Singapore’s sovereign-wealth fund GIC along with Stockbridge Capital Group purchased a 71 percent stake in Denver-based property firm Yes! Communities. Financial details have not been disclosed, but reportedly the firm has been valued at more than $2 billion in June.
YES! is a portfolio company of real estate funds managed by Stockbridge Capital Group. Stockbridge’s existing investors, together with members of YES!’s management team, will continue to own an approximately 29% interest in the new, consolidated enterprise.
Gary McDaniel, Chief Executive Officer of YES! said,
After growing YES! with our partners at Stockbridge for more than eight years, we are excited to enter this new phase of its development. With Stockbridge and our new partners, we expect to continue to grow the YES! platform and deliver its innovative strategy to new markets, communities and residents.
Debt financing for the transaction included two credit facilities from Fannie Mae arranged by KeyBank and Wells Fargo, respectively, together with a credit facility from Freddie Mac and a syndicated line of credit, both arranged by KeyBank.
YES!’s manufactured home community businesses include 178 communities across 17 states, with more than 44,600 residential home sites, an inventory of over 11,500 manufactured homes and a portfolio of home loans secured by homes within its communities. Founded in 2007, it has pioneered an innovative operating strategy, offering multiple affordable housing solutions designed to meet the varying needs of its residents. The YES! strategy incorporates manufactured home site rental, home rental, home sales and home loan acquisition programs.
Stockbridge Capital Group, LLC is an independent real estate investment management firm which also specializes in large-scale development and redevelopment projects. Stockbridge is headquartered in San Francisco with offices in Chicago, New York and Atlanta.
Terry Fancher, Executive Managing Director of Stockbridge said,
YES! has been a highly successful investment for Stockbridge. We continue to see tremendous potential in the manufactured housing sector generally, and in YES! particularly. This transaction permits certain of our investors to monetize their investment, while allowing others to invest in YES!’s future alongside GIC and another major global partner.
GIC is a leading global investment firm with well over US$100 billion in assets under management. Established in 1981 to secure the financial future of Singapore, the firm manages Singapore’s foreign reserves. A disciplined long-term value investor, GIC is uniquely positioned for investments across a wide range of asset classes, including real estate, private equity, equities and fixed income.
GIC has investments in over 40 countries and has been investing in emerging markets for more than two decades. Headquartered in Singapore, GIC employs over 1,300 people across 10 offices in key financial cities worldwide.