The Weyerhaeser deal will make TPH one of large homebuilders like DHI or PHM in size. That is very nice. But what I would like to know is what we are buying. Are they worth more than 2 billion? I believe that land and brands we are taking over are worth more than 2 billion because otherwise, that guy in Connecticut would not get into this deal.
To me, as a shareholder of TPH, the deal is like buying in IPO of WY's homebulding segment WRECO with my TPH shares. Which is worth more? The new TPH or the old TPH?
HPT is buying 5 companies in WRECO, right?
Pardee (Vegas) and Maracay (Phoenix) are bigger than TPH. Trendmaker (Houston) probably is about the size of TPH. Winchester (DC and Virginia) is probably bigger. Quadrant (Seattle) probably is smaller than TPH. I have seen many Quadrant and Pardee sites in Seattle but Quadrant homepage shows only 16 communities around Seattle. TPH's nothern Cali sites should count as twice in value. Does anyone know more about their sizes (or values)?
I wonder how many lots each of them has. 5400 each?
The purchase seems quite a good deal for TPH shareholders, paying only 4.5 times of TPH for the whole thing that is 5 to 9 times bigger than TPH. But that is only my guess.
Are we really buying or we are being bought? I am not even sure how I should look at it.