Timbercreek U.S. Multi-Residential Opportunity Fund #1 Raises $5.7 million in Private Placement
TORONTO, March 18, 2013 /CNW/ - Timbercreek U.S. Multi-Residential Opportunity Fund #1 (the "Fund") announced today that it has completed a non-brokered private placement of 567,500 class C units of the Fund (the "Offering") for aggregate gross proceeds of $5,675,000.
Net proceeds from the Offering will be used to indirectly 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. (the "Manager"). The Fund will focus on enhancing the value of the Properties through an active management and stabilization plan.
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 4-5% (which includes the allocation to unitholders of the Fund of U.S. taxes paid by the Fund), paid quarterly.
The Manager is an investment management company that employs a hands-on management style, 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), mortgage debt, and global real estate securities. The Manager employs a team of over 105 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 395 people at its 18 additional offices across Canada, the United States, Europe and Australia.
Elco Landmark Residential Management, LLC ("Elco Landmark"), together with its affiliate Landmark Apartment Trust of America, will operate and act as property manager for the Properties. Elco Landmark 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.
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.
SOURCE Timbercreek U.S. Multi-Residential Opportunity Fund #1
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