Toronto-based leader in mortgage investment announces partnership to launch new mortgage fund
TORONTO, Nov. 15, 2016 /CNW/ - First Source Mortgage Corporation announced today it is expanding its offerings to investors following a significant development in its structure. The company plans to add a mortgage investment trust to its current syndication business within the next six months. To pursue this initiative, First Source has partnered with Velos Capital Corp., the parent company of Ottawa-based Westboro Mortgage Investment Corporation.
"This is an exciting development for both our investors and our team at First Source," explains company President David Mandel. "While our investment strategy and process will be unchanged from our current syndication underwriting, the new vehicle will offer a diversified pool of our mortgage investment opportunities as well as the option to invest using registered investment funds, such as RRSPs and RIFs."
The partnership will generate significant synergies between First Source, Westboro and Velos, with improved deal flow and expanded investment opportunities in both the Greater Toronto Area and Ottawa Valley. In addition, the shared resources in administration, distribution and governance will enable the respective teams to better focus on building commercial and residential mortgage origination and driving strong risk-adjusted returns to investors over the long term.
Westboro Mortgage Investment Corporation is an Ottawa-based private lender specializing in short-duration, single-family residential mortgages in the greater Ottawa/Gatineau region. The Westboro fund is a highly diversified $140 million portfolio with a successful 12-year track record.
Velos Capital Corp. was recently formed to own the aggregated businesses of Westboro and First Source and create a platform for other alternative lending businesses. Velos will add other best-in-class private debt managers to the platform to offer additional, complementary investment strategies to investors.
Originally founded by the late Lionel Larry and David Mandel in 2004, First Source specializes in mortgage investments in high-quality commercial real estate in Ontario. With his proven results, Mr. Mandel is considered a leading authority in the mortgage industry, and more particularly commercial mortgage lending. He's often called on to participate in industry conferences and is frequently quoted in the media.
First Source is licensed and regulated by the Financial Services Commission of Ontario.
SOURCE First Source Mortgage Corporation
For further information: Arie Raif, The Westminster Communications Group, Tel: 416-409-2233, Email: [email protected]