Firm Capital Mortgage Investment Trust announces debt acquisition

    TSX Symbol FC.UN

    TORONTO, July 30 /CNW/ - Firm Capital Mortgage Investment Trust (the
"Trust") (TSX FC.UN) announced today that Firm Capital Corporation, the
Trust's Mortgage Banker, has entered into a purchase letter for the
acquisition of a $12.5 million principal amount portfolio of 30 performing
first mortgages in Ontario.
    The mortgage portfolio purchase is priced at a 27% discount to the
principal balance of the mortgages with the purchase yielding an estimated
cash on cash return of approximately 14% per annum plus the profit to be made
on the discount. The average loan to value on the purchased portfolio, based
on purchase price, is 47%. In conjunction with the acquisition, Firm Capital
Corporation has issued a commitment letter for a loan secured by another
portfolio of mortgages held by the vendor.
    Subject to the Trust's availability of capital, the Trust expects to
acquire an interest in the portfolio acquisition. The Trust's objective for
its ownership interest in each of the loan and purchased mortgages is in the
range of 25% to 50%, subject to investment committee approval. The
transactions are expected to close within 30 days. The transactions are
subject to normal underwriting due diligence. The Trust cannot be certain that
one or both of these transactions will close, and if they do close, the Trust
cannot be certain that its percentage ownership will be within the indicated

    About Firm Capital Mortgage Investment Trust

    The Trust, through its Mortgage Banker, Firm Capital Corporation, is a
non-bank lender providing residential and commercial short-term bridge and
conventional real estate finance, including construction, mezzanine and equity
investments. The Trust's investment objective is the preservation of
Unitholders' equity, while providing Unitholders with a stable stream of
monthly distributions from investments. The Trust achieves its investment
objectives by pursuing a strategy of growth through investments in selected
niche markets that are under-serviced by large lending institutions. Lending
activities to date continue to develop a diversified mortgage portfolio,
producing a stable return to Unitholders.
    Additional information about the Trust is available on the SEDAR website

    Certain information in this news release may contain forward-looking
statements with the meaning of applicable securities laws including, among
others, statements relating to the Trust's objectives, strategies to achieve
those objectives, the Trust's beliefs, plans, estimates, objectives and
intentions, and similar statements concerning anticipated future events,
results, circumstances, performance or expectations that are not historical
facts. Forward-looking statements generally can be identified by words such as
"outlook", "objective", "may", "will", "expect", "intend", "estimate",
"anticipate", "believe", "should", "plans", or "continue" or similar
expressions suggesting future outcomes or events. Such forward-looking
statements reflect the Trust's current beliefs and are based on information
currently available to management. Forward-looking statements are provided for
the purpose of presenting information about management's current expectations
and plans relating to the future and readers are cautioned that such
statements may not be appropriate for other purposes. These statements are not
guarantees of future performance and are based on the Trust's estimates and
assumptions that are subject to risks and uncertainties, including those
described under "Risk Factors" in the Trust's annual information form and
those discussed in the Trust's materials filed with the Canadian securities
regulatory authorities from time to time, which could cause actual results and
performance of the Trust to differ materially from the forward-looking
statements contained in this news release. Those risks and uncertainties
include, among other things, risks related to: the tax position and
consequence unique to each unitholder; Unit prices, availability of cash for
distributions; credit risk; interest rate and other debt related risks; tax
risk; ability to access capital markets; dilution; government regulation;
investment eligibility; unitholder liability; dependence on key personnel;
composition of and competition for mortgages; mortgage renewals; dependence on
the Trust's Mortgage Banker and Trust Manager; and potential conflicts of
interest. Material factors or assumptions that were applied in drawing a
conclusion or making an estimate set out in the forward-looking statements
include the completion of the transactions and availability of funds to enable
the Trust to acquire an interest in the loan and mortgage portfolio; quality
of the mortgages underlying the loan and mortgages being purchased; the
general economy remains stable; interest rates are relatively stable; and
equity and debt markets continue to provide access to capital. The Trust
cautions that this list of factors is not exhaustive. Although the
forward-looking statements contained in this news release are based upon what
the Trust believes are reasonable assumptions, there can be no assurance that
actual results will be consistent with these forward-looking statements. All
forward-looking statements in this news release are qualified by these
cautionary statements. The forward-looking statements are made only as of the
date that such statements are made and the Trust, except as required by
applicable law, assumes no obligation to update or revise them to reflect new
information or the occurrence of future events or circumstances.

For further information:

For further information: Eli Dadouch, President & Chief Executive
Officer, (416) 635-0221,

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