Timbercreek Mortgage Investment Corporation Announces Closing of Offering of
Class A Shares

TORONTO, Feb. 25 /CNW/ - Timbercreek Mortgage Investment Corporation (the "Fund") announced today it has completed its public offering of 2,875,000 Class A Shares of the Fund ("Class A Shares"), including Class A Shares issued pursuant to the fully-exercised over-allotment option granted to the agents, for gross proceeds of $28,750,000 (the "Offering"). The Class A Shares were offered to the public by a syndicate of agents led by Raymond James Ltd., and including BMO Nesbitt Burns Inc., Macquarie Capital Markets Canada Ltd., Scotia Capital Inc., TD Securities Inc., Canaccord Financial Ltd., HSBC Securities (Canada) Inc., Burgeonvest Bick Securities Limited and M Partners Inc. The net proceeds of the Offering will be used to fund the investment in mortgage loans from time to time and for general corporate purposes of the Fund.

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 Timbercreek Asset Management Inc, (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 Fund's short form base shelf prospectus in order to raise additional capital.

The Fund Manager believes that the optimal size of the Portfolio is approximately $250,000,000, 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 ("2-Yr GOC Yield") plus 550 basis points. Since inception, the Fund has exceeded this targeted yield.

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.

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For further information: Timbercreek Asset Management Inc.: R. Blair Tamblyn, Chief Executive Officer, [phone] X238, [email protected]