SOURCE: Timbercreek Asset Management Inc.

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August 09, 2016 20:36 ET

Timbercreek U.S. Multi-Residential Opportunity Fund #1 Announces Special Distribution and an Update on the Disposition of Cary, North Carolina Assets

TORONTO, ON--(Marketwired - August 09, 2016) - Timbercreek U.S. Multi-Residential Opportunity Fund #1 (the "Fund") announced today details of a special distribution to unitholders resulting from the previously announced disposition of the Granite Park property located in Charlottesville, Virginia.

The special distribution equates to $1.939 per class A unit of the Fund ("Class A Units"), $1.939 per class B unit of the Fund ("Class B Units") and $1.939 per Class C unit of the Fund ("Class C Units) to be paid on August 22, 2016 (rather than August 15, 2016 as previously disclosed) to holders of Class A Units, Class B Units and Class C Units of record on August 8, 2016. It is estimated that approximately $0.90 per unit is the effective return of capital to unitholders.

The special distribution is net of estimated U.S taxes payable and other post-closing holdbacks of approximately 20% in aggregate. U.S. taxes paid will be allocated to unitholders as a foreign tax credit which may be available to reduce their total Canadian taxes payable. This foreign tax credit along with actual effective return of capital information will be provided to investors on their 2016 tax slip prior to March 31, 2017. A unitholder's final tax liability will be dependent on each unitholder's personal tax situation. Investors should seek their own advice on the tax consequences that apply to them in their circumstances.

Update on Disposition of Cary, North Carolina Assets

We are also pleased to announce that the sale of two other assets in the portfolio -- Eagle Landing and Watercrest, both of which are located in Cary, North Carolina -- are now scheduled to close on August 12, 2016. The Fund intends to distribute available net proceeds from the sale of Eagle Landing and Watercrest to unitholders on August 22, 2016 along with the net proceeds from the sale of Granite Park. Further details of the distribution will be provided in a news release prior to the time of the distribution.

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.

About the Fund

The Fund was designed to provide 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 mismanaged or undervalued multi-unit residential assets in the southeast United States. The Fund aims to generate significant gains for investors through the improvement and eventual sale of the portfolio's multi-residential assets.

For more information on the Fund and Timbercreek Asset Management Inc., please visit our website at www.timbercreek.com.

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