Taylor Morrison and Kennedy Lewis Investment Management, an alternative investment manager with approximately $30 billion in assets under management, have entered into a land and construction financing facility agreement, opening $3 billion in capacity for existing and new land opportunities, land development, and construction costs of projects by Taylor Morrison’s build-to-rent brand, Yardly.
“To support the efficient growth of our unique Yardly brand, this strategic financial facility agreement dedicated to our build-for-rent business will help to scale our existing core competencies of land acquisition, land development and efficient home construction. As we target optimal exit strategies for our growing pipeline of Yardly communities, this vehicle enhances our capital flexibility and return expectations,” said Sheryl Palmer, Taylor Morrison Chairman and Chief Executive Officer. “Ultimately, our hope is for Yardly renters to become future Taylor Morrison homeowners.”
This new facility provides further cash flow efficiency and optimizes value as we contemplate dispositions of assets over time with greater optionality. Taylor Morrison is pleased to work again with Kennedy Lewis and its managed affiliates on this financing vehicle, offering another layer of sophistication to Taylor Morrison’s existing land strategies, which include joint ventures, seller financing, deferred participation payments, land banking and more.
Taylor Morrison and KLIM have experience working together with an existing land banking agreement serving the homebuilder’s for-sale operations. Both companies remain committed to bringing the single-family living experience to customers who might not yet be ready to buy a home through the Yardly brand. The flexible finance facility will provide balance sheet relief and greater optionality, serving both existing Yardly assets and new acquisitions.
“We are pleased to support Taylor Morrison’s Yardly platform with this $3 billion financing commitment,” said Darren Richman, Managing Partner of Kennedy Lewis and CEO of Millrose Properties Inc. “This transaction demonstrates another use case for land banking as a capital solution to meet the diverse needs of our homebuilder counterparties as they seek creative ways to address today’s affordability challenges.”
Yardly elevates traditional apartment living through a thoughtful blend of form and function. Attractive community amenities, market leading interiors, and a focus on beloved pets with built-in private backyards allow for improved wellness and flexible living for renters and their pets.
