USOP

Timbercreek U.S. Multi-Residential Opportunity Fund #1

Overview

Timbercreek U.S. Multi-Residential Opportunity Fund #1 (the “Fund”) provides 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 Fund focuses on an active, value-add investment strategy to acquire and improve multi-unit residential real estate assets (primarily apartment buildings and town house complexes) with a minimum of 200 residential suites located in urban growth markets in the southeast United States (Florida, Texas, Georgia, North Carolina, South Carolina, Virginia, Tennessee, and Alabama). The Fund’s properties are managed by BH Management Services, an experienced property manager with a successful, long-term track record in the Fund’s targeted geographic regions.

The Fund’s objective is to preserve capital and produce capital gains while generating attractive, stable and secure cash flows that permit paying quarterly cash distributions to shareholders based on 95% of the Fund’s free cash flow. 

Investment Approach

The Fund targets undermanaged or undervalued multi-unit residential assets in the southeast United States. Through its designated active property manager, the Fund increases revenue and cash flows by renovating and repositioning each property to increase occupancy and enhance the overall value of the asset, while at the same time reducing operating costs through professional management, state-of-the-art operating systems and technologies and energy-saving capital investments. The Fund is designed to capitalize on compelling investment opportunities resulting from the recent correction in the southeastern U.S. real estate market and the lack of competitive capital in its target geographic markets and asset class. Debt leverage will not exceed 65% loan-to-value for the consolidated portfolio, with a maximum of 70%. Individual property mortgages will not exceed 75% loan-to-value.

Key Facts

Structure  Closed-end fund 
Targeted Total Return 15% pre-tax IRR / 4% to 5% yield paid quarterly
Cash Distribution   95% of free cash flow on quarterly basis 
Proceeds from asset sales (capital gain and return of capital) 
Annual Management Fee   1.0% of assets (includes property, asset and project management) 
Investment Horizon 5-year investment horizon
2-year capital deployment 
3-year value creation execution
Exit Strategy  Strategic partnership with a U.S. REIT 
Individual or portfolio sale(s) 

Regulatory Filings

Financial Reports