Sun Communities Inc has agreed to purchase Park Holidays for £900 million in a deal announced this week, with the American real estate investment trust describing the UK as “a very favourable destination” for expansion.
Despite rivals Starwood Capital and the Universities Superannuation Scheme reportedly each bidding £850m for the estate, the Sun Communities acquisition is expected to be finalised in the first quarter of 2022.
“We are incredibly excited to expand Sun’s footprint into the UK by acquiring Park Holidays, which allows us to leverage our land lease community expertise in a growing market,” said Sun CEO Gary A Shiffman. “This transaction provides Sun with immediate scale in the UK as well as a platform for future growth in a fragmented landscape.”
“We have completed significant strategy and research work in the UK with advisors prior to this opportunity, and feel confident that its long-term macroeconomic stability and fundamentals make the UK a very favourable destination in which to expand the Sun Communities platform internationally.”
Sun Communities, currently valued at £16.6bn, is reported to have been a late entrant to the HSBC and Royal Bank of Canada-operated auction, run on behalf of owner Intermediate Capital Group which paid £362m for the 26-site business in 2016.