Timbercreek U.S. Multi-Residential Opportunity Fund #1 Wind-up Update
TORONTO, ON–(Marketwired – November 17, 2017) – Timbercreek U.S. Multi-Residential Opportunity Fund #1 (the “Fund“) today announced that, with the receipt of the Ontario Securities Commission Decision 2017/0601 (the “Decision“), the Fund is no longer a reporting issuer under applicable securities legislation. The cessation of reporting issuer status is a key milestone in the previously announced wind-up of the Fund (the “Wind-up“).
Having successfully concluded its investment purpose, the Fund applied to cease to be a reporting issuer because, among other reasons, it has ceased carrying on business (other than for the purpose of effecting the Wind-up) and the Manager felt it was in the best interests of the unitholders that the Fund ceased to be a reporting issuer and reduced its expenses accordingly.
The Manager has filed an application for a tentative refund claim with the Internal Revenue Service of the United States (the “IRS“) to carry-back a net operating loss in order to obtain a refund of prior year federal income taxes paid to which the Fund may be entitled. It is expected that the IRS will process the Fund’s application for a tentative refund claim by mid-2018, and although there can be no assurance that the IRS will make a determination in favour of the Fund, the Manager expects to distribute any remaining net proceeds, and complete the Wind-up promptly after a determination is made.
In connection with the Decision, the Fund has agreed with the applicable securities regulatory authorities that it will no longer consent to transfers of its securities. Investors are advised to contact their investment advisor, stockbroker, bank, trust company or other nominee if they have questions regarding the transferability of their securities.
About the Fund
The Fund is a limited partnership governed by the laws of the Province of Ontario which was formed on August 30, 2012. The Fund was established for the primary purpose of acquiring multi-residential investment properties in the south-eastern United States that were mispriced and/or undermanaged in the view of Timbercreek Asset Management Inc., the Fund’s manager. The objectives of the Fund were to (i) enhance the value of the investment properties through active management and a stabilization and improvement program with the goal of ultimately disposing of the investment properties to generate significant gains and (ii) make quarterly cash distributions to Unitholders from distributable cash flow, as defined in the Fund’s prospectus dated April 29, 2013.
For more information on the Fund and Timbercreek Asset Management Inc., please visit www.timbercreek.com.
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the Fund. Forward-looking statements are identified by words such as “believe”, “anticipate”, “project”, “expect”, “intend”, “plan”, “will”, “may”, “estimate”, “pro-forma” and other similar expressions. These statements are based on the Fund’s expectations, estimates, forecasts and projections and include, without limitation, statements regarding the , the Wind-up. The forward-looking statements in this news release are based on certain assumptions, and they are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Fund assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.