Luxury homebuilder Toll Brothers Inc., with operations in Connecticut, is forming a new subsidiary that will invest in distressed real estate, The Associated Press reports, citing company officials.
The formation of Gibraltar Capital and Asset Management LLC will allow the company to buy distressed loans or unfinished developments and possibly sell them to other builders.
Toll Brothers CEO Douglas C. Yearley Jr. said in a statement that the company intends to leverage its nationwide presence and well-known brand and its experience “to pursue opportunities that have synergies with, but may fall outside, our core home building operations.”
Toll Brothers is based in Horsham, Pa.
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Its shares slipped 3 cents to $16.40 in morning trading Monday.
