TORONTO, June 11 /CNW/ - Timbercreek Asset Management Inc. (the "Manager"), on behalf of Timbercreek Global Real Estate Fund (the "Fund"), has filed a preliminary prospectus dated June 9, 2010 with Canadian securities regulatory authorities in each of the provinces of Canada. The preliminary prospectus qualifies the distribution (the "Offering") of class A units ("Class A Units") and class B units ("Class B Units") of the Fund (collectively the "Units"). A syndicate of agents co-led by BMO Capital Markets and Raymond James Ltd., and including CIBC, Manulife Securities Inc., National Bank Financial Inc., Scotia Capital Inc., Macquarie Capital Markets Canada Ltd., HSBC Securities (Canada) Inc., Canaccord Genuity Corp., GMP Securities L.P. and M Partners Inc. will the market of the Offering.
The Fund, which is a new investment fund formed under the laws of the Province of Ontario and which is managed by Timbercreek Asset Management Ltd., was established to invest in a globally diversified portfolio (the "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 (the "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, 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. ("Timbercreek"), 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. On June 30, 2009, the Global Real Estate Securities team at Citi joined Forum Partners and created Forum Securities.
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. Forum Partners and Forum Securities have 70 employees in eight offices across Asia, Europe and North America with 13 employees dedicated to global real estate securities analysis.
A preliminary prospectus containing important information relating to these securities has been filed with the securities commission or other authorities in certain jurisdictions of Canada. The preliminary prospectus with respect to the Offering remains subject to completion or amendment. Copies of the preliminary prospectus may be obtained from any one of the agents listed 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 issued.
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, Director, Investor Relations, 416-306-9967 x250, firstname.lastname@example.org