JULY 7, 2006. TORONTO, ONT. –Timbercreek Asset Management Inc. (“TAMI”) is pleased to announce that, on behalfof Timbercreek Real Estate Investment Trust (“TREIT”), it has completed the acquisition of 156 units in the Clayton Park area of Halifax. This $15.0million acquisition brings TAMI’s total Halifax presence to 780 units representing 22% of the total portfolio. The transaction consists of 2 assets, 76 Fairfax Drive and 109 Greenpark Close, together comprising of 24 bachelorunits, 58 one bedrooms, 32 two bedroom units, and 42 three bedroom units, for a total consideration of $15,000,000 or $96,154 per unit. Originally constructed in 2001 and 2005 respectively, both buildings are fully occupied with no major capital expenditures required. The buildings are located in the Clayton Park area of the Halifax Regional Municipality, just a 10 minute drive to downtownHalifax and minutes from both Highway 102 and Bedford Highway. Clayton Park wasinitially developed in the late 1960’s as an upper-middle class community withthe Shaw Company, the largest brick manufacturer in the Atlantic, as theprimary developer. This area has since expanded with the highest rate of urbangrowth in Nova Scotia history and is currently one of the most dense and ethnically diverse populations in metro Halifax. Clayton Park is a popular destination for new arrivals to the Halifax area due to its high density of apartment complexes and condominiums.

“This transaction allows Timbercreek to continue to invest in the Halifax market and further reduce the management infrastructure cost per unit” Ugo Bizzarri, CFO and VP Acquisitions remarks. “Overall, the assets will further diversify Timbercreek’s income into seven different geographic markets.”

TimbercreekAsset Management Inc. (“TAMI”) is one of Canada’s fastest growing alternativeasset class investment managers. TAMI has a value oriented investmentphilosophy, and specializes in providing conservatively managed, risk adverseprivate investment opportunities to institutions, trusts and endowment funds,discretionary investment advisors and qualified individuals. Timbercreek AssetManagement Inc. is the exclusive asset manager for Timbercreek Investments Inc.and Timbercreek REIT, which collectively own a portfolio of multi-family real estatewith a total asset value of approximately $250 million.

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