/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
TORONTO, July 9, 2024
/CNW/ - Clear Sky Land Lease Communities Fund I (the
"Trust") announced today that it has completed its initial
public offering of trust units (the "Offering"). Pursuant to
the Offering, the Trust issued an aggregate of approximately
C$43.8 million of trust units,
comprised of 2,295,150 Class A Units, 1,192,380 Class F Units and
655,500 Class U Units of the Trust at a price of C$10.00 per Class A Unit and Class F Unit and
US$10.00 per Class U Unit.
The trust units were offered to the public through a syndicate
of agents led by CIBC World Markets Inc. and which included
Richardson Wealth Limited, Canaccord Genuity Corp., iA Private
Wealth Inc. and Wellington-Altus Private Wealth Inc. (collectively,
the "Agents").
The Trust is an unincorporated investment trust and was
established for the primary purpose of investing in a portfolio of
income-producing manufactured housing communities ("MHCs")
in the United States. With the net
proceeds of the Offering, the Trust is currently in the process of
indirectly acquiring six MHCs. All preconditions to closing of the
acquisition of the MHCs have been satisfied or waived by the Trust
and the vendor, and the acquisitions are set to close upon
completion of the assumption of applicable related mortgage
indebtedness. The balance of the net proceeds of the Offering will
be used to satisfy payment of other acquisition related costs,
capital expenditures on the to-be-acquired MHCs and working
capital, consistent with the Trust's investment objectives to,
among other things, provide unitholders with an opportunity to
invest in a portfolio of income-producing MHCs in the United States, as further described in the
Trust's final prospectus for the Offering.
Clear Sky Capital, Inc. ("Clear Sky") is the promoter of
the Trust and will also act as manager of the portfolio of
properties. Since its inception in 2009 and through the third
quarter of 2023, Clear Sky and its affiliates have acquired or
developed approximately US$1.48
billion of real estate and operating asset investments,
investing approximately US$625
million of equity through various investment vehicles. Clear
Sky's real estate investments are diversified across various
sectors including MHCs, self-storage and multifamily.
The securities described herein have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "1933 Act"), and may not be offered
or sold in the United States
absent registration or an applicable exemption from the
registration requirements of the 1933 Act and applicable state
securities laws.
Gross proceeds noted in this press release have been calculated
based on a rate of exchange of US$1.00 to C$1.3659.
About Clear Sky Land Lease Communities Fund I
The Trust is an unincorporated investment trust and was
established for the primary purpose of investing in a portfolio of
income-producing MHCs in the United
States.
Forward-looking Statements
This news release contains statements that include
forward-looking information within the meaning of Canadian
securities laws. These forward-looking statements reflect the
current expectations of the Trust and Clear Sky regarding future
events, including statements concerning the expected closing of the
Trust's acquisitions of the properties and the anticipated use of
proceeds of the Offering. In some cases, forward-looking statements
can be identified by terms such as "may", "might", "will", "could",
"should", "would", "occur", "expect", "plan", "anticipate",
"believe", "intend", "seek", "aim", "estimate", "target",
"project", "predict", "forecast", "potential", "continue",
"likely", "schedule", or the negative thereof or other similar
expressions concerning matters that are not historical facts.
Material factors and assumptions used by management of the Trust
to develop the forward-looking information include, but are not
limited to, the Trust's current expectations about: opportunities,
market standards, vacancy and rental growth rates in the U.S. MHC
market; demographic trends in the U.S.; the realization of property
value appreciation and timing thereof; the inventory of MHCs and
manufactured homes; the price at which the MHCs may be disposed and
the timing thereof; closing and other transaction costs in
connection with the acquisition and disposition of the MHCs; the
availability of mortgage financing and current interest rates; the
capital structure of the Trust; the extent of competition for MHCs
and manufactured homes; assumptions about the markets in which the
Trust intends to operate; expenditures and fees in connection with
the maintenance, operation and administration of the MHCs; the
ability of Clear Sky to manage and operate the MHCs; the global and
U.S. economic environment, including changes in interest rates and
the rate of inflation; fluctuating global economic conditions,
demand levels for MHCs in the U.S., the U.S. housing market,
work-from-home policies, and MHC development activity; the impact
of negative geopolitical events, including the conflicts in
Ukraine and the Middle East; foreign currency exchange rates;
and governmental regulations or tax laws. While management of the
Trust considers these assumptions to be reasonable based on
currently available information, they may prove to be
incorrect.
Although Clear Sky believes the expectations reflected in such
forward-looking statements are reasonable and represent the Trust's
internal projections, expectations and beliefs at this time, such
statements involve known and unknown risks and uncertainties that
may be general or specific and which give rise to the possibility
that expectations, forecasts, predictions, projections or
conclusions will not prove to be accurate, that assumptions may not
be correct and that objectives, strategic goals and priorities may
not be achieved. A variety of factors, many of which are beyond the
Trust's control, could cause actual results in future periods to
differ materially from current expectations of estimated or
anticipated events or results expressed or implied by such
forward-looking statements. Such factors include the risks
identified in the final prospectus of the Trust dated June 26, 2024, including under the heading "Risk
Factors" therein, as well as, among other things, risks related to
the availability of suitable properties for purchase by the
Trust, the availability of mortgage financing for such properties,
and general economic and market factors, including interest rates,
prospective purchasers of real estate, business competition,
negative geo-political events, changes in government regulations or
income tax laws. Readers are cautioned against placing undue
reliance on forward-looking statements. Except as required by
applicable Canadian securities laws, the Trust undertakes no
obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise, after the date on which the statements are made or to
reflect the occurrence of unanticipated events.
SOURCE Clear Sky Land Lease Communities Fund I