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Press release from CNW Group

Timbercreek Mortgage Investment Corporation Increases Base Shelf Offering Size

Tuesday, August 23, 2011

Timbercreek Mortgage Investment Corporation Increases Base Shelf Offering Size08:41 EDT Tuesday, August 23, 2011Toronto Stock Exchange: TMCTORONTO, Aug. 23, 2011 /CNW/ - Timbercreek Mortgage Investment Corporation (the "Fund") is pleased to announce that on August 22, 2011 it filed with the Canadian securities regulatory authorities in each of the provinces and territories of Canada, other than Quebec, an amendment to its short form base shelf prospectus dated December 30, 2009 (as amended, the "Amended Prospectus") to increase the aggregate amount of Class A Shares of the Fund that may be offered from time to time under the Amended Prospectus from $180,000,000 to $250,000,000.  Since inception, including financing conducted prior to filing of the base shelf prospectus, the Fund has raised approximately $227 million.The Fund was launched in July 2008 to provide investors with an opportunity to invest indirectly, by holding shares of the Fund, in mortgage loan investments ("Mortgage Assets") selected and determined to be high quality by Timbercreek Asset Management Ltd. (the "Fund Manager").  The Fund intends to grow its portfolio of Mortgage Assets (the "Portfolio") from time to time by filing additional supplements to the Amended Prospectus in order to raise additional capital.The Fund Manager believes that the optimal size of the Portfolio is approximately $300,000,000 to $325,000,000 based upon current market fundamentals such as aggregate size of the customized lending market, its targeted average loan size and its analysis of expected competition. This optimal Portfolio size is intended to provide the Fund with greater diversification of Mortgage Assets, added mortgage loan funding capacity and flexibility and to create a larger market for the Class A Shares while still allowing the Fund Manager to effectively manage the diversified Portfolio of mortgage loans.The investment objective of the Fund is, with a primary focus on capital preservation, to acquire and maintain a diversified portfolio of Mortgage Assets that generates attractive, stable returns in order to permit the Fund to pay monthly distributions to its shareholders.The Fund Manager is targeting an aggregate annual yield (net of all fees and expenses of the Fund) equal to the then current yield to maturity on the 2 year Government of Canada bond yield plus 550 basis points.  Since inception, the Fund has exceeded this targeted yield.The Amended Prospectus, including the documents incorporated by reference therein, contains important information concerning these securities and is available on SEDAR at Prospective investors should read the Amended Prospectus, as supplemented and amended from time to time, before making any investment decision.The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered, sold or delivered in the United States of America and its territories and possessions except in certain transactions exempt from such registration requirements.This press release contains forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results, performance and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.For further information: Timbercreek Asset Management Ltd. Carrie Morris Investor Relations 416.306.9967 x250