TORONTO, May 1, 2013 /CNW/ - Timbercreek U.S. Multi-Residential
Opportunity Fund #1 (the "Fund") announced that it has filed a final prospectus (the "Prospectus") with the securities regulatory authorities in each of the provinces
and territories of Canada, other than Quebec. A copy of the Prospectus
is available on SEDAR (www.sedar.com). A receipt for the Prospectus was issued by the applicable securities
regulatory authorities on April 30, 2013.
The Prospectus qualifies the distribution of up to $50 million of Class
A Units ("Class A Units") and/or Class B Units ("Class B Units" and, together with the Class A Units, the "Units") of the Fund (the "Offering") at a price of $10.57 per Class A Unit and $10.00 per Class B Unit.
The Class B Units are available for investments of $20,000 or more. The
Fund has not applied to list or quote the Units on any stock exchange.
Raymond James Ltd., CIBC and GMP Securities L.P., acting as co-lead
agents (the "Lead Agents") for a syndicate including Manulife Securities Incorporated, National
Bank Financial Inc., BMO Capital Markets, Canaccord Genuity Corp.,
Scotiabank, Dundee Securities Ltd. and Macquarie Capital Markets Canada
Ltd. (together with the Lead Agents, the "Agents") are marketing the Offering. Prospective purchasers may subscribe for
such Units through one of the Agents.
Net proceeds from the Offering will be used to acquire multi-residential
real estate assets located in the southeastern United States (the "Properties") that are mispriced and/or undermanaged in the view of Timbercreek
Asset Management Inc., who is the manager to the Fund (the "Manager") and to repay a bridge financing to be incurred by the Fund to acquire
certain Properties as more fully disclosed in the Prospectus.
The total return objective of the Fund is to generate a 15% net IRR (or
average annualized total rate of return) on a pre-tax basis and net of
all fees and expenses, inclusive of an annual distribution yield of 4%
to 5% (which includes the allocation to unitholders of U.S. taxes paid
by the Fund) paid quarterly.
The Manager is an investment management company that employs a
conservative and risk-averse approach to real estate-based investments.
The Manager and its affiliates currently manage approximately $3.2
billion in real estate related assets based on fair value, including
direct real estate ownership (primarily multi-residential), mortgages
and global real estate securities. The Manager employs a team of over
90 professionals located in its head office in Toronto with substantial
experience in real estate acquisitions, disposals, financing and
administration, property and asset management, construction and
redevelopment, as well as over 350 people at its 14 additional offices
Elco Landmark Residential Holdings, LLC (together with Elco Landmark
Residential Management, LLC, collectively the "Operator") provides operational and property management services to the Fund.
The Operator is a Jupiter, Florida based private equity
multi-residential real estate company, and is currently responsible for
operating approximately 18,000 units across the southeastern United
States and employs a dedicated team of 21 corporate and over 400
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities of the Fund in the United
States or any other jurisdiction, nor shall there be any sale of the
securities of the Fund 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"), or any state
securities laws 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.
Certain statements contained in this news release may contain
projections and "forward looking statements" within the meaning of that
phrase under Canadian securities laws. When used in this new release,
the words "may", "would", "should", "could", "will", "intend", "plan",
"anticipate", "believe", "estimate", "expect" and similar expressions
may be used to identify forward looking statements. Those statements
reflect the Fund's current views with respect to future events or
conditions. By their nature, forward looking statements reflect
management's current views, beliefs and assumptions and are subject to
certain risks and uncertainties, known and unknown, including, without
limitation, risks disclosed in the Prospectus and the Fund's other
public filings. Many factors could cause actual results, performance or
achievements to be materially different from any future results,
performance or achievements that may be expressed or implied by these
forward looking statements. The Fund does not intend to nor assumes any
obligation to update these forward looking statements whether as a
result of new information, plans, events or otherwise, unless required
The Offering is only made by prospectus. The Prospectus contains
important detailed information about the securities being offered.
Copies of the Prospectus may be obtained from any of the Agents named
above. Investors should read the Prospectus before making an
SOURCE: Timbercreek U.S. Multi-Residential Opportunity Fund #1
For further information:
Timbercreek Asset Management Inc.
Managing Director, Capital Markets & Corporate Communications