Sun Communities (NYSE:SUI) has disclosed that its operating subsidiary, Sun Communities Operating Limited Partnership, has issued 19,326 common OP units.

Priced at $130.9799 per unit, these common units were released as part of a strategic consideration in exchange for the contribution of assets by the initial holder to SCOLP.

This transaction, reliant on the exemption clause from registration provided by Section 4(a)(2) of the Securities Act of 1933, allows each common unit to be exchanged at the holder's discretion for one share of common stock in Sun Communities.

This exchange can occur at any time, barring a few exceptions, granting the holder flexibility and potential future equity in the company.

In a significant move demonstrating commitment to the partnership, the initial holder of the common units has agreed to a lock-up period.

For six months following the issue date, the holder will refrain from selling or transferring any shares of the common stock that may be acquired upon the exchange of the common units, although some exceptions may apply.

This careful structuring of the issuance aims to stabilize the market for Sun Communities' shares and reflects a robust long-term investment perspective by the asset contributor.