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Posts Tagged ‘centerbridge capital partners’

Singapore Investors Turn Sights on Yes! Communities for $2B+

June 28th, 2016 Comments off

yes_communities_logoMHProNews has learned from The Wall Street Journal that Singapore’s sovereign wealth fund, GIC, is in talks to acquire Denver-based YES! Communities from private-equity firm Stockbridge Capital Group for over $2 billion. Spurred by investors who are seeking to find sources of higher yield in a world of low interest rates, GIC would obtain an initial yield of just over six percent, while many top market trophy properties currently return less than five percent. YES! owns or operates 178 manufactured home communities (MHCs) in 17 states.

In recent similar transactions, as MHProNews reported here March 16, 2016, Sun Communities, Inc. acquired the 103 manufactured home and recreational vehicle sites of Carefree Communities, Inc. from Centerbridge Capital Partners for $1.68 billion, while NorthStar Realty Finance Corp. agreed to sell its 135 MHCs to a property fund managed by Brookfield Asset Management Inc. for $2.04 billion, as MHProNews reported here.

The demand for acquiring MHCs has increased as investors realize there is a limited supply—local governments are reluctant to license more MHCs because of the stigma that is still attached to MH communities, and also because they do not produce nearly as much in property tax as other types of real estate development. Additionally, costs are minimal in operating an MHC, and residents tend to stay much longer than, say, tenants in an apartment building.

Well-capitalized private-equity and publicly traded REITs are eager to acquire these properties, invest capital on cosmetic or deferred maintenance items, and realize improved performance [of] the properties typically within the first two years of ownership,” Paul Adornato, an analyst with BMO Capital Markets, said in an email.

In late 2014 GIC acquired IndCor Properties from Blackstone Group LP for $8.1 billion. IndCor is one of the largest owners of industrial space in the nation.

Similarly, the Kwee family of Singapore is helping finance luxury condominiums next to New York’s Museum of Modern Art. ##

(Image credit: YES! Communities)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.

Sun Communities Closes on Acquisition of Centerbridge’s Carefree Communities

June 10th, 2016 Comments off

sun homes coming soon signUpdating a story MHProNews last posted March 22, 2016 regarding the acquisition of Carefree Communities, Inc. from Centerbridge Capital Partners II, LP for $1.68 billion, Sun Communities, Inc. (NYSE:SUI) announces it has closed on the transaction.

Sun issued Centerbridge $225 million in shares of common stock priced at $67.57 per share, and $1.455 billion in cash, one billion of which was immediately applied to the seller’s outstanding debt to make the transaction totally debt-free.

With the acquisition, according to nasdaq, Sun adds a total of 103 manufactured home (MH) and recreational vehicle (RV) communities to its portfolio, 27,554 home sites comprised of 9,829 developed MH sites and 17,725 RV sites. Additionally, there are 396 MH sites and 2,586 RV sites suitable for development. Most of the communities are in Florida and California.

Based in Southfield, Michigan, Sun now owns and operates 337 communities with 117,000 home sites in 29 states and Ontario, Canada. ##

(Image credit: Sun Communities, Inc.)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.

New Company Operates Senior Manufactured Home Communities

July 12th, 2013 Comments off

Carefree Communities, Inc., a new company created by Centerbridge Capital Partners II, LP, has acquired National RV Communities, which owns and operates 61 senior manufactured home (MH) and recreational vehicle (RV) communities, mostly in Fla. but also in six other states and Canada. Carefree is a private REIT (real estate investment trust) with 16,000 homesites in 65 communities, as MHProNews has learned from PRNewswire. Centerbridge is a private investment firm headquartered in New York City with $20 billion under management.

(Photo credit: mhvillage–Lake Village, Nokomis, Fla.)