Posts Tagged ‘acquisition’

Near Half-Billion Deal for Gateway LifeStyle, Details Beyond News Release

June 13th, 2018 Comments off

Original photo from Gateway’s website, montage by MHProNews.

Australia’s Gateway Lifestyle Group (GTY.AX) announced that it has received a non-binding offer for acquisition.  Hometown Australia Holdings Pty Ltd., and Hometown America Communities Ltd. Partnership proposal values the company at A$635 million (US$480 million), according to Reuters.


Hometown is offering $2.10-per-share through its local arm, to buy out Gateway Lifestyle Group operator in its entirety, per the Financial Review.

Gateway stated that it has not granted due diligence access yet, and that the proposal is subject to approval by the Australian foreign investment regulator.

The Daily Business News has been tracking the blooming manufactured housing and “manufactured home estates” business in Australia for some years.

Their industry does have ‘a younger’ feel than what is found in the U.S., even though much of it is geared toward senior living.

Note the two government videos, posted above and below. Each of which discusses the “land down under” versions of manufactured homes, and their style of land-lease community living.


A Gateway investor package from 2-2018 is linked here.


From Gateway investor page on this date.

It is a fast-growing sector, with listed players such as Gateway and Ingenia, along with Hometown Australia Communities. Gateway generates earnings from the development sales of new homes and the ground rent from its growing portfolio,” said the Financial Review.


Hometown is a subsidiary of Chicago-headquartered Hometown America Communities, with assets of more than #US3 billion,” they said.

Hometown’s Saddlebrook Farms, located in Gray’s Lake, IL was recently awarded that state’s community of the year award.


Saddlebrook, as some MH professionals know, was established by industry visionary, Chuck Fanaro, who also held an interest in upscale HUD Code and modular home builder, Hi-Tech Housing Inc, in Bristol, IN.

The Gateway-Hometown deal – if approved and finalized – would be backed by Calzada Capital. They are “a global real estate investment firm with more than $US9 billion in assets under management,” said Financial Review.


Prior reports on this blossoming part of the international manufactured housing market are linked from related reports, further below. ## (News, analysis, and commentary.)

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Related Reports:

Acquisition, and Rumors of a Billion Dollar Acquisition, for Hometown America


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Skyline Corp, Champion Home Builder M&A Updates, Stockholder Insights

May 25th, 2018 Comments off


Skyline Corporation and Champion Enterprises Holdings, LLC, the parent company of Champion Home Builders, Inc., previously announced merger/acquisition (M&A) is set to close within the next two weeks, according to sources familiar with the matter.


Recent press releases have not announced a set date, but they have pointed to a closing expected before the end of the first half of 2018.


Skyline (SKY) shares have soared since the announcement, as the graphic below reflects.


The one year stock performance tells a tale, note the line for the day the M&A deal was announced.

A stockholder told the Daily Business News that their firm expects the stock to rise even higher once the M&A is complete.

That source in an emailed message – quoting verbatim – said:

“- first broker picked up coverage on the stock today-price target 37$

– Your going to see a lot more activity next week after the deal closes. I bet 3-4 banks pick up coverage on the stock. 

-These guys + CVCO have wind at their back – housing inv is tight, prices moving up on site built, no major capacity coming on

While there are some new production centers – including one for Champion – being established, as MHProNews has previously reported, the points made by a verified stockholder are interesting ones.

In a release last week, the Daily Business News was advised, “Skyline Announces Intent To List On The New York Stock Exchange…” and, another release stated that the stock will declare a special dividend in a matter of days.

As a disclosure, MHProNews takes nor holds a position on any industry stock. Champion is one of those companies that have been making the move to “go vertical” in recent years.  They did so in the 1990s as well.

Stay tuned for the anticipated announcement, which per sources could be completed on or before the middle of June, 2018.


That M&A would give the new Skyline/Champion the number 2 position in the industry, ahead of Cavco, but still dwarfed by Clayton Homes.


