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US: Home rental giant created in US$20b Starwood merger deal

By  |  August 10, 2017

Invitation Homes and Starwood Waypoint Homes — two of the nation’s largest owners of single-family rental houses — announced Thursday they are merging, creating a behemoth rental company as the country’s home ownership rate remains depressed.

The deal comes as home prices have risen across the country, and it reflects the difficulty that such giant rental firms now have in growing. Gone is the wave of cheap foreclosures that propelled their rapid expansion early this decade, prompting consolidation within the industry.

“This merger creates the leading single-family rental company in the United States, which will be uniquely positioned to deliver exceptional service to residents, while also improving operating efficiency,” said Fred Tuomi, chief executive of Starwood Waypoint, who will lead the new firm under the Invitation Homes name.

The deal is the highest profile and largest merger for the industry yet. Starwood Waypoint itself was a product of a merger last year, when Colony Starwood Homes combined with Starwood Waypoint Residential Trust.

Full Content: Bloomberg & Financial Times

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