10:35 AM EDT, 06/20/2025 (MT Newswires) -- Five Point ( FPH ) said Friday it agreed to acquire a 75% stake in a newly formed entity that will include substantially all of Hearthstone's business and operations.

Five Point ( FPH ) will pay about $56.3 million for the stake in the new venture, Hearthstone Residential Holdings, in cash and, at its election, up to $3 million in its class A common shares, the company said in a regulatory filing.

Hearthstone will contribute nearly all of its residential and investment management assets to the new entity. Entities affiliated with Hearthstone Founder and CEO Mark Porath will retain the remaining 25% interest, and the business will continue to be led by its current management.

The deal is expected to close by the end of Q3.

Hearthstone's business comprises a land banking program that provides public homebuilders with capital, a joint venture financing program and advisory services for real estate investors and financial institutions.

Shares of Five Point ( FPH ) were down 1.4% in recent trading.

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