American Homes 4 Rent, the housing landlord led by Public Storage founder B. Wayne Hughes, is seeking to raise as much as $1.25 billion in a U.S. initial public offering.
The real estate investment trust didn’t disclose the number of shares or the offering price in a regulatory filing today. The offering size is a placeholder amount used to calculate registration fees and may change.
Operators of single-family rental homes are going public, creating a new real estate asset class in a field once dominated by small investors. There are 14 million for-lease homes in the country with an average price of $200,000, valuing the industry at about $2.8 trillion, according to an April report from Goldman Sachs Group Inc. American Homes 4 Rent, based in Malibu, California, plans to use proceeds from the offering to buy and renovate homes, it said in its filing.
Goldman Sachs, Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co. are managing the offering. The company plans to list on the New York Stock Exchange under the symbol AMH.
Colony American Homes Inc., a single-family rental unit of Tom Barrack’s Colony Capital LLC, is scheduled to price its IPO tomorrow, according to data compiled by Bloomberg. It filed plans last month to raise as much as $260 million as a REIT. Silver Bay Realty Trust Corp., a single-family rental company based in Minnetonka, Minnesota, was the first to go public as a REIT in December, followed by Scottsdale, Arizona-based American Residential Properties Inc.
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