The Wall Street Journal: Rental-property owner Pretium to acquire Anchor Loans, which lends to home flippers
Investment firm Pretium Partners is acquiring home-flipping lender Anchor Loans for $1.5 billion, the latest sign that big investors believe the record-setting housing boom has more room to run.
The deal gives Pretium, one of the country’s largest owners and managers of rental houses, a large new revenue stream in the hot business of turning homes into investment properties. Soaring home prices have been compelling more families to turn to rental homes to live in prime suburban neighborhoods.
The sellers were a group of investors that included Wafra Capital Partners Inc., an affiliate of a Kuwait government pension fund, which had acquired a controlling stake in the company in 2019.
Thousand Oaks, Calif.-based Anchor has originated more than $10 billion in debt, specializing in small loans to professional home-flippers as well as rental landlords. According to the company, 95% of its loans go to borrowers that have completed at least 40 projects. Flip loans are generally short-term — about one-year and high-interest.
In bringing Anchor in under its roof, Pretium is betting on continued business from investors looking to buy and renovate houses.