Sun Communities, Inc. has entered into a definitive agreement to sell its UK assets, including Park Holidays, to funds affiliated with Aermont Capital in an all-cash transaction. The deal has an enterprise value of £768 million, equivalent to approximately $1.03 billion. This strategic move enables the company to concentrate on its core North American manufactured housing and RV portfolio.
The sale is expected to generate significant benefits for Sun Communities, including a pure-play focus on the MH and RV industry, more predictable revenue streams, and improved financial flexibility. The transaction will also enable the company to invest in its high-quality communities and identify attractive external growth opportunities.
Under the terms of the agreement, Aermont Capital will acquire Park Holidays in an all-cash transaction, with the total cash consideration subject to certain locked box adjustments. The deal is expected to close in the second half of 2026, pending customary closing conditions and regulatory approval.
Sun Communities' CEO Charles Young commented on the sale, stating that it allows the company to focus on driving growth through its core North American MH and RV platform. He also expressed gratitude to the Park Holidays team for their commitment and partnership over the years.
Park Holidays' CEO Jeff Sills added that he is proud of what the team has accomplished during Sun's ownership and looks forward to the next chapter under Aermont's ownership. The sale marks a significant milestone in the company's history, demonstrating its ability to adapt and evolve in response to changing market conditions.
The transaction benefits from a post-transaction North American MH and RV real property net operating income (NOI) expected to generate approximately 95% of Sun's total NOI. This increase in predictability will provide a more stable foundation for the company's growth and margin profiles.
Furthermore, the sale further enhances Sun Communities' financial flexibility, with the proceeds improving its liquidity and credit profile. This move positions the company well for future investments and opportunities.
The deal is subject to customary closing conditions, including receipt of regulatory approval from the UK Financial Conduct Authority. While there are no assurances regarding the closing date or ultimate completion of the transaction, Sun Communities is confident in its ability to execute the sale successfully.
Lazard Frères & Co. LLC serves as financial advisor, while Jones Day and Taft Stettinius & Hollister LLP act as legal advisors to the company on the transaction.
The sale marks a strategic shift for Sun Communities, allowing the company to focus on its core North American business.