It continues the trend of consolidation within manufactured housing, which concerned members say that the Manufactured Housing Institute (MHI) may be fostering, a claim that MHI has neither affirmed nor denied. However, in a practice similar to other trade associations, MHI issues an antitrust warning in their meetings.  ##  (News, analysis, and commentary.)

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Related Reports:

Skyline Corp, Champion Homebuilders Conference Call Presentation Facts, Figures, Forward-Looking Statements, Planned Merger Detail$

Clayton Homes, Top 25 Manufactured Housing Industry Report, Trend Lines


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Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and


Warren Buffett’s Berkshire Hathaway Nears $100 Billion in Cash – What’s That REALLY Mean?

August 14th, 2017 Comments off

Warren Buffett, CEO of Berkshire Hathaway Inc. Credit, Linkedin, MHProNews.

Not often is having almost $100 billion in cash on hand considered a problem, or a bad thing at all.

But Warren Buffett, CEO of Berkshire Hathaway – parent to Clayton Homes and several other industry connected operations,  a well-known name to industry professionals and Daily Business News regulars – certainly sees it as a challenge.

Berkshire Hathaway Inc., the conglomerate run by Buffett for more than fifty years, recently reported having $99.7 billion in cash on hand.

The question is, ‘Are we going to be able to deploy it?’” Buffett said at Berkshire’s annual meeting in May. “I would say that history is on our side, but it’d be more fun if the phone would ring.”

Why is so much cash a problem?

According to Bloomberg, the large amount of money not being invested is a problem for the conglomerate because they pay no dividends.


They also don’t often buy back their own stock (see screen capture, above).


Berkshire Hathaway cash pile-up growth chart. Credit, Investopedia

However, Berkshire Hathaway Inc. has invested some – albeit not much compared to what they have available – recently.

Buffett now has a stake in Apple Inc., in a move earlier this year.

More important to industry professionals, Daily Business News readers may also recall from a recent report that Berkshire’s division – Clayton Homes – recently acquired yet another industry home operation.  There are indicators that more housing operation deals could be in the pipeline.

Berkshire Hathaway has also made

  • two smaller retail investments,
    including a real estate investment trust,
  • a Canadian mortgage lender by the name of Home Capital Group Inc.,
  • the utilities arm of Berkshire Hathaway is also in the process of closing a deal for $9 billion to acquire Texas’s largest electric utility provider.



Buffett has made his fortune and solid reputation on sound, smart investments rather than simply spending frivolously, and it’s possible he’s waiting to ride out the “Trump bump” the stock market has experienced since November—a rise that President Donald Trump has often taken credit for,” per Newsweek.


Jim Shanahan, an analyst at Edward Jones. Credit, Edward Jones


It’s not a cause for alarm,” Jim Shanahan, an analyst at Edward Jones said, per Fortune. Over the next few years, “they’ll make some really interesting investments.”

It is unclear whether Buffett is waiting intentionally for something he believes is coming, or if he just hasn’t found the right investment to make.

I mean, we have not put our foot to the floor on anything for really a very long time,” Buffett said.

To put that money to work would be great,” said David Rolfe, chief investment officer at Wedgewood Partners, a money manager overseeing about $6 billion including Berkshire stock. But the “list of companies that he would like to own is very, very small.”


David Rolfe, chief investment officer at Wedgewood Partners. Credit, Latticework.

With almost $100 billion in funds laying around, and affordable housing – and housing in general hot – it stands to reason that Buffett will allow Clayton Homes more operations, while they likewise seek to navigate the invisible line where regulators could become concerned.  ## (News, analysis.)

Editor’s Note: For the latest on Berkshire Hathaway, you can click on the Daily Business News market report every evening.  For the latest on Buffett’s fingers on the scale of hot political topics, click this link here.

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LCI Industries Makes Major Move

May 23rd, 2017 Comments off

Credits: LCI, Investors.

LCI Industries (formerly Drew Industries), a supplier of components for the leading original equipment manufacturers of recreational vehicles (“RVs”) and adjacent industries, and the related aftermarkets of those industries, tells MHProNews that it has acquired Lexington, LLC for $40 million.

