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Press release from CNW Group

Timbercreek Mortgage Investment Corporation Announces Non-Brokered Private Placement Financing

Thursday, July 07, 2011

Timbercreek Mortgage Investment Corporation Announces Non-Brokered Private Placement Financing09:37 EDT Thursday, July 07, 2011TORONTO, July 7, 2011 /CNW/ - Timbercreek Mortgage Investment Corporation (the "Fund"), is pleased to announce it has completed a non-brokered private placement of 1,218,500 Class B Shares at $10 per Class B Share (the "Private Offering") effective July 4th, 2011.  Gross proceeds of this Offering will be used to fund mortgage loans invested in from time to time and for general corporate purposes of the Fund.As of the date of this press release the total issued and outstanding Class A Shares and Class B Shares were 19,819,751 and 3,210,832 respectively.Over the last six months, the Fund has issued approximately $91 million in mortgage loans primarily secured by income-producing properties.  The mortgage loans were funded with the proceeds from equity raised earlier this year and cash received from recent repayments of existing loans.  While the Fund typically expects 30-40% portfolio turn-over in a year, repayments for the first half of this year have already exceeded 30% of the portfolio value.  Despite this higher than expected repayment rate, all cash has been deployed or is committed to being deployed by July 31, 2012."Our primary focus is on preservation of capital and we believe the repayment rate we experienced in the first half of this year is a testament to the quality of the loans and borrowers in the portfolio," states Andrew Jones, who is responsible for originating mortgage investment opportunities for the Fund.  "It is also very positive for investors as more fee income is generated when money comes back early and is redeployed.""With all of the Fund's capital deployed and more investment opportunities in the due diligence phase, the Fund is well position for its next phase of growth," explains R. Blair Tamblyn, Chief Executive Officer of the Fund. "Through the summer we intend to fund new investment opportunities with our credit facility in anticipation of another public offering of Class A shares in early fall."About the FundThe Fund provides investors with an opportunity to receive attractive yields by investing indirectly, through holding shares of the Fund, in mortgage loan investments selected and determined to be high quality by the Fund Manager.  The investment objective of the Fund is, with a primary focus on capital preservation, to acquire and maintain a diversified portfolio of mortgage loan investments that generates attractive, stable returns in order to permit the Fund to pay monthly distributions to its shareholders.For further information: Timbercreek Asset Management Carrie Morris Vice President, Investor Relations 416-306-9967 x250