TORONTO, Aug. 26 /CNW/ - Timbercreek Global Real Estate Fund (the "Fund") announced today that it has completed its initial public offering of 4,214,126 class A units and 211,777 class B units (the "Prospectus Offering") and its private placement of 723,517 Class I units (the "Private Placement") for aggregate gross proceeds of $61,793,040. The class A and B units were offered to the public by a syndicate of agents co-led by BMO Capital Markets and Raymond James Ltd., and including CIBC, Macquarie Capital Markets Canada Ltd., National Bank Financial Inc., Scotia Capital Inc., Manulife Securities Incorporated, HSBC Securities (Canada) Inc., Canaccord Genuity Corp., GMP Securities L.P. and M Partners Inc.
The Fund, which is a new investment fund formed under the laws of the Province of Ontario and which is managed by Timbercreek Asset Management Inc., was established to invest in a globally diversified portfolio (the "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, United States, United Kingdom, Continental Europe, Japan, Australia, Hong Kong and other countries. The Manager has engaged FSX Securities Canada Inc. (the "Global Investment Advisor") to provide portfolio management services to the Fund. Through the Manager's partnership with the Global Investment Advisor, the Fund will be supported by a team of real estate analysts based in Toronto, New York, London and Hong Kong that are strictly dedicated to analyzing and investing in real estate securities.
The Fund's investment objectives are to provide holders of Units ("Unitholders") with quarterly distributions initially targeted to be $0.21 per Unit ($0.84 per annum representing an annual cash distribution of 7.0% based on the $12.00 per Unit issue price); and preserve capital while providing the opportunity for long-term capital appreciation for Unitholders.
The Manager believes there is a compelling investment opportunity to invest in a globally diversified portfolio (the "Portfolio") of premier real estate securities that exists because the global real estate securities market is inefficient relative to that of the direct real estate or broader equities markets. Managed by a specialized real estate manager, the Fund's unique investment strategy has been designed to capitalize on these pricing inefficiencies in order to deliver a stable income stream that can be acquired at a price that the Manager believes does not reflect the long-term value of the underlying assets. Furthermore, Global Investment Advisor believes that the current volatility in global equity markets provides the Fund with the rare opportunity to assemble a global portfolio of prime real estate securities at prices that generate attractive, stable yields with the potential for capital appreciation.
The Manager, a wholly owned subsidiary of Timbercreek Asset Management Inc. ("Timbercreek"), 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 $1.1 billion in real estate-related assets, including direct ownership and mortgages.
The Global Investment Advisor is a wholly-owned subsidiary of Forum Securities Limited ("Forum Securities"), which is an affiliate of Forum Partners Investment Management LLC ("Forum Partners"). Forum Securities provides a platform for investment in global public real estate securities with over $500 million in assets under management. Since inception, Forum Securities has demonstrated the ability to continually beat its benchmark while employing similar investment strategies to the Fund. On June 30, 2009, the Global Real Estate Securities team at Citi joined Forum Partners and created Forum Securities.
Forum Partners provides real estate related private equity investment opportunities for large institutional clients on a global basis with over $2 billion currently under management. Forum Partners and Forum Securities have 70 employees in eight offices across Asia, Europe and North America with 13 employees dedicated to global real estate securities analysis.
All capitalized terms noted herein and not defined are as per the prospectus dated August 5, 2010.
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.
SOURCE Timbercreek Asset Management Inc.
For further information: For further information: Timbercreek Asset Management Inc., Carrie Morris, Vice- President, Investor Relations & Corporate Governance, 416-306-9967 x250, firstname.lastname@example.org