Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K DATED DECEMBER 4, 2014 - SUN COMMUNITIES INC | form8-kbergerpurchaseagree.htm |
| EX-2.6 - EXHIBIT 2.6 CONTRIBUTION AGREEMENT - SOUTHPORT SPRINGS - SUN COMMUNITIES INC | exhibit26contributionagree.htm |
| EX-2.5 - EXHIBIT 2.5 CONTRIBUTION AGREEMENT - THE RIDGE - SUN COMMUNITIES INC | exhibit25contributionagree.htm |
| EX-2.4 - EXHIBIT 2.4 CONTRIBUTION AGREEMENT - PALM KEY VILLAGE - SUN COMMUNITIES INC | exhibit24contributionagree.htm |
| EX-2.1 - EXHIBIT 2.1 CONTRIBUTION AGREEMENT - DEERWOOD I - SUN COMMUNITIES INC | exhibit21contributionagree.htm |
| EX-2.2 - EXHIBIT 2.2 CONTRIBUTION AGREEMENT - DEERWOOD II - SUN COMMUNITIES INC | exhibit22contributionagree.htm |
| EX-2.3 - EXHIBIT 2.3 CONTRIBUTION AGREEMENT - HAMPTONS - SUN COMMUNITIES INC | exhibit23contributionagree.htm |
| EX-2.7 - EXHIBIT 2.7 CONTRIBUTION AGREEMENT - WINDMILL VILLAGE - SUN COMMUNITIES INC | exhibit27contributionagree.htm |
FOR FURTHER INFORMATION AT THE COMPANY:
Karen J. Dearing
Chief Financial Officer
(248) 208-2500
Sun Communities, Inc. Announces Execution of Acquisition Agreements
Southfield, MI, December 4, 2014 - Sun Communities, Inc. (NYSE: SUI) (the “Company”), today announced that it has entered into agreements with a group of related selling entities (the “Sellers”) to acquire a portfolio of seven manufactured housing communities, including associated manufactured homes and certain intangibles. The seven communities are located in the Orlando, Florida area, are comprised of approximately 3,150 manufactured housing sites (approximately 60% of which are in age-restricted communities) and are 96% occupied. In addition to the developed sites, there are approximately 380 potential expansion sites in the communities.
Total consideration for the acquisition is approximately $257.6 million, including the assumption of approximately $157.5 million of debt. The balance of the consideration will be paid in a combination of up to approximately $31.8 million in cash, common OP Units of Sun Communities Operating Limited Partnership, the Company’s operating subsidiary (“SCOLP”) (at an issuance price of $61 per unit) and newly-created Series C preferred OP units in SCOLP (at an issuance price of $100 per unit). Of the consideration to be paid with OP Units in SCOLP, 60% will be paid in Series C preferred OP Units and 40% will be paid in common OP Units. Distributions will be paid on the Series C preferred OP units at a rate equal to 4.0% per year from the closing until the second anniversary of the date of issuance, 4.5% per year during the following three years, and 5.0% per year thereafter. At the holder’s option, each Series C preferred OP unit will be exchangeable into 1.111 shares of the Company’s common stock and holders of Series C preferred OP units will not have voting or consent rights.
The transaction is subject to the Company’s satisfaction with its due diligence investigation and customary closing conditions, including consent of the existing lenders. The transaction is expected to close in February 2015.
"This transaction further strengthens our Florida portfolio of high quality communities, particularly in age-restricted communities,” said Gary A. Shiffman, the Company’s Chairman and CEO. “We believe this acquisition, together with our previously-announced acquisition of a portfolio of communities owned by Green Courte Partners, will allow us to continue our steady growth and fundamentally transform our business.”
Sun Communities, Inc. is a REIT that currently owns and operates a portfolio of 215 communities comprising approximately 78,400 developed sites.
For more information about Sun Communities, Inc.
visit our website at www.suncommunities.com
Forward Looking Statements
This press release contains various "forward-looking statements" within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and the Company intends that such forward-looking statements will be subject to the safe harbors created thereby. Forward-looking statements can be identified by words such as "will," "may," "could," "expect," "anticipate," "believes," "intends," "should," "plans," "estimates," "approximate", "guidance" and similar expressions in this press release that predict or indicate future events and trends and that do not report historical matters.
These forward-looking statements reflect the Company's current views with respect to future events and financial performance, but involve known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control. These risks, uncertainties, and other factors may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include national, regional and local economic climates; the ability to maintain rental rates and occupancy levels; competitive market forces; changes in market rates of interest; the ability of manufactured home buyers to obtain financing; the level of repossessions by manufactured home lenders; difficulties in the Company's ability to complete and integrate acquisitions (including the
acquisitions described above), developments and expansions successfully; and those risks and uncertainties referenced under the headings entitled "Risk Factors" contained in the Company's annual report on Form 10-K, and the Company's other periodic filings with the Securities and Exchange Commission.
The forward-looking statements contained in this press release speak only as of the date hereof and the Company expressly disclaims any obligation to provide public updates, revisions or amendments to any forward- looking statements made herein to reflect changes in the Company's assumptions, expectations of future events, or trends.