TORONTO, April 30, 2012 /CNW/ - Timbercreek Global Real Estate Fund (the "Fund") is pleased to announce that it has filed a final prospectus dated April 27, 2012 with the Canadian securities regulatory authorities in each of the provinces of Canada, and a receipt therefore has been issued. The prospectus qualifies the distribution (the "Offering") of class A units and class B units of the Fund (collectively, the "Units") that will be issued at $12.37 per Unit and $12.60 per Unit, respectively. The issued and outstanding class A units of the Fund are listed and posted for trading on the Toronto Stock Exchange ("TSX") under the symbol "TGF.UN". The Fund has applied to list the additional Class A Units offered under the prospectus on the TSX. Class B Units are designed for fee-based accounts with a registered dealer and/or institutional accounts and will not be listed on a stock exchange, but are convertible into Class A Units on a weekly basis.
The Offering is scheduled to close on May 7, 2012 The syndicate of agents is co-led by Raymond James Ltd., BMO Capital Markets and TD Securities Inc. and includes CIBC World Markets Inc., GMP Securities L.P., RBC Capital Markets, Manulife Securities Incorporated, National Bank Financial Inc., Scotia Capital Inc., Canaccord Genuity Corp. and Macquarie Capital Markets Canada Ltd. (collectively, the "Agents").
The net proceeds of the Offering per Unit must not be less than 100% of the net asset value (NAV) per Unit of the Trust as calculated at Friday, April 26, 2012. The Fund, which is managed by Timbercreek Asset Management Ltd. (the "Manager"), intends to invest the net proceeds of the Offering in a globally diversified 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, the United States, the United Kingdom, Continental Europe, Japan, Australia, Hong Kong, Singapore and other countries (the "Portfolio"). The Fund's investment objectives are:
- to provide holders of Units ("Unitholders") with quarterly distributions, currently targeted to be $0.21 per Unit ($0.84 per annum) until the next annual determination in March 2013; and
- preserve capital while providing the opportunity for long-term capital appreciation for Unitholders.
The Agents' fees and a portion of the expenses of the Offering will be paid from the gross proceeds of the Offering. However, the Manager will pay any additional expenses of the Offering which are greater than 0.5% of the gross proceeds of the Offering.
"We believe this strategy will continue to provide investors with the opportunity to generate a strong stable yield along with upside potential," states Blair Tamblyn, chief executive officer of the Fund Manager. "We also believe that a larger asset base will improve the investor experience by providing better diversification and liquidity. The Manager has, therefore, offered to absorb a significant portion of the costs associated with this Offering in order to strengthen the value proposition provided to investors."
The Manager, a wholly owned subsidiary of Timbercreek Asset Management Inc., 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 $2 billion in real estate-related assets, including mortgages and more than 11,000 units in multi-residential properties.
Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Fund. The forward-looking statements are not historical facts but reflect the Manager's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Manager believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Manager undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
This offering is only made by a prospectus dated April 27, 2012. The prospectus contains important information relating to these securities. Copies of the prospectus may be obtained from any of the Agents. Investors should read the prospectus before making an investment decision.
All capital terms noted herein but not defined are as per the prospectus dated April 27, 2012.
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.
For further information:
Timbercreek Asset Management
Vice- President, Investor Relations & Corporate Governance