CEO of Woodside Homes says half of the 10 largest U.S. builders have expressed interest in acquiring the company or purchasing some of its land -- a sign of their need for more land
February 9, 2010
– The CEO of Woodside Homes, which emerged from bankruptcy less than two months ago, says five of the top 10 U.S. homebuilders have offered to buy the company outright or purchase some of its land, Reuters reported Feb. 9.
Woodside CEO Joel Shine says the company is not for sale. He also declined to name which builders have approached the company, which was the nation’s 20th-largest homebuilder in 2008.
"The big publics have a problem," Shine said. "They have been focusing on generating cash, but at one point you wake up and realize you have a lot of cash and no land to build homes on."
Analysts concur with Shine’s view.
"If they're willing to buy a private homebuilder, they're trying to buy finished lots," said Citi analyst Josh Levin. "That tells you about the lack of land at good prices."
Woodside, based in North Salt Lake, Utah, could mount a public offering of its own, Shine said.
Upon emerging from bankruptcy in 2009, Woodside had US$315 million in restructured debt and between $150 million and $200 million in cash.
The company has roughly 80 projects under construction now, mostly in California, Arizona and Nevada. It plans to build about 1,700 homes in 2010, equal to its 2009 total.
The primary source of this article is Reuters, London, England, on Feb. 9, 2010.