GI Partners recaps single family rental portfolio

The private equity firm made its initial investment in the single family rental home platform in 2011. 

GI Partners has recapitalised its portfolio of single family rental homes held in partnership with Waypoint Real Estate Group, the firm announced in a statement on Monday.

The firm secured a new senior credit facility – “priced competitively” – that increases Waypoint’s total debt capacity to $410 million. The facility, which was provided by Citi, includes a maturity date extension.

GI Partners did not respond to a request for comment on terms of the recapitalisation.

“The transaction represents strong institutional support for the portfolio, which is currently 94 percent eased and occupied. We look forward to continuing to work closely with Waypoint to capitalize on the current market opportunity,” said GI Partners managing director Hoon Cho in a statement.

GI committed $200 million to the Waypoint partnership in December 2011. Since then, the firm has used the Waypoint platform to invest more than $500 million for a portfolio of family rental homes, according to a statement.

The firm’s initial investment in Waypoint’s platform came from its $1.9 billion 2008 fund, GI Partners Fund III. Oregon Public Employees’ Retirement Fund documents indicate that the fund had generated a 14.7 percent internal rate of return and a 1.42x total value multiple as of 30 September.

The firm is currently marketing Fund IV, which has reportedly surpassed a $1.5 billion target, according to a January Dow Jones report. The firm expects to hold a final close on its $2 billion hard-cap in the first quarter.