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Lack of capital makes US landlord an easy takeover target

Published Mon, May 11, 2015 · 09:50 PM
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Los Angeles

A PIONEER in the US home-rental boom that grew out of the housing bust is becoming a takeover target.

American Residential Properties built up a portfolio of about 9,000 houses worth US$1.3 billion over seven years. Now, the Scottsdale, Arizona-based landlord is running out of options to raise money for more purchases. The company, with a market value of US$600 million, may find its best bet is to sell out to one of the bigger firms in the market, such as Blackstone Group LP's Invitation Homes or American Homes 4 Rent.

"The way to maximise shareholder value would be to sell themselves," David Segall, an analyst at Green Street Advisors in Newport Beach, California, said. "They have no source of n…

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