Hovnanian Enterprises (NYSE:HOV) shares climbed about 4% on Wednesday after a report from Bloomberg said the homebuilder had entered a $200 million joint venture with GTIS Partners LP.
The partnership establishes a pooled investment structure aimed at developing and selling residential properties. Under the arrangement, New York–based GTIS will provide $150 million in capital, while Hovnanian will contribute $50 million, according to a statement cited by Bloomberg News.
The investment portfolio will include a variety of housing products across different price segments and locations, spanning seven residential communities. Several of the projects build on developments where the two companies have collaborated previously.
“This portfolio represents a mix of product types, price points and geographic diversity across seven communities, many of which are follow-on investments to communities we have previously partnered on with Hovnanian,” said Ed McDowell, partner and head of U.S. acquisitions at GTIS.
Hovnanian’s stock was also supported by broader market gains after news of a ceasefire agreement involving Iran lifted global equities.