Federation deal cements Eighth Gate’s position as a major player in growing MHE Sector

Melbourne, October 2015. Eighth Gate Capital Management acquire three premium residential villages in Melbourne commuter belt for $60m. The acquisition takes their portfolio of Manufactured Home Estates (MHEs) to a value of $84M, featuring 1127 residential and tourist sites. The expansion into Victoria provides the company with a strong foundation for further acquisitions along the eastern seaboard.

“We are thrilled to be growing our residential portfolio with such quality assets”. said Nick Bonifant, Managing Director. “The fully developed villages are located within Melbourne infill suburbs and therefore offers the valued benefit of residents being able to relocate to a more affordable home within their existing community.”

The market for MHEs is in a strong growth period*

Active retirees and downsizers are Australia’s fastest growing subset of seniors. ABS statistics from 2011 estimate over 5.5M of the total population at 55+ years. By 2026 this number will have grown by an additional 3.3M to 8.8M.

• From January 2017, changes to the pension means test will allow retirees to hold up to $89,000 more in assets, excluding their home. Under this scenario, the potential resident can sell their existing home for $400,000, purchase a brand new home in an MHE for $250,000, put $150,000 in the bank or other investments and still qualify for the full pension. Eighth Gate’s MHE’s will be a very appealing proposition to these downsizers, as they provide quality, affordable living options.

This highly fragmented industry is now in consolidation phase, offering excellent investment opportunities. Eighth Gate believes the risk adjusted returns make it one of the best investments in the market place.

“Our vision is to be Australia’s leading provider of affordable residential and tourist accommodation. We operate a highly accountable funds management team with a very experienced asset management team both sharing the same ‘people first’ values. Our investors are likeminded investing for the stable annuity style returns with a social conscience. Furthermore, we have built a formidable advisory board to guide the organisation through our growth phase.” continued Nick.

Eighth Gate has made a long term commitment to this sector. The strategic drivers of financial performance and operational excellence, coupled with a strong ethical philosophy make investment in MHEs a compelling proposition. The management team will be conducting further capital raising rounds in the near future.

October 27,2015