Sun Communities, Inc. Makes Strategic Investment in Ingenia Communities, a Leading Owner and Operator of Manufactured Housing and Recreational Vehicle Communities in Australia
Sun Communities, Inc. has announced a strategic investment in Ingenia Communities Group.
Ingenia is a leading owner, operator and developer of senior manufactured housing communities and holiday resorts in Australia. Sun communities also will involve itself in a development joint venture with the Australian company.
Sun is a real estate investment trust based in Michigan. It owns and has an interest in manufactured housing and RV communities nationwide.
Sun Communities will invest approximately $54 million for a 9.9 percent ownership stake in Ingenia Communities. Additionally, the two will form a 50/50 joint venture to grow a manufactured housing community development program in Australia.
Ingenia has strong earnings growth in recent years. It has a large existing acquisition and development pipeline. Also, Ingenia has development the joint venture poised to capitalize on the positive trends.
Ingenia Communities benefits from Sun Communities’…
- Meaningful initial capital investment
- Ongoing financial support through the joint venture
- and the ability to leverage experience of the leading owner, operator and developer of manufactured housing and recreational vehicle communities
Australia has fragmented interests in both industries. Meanwhile, traditional housing, becomes increasingly expensive.
During the past 20 years, median home prices in key Australian capital cities have appreciated about 300 percent. Furthermore, there is a limited supply of high quality communities in Australia.
Industry fundamentals and Australian demographic trends provide long-term support for the sector’s growth prospects. The 55+ population may grow at twice the rate of the rest of the population. Therefore, Australian has a need for affordable senior housing.
Australian Market Primed for Growth Seen in U.S.
“We are extremely excited about investing in and alongside Ingenia and believe this venture provides a unique opportunity for Sun to strategically invest in the Australian MH and RV sector,” Sun Chairman and CEO Gary Shiffman said.
“Ingenia is a market leading operator, owner and developer of an attractive portfolio of communities across Australia. We have been actively monitoring the Australian market for some time given the sector’s similarly attractive attributes to the North American market,” he said. “The Australian MH and RV sector is early in its growth cycle, is primed for consolidation, benefits from strong demographic trends and has very favorable supply and demand dynamics.”
Sun Communities has spent considerable time with the Ingenia board of directors and management teams. As a result, Sun has found the business model and culture to be highly compatible with its own.
Shareholders will get an attractive opportunity to benefit from the growth potential of an emerging leader in the Australian sector and benefit from an opportunity for Sun to leverage its expertise to help accelerate that growth.
“We are pleased to be partnering with Ingenia’s strong and proven management team as they continue to grow their platform which has the largest development pipeline in Australia,” Shiffman added.
Ingenia Communities Welcomes Sun to Australia
Simon Owen, managing director and CEO of Ingenia Communities Group, said the partnership and venture bodes well for industry direction in Australia.
“Working with a leading operator who has a long history in the mature North American market and is aligned strategically and economically with our objectives will allow Ingenia to accelerate growth as we leverage our platform and pipeline,” Owen said.
Upon completion of the investment, Mr. Shiffman will join Ingenia’s board of directors. Ingenia will manage the development and operations of the communities in the joint venture.
About Ingenia Communities
Ingenia Communities Group (ASX: INA) is a leading operator, owner and developer of a growing portfolio of lifestyle and tourism communities across key Australian urban and coastal markets. Ingenia has a diversified portfolio of 61 rental, lifestyle and holiday communities, comprised of over 7,000 income producing sites and a development pipeline of over 3,000 sites.
About Sun Communities
Sun Communities, Inc. is a REIT that, as of September 30, 2018, owned, operated, or had an interest in a portfolio of 370 communities comprising over 127,000 developed sites in 31 states and Ontario, Canada. For more information about Sun Communities, Inc., please visit www.suncommunities.com.