TORONTO, ON--(Marketwired - March 13, 2017) - Timbercreek U.S. Multi-Residential Opportunity Fund #1 (the "Fund") announced today details of a special distribution to unitholders resulting from the previously announced sales of Chelsea Commons and Alexander Pointe, the remaining two properties in the portfolio.
The special distribution equates to $2.026 per class A unit of the Fund ("Class A Units"), $2.026 per class B unit of the Fund ("Class B Units") and $2.026 per Class C unit of the Fund ("Class C Units) to be paid on March 17, 2017 to holders of Class A Units, Class B Units and Class C Units of record on March 15, 2017. It is estimated that approximately $2.026 per unit is the effective return of capital to unitholders. The Manager intends to provide an estimate on the post-distribution NAV within a week of the payment date.
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.
Based on the completed dispositions of all portfolio assets and the payout of this special distribution, the Manager will initiate the processes required to wind-up the Fund which may include a modest final distribution of any cash that remains in the Fund upon completion.
In relation to the wind-up of the Fund, the last quarterly trailer fee will be paid on April 14, 2017. The trailer fee will be prorated for the period from January 1, 2017 to February 15, 2017, which coincides with the date of the sale of the last asset in the portfolio, Alexander Pointe.
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.
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.