Toll Brothers Creates Distressed Asset Management Company

Toll Brothers on Monday announced the creation of an asset acquisition and management unit designed to profit from distressed real estate. Named Gibraltar Capital and Asset Management LLC, the new unit is a wholly owned subsidiary of Toll Brothers. It is similar, but not identical to Lennar Corp.'s Rialto unit, in that this new Toll subsidiary intends to acquire and hold some assets that are not directly related to home building. "We intend to leverage Toll Brothers' relationships, nationwide presence, and well-known brand name, as well as our capital access, land acquisition and development strength, and experience in distressed acquisitions and workouts, to pursue opportunities that have synergies with, but may fall outside, our core home building operations," said Douglas C. Yearley Jr., Toll Brothers' CEO. "These opportunities may include the acquisition and disposition of loan and property portfolios; the development of sites for sale to other builders; providing assistance to banks and developers in the workout of troubled real estate; and a myriad of other potential investments where our capabilities and capital access can add value."

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