Starwood Capital Group’s entire stake in TRI Pointe Group Inc (NYSE:TPH) has been disposed of. The financial terms of Starwood’s exit from TRI Pointe were, however, not disclosed. There have been changes in the board though with Barry Sternlicht resigning as the board’s chairman. Also stepping down from a seat on the board is Christopher Graham, who was also a representative of Starwood on the board of TRI Pointe Group.
The investment firm’s shareholding in TRI Pointe Group was common stock totaling 11,985,905. In TRI Pointe’s portfolio is a couple of regional homebuilders and in Orange County the company is ranked as one of the fastest-growing public firms. The home builder went public in early 2014 and a year later purchased the homebuilding unit of Weyerhaeuser Co, a timber conglomerate, in a $2.8 billion deal that involved both cash and stock.
Poor financial performance
Starwood claimed the reason for the exit was the fact that group was disappointed in TRI Pointe Group’s performance over the last couple of years. The leading investment firm also said it no longer had confidence in TRI Pointe’s strategic direction. There had also been disagreements over how best to go about maximizing shareholder value.
Though TRI Pointe Group is a homebuilder, Starwood has also made investments in other areas besides real estate. This includes oil & gas and energy infrastructure. The investment firm has a presence in three countries with nine offices belonging to Starwood and its affiliates spread across the world. Starwood’s employee count now exceeds 2,000.
Decades-long career in investments
Since it was started in 1991, more than $37 billion in equity has been raised by Starwood Capital Group. At the moment the private alternative investment company has assets valued at about $52 billion that it is managing. With regards to real estate, the company has invested in various real estate categories across the globe. Positions, geographies and asset classes have been opportunistically shifted as risk and reward dynamics continue to evolve.
In Monday’s trading session, shares of TRI Pointe Group Inc fell by 1.20% to close the day at $12.39 a share.
