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

TORONTO, Oct. 7 /CNW/ - Timbercreek Mortgage Investment Corporation (the "Fund") announced today it has completed its public offering of 4,887,500 Class A Shares of the Fund , which includes an additional 637,500 Class A Shares that were issued pursuant to the exercise of the over-allotment option (the "Offering Shares") for gross proceeds of $48,875,000. The Offering Shares were offered to the public by a syndicate of agents co-led by Raymond James Ltd. and BMO Nesbitt Burns Inc., and including CIBC World Markets Inc., Manulife Securities Incorporated, TD Securities Inc., GMP Securities L.P., HSBC Securities (Canada) Inc., Macquarie Capital Markets Canada Ltd., Scotia Capital Inc., Canaccord Genuity Corp. and M Partners Inc. (the "Agents").

"We are very pleased with the market's reception to the Fund's latest offering. Demand was strong across the syndicate, and was substantially greater than we were able to satisfy at this time, even after up-sizing the offering" says R. Blair Tamblyn, chief executive officer and president of Timbercreek Asset Management Ltd., Fund Manager of the Fund. "We remain focused on preserving capital and delivering a stable yield to investors, and in order to achieve this it is extremely important that we build the portfolio at a pace that is manageable and conservative. This latest financing brings total assets of the Fund to approximately $165 million which is just over half-way to our current equity target of $250 - $300 million. In keeping with our growth strategy, we expect to be back to the market in the first quarter of 2011 once these funds have been deployed and adequate deal flow has been sourced."

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.

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.

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.

%SEDAR: 00026881E

For further information: Timbercreek Asset Management Inc., Carrie Morris, Vice President, Investor Relations, 416-306-9967 x250, [email protected]