Walton International Group’s Two-Pronged Strategy To Benefit Investors

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  • Partners with Public-Listed
    Homebuilders in the U.S. and Launches a new Fund


SINGAPORE – Media OutReach – 19 March 2020
 Walton International Group (“Walton”) announced a two-pronged
strategy with the single over-arching objective of accelerating exit activity
on its existing and new property acquisitions for the benefit of its investors.
The strategy addresses two fundamental changes in the U.S. homebuilding and land
development industry which have emerged following the market’s recovery from
the great recession.

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The first major
change is the mass departure of specialist land developers who exited the
market in 2008 and never returned.  The
second change is a prolonged contraction in bank financing of land and
construction loans.  Banks withdrew from
this business line in 2008 and are yet to make a significant return.

Partnering with Public Listed National Homebuilders

Going forward,
Walton will have its investors’ exit strategy pre-programmed before it acquires
predevelopment land properties in the path of growth. This is achieved by
executing an “Exit Focused Agreement” with a homebuilder prior to property
acquisition allowing them an exclusive period to negotiate the terms of a
phased takedown of land. Specifically, this strategy will target properties
where homebuilder cash flow from home sales is forecast to commence after 24
months from
the acquisition of the land. The homebuilder
will collaborate with Walton on the long-term planning objectives of the land
and is anticipated to start phased development of the property as soon as the
market is deemed ready.

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This new strategy will
allow the homebuilder to acquire land in phases with the bulk of land payments
deferred to the timing of home sales.  In
return, the homebuilder will take on the entitlement and land development
cost.  For Walton and its investors, they
will see their investment cash flowing over the course of the development.

Mr Bill Doherty,
Chief Executive officer of Walton International Group, said: “Walton’s new
strategy has been extremely well received by the market as it solves a
considerable challenge for homebuilders who need a pipeline of land assets in
order to deliver lots to their homebuilding operations. At the same time, it is
also providing an opportunity for investors by decreasing risk and uncertainty
and expediting exits for their investments in land projects across the U.S.”

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Launch of Builder Option Land Development (BOLD) Fund

Having received a
positive response to its new strategy from the homebuilding industry Walton is
announcing the launch of its first BOLD Fund. 
The Fund will raise capital from investors globally, with an investment
objective of acquiring land for future sale to homebuilders throughout the
United States.  Specifically, the fund’s
mandate is to acquire properties where homebuilders’ cash flow from home sales
commences within 6-24 months.

The BOLD Fund offers
investors the opportunity to participate in the ongoing growth of the home
building market in the U.S.  The fund
will acquire properties identified by large volume U.S. homebuilders for near
term residential development projects through a predetermined exit strategy.  The land is then expected to be sold to those
same builders in phases with an adjustable takedown schedule and flexible
payment options.  BOLD Fund investors are
anticipated to receive quarterly distributions as homes are built and sold by
the builders.

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“The BOLD Fund
provides investors with the opportunity to invest in real estate assets
targeted for near-term development by the largest homebuilders in the United
States. The evolution of Walton with this 2-pronged strategy has opened the
door to offering new products, like the BOLD Fund, thus, creating new
opportunities for investors and homebuilders,” added Mr. Doherty.

Acquisition of 245-Acre Lee Farms Property in Loveland, Colorado

With the new strategy
in place, Walton has acquired a 245-acre property from The True Life Companies
and the Lee Family located at 4300 Wilson Ave. in Loveland, Colorado. The
pre-development land parcel is slated for a single-family residential master
planned community of approximately 900 units, offering a variety of sizes and
types of homesites. 

Located 14 minutes
from Fort Collins, Colorado, home to Colorado State University, the Loveland
region boasts a strong economy featuring dozens of innovative businesses from
tech start-ups to Fortune 500 companies, low unemployment and steady population
growth that is driving demand for residential construction.

 

Walton International Group’s Two-Pronged Strategy To Benefit Investors - Brand Spur

 

Concurrent to the
purchase of the property, Walton has secured interest from a top public-listed
homebuilder with plans to begin development of the land in 2021.  Walton has executed an Exit Focused Letter of
Intent that affords the builder a right of first refusal for a phased
procurement of the property.  It is
anticipated that the land will be developed in multiple phases, providing
distributions to investors as the builder sells the homes.

“Walton’s strategy
is especially relevant in view of the current economic uncertainty arising from
COVID-19.  By allowing homebuilders
increased flexibility in securing land positions, they are able to stay focused
on their long-term inventory plans and are less distracted by short term market
volatility,” commented Mr Doherty.

For over 40 years,
Walton has researched, planned and structured pre-development land investments
located in the major growth corridors throughout the U.S. and Canada.  With the new strategies in place, it has
created new opportunities for investors and homebuilders.

About Walton International Group

The Walton Group of Companies is a privately
owned, global, real estate investment, land asset management and administration
company that has focused on strategically located land in major growth
corridors for over 40 years. The company manages and administers US$3.8 billion
of real estate assets in North America, on behalf of its investors and business
partners. Walton has more than 106,000 acres of land under ownership,
management and administration in the United States and Canada. Key entities in
the Walton Group of Companies include Walton Global Investments, Walton Global
Holdings, Walton International Group and Walton Development and Management. For
more information visit Walton.com.

Walton International Group’s Two-Pronged Strategy To Benefit Investors - Brand Spur

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