DF Capital Management has raised $322m (€305.7m) for its latest US residential land fund.

The manager said the DF Residential II fund, which exceeded its $250m target, received commitments from nearly 100 investors led by multiple institutional investors.

DF capital said Fund II invests in residential land to provide finished lots to homebuilders for the construction of entry-level homes, adding that fund’s ”value proposition is further enhanced” through DF Capital’s partnership with Dream Finders Homes.

Chris Butler, managing partner of DF Capital Management, said: “While homebuilders are contending with the same supply constraints and inflationary trends affecting most companies today, the underlying fundamentals of the market remain strong.

“Housing supply remains at record lows and favourable demographics in our target markets should continue to underpin demand. We believe our strategy is an attractive way to invest in this secular shift back to single-family living.”

Patrick Zalupski, CEO and founder of Dream Finders Homes, said: “By utilising land partners like DF Capital, Dream Finders Homes can focus on being a great homebuilder, while our land partners with different investment objectives can receive a premium return on their capital. It’s a win-win for both parties.

“Over the last 5 years, we have built a great partnership with DF Capital which has helped scale our business.”

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