An international financial services firm that has its U.S. headquarters in Dallas is buying one of the country’s largest low-income housing tax credit fund portfolios.
Toyko-based Orix Corp. said it has entered into an agreement for the purchase with Boston Capital in a deal with a reported value of $150 million.
Orix’s Boston Financial Investment Management subsidiary will almost double its tax credit fund, which will have a value of almost $15 billion after the purchase.
The Orix subsidiary currently manages a $7.7 billion low-income tax credit portfolio encompassing more than 1,125 properties and 98,110 housing units.
The low-income tax credit program was created by Congress in the 1980s to support affordable housing construction by builders.
Syndicators like Boston Capital raise funds by selling the 10-year tax credits issued by federal and state governments.
Founded in 1981, Japan-based Orix Corp. has been expanding its real estate finance operations in the U.S.
Last November, Orix said it was purchasing New York-based Hunt Real Estate Capital, a leading commercial real estate finance lender.
Orix’s U.S. subsidiary, Orix USA, is based in downtown Dallas and is moving its headquarters to the Trammell Crow Center on Ross Avenue.
