Blackstone to Acquire Sun Communities’ Safe Harbor Marinas for $5.65B 

Blackstone has announced that funds managed by its infrastructure business have acquired Safe Harbor Marinas from real estate investment trust (REIT) Sun Communities for $5.65 billion in cash. 

The acquisition aligns with Blackstone Infrastructure’s strategy of investing in sectors with strong tailwinds, particularly the growing travel and leisure industry and population shifts to coastal cities, according to Heidi Boyd, senior managing director in Blackstone’s infrastructure business, which has shown significant growth, managing $55 billion in assets and achieving approximately 40% year-over-year growth since inception. 

For Southfield, MI-based Sun Communities, the sale of Safe Harbors, which provides marina and superyacht services, allows the REIT to focus on its core manufactured housing and RV segments and enhances its leverage profile and financial flexibility, the company said. 

The purchase price for Safe Harbor’s business represents an approximately 21x multiple on the estimated 2024 Funds From Operations (FFO). The transaction is expected to generate around $5.5 billion in pretax proceeds after transaction costs, which will help strengthen the company’s balance sheet. 

Sun Communities expects to realize an estimated gain of $1.3 billion from its four-year ownership of Safe Harbor. Upon closing, the REIT’s net debt to trailing 12-month EBITDA, on a pro forma basis, is projected to decrease to 2.5x-3.0x, down from approximately 6.0x. 

Wells Fargo served as lead financial advisor and provided committed financing for the transaction, while Gibson, Dunn & Crutcher LLP and Simpson Thacher & Bartlett LLP acted as legal advisors.