Hearthstone Commits $589 Million to Texas Housing.

Business Editors

AUSTIN & SAN ANTONIO, Texas--(BUSINESS WIRE)--Jan. 5, 2004

Hearthstone, the largest institutional investor of residential developments in the United States, has committed $64 million to help build more than 300 homes in San Antonio -- bringing to $588.5 million the

"This commitment represents the best evidence of Hearthstone's continued confidence in the Texas residential marketplace," said Cindy Gilmore, corporate vice president and chief of Hearthstone's central and eastern U.S. operations. "Our financial expansion into Texas underscores our belief that Texas remains one of the hottest homebuilding markets for institutional investors, with high demand for homes in excess of available supply."

According to Gilmore, Hearthstone anticipates financial commitments to Texas homebuilding to surpass $1 billion within the next several years.

The firm's commitment will enable Austin-based Wilshire Homes to build 365 single-family homes in the Villages of Bulverde, a 2,000-acre master-planned community by Denton Development in North San Antonio. Targeted to first move-up buyers and priced from the $170,000s to the $200,000s, homes will range from 2,000 to 2,903 square feet in size on lots 50-and-60-feet wide. In 2002, Hearthstone announced a nearly $30 million commitment to Wilshire Homes to build more than 200 residences on 47 acres at Greenbrook in Cibolo, northeast of San Antonio.

Previously, Hearthstone committed more than $17 million to Meritage Corp.'s Legacy Homes division, enabling construction of nearly 650 homes in the Dallas-Ft. Worth region and in Wylie, Texas. It also committed $33.5 million to Kimball Hill Homes for 157 residences near Houston. Aggregate commitment amounts include Hearthstone's announcement to provide $450 million to enable Wilshire Homes to build more than 2,200 homes in Austin and San Antonio alone.

Hearthstone was the first, and today is the largest institutional investor in residential development in the nation, with nearly $7 billion committed. Founded in 1992, Hearthstone has committed $6.8 billion in 329 communities in 54 markets in 20 states, representing 43,000 homes. It provides investment capital from public and private pension plans, university endowments, Fortune 100 companies and large private trusts.

In 2002, Hearthstone provided nearly $1 billion in financial commitments to home building, funding 60 residential developments with 16 builders in seven states, representing 5,604 homes.

Company profile: http://members.cox.net/davidkusumoto/hearthstone-profile.doc