Residential Parks No. 2 Trust (the Trust) was established to invest in manufactured home estates (MHEs) via a security stapled to Gateway Lifestyle Operations Limited (collectively, Gateway Lifestyle), one of Australia’s largest MHE operators. The stapled security consists of one unit in the Trust and one share in Gateway Lifestyle.
The purpose of the Trust was to initially enable Gateway Lifestyle to acquire 36 MHEs and the associated management platform, and enhance its financial flexibility to pursue its business strategies. Gateway Lifestyle will use additional capital to facilitate the sale of 1,815 manufactured homes in its pipeline and to take advantage of significant growth opportunities through further consolidation of a highly fragmented and growing market.
The Trust provides investors with exposure to:
- A rental income stream from long-term sites, delivering predictable and non-seasonal cash flows;
- Manufactured home sale income from the sale of new and refurbished manufactured homes under a capital efficient model;
- A significant pipeline of manufactured home sale opportunities; and
- Identified growth opportunities including further MHE acquisitions in a fragmented market.
Gateway Lifestyle’s fully integrated and established management team has a proven track record of successfully managing existing MHEs, selling new manufactured homes and integrating new MHEs into its portfolio. Underpinned by favourable demographics and market dynamics, the management team’s key growth strategy is focused on growing its rental income and manufactured home sale income streams, which it expects to achieve through increases in rental rates and growth in the number of sites on which MHEs are installed.
One Managed Investment Funds Limited is the Responsible Entity of the Trust and members of One Investment Group provide registry and custody services to the Trust.