Timbercreek Asset Management Enhances Montreal Portfolio

JULY 5, 2006. TORONTO, ONT. –Timbercreek Asset Management Inc. (“TAMI”) announced today that, on behalf of TimbercreekReal Estate Investment Trust (“TREIT”), it has completed the acquisition of1975 Boulevard De Maisonneuve Ouest in Montreal for a price of $17.5 million.This 23-storey, 229-unit multi-residential building is located in downtown Montrealwithin close proximity to 2150 Boulevard De Maisonneuve Ouest, a propertycurrently owned by Timbercreek.

Withover 680 units throughout Montreal area, the acquisition increases Timbercreek’sholdings in Montréal to approximately $50 million, and boosts the book value ofthe total portfolio to over $230 million. The building is comprised of 86 bachelors,122 one-bedroom, and 21 two-bedroom suites for a total consideration of $17,500,000including $800,000 reserved for balcony and boiler upgrades. This transactionallows Timbercreek to further develop its Montreal portfolio, now representing20% of the total Timbercreek asset base, and leverage the existing propertymanagement infrastructure to allow for improved efficiencies.

“Thisis another example of Timbercreek’s aptitude in sourcing buildings for lessthan their intrinsic value and applying strong management practice tocapitalize on upside potential in both rent and operating margins,”Timbercreek’s President, Blair Tamblyn comments. “We believe strongly in the Montrealmarketplace and are very pleased to add this building to our existingportfolio.”

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 realestate with a total asset value of approximately $230 million.

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