Millrose Properties, a first-of-its-kind Homesite Option Purchase Platform for residential homebuilders (HOPP’R), announced that it has completed the previously announced acquisition of approximately 24,000 homesites from Rausch Coleman Homes and simultaneously executed option agreements with Lennar on all acquired homesites.
Millrose acquired the Rausch Coleman homesites for approximately $900 million in cash, net of option deposits funded by Lennar and other holdbacks. The deal was funded using Millrose’s cash on hand. After the closing, Millrose retains approximately $1.3 billion in available funding capacity under its revolving credit facility.
Millrose is externally managed by Kennedy Lewis Land and Residential Advisors, an affiliate of Kennedy Lewis Investment Management, an institutional alternative investment firm with over $25 billion in assets under management. And Kennedy Lewis provides Millrose access to its deep financial expertise, extensive operational platforms and strong homebuilder relationships.
This deal follows a previously announced definitive agreement between Lennar and Rausch Coleman, under which Lennar acquired Rausch Coleman’s homebuilding operations.
KEY QUOTE:
“Today, we successfully completed the previously announced acquisition of Rausch Coleman homesites, as detailed in the Registration Statement related to Millrose’s spin-off from Lennar. With this milestone achieved, we are now focused on advancing our accretive growth strategy and expanding our counterparties across the industry.”
- Darren Richman, CEO and President of Millrose
