TORONTO, Dec. 27, 2012 /CNW/ - Timbercreek Asset Management Inc.
("Timbercreek" or the "Manager") is pleased to announce that on behalf
of Timbercreek U.S. Multi-Residential Opportunity Fund #1 (the "Fund"),
a joint venture between Timbercreek and Elco Landmark Residential
("Elco Landmark"), it has completed the acquisition of 1,380
residential units across four multi-residential properties (the
"Acquisition") located in Austin, Texas, Charlottesville, Virginia,
Charlotte, North Carolina and Chapel Hill, North Carolina, for a
approximately $95.4 million. The Acquisition is the first for the Fund
since the completion of its initial public offering on October 25, 2012
"We are very excited about this inaugural acquisition for the Fund,"
said Corrado Russo, Managing Director, Investments at Timbercreek Asset
Management. "The properties not only meet the targeted investment
mandates for the Fund, but also provide the Fund with diversification
across different markets within our target regions in the Southeastern
The purchase price of approximately $95.4 million was satisfied with a
new 10-year mortgage of approximately $71.5 million with an approximate
interest rate of 3.75% and the balance from cash held by the Fund.
The cash portion represents approximately 85% of the net proceeds of
the IPO. The Fund, which is focused on acquiring multifamily assets
located in the Southeastern United States at an advantageous price and
significant discount to replacement cost, is sponsored and managed by
Timbercreek and operated by Elco Landmark.
The Fund's primary focus is on enhancing the value of the assets it
implementing a professional active management strategy to stabilize the
assets and increase their operating revenue by leveraging Elco
Landmark's existing property management resources, experience and
renovating the assets to: reposition them into a higher market in order
to reduce vacancy rates and increase overall revenue.
"We are pleased to partner with Timbercreek to acquire four quality
multifamily assets that offer considerable unrealized cash flow
potential," said Joseph Lubeck, CEO of Elco Landmark Residential. "Elco
Landmark has an impressive history of unlocking embedded value by
implementing our proven renovation and repositioning strategy. We
believe the Colonial portfolio is a prime investment opportunity."
The total return objective of the Fund is to generate a 15 percent
internal rate of return (or average annualized total rate of return) on
a pre-tax basis and net of all fees and expenses, including a quarterly
distribution with an annualized yield of 4 percent to 5 percent (which
includes the allocation to Unitholders of U.S. taxes paid by the Fund).
Timbercreek is a specialized investment manager focused on real estate
and other alternative asset classes. Timbercreek has a value oriented
investment philosophy with an active management style, and specializes
in providing conservatively managed, risk adverse investment
opportunities. Timbercreek currently manages approximately $3 billion
in assets through its various private and public funds, predominately
focused on the real estate sector.
About Elco Landmark Residential:
Elco Landmark Residential is a real estate investment firm that owns
interests in and operates 49 multifamily properties containing 15,175
units located throughout the Southeastern United States. The company
aims to unlock hidden value and unrealized cash flow through the below
market acquisition and repositioning of mid-income multifamily
properties in the South, where the management team has proven expertise
and a competitive advantage. Elco Landmark Residential is headquartered
in Tampa, FL and is a member of The ELCO Holdings family of companies.
SOURCE: Timbercreek U.S. Multi-Residential Opportunity Fund #1
For further information:
Timbercreek Asset Management Inc.