Invesco Forms $5B SFR Partnership With Mynd
The startup aims to acquire 20,000 homes across the U.S. as institutional investors boost their exposure to the sector.
Single-family rental (SFR) company Mynd has partnered with global real estate investment manager Invesco Real Estate, with the aim of becoming one of the largest buyers of SFR homes in the U.S. Mynd plans to deploy up to $5 billion to acquire 20,000 homes to support Invesco’s deployment goals, as institutional investors continue to boost their presence in the SFR sector.
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Invesco also led a $40 million financing round to help Mynd develop its technology platform for real estate investment and management while scaling up its business operations, Mynd announced. Other investors in the round include Thomvest, Common Fund, Squarepoint, Assurant, DivcoWest and Jackson Square Ventures, according to a Bloomberg report.
The news service noted that Mynd is valued at around $300 million following the latest infusion of cash. Mynd, which was founded by Doug Brien and Colin Wiel in 2016, currently has more than 7,000 homes under management across 25 markets. The company works with both first-time real estate investors and seasoned owners to manage their rental properties via on-the-ground experts and technology.
The deal with Invesco expands the flow of capital from institutional investors to the burgeoning SFR sector. In April, real estate investment firm DivcoWest committed $250 million in equity in a joint venture with Atlas Real Estate, with the goal of deploying $1 billion into acquiring and renovating SFR homes throughout the west.
DivcoWest’s entry in the market came after homebuilding giant Lennar Corp. launched a $4 billion SFR platform with institutional investors including Centerbridge and Allianz Real Estate in March. In the same month, the Great Gulf Group partnered with Westdale Real Estate Investment and Management and a global institutional investor with $200 million in equity to build 1,000 to 2,000 SFR homes per year.