TORONTO, March 18, 2013 /CNW/ - Timbercreek U.S. Multi-Residential
Opportunity Fund #1 (the "Fund") announced today that it has completed
a non-brokered private placement of 567,500 class C units of the Fund
(the "Offering") for aggregate gross proceeds of $5,675,000.
Net proceeds from the Offering will be used to indirectly 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. (the "Manager"). The Fund
will focus on enhancing the value of the Properties through an active
management and stabilization plan.
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
4-5% (which includes the allocation to unitholders of the Fund of U.S.
taxes paid by the Fund), paid quarterly.
The Manager is an investment management company that employs a hands-on
management style, 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), mortgage debt, and global real estate securities.
The Manager employs a team of over 105 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 395
people at its 18 additional offices across Canada, the United States,
Europe and Australia.
Elco Landmark Residential Management, LLC ("Elco Landmark"), together
with its affiliate Landmark Apartment Trust of America, will operate
and act as property manager for the Properties. Elco Landmark 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.
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.
SOURCE: Timbercreek U.S. Multi-Residential Opportunity Fund #1
For further information:
Timbercreek Asset Management Inc.
Managing Director, Capital Markets & Corporate Communications