ELS Closes on 16 Properties for $436M
On May 31 Equity LifeStyle Properties Inc. through its operating partnership entered into purchase and other agreements to acquire a portfolio of 75 manufactured home communities and one RV resort containing 31,167 sites on approximately 6,500 acres located in 16 states (primarily located in Florida and the northeastern region of the United States) and certain manufactured homes and loans secured by manufactured homes located at the acquisition properties for a stated purchase price of $1.43 billion.
The company closed on 16 of the acquisition properties Monday (Aug. 1) along with certain manufactured homes and loans secured by manufactured homes located at such acquisition properties for a stated purchase price of approximately $436 million, the company announced in a news release.
The purchase price in connection with this closing was funded with:
- The issuance of 1,379,310 shares of the company’s common stock to the seller with an aggregate stated value of $80 million.
- The assumption of approximately $226 million of mortgage debt secured by 11 of the acquisition properties.,
- Approximately $130 million in cash. The cash was obtained from the net proceeds of the company’s June 2011 common stock offering and a borrowing on its line of credit. The borrowing on the line of credit is expected to be repaid with proceeds from the previously announced $250 million secured mortgage financing that the company expects to obtain in connection with the acquisition on or prior to Oct. 1.
The closing of five acquisition properties that was previously scheduled on Aug. 1 was postponed to Sept. 1 due to a delay in lender approvals.
As previously announced, on July 1 the company closed on 35 acquisition properties. The company’s closing of the remaining 25 properties is expected to occur by Oct. 1 and assumption of the indebtedness thereon is subject to the receipt of loan servicer consents. The acquisition is also subject to other customary closing conditions.
Accordingly, no assurances can be given that the remainder of the acquisition will be completed in its entirety in accordance with the anticipated timing or at all.
Equity LifeStyle Properties Inc. is a fully integrated owner and operator of lifestyle-oriented properties and as of Aug. 1 owns or has an interest in 358 properties in 32 states and British Columbia consisting of 130,891 sites.