TIMBERCREEK INVESTMENTS PURCHASES $9.1 MILLION OF REAL ESTATE INDOWNTOWN LONDON

1231 RichmondStreet is Toronto-Based, Timbercreek Investments Most RecentAcquisition

January 2004 TORONTO, ON. .Timbercreek Investments is pleased to announce the addition of a $9.1 million,160-suite building to its portfolio of real estate investments across Ontarioand Quebec. This recent acquisition in London, Ontario consists of a complexcontaining a 13 story multi-residential building, 4 adjacent contiguous residentialhouses and 2.5 acres of land zoned for development, all within a walking distanceof the University of Western Ontario. The London acquisition brings the Timbercreekportfolio to 1,025 suites, with an approximate value of $76 million. The acquisitionclosed on December 23, 2003.

Theapartment building included in the package consists of 160 residential suiteswith total consideration paid of approximately $8,100,000 or $50,625 per unit.The average price per suite paid equates to approximately 50% of replacementcost, while the vacant land is zoned for commercial development, and has sufficientarea to accommodate an additional 140 unit townhouse complex. The purchaseprice paid for the package reflects an initial forecasted leveraged return onequity of 15.9%.

Froman investment perspective, Timbercreek is pleased to add 1231 Richmond Streetto its London real estate portfolio. Blair Tamblyn, Timbercreek’s Presidentsays: “We have been active in the London area over the past 36 months, andcontinue to believe in the City’s market fundamentals. The location of thisbuilding, combined with the additional land included in the package, gives usthe flexibility to create an exciting re-positioning plan for the asset..” Headds, “We intend to undertake an extensive capital improvement program, whichinvolves a complete internal renovation, and upgrade of suites and commonareas. We are confident that over time, the building has the potential to both providean exceptional product for our tenants and generate strong returns forTimbercreek investors. 

TimbercreekInvestments was incorporated to identify, invest and capitalize onunderperforming multi-family residential real estate assets in North America.Timbercreek is a value-oriented private corporation that provides high networth individuals and institutions with the combination of stable annual cashdistribution and long-term capital appreciation, in a tax efficient manner.

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