“TOKYO, Japan – September 14, 2020 – ORIX Corporation (“ORIX”) announced today that Boston Financial Investment Management (“Boston Financial”), a wholly-owned subsidiary of ORIX Corporation USA (“OCU”), has entered into an agreement with Boston Capital (“Boston Capital”) to acquire Boston Capital’s low-income housing tax credit (“LIHTC”) fund portfolio. The closing of the transaction is subject to customary closing conditions and approvals. Established by the U.S. Congress in 1986, LIHTC is a tax incentive program designed to promote the supply of affordable rental housing for low-income households. Private developers of affordable rental housing projects are awarded the 10-year tax credit issued by the federal government via state and territorial governments, if developers meet certain required conditions.
LIHTC syndicators such as Boston Financial and Boston Capital bridge the gap between developers that are seeking to raise funds by selling the tax credits and the needs of investors pursuing the tax advantages of the tax credits. Acquired by OCU in 2016*1
Boston Financial has established itself as a leader in the LIHTC industry, and today manages a $7.7 billion portfolio comprising over 1,125 properties and 98,110 units. The purchase of Boston Capital’s portfolio will nearly double the portfolio to $15 billion, leading to an increase in associated revenue. These additional assets under management will be serviced by Boston Financial’s best-in-class infrastructure, resulting in expected operational efficiencies and synergies. Post-acquisition, we expect that Boston Financial will enjoy a top position in the LIHTC asset management industry and is well-positioned to expand further via additional opportunistic investments.”
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Orix 14 September 2020.