Timbercreek U.S. Multi-Residential Opportunity Fund #1 acquires a 296 unit property in Orlando, Florida
TORONTO, Nov. 28, 2013 /CNW/ - Timbercreek Asset Management Inc. ("Timbercreek" or the "Manager") is pleased to announce on behalf of Timbercreek U.S. Multi-Residential Opportunity Fund #1 (the "Fund"), a joint venture between Timbercreek and Elco Landmark Residential Holdings ("Elco Landmark"), that it has completed the acquisition of a 296-unit multi-residential complex located in Orlando, Florida for approximately $18.5 million. The property contains one, two and three bedroom apartment suites situated in a garden-style complex, which includes a clubhouse, two swimming pools, a fitness centre and barbeque area. This acquisition represents the 7th property acquired since the completion of the Fund's initial public offering on October 25, 2012.
"We are very pleased to be adding this property to the portfolio as it not only satisfies our investment strategy, it allows us to further diversify the portfolio geographically by expanding our reach into the state of Florida. This property is one of the many value opportunities we are seeing that are stemming from the correction in the U.S. real estate market" states Ugo Bizzarri, Managing Director of the Manager and member of the Investment Committee for the Fund. "We are always looking to raise additional capital in order to continue to take advantage of attractive acquisition opportunities."
With this acquisition, the Fund's portfolio now consists of 2,464 units across seven multi-residential properties located in the southeastern United States, specifically Austin, Texas, Charlottesville, Virginia, Charlotte, North Carolina, Chapel Hill, North Carolina, Cary, North Carolina and Orlando, Florida.
The Fund is focused on acquiring undervalued and/or undermanaged multi-residential assets located in the southeastern United States, at an advantageous price and significant discount to replacement cost. The Fund is sponsored and managed by Timbercreek and operated by Elco Landmark.
The Fund's primary focus is on enhancing the value of the assets it acquires by implementing an actively-managed repositioning and renovation program, designed to invest capital into a property to improve both cosmetic and structural elements.
The total return objective of the Fund is to generate a 15% internal rate of return (or average annualized total rate of return) on a pre-tax basis and net of all fees and expenses, including a quarterly distribution with an annualized yield of 4%- 5%*.
About Timbercreek Asset Management:
Timbercreek is an active investor, owner, and manager of global real estate and related assets focused on delivering sustainable and growing returns to investors. Timbercreek employs a value-oriented investment philosophy and an active management style with a focus on opportunities that generate predictable and sustainable long-term cash flow.
Timbercreek currently manages approximately $3.3 billion in assets through its various private and public funds, predominately focused on the real estate sector.
About Elco Landmark Residential:
Elco Landmark Residential Holdings is a real estate investment firm that owns interests in and operates 49 multi-residential properties containing 15,175 units located throughout the southeastern United States. The company aims to unlock hidden value and unrealized cash flow through the below market acquisition and repositioning of mid-income multi-residential properties in the South, where the management team has proven expertise and a competitive advantage. Elco Landmark Residential is headquartered in Tampa, FL and is a member of The ELCO Holdings family of companies.
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 news release, the words "may", "would", "should", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "objective", "look forward to" and similar expressions may be used to identify forward looking statements. By their nature, forward looking statements reflect the Manager's and the Fund's current views, beliefs and assumptions and are subject to certain risks and uncertainties, known and unknown, including, without limitation, risks disclosed in the Fund's 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.
*Includes the allocation to Unitholders of U.S. taxes paid by the Fund.
SOURCE Timbercreek U.S. Multi-Residential Opportunity Fund #1