[BrianL99]

It's becoming increasingly likely, it seems.

The newer generations of the Developer don't seem interested in continuing, based on the fact that the new CEO came from outside the family.

They're selling off the management intensive businesses ... bank, healthcare and I've heard, some "suppliers".

Looks suspiciously like preparation for a sale. I used to think the tax implications were a protection against that, but I no longer see that as an obstacle ... there are ways around that. I'm guessing the family will sell off the entirety of their commercial holdings to PE, which effectively puts PE in charge of The Villages.

Not to be controversial or an instigator, but I have plenty of popcorn available.

[Bill14564]

Originally Posted by BrianL99

It's becoming increasingly likely, it seems.

The newer generations of the Developer don't seem interested in continuing, based on the fact that the new CEO came from outside the family.

They're selling off the management intensive businesses ... bank, healthcare and I've heard, some "suppliers".

Looks suspiciously like preparation for a sale. I used to think the tax implications were a protection against that, but I no longer see that as an obstacle ... there are ways around that. I'm guessing the family will sell off the entirety of their commercial holdings to PE, which effectively puts PE in charge of The Villages.

Not to be controversial or an instigator, but I have plenty of popcorn available.

What would be sold and what would be the effective reach of PE in charge of The Villages?

A new owner would control the businesses within the Villages and the Villages Entertainment but most of us can shop outside the bubble if necessary.

A spiteful new owner could use the VCCDD and SLCDD to hurt the amenities and the numbered CDDs but to what end? Again, we aren't a captive customer base so making us angry can only hurt the businesses that the new owner has just purchased.

A new owner could take a different approach to enforcing any internal deed violations but that would cost time and effort and besides, many would welcome that anyway.

It would be interesting to see if a change in ownership would have any noticeable effect.

[twoplanekid]

Instead of a traditional city council in the Villages, governance is split between private control and Community Development Districts (CDDs). I am more interested in this issue. As the Villages population increases past 200,000, does private control by who still continue. I have served for the past eight years on a utility CDD in the Villages and have been made quite aware of the control by a private entity. So, will this continue and by who. Maybe this structure need to be changed or modified as we continue to grow?

[Aces4]

Originally Posted by twoplanekid

Instead of a traditional city council in the Villages, governance is split between private control and Community Development Districts (CDDs). I am more interested in this issue. As the Villages population increases past 200,000, does private control by who still continue. I have served for the past eight years on a utility CDD in the Villages and have been made quite aware of the control by a private entity. So, will this continue and by who. Maybe this structure need to be changed or modified as we continue to grow?

Interesting point and am curious about your take regarding what should happen in this instance.

[Babubhat]

Private equity needs an exit strategy to return profits to investors within a defined time period. No natural buyer to flip this in a few years. Developing houses can’t compete with technology investments.

[tophcfa]

Originally Posted by Babubhat

Private equity needs an exit strategy to return profits to investors within a defined time period. No natural buyer to flip this in a few years. Developing houses can’t compete with technology investments.

That was my thought as well. What would be the relatively short term profitable exit strategy for a PE/VC investor? If one were to purchase, it’s difficult to see it being a good long term outcome for Villages homeowners given that the short term investment objectives wouldn’t seem to align with what’s best for the residents. However, it’s hard to see how their short term investment objective/exit strategy would line up with purchasing the place for a quick profit.

[Caymus]

Originally Posted by Babubhat

Private equity needs an exit strategy to return profits to investors within a defined time period. No natural buyer to flip this in a few years. Developing houses can’t compete with technology investments.

Pulte which owns Del Webb has performed well.

[Michael G.]

I hate it when people abbreviate this crap

Common Meanings of PE

Take your pick

Physical Education: School classes focused on sports and exercise.
Professional Engineer: A licensed engineering credential.
Pulmonary Embolism: A dangerous blood clot in the lungs.
Private Equity: Investment funds that buy shares in private companies.
Price-Earnings Ratio (P/E): A financial measure of a company's stock price versus its per-share earnings.
Potential Energy: Stored energy in physics.
Prince Edward Island: A Canadian province (postal abbreviation).
Polyethylene: A common type of plastic material.

[BrianL99]

Originally Posted by Babubhat

Private equity needs an exit strategy to return profits to investors within a defined time period. No natural buyer to flip this in a few years. Developing houses can’t compete with technology investments.

Originally Posted by tophcfa

That was my thought as well. What would be the relatively short term profitable exit strategy for a PE/VC investor? If one were to purchase, it’s difficult to see it being a good long term outcome for Villages homeowners given that the short term investment objectives wouldn’t seem to align with what’s best for the residents. However, it’s hard to see how their short term investment objective/exit strategy would line up with purchasing the place for a quick profit.

Originally Posted by Caymus

Pulte which owns Del Webb has performed well.

Blackstone Core Equity & Carlyle Global Partners are both mega-firms that target holding periods of 15+ years.

Berkshire Hathaway is the ultimate example of this—buying companies with the intention of holding them forever.

Buying The Villages (the Developer's Commercial Portfolio) wouldn't be a short-term play, but would be a long-term cash cow and as some point out, probably not so good for residents.

[Normal]

It’s no secret there is a huge construction project effort coming to fruition in Lake County here in The Villages. Legacy Place has Advent Health, Benderson and The Villages working together for the latest and greatest of a 700 acre commercial development next to the turnpike. Just because The Villages surrenders control because of scope and size doesn’t mean there won’t be a colossal end product everyone can be proud of. Yes, the new non family Villages management team seems to be selling out even more, but it might be better for all of us.

[Bill14564]

Originally Posted by Michael G.

I hate it when people abbreviate this crap

Common Meanings of PE

Take your pick

Physical Education: School classes focused on sports and exercise.
Professional Engineer: A licensed engineering credential.
Pulmonary Embolism: A dangerous blood clot in the lungs.
Private Equity: Investment funds that buy shares in private companies.
Price-Earnings Ratio (P/E): A financial measure of a company's stock price versus its per-share earnings.
Potential Energy: Stored energy in physics.
Prince Edward Island: A Canadian province (postal abbreviation).
Polyethylene: A common type of plastic material.

I’m sure it must be polyethylene or Prince Edward Island. But hey, a Canadian owner might work out great, eh?

[Jayhawk]

Originally Posted by BrianL99

Not to be controversial or an instigator, but I have plenty of popcorn available.

[BrianL99]

Originally Posted by dewilson58

Real estate developers buy, develop, sell.

Real estate developers do not want to own: banks, hospitals, water treatment, grocery stores, streets, insurance companies, water-fronts, etc. They sell.

So why do you figure the "Developer" of The Villages, opted to start his own bank, water supply & treatments plants and decided to be a landlord for grocery stores, insurance companies and waterfront businesses?

[Bill14564]

Originally Posted by BrianL99

So why do you figure the "Developer" of The Villages, opted to start his own bank, water supply & treatments plants and decided to be a landlord for grocery stores, insurance companies and waterfront businesses?

Because no one else wanted to and few would buy in the area without those services. By starting a bank, water company, treatment plants, and leasing to commercial services the Developer made the area more attractive to buyers.

[Jayhawk]

Originally Posted by BrianL99

So why do you figure the "Developer" of The Villages, opted to start his own bank, water supply & treatments plants and decided to be a landlord for grocery stores, insurance companies and waterfront businesses?

I think most reasonable people KNOW why they started all these things. To sell houses. It's not that difficult to understand.