Parkbridge Lifestyle Communities Inc.

Background
Parkbridge is Canada’s largest owner, operator and developer of Manufactured Housing Communities (MHCs).

Investment Thesis Parkbridge logo
Parkbridge is the industry leader in an attractive but under-followed segment of the real estate market. MHCs are attractive as primary residences and as affordable vacation properties. The industry is characterized by stable and growing rental income with low capital expenditures.

Management (formerly Trizec) had extensive experience and excellent alignment with shareholders. Management and insiders owned 36% of outstanding shares.

Financial Performance
Parkbridge grew very profitably since its inception in 1998 until it was sold to a large pension fund in 2010 at a takeover premium of roughly 38%.

Valuation
Valuation was very reasonable – Parkbridge traded at 11 times cash flow versus 14 times for large cap comparables.

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