[Pat2015]

Adding to the poster’s comments, they are also selling off homes in their private compound.

I agree that they are going to sell out.

[dewilson58]

Originally Posted by Pat2015

Adding to the poster’s comments, they are also selling off homes in their private compound.

I agree that they are going to sell out.

Non-family members have owned & lived in the compound for over 30 years.

Fake News

[dewilson58]

Originally Posted by tophcfa

Sell the Insurance Company, Bank, Healthcare, or appoint a non family member as CEO, who flipping cares.

Land Developers do NOT want to own banks, healthcare, insurance companies.

When the grandfather died, this thread started.
When the father died, this thread started.
When they found a buyer for __________________, this thread started.

The stock market is too hot, time to sell and hold cash.

[Federspiel]

Similar situation happened in Chattanooga. New owner is building houses on the golf course.

[Nell57]

Originally Posted by Bill14564

There are things that have happened that make it look like the Developer *may* be getting ready to sell some or all of what they still own in the Villages. The discussion is whether this might actually happen and what the impact might be.

Things that have happened:
- Selling the Villages Insurance Company
- Selling Citizens First Bank
- Selling The Villages Healthcare
- A non-Morse family person as CEO of the Villages company
- Separating management of the amenity-owned Executive golf courses from the Developer-owned Championship courses

Things that this might impact:
- Funding for music in the squares comes through the Developer
- All the commercial buildings within the squares are owned by the Developer and leased to the businesses
- It is possible (likely?) that many of the companies used for operations and maintenance within the Villages are owned or influenced by the Developer

There is no telling what could happen if a new company took over and started looking for ways to make a profit off those things. PE stands for Private Equity which (in simple terms that many will argue with) is a business that buys things in anticipation of making a profit off them before selling again.

When the Villages first started, the Developer was very focused on making people happy since the people in the Villages was his best advertising for selling more homes. Now, he seems to be more focused on making a profit off selling homes. The people still matter but the Villages sells itself and the people complain a lot. A PE company will be even more focused on making a profit.

Excellent job of summarizing the entire thread.👍

[Singerlady]

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 always google the abbreviations and whichever one fits such as this case private equity is a bingo!

[BrianL99]

Originally Posted by Nell57

Excellent job of summarizing the entire thread.������

Except that the summary completely ignores and perhaps misunderstands the genesis of the thread.

The Title is: "Will TV Be the First City to Be 'Owned' (& therefore governed) by Private Equity".

That has little or nothing to do with the Developer selling his ancillary businesses. Selling of the operating businesses is merely a prelude and indicator of changes, but not relevant to governance or ownership of the city.

The premise is, the owner of the Commercial Property in The Villages, is effectively the "owner" and the government of all The Villages. The owner of the Commercial Property elects/appoints ALL the Commissioners that control ALL the amenities of The Villages. All the Rec Centers, all the Squares and all the Exec golf courses.

To further illustrate why the selling of the businesses is only a side-show, the Developer stills owns all the associated properties and the new business owners, are simply tenants and paying rent. They have no control over anything else, least not, the government of TV.

As for the contention that Private Equity model is to buy to hold for 5-6 years and then sell to make a profit, that's accurate as far as it goes, but there are other entities with a different model. Instead of calling them PE, maybe call them Permanent Holding Companies? The likely candidates in that realm, might be Brookfield Asset Management, BlackRock, KKR and conceivably Berkshire-Hathaway.

So I'll concede, while the business model that may or may not be available for purchase, doesn't fit the usual PE model, it fits the PE Holding Co. business model. In the case of an entire city & it's government possibly being for sale, perhaps a new business model will appear? We used to believe that hospitals would always be "non-profits", until that changed. Who's to say that government won't be completely privatized and become income/profit centers?

[Daddymac]

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.

How About This::::::: They take the company public, now they have other people run this place. They keep the majority of the stock , walk away with billion’s and still have total control of it. Sure makes more sense to me.

[BrianL99]

Originally Posted by Daddymac

How About This::::::: They take the company public, now they have other people run this place. They keep the majority of the stock , walk away with billion’s and still have total control of it. Sure makes more sense to me.

That ignores my premise, although admittedly my premise is only speculation.

IF they were to do an IPO and simply sell stock but maintain ultimate control, i believe that keeps them in the same position they're in now, but don't want to be any longer ... day to day management of billions of dollars worth of commercial property & a government to run.

Typically, 4th generation companies want to reduce the heavy-lifting and spend the money their forefathers made for them and passed down.

(& before someone says it, I suppose the Morse family could be considered PE as it exists now.)

[dewilson58]

Originally Posted by Road-Runner

I'm amazed that some can look at the entirety of the changes going on and claim it's just normal business as usual practices. It's obvious to anyone looking major shifts are happening so it pays to keep one's eyes and ears open to future developments. It remains to be seen if these changes lead to better, worse or the same quality of life here but the cynic in me is not optimistic.

Yes, a significant change..................the loss-leaders are making a profit and a Land Developer is selling off non-critical ventures. Great business plan. Bravo!!!


Again, this thread was out there 10 years ago and 5 years ago.

So were the Market Crashing threads and the world did not end.

[tophcfa]

Originally Posted by dewilson58

Yes, a significant change..................the loss-leaders are making a profit and a Land Developer is selling off non-critical ventures. Great business plan. Bravo!!!


Again, this thread was out there 10 years ago and 5 years ago.

So were the Market Crashing threads and the world did not end.

All totally true from the prospective of the developer. Bravo to them on the success of their business ventures. But as residents of the Villages, whose priority is the future of our investment in a 55+ retirement community, we are more concerned with how the developers future plans will effect both our investments as well as our lifestyles. Those plans are driven by their unknown future intentions. Inquiring minds want to know?

[NoMo50]

Originally Posted by dewilson58

Non-family members have owned & lived in the compound for over 30 years.

Fake News

Correct. And, a new "compound" is being developed in the new area down by Middleton.