joint venture expects to sell improved lots to homebuilders, including up to 30% to New Home, upon completion of the master site development work. Additionally, Tricon will also have the right to acquire improved lots and engage NWHM in fee building arrangements for some or all of the remaining lots. The community is expected to begin selling entitled, developed lots in 2016.
“We are thrilled to join with Tricon to bring the Arantine Hills community to Corona, California,” stated Larry Webb, Chief Executive Officer. “We are energized to begin re-entitlement and development of lots in the highly sought-after South Corona area. This Southern California market is an important area of growth for us, and we will leverage the expertise and strong reputation of our combined companies to meet the growing demand for high-quality homes in the region. This acquisition will further strengthen our attractive land pipeline and support our planned growth initiatives across all of our business segments into 2016 and beyond.”
Located in the Inland Empire, Arantine Hills is conveniently situated in Corona, California. The community will have mountain views and close proximity to major retail centers, top performing schools, three championship golf courses and the I-15 freeway.
About The New Home Company
NWHM is a new generation homebuilder focused on the design, construction and sale of innovative and consumer-driven homes in major metropolitan areas within select growth markets in California, including coastal Southern California, the San Francisco Bay area and metro Sacramento. The Company is headquartered in Aliso Viejo, California. For more information about the Company and its new home developments, please visit the Company's website at www.NWHM.com.
About Tricon Capital Group
Founded in 1988, Tricon is one of North America's leading residential real estate investment companies. Tricon provides financing to local operators or developers in select markets in the United States and Canada, with a primary focus on housing in growing markets. Its business objective is to invest for investment income and capital appreciation through our Principal Investment business segments and to earn fee income through its Private Funds and Advisory business. Tricon currently has $2.2 billion of assets under management, including approximately 24,600 single family lots, 6,100 multi-family units and a portfolio of over 4,000 U.S. single-family rental homes. Since inception, Tricon has invested in approximately 160 transactions for development projects valued at more than $14 billion. More information about Tricon is available at www.triconcapital.com.
Various statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include information related to anticipated operating results, selling communities, home deliveries and estimates concerning the timing and success of specific projects and our future production, revenues, income and capital spending. Our forward-looking statements are generally accompanied by words such as “estimate,” “project,” “predict,” “believe,” “expect,” “intend,” “anticipate,” “potential,” “plan,” “goal,” “will,” or other words that convey the uncertainty of future events or outcomes. The forward-looking statements in this press release speak only as of the date of this release, and we disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. The following factors, among others, may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements: economic changes either nationally or in the markets in which we operate, including declines in employment, volatility of mortgage interest rates and inflation; a downturn in the homebuilding industry; continued volatility and uncertainty in the credit markets and broader financial markets; our future operating results and financial condition; our business operations; changes in our business and investment strategy; availability of land to acquire and our ability to acquire such land on favorable terms or at all; availability, terms and deployment of capital; continued or increased disruption in the availability of mortgage financing or the number of foreclosures in the market; shortages of or increased prices for labor, land or raw materials used in housing construction; delays in land development or home construction resulting from adverse weather conditions or other events outside our control; the cost and availability of insurance and surety bonds; changes in, or the failure or inability to comply with, governmental laws and regulations; the timing of receipt of regulatory approvals and the opening of projects; the degree and nature of our competition; our leverage and debt service obligations; availability of qualified personnel and our ability to retain our key personnel; and additional factors discussed in our annual, quarterly and other reports filed with the Securities and Exchange Commission.