Based in Elkhart, Indiana, Lexington manufactures high quality seating solutions for the marine, RV, transportation, medical and office furniture industries. LCI Industries completed the acquisition via its wholly owned subsidiary, Lippert Components, Inc.

We are excited to add Lexington’s business and employees to our growing portfolio of furniture solutions for the marine, RV and adjacent industries,” said LCI’s President Scott Mereness.


Scott Mereness. Credit: LCI Industries.

LCI is the leading provider of furniture solutions for the RV towable industry, and with the addition of Lexington’s high quality products, design and manufacturing teams, and strong customer relationships, the leading supplier of pontoon furniture as well.”

LCI says that current Lexington President Jeff Wysong will remain with LCI and continue to lead Lexington.

LCI is a great strategic fit for our company as well as our customers, and I am excited to be a part of their dynamic team,” said Wysong.

LCI has vast resources and great teams that will certainly help strengthen Lexington as we combine with LCI’s marine divisions to offer even better solutions to the marine market and its customers.”


Jason Lippert. Credit: LCI Industries.

Our combined marine furniture team is talented and innovative, as well as experienced in managing growth,” said Jason Lippert, LCI’s Chief Executive Officer.

Lexington is our largest acquisition in the past 20 years, and is representative of our strategy of quickly assembling a portfolio of companies and products that will help us become a major contributor to marine component designs and solutions. We expect to leverage our purchasing, sales, distribution and administrative capabilities to improve the profitability of this business, and we expect this acquisition to be immediately accretive to LCI’s earnings.”

LCI 1 year look. Credit: Bloomberg.

LCI is one of the various manufactured housing industry-connected stocks monitored each business day on the industry’s only daily market report, featured exclusively on the Daily Business News.

For the most recent closing numbers on all MH industry-connected tracked stocks, please click here. ##

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RC Williams, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.


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Major Moves at Tricon Capital Group

April 14th, 2017 Comments off

Credit: CBS Local.

Big news for Tricon Capital Group Inc. (TCN), as they have announced their acquisition of Silver Bay Realty Trust Corp (NYSE:SBY), an owner and operator of single-family rental homes in the United States for $1.4B.

According to HousingWire, the all cash transaction valued Silver Bay at $21.50 per share, and the deal will create the country’s 4th largest publicly owned single-family rental operator with over 16,800 units nationwide.

The proposed acquisition of Silver Bay is an incredibly exciting and transformational event for Tricon. This acquisition will more than double the size of Tricon American Homes, establishing it as the fourth largest publicly-owned SFR company in the U.S. Silver Bay’s high-quality and well managed portfolio of SFR homes is a natural complement to our TAH assets, in particular given the geographic overlap in the Sun Belt,” said Tricon President and CEO Gary Berman.


Gary Berman. Credit: Tricon Capital.

We believe that the transaction will result in significant operating and overhead synergies creating immediate value for our shareholders. In conjunction with the Acquisition, we also intend to exit our smaller non-core businesses and take a meaningful step toward simplifying our overall corporate business model by focusing on scale, industry leadership, enhanced disclosure and operational integration across our investment verticals.”

The newly combined company will operate in a total of 18 markets, including six markets with one thousand homes or more.

We have continually evaluated the most prudent way to drive sustainable, long-term capital appreciation and we believe this transaction is the best opportunity to return maximum value to our stockholders,” said Silver Bay CEO Thomas Brock.

Over the past year, we have been making excellent strides in driving efficiency across our operating platform. We closed out the year with the best quarter in our company’s history, which I credit to the dedication and focus of our Silver Bay team.

Our well-crafted portfolio of single family properties and the recent strong performance across our platform will serve as a great complement to Tricon Capital Group Inc.’s business as the single family rental industry continues to evolve and consolidate.”

The deal is expected to close by end of Q2 2017.


Tricon 1 year look. Credit: Bloomberg.

Insider Action

Tricon Capital Group Director Ira Gluskin purchased 50,000 shares of the company’s stock last month, at an average price of C$10.72 ($8.05 USD) per share for a total transaction of C$536,000.00 ($402,482 USD).

