Timbercreek acquires U.S. assets

Timbercreek Asset Management Inc. has announced a joint venture with Elco Landmark Residential, involving the acquisition of 1,380 residential units across four multi-residential properties located in Austin, Texas, Charlottesville, Virginia, Charlotte, North Carolina and Chapel Hill, North Carolina, for approximately $95.4 million.

The purchase price of approximately $95.4 million was satisfied with a new 10-year mortgage of approximately $71.5 million with an approximate interest rate of 3.75% and the balance from cash held by the Timbercreek U.S. Multi-residential Opportunity Fund #1.

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% to 5%.

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