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TORONTO, Aug. 16, 2021 /CNW/ - Flagship Communities Real Estate Investment Trust ("Flagship" or the "REIT") (TSX: MHC.U) announced today that it will enter its seventh U.S. state with the acquisition of a manufactured housing community in Springfield, Illinois (the "Acquisition") for a purchase price of approximately US$16.3 million. The Acquisition is 94% leased currently and is expected to be immediately accretive to the REIT's adjusted funds from operations ("AFFO") on a per unit basis. The Acquisition is expected to close on or about August 23, 2021.
"We are continuing to grow our geographic footprint near current communities, applying our successful business model to new operating regions with high-quality acquisitions such as this Springfield community, our first in the state of Illinois." said Kurt Keeney, President and Chief Executive Officer. "This acquisition and the acquisitions we have made to date adhere to our disciplined strategy for growth. Springfield, Illinois is an attractive market and this Acquisition will be immediately accretive to our AFFO per unit with additional above market growth over time."
The purchase price of US$16.3 million will be funded with cash on the REIT's balance sheet.
"The acquisition of this community will provide us with another new market opportunity that can leverage our management structure for the Indianapolis and St. Louis communities," said Nathan Smith, Chief Investment Officer. "With 94% occupancy, this stable community is an excellent addition to our portfolio."
Overview of the Acquisition
Woodlyn Acres Pointe
Conveniently located near I-55 in Springfield, the state capital of Illinois, Woodlyn Acres Pointe is in close proximity to major employers and shopping, including a Walmart Supercenter. The State of Illinois is the area's largest employer along with Springfield Public Schools, City of Springfield, University of Illinois Springfield as well as many private companies. Recreational areas include the beautiful Lake Springfield and acres of farmlands and forests. The 51-acre Woodlyn Pointe community is surrounded by a historic city center that includes the State Capitol, Abraham Lincoln's home and presidential library and museum.
Woodlyn Acres Pointe is a residential community where residents pride themselves on their beautiful gardens and friendly, safe neighborhoods. Local schools include Lanphier High School, Washington Middle School and Wilcox Elementary that are all within the Springfield School District.
Pro Forma Portfolio
The Acquisition is a targeted and strategic expansion of the REIT's portfolio, increasing the number of manufactured housing communities from 57 to 58 and the number of manufactured housing lots from 9,637 to 9,868. The table below provides a summary of the pending Acquisition as of August 16,2021.
| | Acquisition Portfolio |
| # of Lots | (#) | 231 |
| Lot Occupancy | (%) | 94% |
| Lot AMR | (US$) | $373 |
About Flagship Communities Real Estate Investment Trust
Flagship Communities Real Estate Investment Trust is a newly created, internally managed, unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been formed to own and operate a portfolio of income-producing manufactured housing communities located in Kentucky, Indiana, Ohio, Tennessee, Arkansas and Missouri, including a fleet of manufactured homes for lease to residents of such housing communities.