SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Colony Starwood Homes (NYSE:SFR) (the “Company”), a leading single-family rental real estate investment trust (“REIT”), today announced that it has completed the sale of a portfolio of 1,675 non-performing loans (“NPL”) for a total sale price of $265 million. With the sale, the Company has substantially completed its exit from the NPL business, consistent with its previously communicated strategic plan to do so. The Company’s book value for the NPLs included in this sale was approximately $259 million as of June 30, 2016.
The sale was completed after the joint venture between the Company and Prime Asset Fund VI, LLC (“Prime”), through which the Company conducts its NPL operations, successfully concluded a comprehensive and broadly marketed auction process with Credit Suisse Securities (USA) LLC as sale advisor. The portfolio was sold to an affiliate of Starwood Capital Group.
The joint venture has generated over $330 million of loan and real estate owned (“REO”) sales proceeds since June 30, 2016, which has resulted in cash proceeds of approximately $140 million after associated debt pay down. After the NPL sale announced today, the Company indirectly owns approximately $120 million in book value of assets through its joint venture with Prime, substantially all of which is REO, on which the joint venture owes approximately $60 million of indebtedness. The Company expects to dispose of the remaining joint venture assets and repay all associated debt by the end of the first half of 2017. The Company intends to use the net cash proceeds generated from the wind-down of the NPL business for general corporate purposes, including the acquisition and renovation of single-family rental homes. Colony Starwood Homes records the operations of the NPL business segment as discontinued operations as of the second quarter of 2016.
About Colony Starwood Homes
Colony Starwood Homes (NYSE: SFR) is one of the largest publicly traded owners and operators of single-family rental homes in the United States. Colony Starwood Homes acquires, renovates, leases, maintains and manages single-family homes in markets that exhibit favorable demographics and long-term economic trends, as well as strengthening demand for rental properties. Colony Starwood Homes is building its business upon a foundation of respect for its residents and the communities in which it operates. Additional information can be found at www.colonystarwood.com.