Tri Pointe Homes Inc (NYSE:TPH) CEO Doug Bauer said in a recent interview on Fox Business Network that America’s housing industry is in a good spot and that its merger with the real estate business of the Weyerhaeuser Company (NYSE:WY) provides their company more diversity.
The comment comes from the Tri Pointe Homes Inc (NYSE:TPH) CEO after it completed its “Reverse Morris Trust” merger with the Weyerhaeuser Real Estate Company, Weyerhaeuser Company (NYSE:WY) homebuilding business. The deal, according to Fox Business Network, is worth $2.8 billion.
The Tri Pointe Homes Inc (NYSE:TPH) CEO was asked whether the homebuilding industry is really not in trouble despite the homebuilder index indicating the opposite. Bauer explained:
“The housing industry is actually in a very good spot. Last week, we announced new job growth and housing is driven by job growth. You have positive job growth every month going into 2014. [You also have] good consumer confidence. Household formation is also growing so overall, I would say the housing industry is looking very good.”
As for its merger with the homebuilding business of Weyerhaeuser Company (NYSE:WY), Bauer said:
“When we started Tri Pointe five years ago, we got some investment capital from Starwood [Capital Group and] Barry Sternlicht in September, 2010 with a goal of building a regional homebuilding model. With this merger of the Weyerhaeuser Real Estate Company, it really provides our shareholders a very diversified homebuilding company located throughout the nation with operations in Washington, DC; Houston; Phoenix; Seattle; and most notably California. It really gives our investors a reason to play in the housing rebound.”
Watch the video below where the Tri Pointe Homes Inc (NYSE:TPH) boss also discussed how the Weyerhaeuser Company (NYSE:WY) homebuilding business merger has increased their potential in three states he thinks the industry is very hot in at the moment. Bauer also discussed first time home buyers, millenials and how they are behaving in the current market.
Tri Pointe Homes Inc (NYSE:TPH) investors includes David Whittier Freelove’s Del Mar Asset Management which reported about 1.82 million shares in the company by the end of March. Another investor is Robert Henry Lynch’s Aristeia Capital which reported 1.6 million shares in the company during the same period.
Weyerhaeuser Company (NYSE:WY) shareholders includes Leon Cooperman’s Omega Advisors which reported about 1.91 million shares in the company by the end of the first quarter of the year. Another shareholders is Robert Bishop’s Impala Asset Management which reported about 1.63 million shares in the company during the same period.