Pretium closes $1.5b deal for its first single-family rental fund

by Candyd Mendoza06 Dec 2019

Investment management firm Pretium has announced the completion of a $1.5 billion transaction for its 2013 single-family rental (SFR) fund.

The fund consists of more than 20,000 cash-flowing rental homes. With robust demand for the sector, Pretium said it nearly doubles net investor equity through rental income growth and long-term appreciation.

Pretium will continue to manage the asset class, while its property and asset management platform, Progress Residential, will service the SFR.

Landmark Partners led the deal with participation from new and existing investors. The transaction gave all investors the choice to leave or participate in the “next phase of growth,” according to Pretium.

“We are delighted with the support we received from new and existing investors on this transaction, which highlights global investors’ continued recognition of our demonstrated leadership in the $4 trillion SFR asset class,” Pretium CEO Donald Mullen said. “2019 has been an active year for Pretium, completing a multitude of strategic events, maximizing value for investors. We look forward to 2020 as we continue to deploy additional investment capital for SFR and other Pretium investment strategies.”

To date, Pretium has raised roughly $2.5 billion of new and extended SFR capital commitments across various investment structures.