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Builder delays IPO

Investor shakiness over rising interest rates one reason

Posted: August 2, 2013 2:00 a.m.
Updated: August 2, 2013 2:00 a.m.

The New Home Company Inc., builder of the new Villa Metro homes opening soon in Santa Clarita, decided to take a temporary pass on its plans for an Initial Public Offering, IPO, last week in the wake of investor shakiness over rising interest rates and Fed chief Ben Bernanke’s plans to taper off bond-buying.

The homebuilder announced plans in June that it had filed for a $172.5 million IPO with plans to list on the New York Stock Exchange under the ticker of “NWHM.”

Although homebuilding permits rose 29 percent nationwide last year, and single-family prices rose 6.6 percent, builders have been concerned about rising interest rates.

Increased mortgage interest rates could threaten to slow home sales – which had just begun the long recovery process from the lengthy recession, builders say.

Industry sources say, however, report that The New Home Company has steady investors and a healthy cash-flow and can afford to wait and see how the market fares this summer.

Sales of 315 homes are expected to begin this month in Valencia at Villa Metro.

The builder plans a Mediterranean-inspired architecture and a small-town vibe on Soledad Canyon Road just across from the Santa Clarita Metrolink station.

The New Home Company was founded in 2009 by industry experts having worked at companies like John Laing Homes and Watt Residential Partners.

Reportedly, founders Larry Webb, Wayne Stelmar, Joseph Davis and Tom Redwitz invested $10 million of their own money into the venture based in Aliso Viejo, Calif.




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