Gateway Takeover

On 2 July 2018 Hometown Communities announced a proposed takeover of Gateway Lifestyle (GTY), with an offer price of $2.25 per stapled security (subject to various conditions). The directors of GTY have now recommended security holders accept the Hometown offer, in the absence of a superior proposal.

The ownership of GTY was hotly contested during mid-2018 with Brookfield also announcing a bid for 100% of the issued stapled securities of GTY. It now appears that Hometown have solidified their position as the likely purchaser.

Hometown was established in the U.S. in 1997 and operates over 60 residential land lease communities (RLLC) throughout eleven states. The Australian subsidiary of Hometown was established in 2017 and currently owns five assets within the sector. GTY has 58 lifestyle communities Australia-wide with a market cap of approximately $680 million.

This activity is considered to be indicative of the emerging interest in the RLLC sector by current operators and new entrants.