GI Partners Announces Dividend Recapitalization for Single Family Rental Portfolio Company
$410 Million Facility Increases Borrowing Capacity and Funds Dividend Recap
MENLO PARK, Calif., March 31, 2014-- GI Partners, a leading middle market private equity firm, today announced the completion of a dividend recapitalization of its portfolio of single family rental ("SFR") homes, held as a partnership with SFR pioneer, Waypoint Real Estate Group ("Waypoint" or "the company"), representing the first large scale transaction of its kind in the SFR industry.
The new senior credit facility, which was priced competitively along with a maturity date extension, successfully increased the company's total debt capacity to $410 million. The facility was provided by Citi.
"Back in late 2011, GI Partners was the first private equity firm to make a sizable commitment to single family rental. Similarly, Citi is proud to have been the first lender to embrace the space in a significant way with our initial loan to GI/Waypoint in 2012, and we could not be more pleased with the way the relationship and business have progressed," commented Susan Mills, Managing Director at Citi.
"We are impressed with the management team's accomplishments since our initial investment, including the successful execution of this refinancing," commented Hoon Cho, Managing Director at GI Partners. "The transaction represents strong institutional support for the portfolio, which is currently 94% leased and occupied. We look forward to continuing to work closely with Waypoint to capitalize on the current market opportunity."
GI Partners made a $200 million commitment to its partnership with Waypoint in December 2011 to fund the company's expansion and since then, GI has successfully utilized the Waypoint platform to invest over $500 million of capital to create a high quality portfolio of income-producing single family rental homes.
Based in Oakland, California, Waypoint has formed 11 private funds, with more than $850 million in capital, for the acquisition, renovation, leasing, maintenance and management of single family homes. Waypoint deployed this capital, assembling a portfolio of approximately 5,000 homes nationwide. Waypoint operations are based on a foundation of respect for its residents and the communities in which it operates. Its mission is to reinvent the home rental experience by providing quality homes, great service and rewarding lease programs that offer valuable benefits to its residents while generating attractive returns for its investors.
About GI Partners
Founded in 2001, GI Partners is a leading private equity investment firm based in Menlo Park, California. The firm manages over $10 billion for recognized institutional investors, including some of the largest state and sovereign pension funds in North America, Europe, Australia, Asia, and the Middle East. GI Partners is active in a number of key sectors, including IT Infrastructure & Services, Healthcare Services, Retail & Leisure, and Financial & Real Estate Services. For more information on GI Partners and its entire portfolio, please visit www.gipartners.com.
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