ACQUISITION NEWS

TORONTO, Dec. 13, 2013 /CNW/ – Timbercreek Asset Management Inc.
(“Timbercreek” or the “Manager”) is pleased to announce on behalf of
Timbercreek U.S. Multi-Residential Opportunity Fund #1 (the “Fund”), a
joint venture between Timbercreek and Elco Landmark Residential
Holdings (“Elco Landmark”), that it has completed the acquisition of a
232-unit multi-residential complex located in Jacksonville, Florida for
approximately $15.8 million. The property contains one, two and three
bedroom apartment suites situated in a garden-style complex, which
includes a clubhouse, two swimming pools, a fitness centre and tennis
courts. This acquisition represents the 8^th property acquired since the completion of the Fund’s initial public
offering on October 25, 2012.

“We are very pleased with this acquisition as it allows us to continue
to expand our reach into the state of Florida, which is seeing positive
economic growth. As fundamentals continue to strengthen, we continue to
believe there is compelling opportunities in the southeastern U.S.
multi-residential real estate market” states Ugo Bizzarri, Founding
Managing Director, Portfolio Management and Investments and member of
the Investment Committee for the Fund. “This is our second acquisition
in the Florida market, as we continue to see attractive opportunities
that satisfy our investment strategy”.

With this acquisition, the Fund’s portfolio now consists of 2,696 units
across eight multi-residential properties located in the southeastern
United States, specifically Austin, Texas, Charlottesville, Virginia,
Charlotte, North Carolina, Chapel Hill, North Carolina, Cary, North
Carolina, Orlando, Florida and Jacksonville, Florida.

The Fund is focused on acquiring undervalued and/or undermanaged
multi-residential assets located in the southeastern United States, at
an advantageous price and significant discount to replacement cost. The
Fund is sponsored and managed by Timbercreek and operated by Elco
Landmark.

The Fund’s primary focus is on enhancing the value of the assets it
acquires by implementing an actively-managed repositioning and
renovation program, designed to invest capital into a property to
improve both cosmetic and structural elements.

The total return objective of the Fund is to generate a 15% internal
rate of return (or average annualized total rate of return) on a
pre-tax basis and net of all fees and expenses, including a quarterly
distribution with an annualized yield of 4%- 5%^*.

OPERATIONAL UPDATE CONFERENCE CALL DETAILS

Timbercreek will also host a national conference call on Wednesday,
December 18, 2013 at 4:00 p.m. EST, to provide an update on the Fund’s
current operations. The call-in details and presentation that will be
referenced on this call are provided below:

Dial-in number:
Toll-Free Dial-In Number: (855) 223-7310
International Dial-In #: (647) 788-4930

Timbercreek U.S. Multi-Residential Opportunity Fund 1 – Update
Presentation

A replay of this call is available until February 16, 2014 using the
following dial-in information:

Dial-In #: (855) 859-2056
Passcode: 23922685

ABOUT THE FUND

The Fund provides investors with the opportunity to achieve attractive
total returns from an asset class that has historically generated
strong and stable long-term cash flows. The targeted 15% IRR is
inclusive of a 4-5% pre-tax yield paid quarterly. The Fund focuses on
an active, value-add investment strategy to acquire and improve
multi-unit residential real estate assets (primarily apartment
buildings and town house complexes) with a minimum of 200 residential
suites located in urban growth markets in the southeast United States
(Florida, Texas, Georgia, North Carolina, South Carolina, Virginia,
Tennessee, and Alabama). The Fund’s properties are managed by Elco
Landmark Residential Management, LLC, an experienced property manager
with a successful, long-term track record in the Fund’s targeted
geographic regions.

Certain statements contained in this news release may contain
projections and “forward looking statements” within the meaning of that
phrase under Canadian securities laws. When used in this news release,
the words “may”, “would”, “should”, “could”, “will”, “intend”, “plan”,
“anticipate”, “believe”, “estimate”, “expect”, “objective”, “look
forward to” and similar expressions may be used to identify forward
looking statements. By their nature, forward looking statements reflect
the Manager’s and the Fund’s current views, beliefs and assumptions and
are subject to certain risks and uncertainties, known and unknown,
including, without limitation, risks disclosed in the Fund’s public
filings. Many factors could cause actual results, performance or
achievements to be materially different from any future results,
performance or achievements that may be expressed or implied by these
forward looking statements. The Fund does not intend to nor assume any
obligation to update these forward looking statements whether as a
result of new information, plans, events or otherwise, unless required
by law.

*Includes the allocation to Unitholders of U.S. taxes paid by the Fund.

SOURCE Timbercreek U.S. Multi-Residential Opportunity Fund #1