TORONTO, Dec. 13, 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 232-unit multi-residential complex located in Jacksonville, Florida for approximately $15.8 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 tennis courts. This acquisition represents the 8th property acquired since the completion of the Fund's initial public offering on October 25, 2012.
"We are very pleased with this acquisition as it allows us to continue to expand our reach into the state of Florida, which is seeing positive economic growth. As fundamentals continue to strengthen, we continue to believe there is compelling opportunities in the southeastern U.S. multi-residential real estate market" states Ugo Bizzarri, Founding Managing Director, Portfolio Management and Investments and member of the Investment Committee for the Fund. "This is our second acquisition in the Florida market, as we continue to see attractive opportunities that satisfy our investment strategy".
With this acquisition, the Fund's portfolio now consists of 2,696 units across eight multi-residential properties located in the southeastern United States, specifically Austin, Texas, Charlottesville, Virginia, Charlotte, North Carolina, Chapel Hill, North Carolina, Cary, North Carolina, Orlando, Florida and Jacksonville, 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%*.
OPERATIONAL UPDATE CONFERENCE CALL DETAILS
Timbercreek will also host a national conference call on Wednesday, December 18, 2013 at 4:00 p.m. EST, to provide an update on the Fund's current operations. The call-in details and presentation that will be referenced on this call are provided below:
Toll-Free Dial-In Number: (855) 223-7310
International Dial-In #: (647) 788-4930
A replay of this call is available until February 16, 2014 using the following dial-in information:
Dial-In #: (855) 859-2056
ABOUT THE FUND
The Fund provides investors with the opportunity to achieve attractive total returns from an asset class that has historically generated strong and stable long-term cash flows. The targeted 15% IRR is inclusive of a 4-5% pre-tax yield paid quarterly. The Fund focuses on an active, value-add investment strategy to acquire and improve multi-unit residential real estate assets (primarily apartment buildings and town house complexes) with a minimum of 200 residential suites located in urban growth markets in the southeast United States (Florida, Texas, Georgia, North Carolina, South Carolina, Virginia, Tennessee, and Alabama). The Fund's properties are managed by Elco Landmark Residential Management, LLC, an experienced property manager with a successful, long-term track record in the Fund's targeted geographic regions.
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 assume 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