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ELS Updates Acquisition Progress

September 2, 2011 by   - () Leave a Comment

Equity LifeStyle Properties Inc. (ELS) issued a news release Thursday (Sept. 1) updating its progress in closing on portions of the $1.43 billion property acquisition it announced in May.

The company stated it has closed on seven of the acquisition properties on Thursday along with certain manufactured homes and loans secured by manufactured homes located at the properties for a stated purchase price of approximately $160 million.

The purchase price in connection with this closing was funded with:

  • The issuance of 46,207 shares of the company’s common stock to the seller with an aggregate stated value of approximately $3 million.
  • The issuance of 956,255 shares of Series B Subordinated Non–Voting Cumulative Preferred Stock (“Series B Preferred Stock”) to the seller with an aggregate stated value of approximately $55 million.
  • The assumption of approximately $102 million of mortgage debt secured by the seven acquired properties.

As of Thursday, the company has closed on 58 of the 76 acquisition properties during the third quarter of 2011. The timing of the closings is generally consistent with the estimated closing schedule provided in the Supplemental Package posted to our website on July 18. The company’s closing of the remaining 18 properties is expected to occur by Oct. 3, and assumption of the indebtedness thereon is subject to the receipt of loan servicer consents.

Background

On May 31, ELS, 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.

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