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TPG weighing a sale of Strive Communities: Bloomberg
Posted on Friday, 11 September 2020 11:31
Private equity group TPG is exploring a disposal of mobile-home parks operator Strive Communities in a deal that could be worth more than USD 750.00 million, people familiar with the matter told Bloomberg.
According to the sources, the group has hired an advisor and is expected to start sounding out potential buyers in the coming weeks.
TPG may decide to keep the business, one of the people noted, asking not to be identified as the situation is still private.
Bloomberg observed the potential sale comes as the mobile home parks sector has become more popular as people avoid international travel due to the coronavirus pandemic.
Investors have been eyeing the sector, the news provider said, adding traditional real estate has been struggling during Covid-19.
According to Strive’s website, as the cost of housing continues to rise, finding quality, affordable housing can be challenging, and a manufactured home may be more beneficial than an apartment.
Strive manages over 120 communities across 16 states, including Texas, Illinois and Iowa.
The average price of a mobile home in the US is USD 86,900, according to the US Census Bureau data updated in April, cited by Bloomberg.
Real estate services firm JLL reported more than USD 800.00 million worth of manufactured housing parks changed hands in the second quarter, up 23.0 per cent year-on-year.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been two deals involving mobile home manufacturers and dealers announced in 2020 to date.
These transactions involved Vanguard Healthcare Solutions buying Dutch modular and mobile healthcare facilities provider Young Medical and 3i Group picking up German garden shed A-Z Gartenhaus.
Neither deal had a recorded value.
© Zephus Ltd