MHProNews  has been informed that Sun Communities, Inc. (NYSE:SUI) has agreed to acquire a portfolio (the “ALL portfolio”) of 59 manufactured home communities from Green Courte Partners, LLC (GCP) comprising over 19,000 homesites for approximately $1.32 billion, including the assumption of $560 million debt. Nearly 14,000 of the sites, 73 percent, are age-restricted, and just under 11 percent are in Florida. Sun will pay $311 million in cash and issue a combination of stock and Operating Limited Partnership units with a value of $437 million to GCP investors. In addition, GCP will invest $13 million in Sun’s equity and will own approximately 11 percent of the company. Randall K. Rowe, Chairman and Founder of GCP, and James Goldman, Vice-Chairman and Chief Investment Officer at GCP will become board members.

Gary Shiffman, Chairman and CEO of Sun, headquartered in Southfield, Michigan, noting the added scale and diversity derived from this acquisition which will strengthen its position in Florida, says, “We believe this transformative transaction positions us as a best-in-class player in the industry and enables us to drive shareholder value going forward.” He adds: “Looking forward to the first year under the Company’s ownership and operation post-acquisition, the Company has underwritten the transaction at an estimated 6.0% cap rate based on projected Year 1 NOI and expects the acquisition to be approximately 5.0% – 8.0% accretive to 2015 FFO per share.”

Randall K. Rowe commented: “We believe the combination of our manufactured home business with Sun Communities will create an industry leading growth platform. I am excited to be joining Sun Communities’ Board of Directors and look forward to contributing to the long-term success of this enterprise.” The transaction is expected to close in two stages, beginning near the end of 2014. ##

(Photo credit: Sun Communities, Inc. community)