TORONTO, ON--(Marketwired - December 29, 2016) - Timbercreek U.S. Multi-Residential Opportunity Fund #1 (the "Fund") has declared a distribution (the "Distribution") of $0.143 per class A unit of the Fund ("Class A Units"), $0.155 per class B unit of the Fund ("Class B Units") and $0.155 per class C unit of the Fund ("Class C Units") to be paid on January 13, 2017 to holders of class A units, class B units and class C units of record on December 30, 2016. It is estimated that this entire distribution amount is effectively a return of capital.
Special Distribution Update
The Fund intends to distribute available net proceeds from the sale of the Lake Ellenor Disposition in the form of a special distribution to be paid on the revised payment date of January 9, 2017 to holders of class A units, class B units and class C units of record on November 30, 2016 (the "Special Distribution").
The Special Distribution equates to $1.475 for each class A unit, class B unit and class C unit of the Fund where it is estimated that approximately $1.25 per unit is the effective return of capital to unitholders. It is also estimated that the balance of $0.225 is the effective U.S. capital gain to unitholders.
The special distribution is net of estimated U.S taxes payable and other post-closing holdbacks of approximately 27% in aggregate. U.S. taxes paid will be allocated to unitholders as a foreign tax credit (foreign taxes paid) which may be available to reduce their total Canadian taxes payable. This foreign tax credit (foreign taxes paid) along with actual return of capital information will be provided to investors on their 2017 tax slip prior to March 31, 2018. 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
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.
Contact Information:
CONTACT:
Timbercreek Asset Management
Carrie Morris
Investor Relations
cmorris@timbercreek.com