Timbercreek U. S. Multi-Residential Opportunity Fund #1 Raises $40.5 million

Timbercreek U. S. Multi-Residential Opportunity Fund #1  announced that it has completed its initial public offering of 2,244,350 class A units  for aggregate gross proceeds of $22,443,500. The class A units were offered to the public under a final prospectus of the Fund datedSeptember 28, 2012, as amended on October 17, 2012, by a syndicate of agents co-led by Raymond James Ltd., CIBC, and GMP Securities L. P., and 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.

The Fund has also issued 1,605,000 class C units to certain Canadian investors by way of private placement for aggregate gross proceeds of $16,050,000 to the Fund, which amount includes the subscription for 250,000 class C units by Timbercreek Asset Management Inc., who will act as asset manager to the Fund. In addition, 200,000 units of a parallel US partnership were issued to Elco Landmark Residential Holdings, LLC ("Elco Landmark") by way of private placement for aggregate gross proceeds of US$2,000,000 to the parallel US partnership.

"We are extremely pleased to provide Canadian investors with an opportunity to capitalize on what we believe are mispriced and undermanaged multi-residential properties in the southeastern United States," said Blair Tamblyn, CEO of the Manager. "The timing for deploying capital in this market and strategy could not be better and we are pleased to be working with who we feel is the best partner to execute on this strategy."

Net proceeds from the Offering will be used to acquire multi-residential real estate assets located in the southeasternUnited States  that are mispriced and/or undermanaged in the view of the Manager. 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 inToronto 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 acrossCanada.

Elco Landmark 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.

"We're very excited to have the opportunity to partner with a premier Canadian asset manager in Timbercreek. We're seeing tremendous activities in the marketplace and look forward to bringing those opportunities to the Fund," saidJoe Lubeck, CEO of Elco Landmark. 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 the Fund of U. S. taxes paid by the Fund) paid quarterly. Based upon market fundamentals in the real estate markets in which the Fund plans to invest, the Fund currently is targeting the size of its total capital to be approximately $200 million.


on October 31, 2012