- Asian Investors To Reap Returns on 2 Exits

SINGAPORE - Media OutReach - 17 June 2020 -The Walton Group of Companies ("Walton") continues to implement its strategy of accelerating exit activity for the benefit of its investors, and investors are now seeing the results.

Walton's strategy allows a 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.

This strategy has resulted in two recent exit offers for its investors -- Poplin Heights, a residential use property in Union County, North Carolina and Anderson, a residential mixed-use property in Hays Country, Texas.  Both projects are in the U.S.A. and both offers have been approved by the underlying landowners. 

Poplin Heights

A large national homebuilder in the United States has executed an option to purchase the entire Poplin Heights property in Union County, North Carolina, in a phase-by-phase take-down structure with deferred payment terms.  The offer was negotiated by Walton in an effort to maximise revenues for its investors.  Walton performed and obtained the entitlement approvals resulting in the current zoning of the property.  The plot consists of 94.16 acres of land (owned by the investors) which is planned for development into 247 residential lots.

The approved offer terms are expected to generate a return of 1.3x to the Walton investors in the form of cash flow as the homebuilder builds and sells homes. The homebuilder expects to make their first closing and break ground in 2021 with home sales projected to begin in 2022.

Anderson

The same homebuilder has also executed an option to purchase 78.04 acres of land slated for residential development of up to 450 lots within the 82.24 acre Anderson property in Hays County, Texas. Walton will continue to undertake limited entitlement activities to support the homebuilder's development plans for the property.

For this project, investors are anticipated to earn a return of 2.14 times in the form of cashflow as homes are sold. The homebuilder plans to make the first closing and break ground in Q1 2021 with home sales projected from Q1 2022. 

Bill Doherty, CEO of the Walton Group of Companies said: "Walton's new strategy has given homebuilders the flexibility to take land inventory down in phases. Given the volatility in recent months, this flexibility is valued more than ever. As a result, we are seeing more interest in our U.S. land assets than ever before.  We are pleased that we have executed over US$150 million of option agreements with homebuilders in the U.S. over the past 3 months.  By working with well-known homebuilders to expedite exits, our Asian investors, including our Singapore investors are able to realise a return on their investments such as the Poplin Heights and Anderson properties."

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