TORONTO, Feb. 15, 2013 /CNW/ - Institutional Mortgage Capital ("IMC")
announces the successful completion of its third Canadian CMBS
(commercial mortgage backed securities) issuance in 24 months, adding
even more support to this outperforming asset class.
The most recent IMC CMBS issue of approximately $250 million
(Institutional Mortgage Securities Canada Inc., Series 2013-3) was
distributed by private placement and received very strong interest from
investors. This is the 3rd Canadian CMBS transaction IMC has brought to market since February,
2011, for a total of $739.1 million.
John Ho, President and CEO of IMC, commented:
"This transaction was significantly over-subscribed. There is very
strong investor demand for Canadian CMBS and we expect it to grow
significantly. Investors see Canadian CMBS as a tested asset class
that has demonstrated excellent credit performance over the past 15
year and want more of it in their portfolios."
Canadian CMBS has performed exceptionally well. Over 3,700 loans
totaling $25.0 billion of Canadian CMBS have been sold in the public
markets since 1998 with an cumulative loss rate of less than 9 basis
points (0.09%), outperforming all global CMBS markets. IMC's capital
markets professionals have been dominant players in the Canadian CMBS
market since inception (1998) and have originated and sold more than
$10.0 billion of Canadian CMBS.
IMC is unique in the CMBS industry. As a major investor in Canadian
CMBS bonds, IMC also invests in the first loss position (commonly
called the "B-piece") in its own CMBS transactions. IMC believes
strongly in the credit quality of the mortgages it originates and the
performance of Canadian commercial mortgage loans.
IMC continues to accelerate its loan origination program and plans are
in place to increase the frequency and size of future CMBS issuance.
IMC intends to issue its next transaction by the summer of 2013, and
expects the size of its next transaction to exceed $300 million. IMC
was joined by another issuer in the Canadian market in 2012, and
expects other participants to begin adding to the Canadian CMBS
pipeline in the future. IMC welcomes the addition of new players into
the Canadian CMBS market.
IMC was established in 2009 and operates as an exempt market dealer and
investment fund manager with expertise in Canadian real estate debt and
related securities. It originates and services commercial mortgage
loans in all Canadian provinces.
SOURCE: Institutional Mortgage Capital Canada Inc.
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