The company has received an overall “buy” rating consensus from analysts, including CIBC, BMO Capital Markets, TD Securities, and Royal Bank of Canada.

Tricon Capital Group is a principal investor and asset manager focused on the residential real estate industry in North America with approximately $3.1 billion USD of assets under management. Tricon owns, or manages on behalf of third party investors, a portfolio of investments in land and homebuilding assets, single-family rental homes, manufactured housing communities and multi-family development projects.

For the most recent closing numbers on Tricon Capital Group – and all MH industry-connected tracked stocks – please click here. ##


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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Cavco Reaches Terms on Key Acquisition

March 31st, 2017 1 comment

Credit: Lexington Homes.

Cavco Industries Inc. (NASDAQ:CVCO) tells MHProNews that it has signed a Letter of Intent, and has reached an understanding, on terms to acquire Lexington Homes, Inc.

The purchase of Lexington is expected to improve Cavco’s ability to participate in the growing Southeastern housing market, as well as better serve the needs of Lexington customers. The purchase price, due to be paid in cash at closing and funded with Cavco’s internal capital, was not disclosed.

The transaction is subject to the satisfaction of customary closing conditions.

Cavco has been in the news recently, and in their most earnings report, the company delivered $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.92 by $0.11.


Credit: Cavco Industries.

Those results fueled investor activity, as JP Morgan Chase, BNP Paribas Arbitrage SA, and the Teacher Retirement System of Texas all either increased their stakes in the company or purchased new positions. Cavco was also recently featured as British insurance giant Legal & General made a significant move in its stake in the company.

As Daily Business News readers are aware, Phoenix, AZ-based Cavco Industries is one of the largest producers of manufactured homes, as well as a builder of modular and park model homes, vacation cabins and commercial structures. Factory-built homes are designed and produced under such brand names as Cavco Homes, Fleetwood Homes and Palm Harbor Homes.


Cavco 1 year look. Credit: Bloomberg.

Lexington Homes provides affordable manufactured housing from its manufacturing plant in Lexington, Mississippi to its retail distributors in the Southeastern United States. The company was founded in 2004 by individuals with combined experience of over 100 years in the manufactured housing industry.

Cavco is also one of the manufactured home industry connected stocks tracked every business day by the Daily Business News, with the most recent report, linked here. ##


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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews

What’s Happening With Skyline Corp?

March 9th, 2017 Comments off

Skyline HQ. Credit: Inside Indiana Business.

Fresh off of their announcement regarding the shutdown of their Mansfield, Texas production facility, and the subsequent announcement that Champion Homes will acquire it, Skyline Corp. (NYSE: SKY) announced yesterday that the company has suspended operations at its Elkhart, Indiana plant.


According to the South Bend Tribune, Skyline also announced that they have laid off the majority of the workforce at the facility.

It’s not that we didn’t have the orders or the business or the customer base. It’s that in a leased facility, it did not allow us to produce a high enough volume to achieve operational efficiency,said Skyline president and CEO Richard Florea.

Skyline has taken steps to ensure the 90 or so employees affected by the move are not without work, offering them jobs at other Skyline facilities in Wisconsin or Ohio or connecting them with other job opportunities.


Credit: LinkedIn.

Florea also said that other measures have been taken to minimize the impact.

We allowed some other companies in town to come in and take applications from employees. We made it as easy as possible so people don’t have to go out and look for jobs,” said Florea.

The SEC filing from Skyline said that the company was unable to profitably operate the 50,000 square-foot facility, which it began leasing from Forest River last year.

Despite demand from manufactured housing dealerships and manufactured housing communities, the leased facility used for production prevented daily volumes to reach and maintain profitable efficiencies,” the company said in the filing.

The corporation anticipates having sufficient orders to maintain production at the Elkhart facility until March 8, 2017. The majority of the workforce is expected to be terminated shortly after production ceases.


Skyline modular home, credit Skyline.

Once a pioneer in the manufactured housing industry, nine consecutive years of significant losses have contributed to Skyline’s struggle to regain profitability. It posted a $1.7 million profit in 2016.

