SUN COMMUNITIES takes majority stake in PARK HOLIDAYS

Aermont Capital has entered into an agreement to acquire Park Holidays, the UK-based holiday park and leisure home business of Sun Communities. The transaction encompasses all assets through which the US group operates in the UK, marking Sun Communities' exit from this market. This divestment is part of Sun Communities' strategy to refocus on its core manufactured housing and recreational vehicle businesses in North America. For the seller, the deal enables a simplification of its asset portfolio and concentration of resources on priority markets. Meanwhile, Aermont Capital is acquiring a leading platform in the UK holiday park market, benefiting from an established asset portfolio and significant presence in a sector characterized by high barriers to entry and consolidation opportunities. The transaction provides the investor with a solid foundation to support future growth and pursue expansion in the UK market.

The sale of Park Holidays UK by Caledonia Investments occurs after a 3-year holding period, during which the holiday park network underwent substantial expansion, growing from 23 to 26 establishments. This secondary buyout enables Intermediate Capital Group to enter the still highly fragmented UK outdoor hospitality market, with the goal of consolidating independent operators and modernizing existing infrastructure. Financing provided by the new majority shareholder will be crucial in supporting this expansion strategy, aimed at bolstering Park Holidays UK's market position. The current management team, comprising Jeff Sills, Al Loch, Tony Clish, and Adrian Fawcett, will remain in place to execute this plan, tasked with implementing initiatives to enhance profitability at each location and transform the operator into a national platform. This transaction also marks the realization of a profitable investment for Caledonia, which generated a significant net return during the holding period, with a total return on investment of 44% and a multiple of 2.9 times its investment, driven by robust operational performance, including EBITDA growth from £20m to £36.5m.

Caledonia Investments has successfully completed a capital restructuring of Park Holidays, acquiring a majority stake in the holiday park operator. This transaction is part of a strategic plan to support the company's growth, which generated an EBITDA of over £20 million for the year ended December 31, 2012. Park Holidays boasts a portfolio of 23 holiday parks, comprising 21 freehold and 2 leasehold properties, located in southern England. The acquisition was funded through a combination of equity (£88 million) and bank debt (£90 million), provided by a syndicate of banks including RBS, HSBC, Lloyds Bank, Barclays Bank, and Santander, with an additional £10 million facility available for future investments and acquisitions. The existing management team, consisting of Jeff Sills, Al Loch, and Tony Clish, who originally acquired the business in 2006 with the support of Graphite Capital, will remain in place to drive the company's next phase of development. This transaction will enable Park Holidays to continue its expansion, including targeted acquisitions, and strengthen its market position.