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International financial firm with Dallas base makes tax company credit buy

Orix Corp.'s acquisition of Boston Capital low-income housing tax credit fund portfolio is valued at $150 million.

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.

Steve Brown, Real Estate Editor. Steve covers commercial and residential real estate in Dallas-Fort Worth.

stevebrown@dallasnews.com @SteveBrownDMN
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