Hovnanian Enterprises and Domain Real Estate Partners Announce $125M Land Banking Arrangement

Hovnanian Enterprises, Inc.

, a leading national homebuilder, and Domain Real Estate Partners, LLC ("Domain"), the residential investment affiliate of DW Partners, LP, announced today a land banking arrangement for $125 million. Domain and Hovnanian anticipate identifying land parcels totaling $125 million in acquisition and development costs over the next two months. Domain, an affiliate of DW Partners, will acquire the portfolio of land parcels from Hovnanian and option finished lots on a monthly takedown basis back to Hovnanian. "We are very pleased to announce this exciting new partnership with Domain," commented Ara Hovnanian, Chairman of the Board of Directors, President and Chief Executive Officer of Hovnanian Enterprises, Inc. "We intend to fill this land banking arrangement with land parcels we currently own. This land banking structure allows us to both enhance our returns on investment and increase our liquidity position by accessing outside capital. Simultaneously, we maintain control of the land parcels by entering into an option agreement for finished lots on a just-in-time basis." David Warren, Chief Investment Officer and Chief Executive Officer of DW Partners, said, "We are excited to partner with Hovnanian through our Domain affiliate and we believe this is a significant step forward toward a long and mutually beneficial relationship. This investment builds on our longstanding expertise in credit and residential real estate and gives limited partners in our funds access to an exciting and growing area of the capital markets." David Valiaveedan, Managing Partner of Domain Real Estate Partners, said, "Hovnanian is a great builder with a longstanding track record of performance in the residential housing market. We are extremely pleased to have them as one of our builder partners."