Timbercreek Files Final Prospectus for Initial Public Offering of Timbercreek U.S. Multi-Residential Opportunity Fund #1

 

Since its inception, Timbercreek has become one of the largest private investors in multi-residential real estate in Canada and hasearned a reputation for providing conservatively managed, risk averse investment opportunities for discretionary investment advisors, institutions, trusts and endowment funds, and qualified individuals. Through its various private investment mandates, it’s acquired more than $2.1 billion worth of multi-residential real estate, comprising more than 16,000 units in 27 cities across Canada. Its opportunistic investment strategies are focused on direct investments in mismanaged and undercapitalized real estate and then recapitalizing and repositioning these assets to surface value.

The Timbercreek U.S. Multi-Residential Opportunity Fund #1  investment objectives are to:

1. maximize long-term value for investors by acquiring multi-residential real estate assets that are mispriced and/or undermanaged in the view of the Manager and that are located in the southeastern United States;

2. enhance the value of the Fund’s assets through active management and a stabilization and improvement program, with the goal of ultimately disposing of the assets to generate significant gains; and

3. make quarterly cash distributions (annual yield of 4-5%) to Unitholders from Distributable Cash Flow.

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.

Timbercreek is the Manager of the Fund. The Operator is Elco Landmark Residential Holdings, LLC, a Jupiter, Florida based private equity multi-residential real estate company. It is owned principally by Joe Lubeck and Elco Holdings Ltd. and employs a value oriented real estate investment philosophy. Mr. Lubeck has approximately 25 years of experience in the multi-residential real estate industry, recognizing undervalued multi-residential properties, acquiring such properties, enhancing value through refurbishment, repositioning and re-tenanting, and realizing value through individual asset or portfolio sales on behalf of both private and institutional investors. The Operator 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. The Operator has co-invested with institutional investors such as Brookfield Asset Management, OPSEU Pension Trust, DeBartolo Holdings, Dezer Properties, Harel Group and Menora Mivtachim.

 

 

Details on the prospectus

Timbercreek U.S. Multi-Residential Opportunity Fund #1 announced that it has filed a final prospectus with the securities regulatory authorities in each of the provinces and territories of Canada, other than Quebec. A copy of the Prospectus is available on SEDAR (www.sedar.com).

The Prospectus qualifies the distribution of Class A Units and Class B Units  of the Fund at a price of $10 per Class A Unit and $10 per Class B Unit. Class B Units are available for investments of $5 million or more.  The Fund has not applied to list or quote the Units on any stock exchange.

Raymond James Ltd., CIBC World Markets Inc. and GMP Securities L.P., acting as co-lead agents  for a syndicate including BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., Canaccord Genuity Corp., Macquarie Capital Markets Canada Ltd., Dundee Securities Ltd. and Manulife Securities Incorporated (together with the Lead Agents, the "Agents") are marketing of the Offering. Prospective purchasers may subscribe for such Units through one of the Agents.

Net proceeds from the Offering 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 will act as manager to the Fund.

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 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  will operate and act as property manager for the Properties. 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.

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.

on October 5, 2012