Syndicate Mortgage Investors in latest Brampton Project by Fortress exit with Boosted Returns

TORONTO, May 14, 2015 /CNW/ - Centro Mortgage Inc. announced today that investors in the syndicate mortgage that funded a Fortress Real Developments Inc. (Fortress) project in Brampton received a complete exit on their investment with a return of 27.14%*. The distribution to investors was comprised of 8% annualized interest for the duration of the term (paid quarterly) and was boosted by a Deferred Lender Fee upon project exit. The combination of a quality location, an experienced development partner, and prudent underwriting proved profitable for all stakeholders, including the syndicate mortgage investors, Fortress and Flato Developments (Flato).

Located on the northeast corner of Torbram Road and Countryside Drive, a busy Brampton intersection with convenient access to major highways, Flato proposed a commercial component with a gas station, an adjacent 3,500 square foot convenience store and a separate car wash. "We have followed the rapid residential expansion of north Brampton for several years," said Jawad Rathore, CEO of Fortress Real Developments, adding, "This car-dependent community was in dire need of more gas stations and convenience retail. When Flato showed us the location and the vision, it made perfect sense. This plaza also compliments our other residential ventures with Flato here in Brampton. It is a nice mix of asset type for us and a straightforward play. "

"We are very pleased with our business relationship with Flato Developments," declared Vince Petrozza, a mortgage broker with Centro. "We are exiting investor capital on two deals with them this year, following up on the success of our Markham project with Flato on Helen Avenue, which produced an 11.61% annualized return to syndicate mortgage investors in 2013. These premium returns show how syndicate mortgages can be effectively used to fund development deals."

The property, marketed as Countryside Crossing, is a severance from a larger piece of land purchased by Flato in 2011. Project milestones were achieved quickly, with draft plan and zoning approved in March of 2012 and the site plan approval in October of 2012. "By working within the Official Plan, entitlement risk was managed aggressively by our team. Site servicing was completed in 2013, and Imperial Oil signed a contract to be the operator of the gas station in 2014. We are thrilled to welcome Esso and Tim Hortons to this site and pleased that the syndicate investors participated in a project that attracted such premium national brands" added Petrozza.

Fortress Real Developments' Executive Vice President Frank Margani added, "This is a perfect example of the intelligent real estate opportunities we talk about in our Vision Statement. We recognize a need in the marketplace and formulate a solution that provides value for everyone involved. This approach has served us well, as we now have over 60 active projects across Canada with a combined built-out value nearing $4.5 billion."

"Countryside Crossing is the first of two exits planned by Flato Developments and Fortress Real Developments in Brampton in 2015," added Margani. "Brampton is a high growth market in which we are looking to do more."

About the Companies

Centro Mortgage Inc. - Centro Mortgage Inc. (FSCO Lic # 10102), established in 2007, is a premier mortgage brokerage licensed in Ontario, Nova Scotia, Alberta, Manitoba, British Columbia & Saskatchewan. Centro closes all of the syndicate mortgage transactions that fund Fortress projects. Funds are raised through co-broker agreements with FMP Mortgage Investments (FSCO Lic # 12373), FDS Broker Services (FSCO Lic # 12367), and FFM Capital Inc. (FSCO Lic # 12391). Syndicate Mortgages offered by Centro are RSP eligible and allow consumers to invest directly into the proven market of Canadian real estate by becoming a mortgage lender. For more information visit: www.fortressrealcapital.com (The following are licensed through Centro Mortgage Inc. - Vince Petrozza, Mortgage Broker, License# M08007162)

Fortress Real Developments Inc. - Fortress Real Developments Inc. is a Canadian real estate development company that seeks out and analyzes opportunities in major Canadian markets. The company is focused on quality projects with recognizable alpha in residential low-rise, high-rise, commercial and industrial market segments. For more information on Fortress projects, visit: www.fortressrealdevelopments.com

SOURCE Centro Mortgage Inc.

Media Contact: Natasha Alibhai, Fortress Real Developments, [email protected], Phone: [phone] ext. 235