CLEAR SKY LAND LEASE COMMUNITIES FUND I ANNOUNCES COMPLETION OF ACQUISITIONS OF MANUFACTURED HOUSING COMMUNITIES

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Jan. 8, 2025 /CNW/ - Clear Sky Land Lease Communities Fund I (the "Trust") announced today that on December 31, 2024, it completed the final assignment of the legal entities associated with the purchase of the manufactured housing community ("MHC") properties described in the Purchase and Sale Agreement ("PSA") as further outlined in the final prospectus of the Trust dated June 26, 2024 in connection the initial public offering ("Offering") of the Trust.

With this final assignment, the Trust's subsidiary was assigned 100% interest in Roseport Road Homes LP ("Roseport"), an entity holding the respective community owned homes located at each property that was acquired from the seller of each MHC under the PSA.  The assumption was completed with no cash outlay as the assets of Roseport equaled the debt being assumed in the transaction.  Prior to this assignment, the Trust was given the economic rights and obligations to the assets of Roseport via an agreement with Roseport that was entered into with each applicable property acquisition.

Prior to closing on Roseport, the Trust had completed the acquisition of six MHCs described in the joint PSA, under which the Trust had the right to acquire up to seven MHC properties from an affiliate seller. Following the Offering, the Trust decided that it would not acquire the Green Acres Property due to insufficient funds available to complete all seven acquisitions.

The previous six MHC acquisitions were as follows:

Elwood Park Property

The Trust purchased the Elwood Park Property for an aggregate purchase price of US$2,244,000 (excluding closing costs and working capital adjustments), which was satisfied by way of cash from the proceeds of the Offering and the assumption of US$455,455 in debt on the Elwood Park Property, which matures in October 2025 and bears interest at a fixed rate of 4.25%. In addition, the Trust received a credit for approximately US$1.4 million related to park-owned homes owned by Roseport, which was acquired in a subsequent closing.

Gaslight Acres Property

The Trust purchased the Gaslight Acres Property for an aggregate purchase price of US$701,250 (excluding closing costs and working capital adjustments), which was satisfied by way of cash from the proceeds of the Offering.

Homestead Property

The Trust purchased the Homestead Property for an aggregate purchase price of US$11,220,000 (excluding closing costs and working capital adjustments), which was satisfied by way of cash from the proceeds of the Offering and the assumption of US$4,032,214 in debt on the Homestead Property, which matures in December 2027 and bears interest at a variable rate of Term SOFR +2.70%. In addition, the Trust received a credit for approximately US$0.15 million related to park-owned homes owned by Roseport, which was acquired in a subsequent closing.

Lakeview Property

The Trust purchased the Lakeview Property for an aggregate purchase price of US$23,047,750 (excluding closing costs and working capital adjustments), which was satisfied by way of cash from the proceeds of the Offering and the assumption of US$8,433,823 in debt on the Lakeview Property, which matures in December 2027 and bears interest at a variable rate of Term SOFR +2.52448%. In addition, the Trust received a credit for approximately US$4.1 million related to park-owned homes owned by Roseport, which was acquired in a subsequent closing.

Country Estates Property

On December 6, 2024, the Trust successfully completed the acquisition of an MHC located in Blair, Nebraska, with 119 lots across 25.8 acres (the "Country Estates Property") for an aggregate purchase price of US$5,750,250 (excluding closing costs and working capital adjustments), which was satisfied by way of cash from the proceeds of the Offering and the assumption of US$2,474,053 in debt on the Country Estates Property, which matures in August 2026 and bears interest at a variable rate of 30. day average SOFR plus a margin of 2.22448%, (approximately 7.07394% at the date of assumption).

Village Green Property

On December 6, 2024, the Trust successfully completed the acquisition of an MHC located in Fort Dodge, Iowa, with 148 lots across 21.6 acres (the "Village Green Property") for an aggregate purchase price of US$4,628,250 (excluding closing costs and working capital adjustments), which was satisfied by way of cash from the proceeds of the Offering and the assumption of US$2,515,097 in debt on the Village Green Property, which matures in August 2026 and bears interest at a variable rate of 30. day average SOFR plus a margin of 2.22448%, (approximately 7.07394% at the date of assumption).  In addition, the Trust received a credit for approximately US$722,424 related to park-owned homes owned by Roseport, which was acquired in a subsequent closing.

About the Trust

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 has indirectly acquired six MHCs. 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.

About Clear Sky Capital, Inc,

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.

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

For further information, please contact: Chris Herthel, Chief Executive Officer, Clear Sky Capital Land Lease Communities Fund I, [email protected]; Matthew Collins, Chief Financial Officer, Clear Sky Capital Land Lease Communities Fund I, [email protected]; Contact Telephone Number for Clear Sky Capital Land Lease Communities Fund I: 480-428-0152