As MHProNews reported in September, 2014, Skyline spun off its recreational vehicle division to Evergreen Recreational Vehicles. For that story, click here.

Even with the tough news, Florea did see a glimmer of hope.

Skyline could re-establish production in Elkhart if we find the right facility and the labor market improves,” said Florea.

The area is currently suffering from a labor shortage, due to a jobs boom in the manufactured housing and RV industries.

As Daily Business News readers are already aware, Skyline is also one of the industry stocks monitored each business day. For the most recent closing numbers on all MH industry-connected tracked stocks, please click here. ##


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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Skyline Makes Announcement Regarding Mansfield Facility

March 6th, 2017 Comments off

Credit: Star-Telegram.

MHProNews has learned that Skyline Corp. has come to terms to sell its Mansfield, Texas manufactured-housing facility to Champion Home Builders.

According to the Star-Telegram, under terms of the deal, Champion would pay a $99,000 deposit and then $2,125,000 upon closing, scheduled to occur on or before April 7, according to a filing with the SEC.

As the Daily Business News reported last week, Skyline was prepared to shut down their Mansfield, Texas facility due to an inability to operate profitably.

The suspension is due to the plant being unable to profitably operate since it was converted from producing recreational vehicles to manufactured housing in fiscal 2014,said Florea in an announcement to employees at the plant on February 24th.

Challenges this location faced included fewer independent manufactured housing dealerships buying homes than anticipated resulting in sales volumes not reaching profitable levels.

Skyline had originally stated in their recent 8-K filing that if a buyer could not be found by the time current production at the facility is completed at the end of March, the majority of the workforce will have to be terminated.

With the purchase, Champion Homes also alerted officials in Mansfield that they intend to hire the current workers at the facility, saving over 100 jobs.


Credit: Champion Homes.

Skyline also said that a portion of the property is leased for oil and gas production and that a subsidiary, Homette, would continue to receive royalties for 60 months following the sale.


Ribbon cutting ceremony for Champion Homes Kentucky plant. Credit: Woodworking Network.

As regular Daily Business News readers already know, Champion Homes was founded in 1953, producing more than 1.7 million factory-built pre-HUD Code mobile homes, post-HUD Code manufactured homes and modular homes or buildings throughout the United States, in the United Kingdom and western Canada. For more on the companies’ recent acquisition of a former Excel Homes facility in Susquehanna Township, Penn., click here.

Skyline Corporation is one of the oldest and larger independent producers of manufactured, modular and park model homes.

Skyline is also one of the industry stocks monitored each business day on the MH Industry’s leading professional news resource, the Daily Business News, on MHProNews.  For the most recent closing numbers on all MH industry-connected tracked stocks, please click here. ##


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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News, MHProNews

Hometown America Trying to Buy Resident Owned Community, Rift Results

February 3rd, 2017 Comments off

A home in Briarcrest Estates. Credit: Zillow.

In Laconia, New Hampshire, the Lakemont Cooperative-owned Briarcrest Estates manufactured home community is in a unique position.

According to the Laconia Daily Sun, the story dates back to July 2013, when community owners Mark and Ruth Mooney tentatively agreed to sell the Briarcrest Estates to Hometown America for $10 million.

In compliance with state law, the terms of the transaction were disclosed to the tenants, who had 60 days to make a counteroffer by presenting a purchase-and-sales agreement. The law requires the community owner to bargain in good faith with the residents or their organization.

Residents of Briarcrest Estates then formed The Lakemont Cooperative Inc. and, with assistance from the New Hampshire Community Loan Fund, matched the offer from Hometown America Corporation.

After initial resistance, Mark and Ruth Mooney agreed to sell the 183 acre, 241 home site community to the cooperative, which has owned and managed it since April 2014.

According to the cooperative President Don Vachon, the community is on solid financial footing, which has been verified by several other residents familiar with the finances of the organization.

Others residents acknowledged that some capital improvements would need to be undertaken in the near future.


Credit: Briarcrest Estates.

Fast forward to January 17th of this year, when Doug Minahan of Hometown America Corporation wrote a letter to Vachon.

