Timbercreek Files Prospectus Supplement to Raise Funds for Next Phase of Growth

TORONTO, Jan. 10 /CNW/ - Timbercreek Mortgage Investment Corporation (the "Fund") is pleased to announce that on January 7, 2011 it filed a prospectus supplement (the "Prospectus Supplement") to its short form base shelf prospectus dated December 30, 2009 (the "Base Prospectus") with the Canadian securities regulatory authorities in each of the provinces and territories of Canada, other than Quebec.  The Prospectus Supplement qualifies the distribution (the "Offering") of up to $42.5 million of Class A Shares ("Class A Shares") of the Fund at $10 per Class A Share. A syndicate of agents co-led by Raymond James Ltd. and  BMO Nesbitt Burns Inc., and including CIBC World Markets Inc., TD Securities Inc., Manulife Securities Incorporated, Scotia Capital Inc., GMP Securities L.P., HSBC Securities (Canada) 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.  The Fund intends to grow its portfolio of Mortgage Assets (the "Portfolio") from time to time by filing additional supplements to the Base Prospectus in order to raise additional capital. 

Timbercreek Asset Management Ltd., (the "Fund Manager") believes that the optimal size of the Portfolio is approximately $300,000,000, based upon 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 offering is made by prospectus only.  The Prospectus Supplement and Base Prospectus contain important detailed information about the Class A Shares being offered.  Copies of the Prospectus Supplement and Base Prospectus may be obtained from any one of the agents listed above. Investors should read the Prospectus Supplement and Base Supplement 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 Inc.
Carrie Morris
Director, Investor Relations
416-306-9967 x250

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Timbercreek Mortgage Investment Corporation

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