Hovnanian, GoldenTree Form Palm Beach, Fla., Chicago Venture
By Dawn Wotapka, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Builder Hovnanian Enterprises Inc. (HOV) Monday
announced a joint-venture agreement with investment adviser GoldenTree InSite
Partners to build homes in 11 Chicago and Palm Beach County, Fla., communities.
New Jersey-based Hovnanian invested 20% of the equity capital in venture, with
GoldenTree providing the balance of the undisclosed total amount. Hovnanian, the
nation's sixth-largest builder by homes closed last year, will manage the day-
to-day operations of the venture, which will design, sell, and deliver homes in
the targeted markets.
"The venture allows us to take advantage of attractive land opportunities with
limited capital investment, thereby preserving our cash position, and, at the
same time, afford the potential for enhanced returns," said Ara Hovnanian,
Hovnanian's chairman and chief executive, in the announcement.
Robert Vahradian, managing director of GoldenTree, added: "This investment is
highly indicative of the tremendous opportunities we see in the residential
space, as many housing markets have sold off by as much as 50% and are showing
strong signs of cyclically being at or very near the bottom."
Shares of Hovnanian rose three cents Monday to close at $4.19.|
-By Dawn Wotapka, Dow Jones Newswires; 212-416-2193; dawn.wotapka@dowjones.com
(END) Dow Jones Newswires
11-09-091640ET
Copyright (c) 2009 Dow Jones & Company, Inc.
|