TORONTO, Oct. 20, 2015 /CNW/ - Timbercreek Asset Management ("Timbercreek"), is pleased to announce the completion of the first close of Timbercreek Canadian Multi-Residential Value Add Fund (the "Fund"), with aggregate commitments of approximately C$100 million from both Canadian and European institutional investors. This is Timbercreek's fourth Canadian fund focusing on rehabilitating and repositioning well-located multi-residential assets in key Canadian markets. The Fund will be capitalized with a maximum of C$200 million in equity commitments, with the next close scheduled on or about November 26, 2015.
"We are pleased to have the continued support from our Canada capital partners while also establishing new relationships with respected institutional investors domiciled outside of Canada" said Blair Tamblyn, CEO and Co-Founder of Timbercreek. "While we continue to expand our platform globally to take advantage of opportunities to be value investors and active managers in other jurisdictions, the Canadian multi-res value add strategy remains one of our core competencies - which we have been running since the Company was founded 16 years ago."
The Fund will acquire multi-residential assets where value can be surfaced through Timbercreek's proven active management and value enhancement program. Since inception, Timbercreek has deployed more than C$3B in multi-residential real estate in North America and has completed two Canadian funds employing a value enhancement strategy with an average net IRR of 19%. Through these programs and the third Canadian Fund that is nearing completion, Timbercreek has fully monetized 38 investments, with an average gross asset level IRR of 25.8%.
In conjunction with the first close, the Fund has acquired two multi-residential assets totaling 194 units and valued at C$30.5M in aggregate. The assets include 4 Latimer Avenue, Toronto Ontario ("Latimer") which is located on Eglinton Avenue, just west of Avenue Road and 380 Gibb Street, Oshawa Ontario ("Gibb") located near the Oshawa Centre mall.
"These assets are excellent opportunities for the Canadian Value Add Fund which will benefit significantly from our value enhancement program," states Ugo Bizzarri, Managing Director, Portfolio Management & Investments, and Co-Founder of Timbercreek. "Strong population in the Greater Toronto Area continues to provide opportunities for active managers like Timbercreek to reposition assets and satisfy the need for higher quality rental housing."
Timbercreek Asset Management Inc. an active investor, owner, and manager of global real estate and related assets focused on delivering sustainable and growing returns to our investors. Through our various public and private investment vehicles we manage over $4.7 billion in assets on behalf of investors seeking quality alternative asset class investments. Timbercreek employs a value-oriented investment philosophy, which is combined with an active, hands-on asset management style, to identify opportunities that will generate predictable and sustainable investment returns for our investors.
SOURCE Timbercreek Asset Management Inc.
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Timbercreek Asset Management Inc.- Canada
Timbercreek Asset Management Inc.- Europe