Sun Communities, a real estate investment trust (REIT) that owns and operates or has an interest in manufactured housing (MH) and RV communities, announced that it has entered into a definitive agreement to sell its U.K. assets, including the Park Holidays business to funds affiliated with Aermont Capital in an all-cash transaction with an enterprise value of £768 million (or approximately $1.03 billion).
This strategic transaction enables the company to fully focus on its core North American MH and RV portfolio while further enhancing its financial flexibility, the company said.
Under the terms of the agreement, Aermont will acquire Park Holidays in an all-cash transaction. The total cash consideration received at closing is subject to certain customary locked box adjustments, inclusive of the cash profits of Park Holidays up to the completion of the transaction.
Charles Young, Sun’s CEO, commented: “This exciting transaction allow us to focus on and drive growth through our core North American MH and RV platform. We will remain disciplined in our capital allocation approach, which includes investing in our high-quality communities, identifying attractive external MH and RV growth opportunities and returning capital to shareholders.
We would like to thank the entire Park Holidays team for their commitment, partnership and contributions throughout our ownership. We appreciate all that we have accomplished together and believe the business is well-positioned for continued success under Aermont’s ownership.”
Jeff Sills, Park Holiday’s CEO, added: “We are grateful for Sun’s partnership and support over the past several years. Together, we have continued to build and strengthen Park Holidays, and I am incredibly proud of what our team has accomplished. We look forward to the next chapter for the business under Aermont’s ownership and remain excited about the opportunities ahead.”
Transaction Benefits
- Pure-Play MH and RV Focus. Post-transaction North American MH and RV Real Property NOI is expected to generate approximately 95% of Sun’s total NOI.
- Reinforces Focus on Durable, Annual Income Streams. The transaction increases Sun’s exposure to more predictable revenue streams while improving the Company’s growth and margin profiles.
- Further Enhances Financial Flexibility. The proceeds generated by the transaction further improve Sun’s liquidity and credit profile.
Timing
The transaction is subject to customary closing conditions, including receipt of a required regulatory approval from the UK Financial Conduct Authority, and is expected to close in the second half of 2026. There can be no assurances regarding the closing date or that the transaction will ultimately be completed.
Advisors
Lazard Frères & Co. LLC is acting as financial advisor, and Jones Day and Taft Stettinius & Hollister LLP are acting as legal advisors to the Company on the transaction.
Rothschild & Co is acting as financial advisor and Macfarlanes is acting as legal advisor to Aermont.
