TORONTO, Aug. 24 /CNW/ - Timbercreek Asset Management Ltd. (the "Manager"), on behalf of Timbercreek Global Real Estate Fund (the "Fund"), announces that it expects to close its initial public offering ("IPO") of units of the Fund with total gross proceeds of approximately $50 million on August 26, 2010. The Fund filed a final prospectus dated August 5, 2010 with Canadian securities regulatory authorities in each of the provinces of Canada, and a receipt therefor has been issued. The prospectus qualifies the distribution (the "Offering") of class A units and class B units of the Fund (collectively, the "Units") at $12 per Unit. The syndicate of agents is co-led by BMO Nesbitt Burns and Raymond James Ltd., and includes CIBC, Macquarie Capital Markets Canada Ltd., National Bank Financial Inc., Scotia Capital Inc., Manulife Securities Incorporated, HSBC Securities (Canada) Inc., Canaccord Genuity Corp., GMP Securities L.P. and M Partners Inc.
The Fund expects that of the approximately $50 million of IPO gross proceeds, approximately $8.7 million will be class I units issued on a private placement basis (approximately 725,000 class I units), of which approximately 127,651 will be held by insiders of the Fund, representing approximately 3.8% of the class A units. Class I units will automatically convert to class B units on the first business day after four months from the date of issuance. Class B units are exchangeable into class A units at the option of the holder.
The Fund, an investment fund formed under the laws of the Province of Ontario and which is managed by the Manager, was established to invest in a globally diversified portfolio of premier real estate securities including common equity, preferred shares and debt of both public and private real estate investment trusts and real estate companies in Canada, United States, United Kingdom, Continental Europe, Japan, Australia, Hong Kong and other countries. The Manager has engaged FSX Securities Canada Inc. (the "Global Investment Advisor") to provide portfolio management services to the Fund. Through the Manager's partnership with the Global Investment Advisor, the Fund will be supported by a team of real estate analysts based in Toronto, New York, London and Hong Kong that are strictly dedicated to analyzing and investing in real estate securities.
The Fund's investment objectives are to provide holders of Units ("Unitholders") with quarterly distributions initially targeted to be $0.21 per Unit ($0.84 per annum representing an annual cash distribution of 7.0% based on the $12.00 per Unit issue price); and preserve capital while providing the opportunity for long-term capital appreciation for Unitholders.
The Manager believes there is a compelling investment opportunity to invest in a globally diversified portfolio of premier real estate securities that exists because the global real estate securities market is inefficient relative to that of the direct real estate or broader equities markets. Managed by a specialized real estate manager, the Fund's unique investment strategy has been designed to capitalize on these pricing inefficiencies in order to deliver a stable income stream that can be acquired at a price that the Manager believes does not reflect the long-term value of the underlying assets. Furthermore, the Global Investment Advisor believes that the current volatility in global equity markets provides the Fund with the rare opportunity to assemble a global portfolio of prime real estate securities at prices that generate attractive, stable yields with the potential for capital appreciation.
The Manager, a wholly owned subsidiary of Timbercreek Asset Management Inc., 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 $1.1 billion in real estate-related assets, including direct ownership and mortgages.
The Global Investment Advisor is a wholly-owned subsidiary of Forum Securities Limited ("Forum Securities"), which is an affiliate of Forum Partners Investment Management LLC ("Forum Partners"). Forum Securities provides a platform for investment in global public real estate securities with over $500 million in assets under management. Since inception, Forum Securities has demonstrated the ability to continually beat its benchmark while employing similar investment strategies to the Fund. Forum Partners provides real estate related private equity investment opportunities for large institutional clients on a global basis with over $2 billion currently under management.
Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Fund. The forward-looking statements are not historical facts but reflect the Manager's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Manager believes that the assumptions inherent in the forward-looking statements are reasonable, forward looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Manager undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
This Offering is only made by a prospectus dated August 5, 2010. The prospectus contains important information relating to these securities. Copies of the prospectus may be obtained from any of the Agents. Investors should read the prospectus before making an investment decision.
All capital terms noted herein but not defined are as per the prospectus dated August 5, 2010.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of the Fund in the United States.
SOURCE Timbercreek Asset Management Inc.
For further information: For further information: Timbercreek Asset Management Inc., Carrie Morris, Vice- President, Investor Relations & Corporate Governance, 416-306-9967 x250, email@example.com