TC Alternatives, in partnership with Incus Capital, has raised capital to acquire and redevelop residential buildings in Spain and Portugal for conversion into serviced apartments. The strategy focuses on creating a theme-driven, value-add portfolio of well-located assets across Southern Europe.
The fund leverages Incus Capital’s deep local market expertise and on-the-ground presence, with offices in Madrid, Lisbon, Paris, Milan, Frankfurt, and Luxembourg. Assets are vertically integrated with an in-house property management and operating platform, POSTCODE.
As of December 31, 2025.
The fund targets the rapidly growing tourism and business-leisure markets in Spain and Portugal, supported by rising international travel, strong bleisure demand, and the growth of digital nomad long-stay trends. Europe accounts for more than 30% of global bleisure demand, creating sustained demand for flexible, professionally managed accommodations.
Market fundamentals are further strengthened by regulatory changes that have removed hundreds of thousands of Airbnb units from supply. All assets in the fund are structured as hotel/lodging facilities, eliminating the regulatory risk faced by many short-term rental operators.
Serviced apartments offer the comfort of a home combined with hotel-level services, making them highly attractive to business travelers, digital nomads, and extended-stay guests. Longer average stays, lower turnover costs, and operational efficiencies drive higher margins and occupancy compared to traditional hotels.
Regulatory restrictions favor professionally managed platforms, while urban locations and technology-enabled operations provide resilient cash flows and attractive exit options.
POSTCODE is our vertically integrated property management and operating platform with a focus on the guest’s experience. POSTCODE serviced apartments are seamlessly and independently accessed through digital integration, forgoing the need for full time front desk staff. POSTCODE aims to provide a ‘home away from home’ experience, with a balance of tech and human support, providing an experience where guests have freedom. The platform promises a unique experience, fostering client loyalty, with tailored customization and attention to detail leading to a 4–5 star experience in all POSTCODE managed properties.
18 units, 1,286 m²
35 units, 2,404 m²
18 units, 1,286 m²
14 units, 1,473 m²
24 units, 1,612 m²
22 units, 2,638 m²
17 units, 1,339 m²
11 Units, 1,247 m²
9 units, 790 m²
All assets in the Southern Europe Serviced Apartment Fund are built to the highest quality, with luxury finishes, and premium furniture. Bedrooms in each unit range from studios to 3 bedrooms.
The Timbercreek Real Estate Partner’s Fund – 2026 is a curated portfolio of value add real estate investments in multifamily and industrial properties, with coinvest rights for qualified LPs. The fund will seek strong alignment with our partners, leveraging our relationships where experience matters. The fund seeks to generate compelling risk-adjusted returns by investing in high-quality real estate, focusing on value-add opportunities characterized by shorter-duration investment periods.
The recent rate-hiking cycle—the most aggressive in over forty years—combined with increasingly restrictive credit conditions, has triggered a profound market dislocation across commercial real estate. Asset values have corrected sharply as higher borrowing costs erode returns and refinancing risk escalates, leaving many owners with impaired balance sheets and limited liquidity options.
Institutional investors, constrained by redemption pressures and risk aversion, are pulling back, creating a vacuum in the market and accelerating forced sales and recapitalization needs. As the monetary policy cycle pivots toward easing, history suggests that vintages formed during these transitional periods deliver superior performance, benefiting from entry at distressed pricing and exit into improving capital markets.
Timbercreek, free from legacy portfolio constraints and equipped with deep sector expertise, strong relationships, and a nimble execution platform, is uniquely positioned to seize this moment—acquiring high-quality assets at attractive bases and structuring opportunistic capital solutions to generate asymmetric, risk-adjusted returns.
Timbercreek has deep expertise in value-add real estate, with in-house origination and underwriting, trusted relationships, and the ability to execute. Strategic partnerships add depth and breadth of expertise to enhance operational execution & value creation.
Our partners have been among the most active buyers in real estate over the past 24 months. Unlike peers facing fund gating, liquidity constraints, debt maturities, or refinancing overhangs, TC Alternatives enters this once-in-20-years market opportunity unencumbered and fully focused on identifying and executing the most attractive opportunities.
The most aggressive rate tightening cycle seen in 40 years and the tightening lending environment has had significant impact on commercial real estate owners balance sheets and asset values.
Market Dynamics are evolving: Commercial Real Estate prices have reset, sellers are capitulating, and lack of capital is creating opportunities.
A wall of debt maturities and over leveraged balance sheets are coming to a head, while impaired balance sheets and forced sales created a significant opportunity.
Timbercreek is a leading commercial real estate investor with over $30B+ of in-house sourced debt and equity originations since inception in 2000, and has a 25 Year track record sourcing, acquiring and repositioning real estate assets.
TC Alternatives, along with Aspen Properties, has partnered to undertake a conversion of the iconic 1 Palliser Square office building in the heart of Downtown Calgary – the largest office to residential conversion in Canada to date. The over 415,000 SF completed project will feature 424 purpose built rental units, along with over 20,000 SF of luxury amenities. The project has secured $31.2M in grants from the City of Calgary. 1 Palliser Square is currently under construction and will be leasing it’s first units in early 2027. 1 Palliser Square has been fully funded, and TC Alternatives is not raising additional capital at this time.
All balances are in Canadian Dollars.
1 Palliser Square will feature high quality, luxury finishes, and a mix of units from studios, to 2 bedroom units. Additionally, the completed project will contain a full floor of amenities, including quiet working space, a golf simulator, a pool table, lounge, and outdoor skating rink.
Focusing on multi-family residential, industrial, and office asset classes, we support sponsors seeking alternative financing solutions for their value add strategies. Our sophisticated, service-oriented approach allows us to meet the unique needs of each borrower, including faster execution and more flexible terms not typically provided by traditional financing sources.
Timbercreek Ireland’s financing solutions include interest-only payments and flexible amortization customized with terms designed to meet our borrowers’ needs, with clearly defined exit strategies and early repayment privileges. Further highlights on the range of debt solutions we provide include acquisitions, refinancings, repositionings/value-add, development, and both bridge and mezzanine financing.
Average loan size
Average loan term
Typical LTV ratio
Amount: €40m
Asset Type: Residential, retail and industrial units
Location: Dublin, Ireland
Term: 48 months
Amount: €7.5m
Asset Type: Student accomodations
Location: Cork, Ireland
Term: 36 months
DISCLOSURES
*Any targeted returns included herein are strictly illustrative in nature. They are not guarantees or predictions of future performance and are based on modeling, assumptions, and estimates that may ultimately prove inaccurate. Actual results may differ materially.
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