- What Timbercreek Capital has launched a new subsidiary geared toward high-net-worth, wealth management and family office investors
- Why Timbercreek Alternatives will focus on equity investments through new and existing funds
- What next Timbercreek Capital will continue to focus on originating debt for institutional investors
Timbercreek Capital has launched a subsidiary geared toward high-net-worth, wealth management and family office investors.
With Timbercreek Alternatives, the company will focus on equity investments through a series of new investment vehicles.
“Timbercreek Alternatives platform is allowing us to branch into other segments of the market and look at different risk-return profiles,” Fraser McEwen, president of Timbercreek Alternatives, told Green Street News.
“In doing so, we are bringing product out to a broader investor base. That includes partnering with proven operators of commercial real estate, who are very good at what they do, but who are having difficulty accessing capital. We’re leveraging our team, our resources, and our relationships to become that capital partner in the sense that we can now provide debt or equity and begin to shift into other parts of the capital stack.”
Fund opportunities
Timbercreek Real Estate Opportunities Fund LP is a capital growth fund that invests in private equity and debt, secondary privates, and special institutions in Canada. The closed-end vehicle has a term of four years and targets a net internal rate of return of 18%. Select investments within the fund have co-investors.
Run in conjunction with a local operator, the Southern Europe Multi-Res Value-Add Fund purchases and refurbishes residential buildings in cities such as Lisbon, Madrid and Málaga, and converts them to serviced apartments.
Alongside the new funds, investors will have access to the existing Timbercreek Real Estate Fund – Ireland II. The income fund invests in short-term, mid-market commercial mortgages in Ireland, with a focus on multi-residential, industrial and retail assets. The closed-end vehicle targets a net internal rate of return of 10% to 12%, and there are six years remaining on the fund term.
Timbercreek Alternatives will also offer direct investments, which will allow the company to bring curated, one-off deals to its investor base.
“We’re starting this with really no legacy issues. We’re in a pretty sweet spot. We can focus on finding deals and underwriting what we think are good deals for our investor base,” McEwen said.
“These opportunities don’t come along very often in the real estate cycle. This is a once-in-a-decade opportunity. Time will tell, but we feel our timing is quite good. And when you look back over time at when money is made, it’s timing that really matters.”
Andrew Barnicke will serve as strategic advisor for Timbercreek Alternatives.
Timbercreek Capital will continue to focus on originating debt for institutional investors and qualified borrowers in North America and Europe. Blair Tamblyn is chief executive of the Toronto-based company.