Gateway Lifestyles, an Australian company that specializes in the development and management of “residential parks” has hired two global financial services companies, UBS and Macquarie, to oversee the initial public offering of its manufactured housing parks business. Currently, Gateway owns 22 parks.
The Australian Business Review tells MHProNews, that the company is going public later this year. “The IPO is expected in March or April, with the new public company to have a market capitalization of between $250 million to $300 million.”
Alceon, an Australian specialist advisory, investment and capital solutions partnership, is funding the Gateway entity. “This company has built a portfolio of parks featuring the ‘cheaper system-built houses’ that are being marketed as an affordable accommodation option for retirees,” the article stated.
It’s interesting to observe what Australians consider to be “cheaper” homes. In viewing a website listing homes for sale in one of Gateway’s residential parks, the least expensive model was $195,000 for a two-bedroom, one-bath model. (See photo on this page.)
Still, just as in the United States, manufactured home communities are growing in popularity in Australia. Experts in that country say that competition is heating up, as groups bet on growing demand for manufactured housing as stick and brick home prices continue to soar.
According to the Review article, “There is a race to consolidate in an industry where the top 10 operators hold only 5 per cent of the market.” As an example, they say that attempts were made by an entity backed by members of a wealthy poultry family, the Inghams, to float last year, but the deal collapsed in November.
It seems that U.S. backed investors are taking note of the increasing interest in these Australian communities. New York-based private equity firm Blackstone is now circling the Tasman Lifestyle Fund, which was to be floated as a $100 million plus company owning up to 11 modular housing parks.
Blackstone has already made an investment in National Lifestyle, which owns 10 manufactured retirement villages throughout Western Australia in November.
Listed rival Ingenia Communities is also expanding to provide manufactured housing parks as retirement accommodations where occupants can rent or buy the properties for about $250,000. ##
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(Photo Credit: Gateway Lifestyles)
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