Horsham’s Toll Brothers Creates $400 Million Venture to Provide Capital to Builders

Toll Brothers, the Horsham-based builder of luxury homes, has created a $400 million venture with an unnamed institutional investor to provide builders and developers with land banking and joint venture capital, writes Jeff Blumenthal of the Philadelphia Business Journal.

The company said in a statement that the partnership will be managed by Toll subsidiary Gibraltar Capital and Asset Management and will finance builders’ and developers’ acquisition and development of land and home sites.

Of the $400 million of funding commitments, 75 percent comes from the undisclosed investor and 25 percent from Toll Brothers.

According to Blumenthal, Gibraltar was formed in 2010 to acquire distressed real estate loan portfolios from financial institutions. On its own and in partnerships, it was an investor and manager in the acquisition and workout of over $2.2 billion of residential and commercial loan portfolios, a portion of which Gibraltar directly managed.

“Building upon Gibraltar’s expertise and track record of value creation,” Toll Brothers chairman Robert I. Toll said in a statement, “we look forward to continued success as it opportunistically pivots its investment strategy during this new stage of the housing recovery. We believe this platform will serve a growing need in the market.”

Click here to read more about the Toll Brothers’ venture to provide capital to builders and developers.