Timbercreek Increases Offering Size to $88,000,000

Toronto Stock Exchange: TMC

TORONTO, Sept. 12, 2011 /CNW/ - Timbercreek Mortgage Investment Corporation (the "Fund") is pleased to announce that it has filed an amendment (the "Amendment") to the prospectus supplement filed on August 29, 2011 (the "Prospectus Supplement" and together with the Amendment are collectively referred to as the "Amended Prospectus Supplement") and has increased the maximum offering size of its previously announced offering of Class A Shares from $80,000,000 to $88,000,000.  The Amended Prospectus Supplement and the accompanying short form base-shelf prospectus dated December 30, 2009, as amended by amendment no.1 dated August 19, 2011 (the base shelf prospectus and amendment no. 1 are collectively referred to as the "Base Shelf Prospectus") constitutes a public offering of Class A Shares of the Fund ("Class A Shares") in each of the provinces and territories of Canada, other than Quebec (the "Offering").  The agents for the Offering have been granted an over-allotment option by the Fund, exercisable for a period of 30 days from the closing of the Offering, to purchase additional Class A Shares representing 15% of the number of Class A Shares sold under the Offering. The Offering is scheduled to close on September 16, 2011.

A syndicate of agents co-led by Raymond James Ltd. and  BMO Capital Markets, and including CIBC World Markets Inc., RBC Capital Markets, GMP Securities L.P., Manulife Securities Incorporated, TD Securities Inc., HSBC Securities (Canada) Inc., Scotia Capital Inc., Macquarie Capital Markets Canada Ltd., Canaccord Genuity Corp. and M Partners Inc. (the "Agents") has commenced marketing of the Offering.

The Fund was launched in July 2008 to provide investors 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 the Fund Manager (as defined below). The Fund intends to grow its portfolio of Mortgage Assets (the "Portfolio") from time to time by filing additional supplements to the Base Shelf Prospectus in order to raise additional capital for the purpose of investing in additional Mortgage Assets.

Timbercreek Asset Management Ltd., (the "Fund Manager") believes that the optimal size of the Portfolio is approximately $300,000,000 to $350,000,000 based upon prevailing 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 targets an aggregate annualized 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 offering is made by prospectus only. The Amended Prospectus Supplement and Base Shelf Prospectus contain important detailed information about the Class A Shares being offered.  Copies of the Amended Prospectus Supplement and Base Shelf Prospectus may be obtained from any one of the agents listed above.  Investors should read the Amended Prospectus Supplement and Base Shelf Prospectus before making an investment decision.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of the Fund in the United States.

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. 

SOURCE Timbercreek Mortgage Investment Corporation

For further information:

Timbercreek Asset Management Ltd.
Carrie Morris
Director, Investor Relations
416-306-9967 x250

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Timbercreek Mortgage Investment Corporation

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