American Residential Properties Inc, a private real estate investment firm, is all set to go public as it has filed for an IPO with the U.S. Securities and Exchange Commission Friday, March 22. The company plans to raise around $300 million.
American Residential plans to debut on the New York Stock Exchange with its proposed IPO and the offer will be coordinated by BofA Merrill Lynch, Morgan Stanley, Jefferies and FBR Capital Markets, reports NASDAQ.
The company did not specify the number of shares or any details about the issue price offerings. The company had first revealed plans of filing an IPO in December 2012. It was then reported that the public offering would come sometime in the first quarter of 2013.
American Residential buys, renovates, leases and manages single-family homes in select communities of the country. As of December 31, 2012, it owned around 1775 properties in the states of California, Nevada and Arizona. Since then, the company has added 1500 homes more to its portfolio.
Through the IPO, the company hopes to further expand business and benefit from the improving housing scenario.
"The growth of our portfolio has been significant in recent months, as we have increased the rate at which we acquire properties. We believe that home prices continue to be significantly below replacement costs in many of these markets. Additionally, we believe there will continue to be a supply of homes at distressed values," American Residential's filing statement reads.
In January, American Residential purchased around 196 single family properties from MACK Companies, the largest single-family home investment firm in Chicago, for around $28 million.
In a recent report released by McGraw Hill Construction, it was revealed that construction on single family homes accelerated 5 percent in February.
"This year's prospects for housing are bright, even with a sluggish economy. The demand for single family housing is picking up, as shown by the improvement in home sales and home prices, while inventories are currently very low," Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction, said in a statement.
