TPG, Amherst Markets $400 Million Rental Home Portfolio

(Bloomberg) -- TPG Real Estate and Amherst Holdings LLC are marketing a portfolio of about 2,000 single-family rental homes owned by a partnership of the two firms, that could fetch about $400 million, according to people familiar with the matter.

The firms also are exploring the potential for refinancing the portfolio of homes, either through a securitization or an unrated deal with a bank or an insurance company, according to one of the people, who asked not to be identified because the matter is private. The partnership, with TPG as majority owner, started accumulating the homes more than two years ago, with a focus on high-quality properties in Atlanta, Dallas, Florida, and the Carolinas.

Representatives for TPG and Amherst declined to comment.

The partnership is exploring its options now because it has acquired enough homes to consider securitization, one of the people said. That distinguishes it from other large landlords that have sought to sell rental houses as their funds approached maturity. Apollo Global Management LLC, Magnetar Capital LLC and Pacific Investment Management Co. have all sought to sell holdings to return capital to their investors.

Others, such as Cerberus Capital Management LP and Tricon Capital Group Inc., have raised funds recently to expand their single-family holdings. Amherst, which manages more than 20,000 rental houses through its property management subsidiary, Main Street Renewal, also raised a new fund.

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