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Five Point Holdings To Acquire Controlling Stake In New Entity With Hearthstone

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us

Five Point Holdings, LLC (FPH), Friday announced an agreement to acquire a controlling interest in the newly formed Hearthstone Residential Holdings, LLC. The financial details of the transaction have not been disclosed.

The new entity, which includes substantially all of the business and operations of Hearthstone, Inc., is designed to expand access to flexible, off-balance sheet capital for homebuilders pursuing land-light strategies.

As per the agreement, Hearthstone will contribute substantially all of its assets into the new venture, of which Five Point will own 75 percent, with the remaining retained by entities affiliated with Mark Porath, Hearthstone's CEO.

The company expects the acquisition to create new revenue streams, connect to a broader network of capital providers and strengthen its relationships with builder partners.

The acquisition is set to complete by the end of the third quarter.

In the pre-market hours, Five Point's stock is trading at $5.68, up 2.44 percent on the New York Stock Exchange.

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