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TORONTO, April 15, 2024 /CNW/ - Clear Sky Land Lease Communities Fund I (the "Trust") announced today that it has filed with the securities commissions or similar authorities in each of the provinces of Canada, other than Québec, and obtained a receipt for, a preliminary prospectus for an initial public offering of trust units (the "Offering"). The preliminary prospectus qualifies the distribution of a minimum of C$35 million (the "Minimum Offering") and a maximum of C$60 million (the "Maximum Offering") of Class A Units, Class F Units and/or 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 is an unincorporated investment trust and was established for the primary purpose of investing in a portfolio of seven income-producing manufactured housing communities ("MHCs") in the United States. Following completion of the Offering, the Trust intends to indirectly acquire two of the MHCs if only the Minimum Offering is sold, one or more of five additional MHCs if more than C$40 million is sold, and all seven MHCs if the Maximum Offering is sold. The balance of the net proceeds of the Offering will be used to satisfy payment of other acquisition related costs, capital expenditures on the seven to-be-acquired properties and working capital.

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 syndicate of agents for the Offering will be led by CIBC World Markets Inc.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of the Trust in the United States, nor shall there be any sale of the securities of the Trust in any jurisdiction in which such offer, solicitation or sale would be unlawful. 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.

A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in each of the provinces of Canada, other than Québec. The preliminary prospectus is still subject to completion or amendment. A copy of the preliminary prospectus may be obtained from CIBC World Markets Inc. and is available on SEDAR+ at www.sedarplus.com. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

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 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 that 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 will not be achieved. A variety of factors, many of which are beyond the Trust's control, may affect the operations, performance and results of the Trust, and 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 preliminary prospectus, including under the heading "Risk Factors" therein. 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

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