Blackstone Group LP’s GSO Capital Partners unit and Beazer Homes USA Inc. said they will spend $150 million buying land for development.
Funds managed by GSO Capital will purchase land selected by Beazer Homes, the companies said today in a statement. Beazer Homes, the Atlanta-based homebuilder, will then have an option to acquire finished lots.
“As the housing recovery continues to gain momentum, we are excited to partner with Beazer and extend our land banking business,” Doug Ostrover, Blackstone senior managing director and co-founder of GSO, said in the statement. “GSO has a long history of working with Beazer, and we have great confidence that the management team is positioning the company well in order to capitalize on the recovery and regain profitability.”
Sales of new U.S. houses in February had the best back-to-back months in more than four years, spurred by near record-low borrowing costs and improving job prospects, the Commerce Department reported yesterday. Residential real estate prices increased in January by the most since June 2006, the S&P/Case-Shiller index of property values in 20 cities also showed yesterday.