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Jumat, 20 Maret 2020 06:19:00

Walton International Group's Two-Pronged Strategy To Benefit Investors

Partners with Public-Listed Homebuilders in the U.S. and Launches a new Fund
SINGAPORE - 19 March 2020 - Walton International Group ("Walton") announced a two-pronged strategy with the single over-arching objective of accelerating exit activity on its existing and new property acquisitions for the benefit of its investors.

The strategy addresses two fundamental changes in the U.S. homebuilding and land development industry which have emerged following the market's recovery from the great recession.

The first major change is the mass departure of specialist land developers who exited the market in 2008 and never returned.  The second change is a prolonged contraction in bank financing of land and construction loans.  Banks withdrew from this business line in 2008 and are yet to make a significant return.

Partnering with Public Listed National Homebuilders
Going forward, Walton will have its investors' exit strategy pre-programmed before it acquires predevelopment land properties in the path of growth.

This is achieved by executing an "Exit Focused Agreement" with a homebuilder prior to property acquisition allowing them an exclusive period to negotiate the terms of a phased takedown of land. Specifically, this strategy will target properties where homebuilder cash flow from home sales is forecast to commence after 24 months from the acquisition of the land.

The homebuilder will collaborate with Walton on the long-term planning objectives of the land and is anticipated to start phased development of the property as soon as the market is deemed ready. (*).