Timbercreek Files Final Prospectus for Initial Public Offering of Timbercreek U.S. Multi-Residential Opportunity Fund #1

TORONTO, Oct. 1, 2012 /CNW/ - Timbercreek U.S. Multi-Residential Opportunity Fund #1 (the "Fund") announced today that it has filed a final prospectus (the "Prospectus") with the securities regulatory authorities in each of the provinces and territories of Canada, other than Quebec. A copy of the Prospectus is available on SEDAR (www.sedar.com).

The 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") are 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 to the Fund (the "Manager").

The Manager 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 $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 over 350 people at its 14 additional offices 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 (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% to 5% (which includes the allocation to Unitholders of U.S. taxes paid by the Fund) paid quarterly.

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 prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in certain jurisdictions of Canada. Copies of the Prospectus may be obtained from any of the Agents named above. 

SOURCE: Timbercreek U.S. Multi-Residential Opportunity Fund #1

Timbercreek Asset Management Inc.
Carrie Morris
Managing Director, Capital Markets & Corporate Communications 
416-800-1552
[email protected]