US: Taylor Morrison and Kennedy Lewis Investment Management (KLIM) have entered into a financing facility agreement providing $3 billion (£2.3 billion) in capacity for land and construction financing to support Taylor Morrison’s build-to-rent (BTR) brand, Yardly.
The agreement will finance existing and new land opportunities, land development, and construction costs for Yardly projects, supporting the expansion of single-family rental communities across the US. The facility aims to enhance capital flexibility and optimise exit strategies for Yardly’s growing pipeline of communities.
Sheryl Palmer, chairman and CEO of Taylor Morrison: “To support the efficient growth of our unique Yardly brand, this strategic financial facility agreement dedicated to our BTR business will help to scale our existing core competencies of land acquisition, land development and efficient home construction. As we target optimal exit strategies for our growing pipeline of Yardly communities, this vehicle enhances our capital flexibility and return expectations. Ultimately, our hope is for Yardly renters to become future Taylor Morrison homeowners.”
Taylor Morrison and KLIM already work together under an existing land banking agreement serving the homebuilder’s for-sale operations.
The new facility is intended to bring further cash flow efficiency and optionality, providing balance sheet relief and supporting both existing Yardly assets and new acquisitions.
Darren Richman, managing partner of KLIM and CEO of Millrose Properties, said the transaction demonstrates another use case for land banking as a capital solution to help homebuilders address affordability challenges.
Yardly communities provide single-family rental homes with community amenities, market-leading interiors, and private backyards, aiming to offer renters an elevated alternative to traditional apartment living.
Highlights:
– Taylor Morrison and Kennedy Lewis Investment Management have agreed a $3 billion (£2.3 billion) land and construction financing facility.
– The facility will support Taylor Morrison’s BTR brand, Yardly, across the US
– The agreement provides capital for land acquisition, development, and construction of Yardly communities.
– The facility aims to enhance capital flexibility and exit strategy options for Yardly’s pipeline.
