Timbercreek U.S. Multi-Residential Opportunity Fund #1 Raises Approximately $15.1 million in Public Offering and Non-Brokered Private Placement

TORONTO, May 27, 2013 /CNW/ - Timbercreek U.S. Multi-Residential Opportunity Fund #1 (the "Fund") announced today that it has completed its offering of 1,100,746 class A units and 66,500 class B units (the "Offering"), and a non-brokered private placement offering of 270,298 class C units, for aggregate gross proceeds of approximately $15.1 million. The Fund and its affiliated U.S. partnership have now raised total gross equity proceeds of approximately $67 million since its formation in October, 2012. The class A units and class B units were offered to the public under an amended and restated final prospectus of the Fund dated May 15, 2013 (the "Prospectus"), by a syndicate of agents co-led by Raymond James Ltd., CIBC, and GMP Securities L.P., and including Manulife Securities Incorporated, National Bank Financial Inc., BMO Capital Markets, Canaccord Genuity Corp., Scotiabank, Dundee Securities Ltd. and Macquarie Capital Markets Canada Ltd. (the "Agents").

Net proceeds from the Offering and the private placement will be used to acquire multi-residential real estate assets located in the southeastern United States that are mispriced and/or undermanaged in the view of Timbercreek Asset Management Inc., who is the manager to the Fund (the "Manager") and to repay the bridge financing that was incurred by the Fund to acquire certain properties, as more fully disclosed in the Prospectus.

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.

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 $3.2 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 (together with Elco Landmark Residential Management, LLC, collectively the "Operator") provides operational and property management services to the Fund. 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.

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.

Certain statements contained in this news release may contain projections and "forward looking statements" within the meaning of that phrase under Canadian securities laws. When used in this new release, the words "may", "would", "should", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions may be used to identify forward looking statements. Those statements reflect the Fund's current views with respect to future events or conditions. By their nature, forward looking statements reflect management's current views, beliefs and assumptions and are subject to certain risks and uncertainties, known and unknown, including, without limitation, risks disclosed in the Prospectus and the Fund's other public filings. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by these forward looking statements. The Fund does not intend to nor assumes any obligation to update these forward looking statements whether as a result of new information, plans, events or otherwise, unless required by law.

For more information on the Fund and Timbercreek Asset Management Inc., please visit our website at www.timbercreek.com.

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]