Colony American Homes Inc has filed an application to undertake an initial public offering of its shares, forecasting a take of nearly US$100 million. The company owned by Thomas Barrack Jr. has been on an acquisition binge, snapping up more than 8,000 single family rental homes since 2012 in the United States.
The Scottsdale, AZ based company did not disclose the number of shares as well as the offer price in its filed documentation. Under current guidelines, the offer size is a placeholder amount that indicates a calculation of the revenue less registration fees and other charges.
Many private equity firms are taking notice, such as notable names BlackStone Group LP and Colony Capital LLC, which Barrack owns, has raised amounts upwards of US$10 billion after the US housing crisis. They bought single unit family homes and rented them out. The average price of a rented home is US$200,000 and there are nearly 14 million of them all over the country. According to a Goldman Sachs Group Inc report, this business has become a US$2.8 trillion business.
For their part, Colony American is planning to strucure a real estate investment trust and be listed in the NYSE.
Join the Conversation