(MENAFN) GSO Capital Partners LP, the financial arm of US-based Blackstone Group LP agreed to acquire a group of land parcels from Hovnanian Enterprises Inc. for USD125 million and increase its stake in the homebuilder, AP reported.
Under the agreement, funds managed by GSO will buy a group of land parcels from Hovnanian and option finished lots back to the company on a quarterly basis.
Hovnanian said that so far GSO had bought six land parcels totaling 620 lots with total acquisition and committed future development costs of USD65 million.
GSO and Hovnanian said they expect to identify other land parcels totaling up to an additional USD60 million in acquisition and development costs.
GSO also will boost its shareholding in Hovnanian by exchanging USD15 million of the homebuilder's unsecured debt for 3.9 million shares of the company's Class A common stock.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.