Brookfield is said to eye $10B deal for U.S. manufactured home operator

[New Prefab Modular Homes Houses]
benedek/iStock Unreleased via Getty Images

Brookfield Asset Management (NYSE:BAM [https://seekingalpha.com/symbol/BAM]) is in advanced discussions to buy Yes! Communities, a U.S. operator of manufactured homes, from Singapore’s sovereign wealth fund GIC in a transaction valued at more than $10 billion, the Financial Times reported Sunday, citing people familiar with the talks. If finalized, the deal would mark one of the largest real estate acquisitions since 2022.

The Canadian investment giant, which manages about $1 trillion in assets, has been in negotiations for months. While sources said the discussions are progressing, no agreement has been signed and the deal could still fall through. Brookfield (NYSE:BAM [https://seekingalpha.com/symbol/BAM]) and GIC declined to comment, and Yes! did not respond to inquiries from the FT.

BETTING ON AFFORDABLE HOUSING

A purchase of Yes! would represent one of Brookfield’s (BAM [https://seekingalpha.com/symbol/BAM]) biggest forays into U.S. residential real estate and signal confidence in the country’s economy at a time when some indicators point to slower growth. The deal would also deepen Brookfield’s (BAM [https://seekingalpha.com/symbol/BAM]) presence in the affordable housing market, where supply shortages are expected to push rents higher in coming years.

Yes!, based in Denver, operates roughly 300 communities across the Midwest and Southeast, with tens of thousands of factory-built homes. These properties serve as an important source of affordable housing, particularly as elevated borrowing costs have curbed new construction of single-family homes and apartments.

REAL ESTATE STRATEGY

Brookfield (BAM [https://seekingalpha.com/symbol/BAM]) has been stepping up activity in the property sector, noting improved sentiment and more liquidity in capital markets. Since early 2024, the firm has invested more than $10 billion into residential real estate, most of it in the United States. It has also profited from rising rents, recently selling a mobile-home portfolio for $1.6 billion.

The company’s global property holdings already include high-profile assets such as Canary Wharf in London and office and apartment towers in New York. Beyond large-scale commercial projects, Brookfield has used long-held land holdings to develop upscale residential communities in states like California.

YES! COMMUNITIES’ HISTORY

Founded in 2007, Yes! grew quickly during the fallout of the 2008 financial crisis, buying manufactured housing assets from Berkshire Hathaway-owned (BRk.A) (BRK.B [https://seekingalpha.com/symbol/BRK.B]) Clayton Homes and others. Its properties typically consist of modest, single-story homes with small yards. Customers can rent units or purchase them gradually, while continuing to lease the land beneath them.

GIC acquired Yes! in 2016 and has since considered alternatives for the business, including a potential public listing. Now, a sale to Brookfield (BAM [https://seekingalpha.com/symbol/BAM]) would represent one of the biggest recent bets on the U.S. housing market, and highlight investor interest in affordable living options amid ongoing supply constraints.

MORE ON BROOKFIELD ASSET MANAGEMENT LTD.

* Brookfield Asset Management Ltd. (BAM:CA) Analyst/Investor Day Transcript [https://seekingalpha.com/article/4821758-brookfield-asset-management-ltd-bam-ca-analyst-investor-day-transcript]
* Brookfield Asset Management: Buy Now For Compounding Passive Income [https://seekingalpha.com/article/4820614-brookfield-asset-management-buy-now-for-compounding-passive-income]
* Brookfield Asset Management: A Justified Premium In Alternatives [https://seekingalpha.com/article/4814349-brookfield-asset-management-justified-premium-in-alternatives]
* Brookfield Asset Management prices $750 mln senior notes due 2055 [https://seekingalpha.com/news/4492530-brookfield-asset-management-prices-750-mln-senior-notes-due-2055]
* Air Lease to be acquired for $65.00 per share in cash [https://seekingalpha.com/news/4490973-air-lease-to-be-acquired-for-6500-per-share-in-cash]