Shares of Starwood Property Trust Inc. (NYSE:STWD) were trading lower on Friday, even as the company’s affiliate, Starwood Capital Group, announced a real estate transaction.
A joint venture between Starwood Capital and Land Strategies Management (operating as Starwood Land) has completed the acquisition of a portfolio of 11 master-planned communities in Texas from global real estate manager Hines. The deal is valued at approximately $800 million.
The acquired portfolio includes more than 16,000 residential lots and over 600 acres of commercial land across high-growth housing markets: Dallas, Houston, and Austin.
The developments are in advanced stages, with significant infrastructure already completed and active lot sales underway to more than 30 homebuilders.
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Communities involved in the transaction include Wildflower Ranch, Creekside, Aster Park, and Furst Ranch in Dallas; Brookewater and Wildrye in Houston; and Mirador in Austin.
“This is a high-quality portfolio created by a first-class investment manager and developer, and we plan to build upon the excellent work Hines has completed to-date and bring the development vision for these communities to fruition,” said Mike Moser, CEO of Starwood Land.
Anthony Murphy, Managing Director at Starwood Capital, added that the acquisition aligns with the firm’s strategy to invest in “mature,” well-positioned communities in the nation’s top housing markets.
According to Benzinga Pro, STWD stock has lost over 6% in the past year. Investors can gain exposure to the stock via iShares Trust iShares Mortgage Real Estate ETF (BATS:REM).
Price Action: STWD shares are trading lower by 3.91% to $18.45 at last check Friday.
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