It was an offer to buy Briarcrest Estates.

Doug Minahan. Credit: LinkedIn.

The Hometown America offer included retiring the outstanding balances on a $8 million loan from TD Bank and $2 million loan from the New Hampshire Community Loan Fund as well as covering the prepayment penalty of $873,000 on the bank loan, closing costs and real estate transfer taxes associated with the transaction.

The company also pledged to honor all current leases, which provide that rent increases are limited to the rise in property taxes and inflation rate, along with any special assessment levied to fund improvements in the park, and offered to invest $350,000 in improvement to the park in the first year of its ownership.

It’s an unsolicited offer, period. A fire-from-the hip proposal,” said Vachon.


Credit: Trademarkia.

But, according to some residents, the offer has strange timing. And has caused a rift.

Although the board has claimed the offer was not solicited, the letter from Hometown America Corporation outlining its terms begins ‘per our discussions,’ indicating that board members have been communicating with Hometown America for some time,” said Katherine Carlson, who also was among the first officers of the cooperative.

Per the Laconia Daily Sun, when the offer was disclosed to residents at a meeting last weekend, they agreed by a show of hands to meet with representatives of Hometown America late in April, after residents spending the colder months in warmer climes have returned for the summer.


Credit: Briarcrest Estates.

On Monday, the directors of the Lakemont Cooperative then informed its members that what they called an “informational meeting” with the regional director of Hometown America will be held on February 25th, and a special meeting of the membership has been scheduled on April 8, when members will be asked to vote whether to accept or reject the offer.

And this movement concerns another original director of the cooperative.

The board has all of a sudden accelerated the time frame without any explanation,” said Orry Gibbs.

Many residents will not have returned from their winter residences by early April, and there is concern at the prospect that a vote could be taken before a significant number of residents would have an opportunity to become informed about the offer, take part in the discussion and perhaps even cast their vote. We have been no reason for the rush to a decision.

Founded in 1997, Hometown America is a privately held company that owns and operates manufactured housing communities across the country. Today, the company operates more than 45 communities in ten states.

The Daily Business News will continue to monitor this story. ##

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Killam Properties Makes Significant Moves

January 30th, 2017 Comments off

Credit: Rental Housing Business.

Canada based real estate investment trust Killam Properties Inc. (TSE:KMP.UN) tells MHProNews that the company has closed on two Canadian acquisitions worth $26.2 million, including 153 apartment units in London, Ontario, and 66 units in Calgary, Alberta.

On December 22, Killam acquired a five building portfolio in London for $13.4 million, or $87,500 per unit. Killam’s London portfolio now consists of 417 total rental units.

On January 16, Killam acquired Spruce Grove Lane Apartments, its second apartment property in the city of Calgary. The 3-acre site consists of 66 townhouse-style apartments, with a purchase price of $12.8 million, or $195,000 per unit.


Spruce Grove Lane. Credit: Rentboard CA.

philipfraser-presidentceokillamproperties-manufacturedhomecommunitiesdailybusinessnews-mhpronewsWe are pleased to grow our rental portfolios in both London and Calgary,” noted Philip Fraser, President and CEO.

We have been monitoring the Calgary rental market over the last year and Spruce Grove Lane Apartments, located in a sought-after residential neighborhood, has great upside. We have the opportunity to add value and grow net operating income at this property.

The acquisitions bring the company’s total for 2016 to $70 million, which exceeds management’s goal of $50 million in acquisitions for the year.


Killam 1 year look. Credit: Bloomberg.

Killam also received recommendations from rating agencies recently, with an average recommendation of “buy,” from TD Securities and “sector perform” from Scotiabank. That story is linked here.

As Daily Business News readers are aware, in addition to multifamily apartments, Killam owns 35 manufactured home communities in Atlantic Canada and Ontario.

Killam is also one of the manufactured home industry stocks monitored each business day on the MH Industry’s leading professional news resource, the Daily Business News, on MHProNews. For the recent closing numbers yesterday on all MH industry-connected tracked stocks, please click here. ##


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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.