23/06/2016 - 11:11

Fleetwood wins village supply deal

23/06/2016 - 11:11

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Fleetwood Corporation has boosted its manufactured housing portfolio after facing pressure from activist investor and substantial shareholder Sandon Capital Investments to bolster its performance.

Fleetwood wins village supply deal
National Lifestyle Villages' High Wycombe village.

Fleetwood Corporation has boosted its manufactured housing portfolio after facing pressure from activist investor and substantial shareholder Sandon Capital Investments to bolster its performance.

Perth-based Fleetwood, which manufactures caravans, portable accommodation and associated products, has entered into an agreement with NLV Group (National Lifestyle Villages) for the supply of manufactured homes for retirees.

Under the initial five-year agreement, Fleetwood will manufacture the homes at its High Wycombe facility in Perth, and will instal the homes in NLV’s villages across Western Australia.

“NLV has nine active manufactured housing estates and a further three awaiting approval, representing 1,525 sites available for new homes,” Fleetwood said in a statement.

NLV is led by John Wood, whose father founded Fleetwood. Mr Wood also spent several years with Fleetwood before venturing off to form his lifestyle accommodation business.

The agreement adds certainty to Fleetwood, which has historically been a supplier of products to NLV.

Fleetwood has been facing pressure from activist investor Sandon, which became a substantial shareholder in the business last month with a 5.4 per cent stake.

Sandon has since campaigned for Fleetwood to drop its loss-making caravan manufacturing unit and focus on becoming a specialist in manufactured accommodation.

“Sandon believes the biggest opportunity lies in the affordable living solutions provided by manufactured home estates,” the firm said in a recent presentation.

“In addition to lifestyle manufactured home estates for retirement living, we believe manufactured accommodation could become a cheaper alternative to traditional construction.”

Fleetwood shares were 7.2 per cent higher to $1.85 each at 11am.

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