According to recent reports from The Wall Street Journal and Reuters, Blackstone Group LP’s single-family home rental platform Invitation Homes has “filed confidentially for an initial public offering.”
Earlier this year, Bloomberg reported that, “Blackstone Group LP expects to take its Invitation Homes unit public in the first half of next year, capitalizing on a rally in U.S. single-family rental landlords to list the biggest company in the industry, according to two people familiar with the matter.”
Invitation Homes manages the largest pool of rental homes across 14 of the nation’s metropolitan markets. Blackstone states on their website that the platform creates jobs and provides high quality, affordable housing for families nationwide.
The Wall Street Journal reports that sources close to the matter state that Invitation Homes plans to sell $1.5 billion worth of stock. “Based upon the portion of a company that is typically sold in an IPO, Invitation Homes could be worth around $7.5 billion,” adds The Wall Street Journal.
“Invitation Homes filed with the Securities and Exchange Commission under the U.S. Jumpstart Our Business Startups Act,” says the Reuters report. “Companies with less than $1 billion in revenue can secretly file for an IPO, allowing them to quietly test investor appetite while keeping financials confidential.”
Today the single-family rental market represents 15,000,000 investor-owned properties and is projected to double in the next five years. Investors, both domestic and foreign, with this Invitation Homes offering will be able to continue engaging in this ever-developing space.
“The news of Blackstone filing for public offering is yet another indication of the growth of the single-family rental market and the potential investors will find in this space in 2017,” said Ed Delgado President and CEO of The Five Star Institute.
To fosters growth across the real estate industry, The Single-Family Rental Association (SFRA), a Five Star Institute member organization, focuses on responding to business opportunity and industry betterment in the evolving real estate landscape through leadership, networking, info, education, and training.
(Editor’s Note: The Five Star Institute is the parent company for DS News and DSNews.com)