TORONTO, Sept. 11, 2012 /CNW/ - Timbercreek U.S. Multi-Residential
Opportunity Fund #1 (the "Fund") announced today that it has filed an
amended and restated preliminary prospectus (the "Preliminary
Prospectus") with the securities regulatory authorities in each of the
provinces and territories of Canada, other than Quebec. A copy of the
Preliminary Prospectus is available on SEDAR (www.sedar.com).
The Preliminary Prospectus qualifies the distribution (the "Offering")
of Class A Units ("Class A Units") and Class B Units ("Class B Units"
and, together with the Class A Units, the "Units") of the Fund at a
price of $10 per Class A Unit and $10 per Class B Unit. Class B Units
are available for investments of $5 million or more. The Fund has not
applied to list or quote the Units on any stock exchange.
Raymond James Ltd., CIBC World Markets Inc. and GMP Securities L.P.,
acting as co-lead agents (the "Lead Agents") for a syndicate including
BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital
Inc., Canaccord Genuity Corp., Macquarie Capital Markets Canada Ltd.,
Dundee Securities Ltd. and Manulife Securities Incorporated (together
with the Lead Agents, the "Agents") will commence marketing of 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 will act as manager (the
The Manager and its affiliates currently manage approximately $3 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 approximately 370 people at its 14 additional
offices across Canada. The Manager's assets under management currently
include approximately $2 billion in multi-residential real estate
deployed through both core and opportunistic investment strategies and
comprising over 16,000 apartment units across Canada.
Elco Landmark Residential Holdings, LLC (the "Operator") will operate
and act as property manager for the Properties. 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 operational employees.
The total return objective of the Fund is to generate a 15% net IRR on a
pre-tax basis, with an annualized distribution yield of 4% to 5%, which
includes the allocation to unitholders of U.S. taxes paid by the Fund,
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, 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.
This press release contains forward-looking statements. There can be no
assurance that forward-looking statements will prove to be accurate, as
actual results, performance and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements.
A preliminary prospectus containing important information relating to
these securities has been filed with securities commissions or similar
authorities in certain jurisdictions of Canada. The preliminary
prospectus is still subject to completion or amendment. Copies of the
preliminary prospectus may be obtained from any of the Agents named
above. There will not be any sale or any acceptance of an offer to buy
the securities until a receipt for the final prospectus has been
SOURCE: Timbercreek U.S. Multi-Residential Opportunity Fund #1
For further information:
Timbercreek Asset Management Inc.
Managing Director, Capital Markets & Corporate Communications