Timbercreek Senior Mortgage Investment Corporation Raises $152.2 Million in Initial Public Offering and Private Placement

TORONTO, Jan. 19, 2012 /CNW/ - Timbercreek Senior Mortgage Investment Corporation (the "Company") announced today that it has completed its initial public offering of 11,500,000 class A shares (the "Prospectus Offering"), which includes the exercise by the Agents (as defined below) of an overallotment option of 15%, for aggregate gross proceeds of $115,000,000.  The class A shares were offered to the public by a syndicate of agents co-led by Raymond James Ltd., BMO Nesbitt Burns Inc. and TD Securities Inc., and including CIBC World Markets Inc., GMP Securities L.P., RBC Dominion Securities Inc., Manulife Securities Incorporated, Scotia Capital Inc., Canaccord Genuity Corp., HSBC Securities (Canada) Inc., Macquarie Capital Markets Canada Ltd. and National Bank Financial Inc. (the "Agents").

Under a non-brokered private placement, the Company has also issued 3,720,000 of subscription receipts (the "Subscription Receipts") at $10.00 per Subscription Receipt for gross proceeds of $37,200,000.  Holders of Subscription Receipts will receive 1.0525 Class A Shares of the Company for each Subscription Receipt held, effective at 5:00 p.m. (Toronto time), January 19, 2012.  Holders of Subscription Receipts will be deemed to have exchanged their Subscription Receipts for Class A Shares at the close of business on January 19, 2012.  Holders of Subscription Receipts need not take any action in order to receive the Class A Shares to which they are entitled.

Net proceeds from the Offering will be used to acquire and manage a diversified portfolio made up of first mortgages with customized terms (the "Customized First Mortgages") that are secured by residential (including multi-residential) real estate as well as office, retail and industrial properties.  The investment objectives of the Company are, with a primary focus on capital preservation, to acquire and maintain a diversified portfolio of Customized First Mortgages that generates attractive, stable returns in order to permit the Company to pay monthly distributions to its shareholders.  The Company will be managed by Timbercreek Asset Management Ltd. (the "Manager").  The Manager will also act as the portfolio advisor for the Company and is an investment management company.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities of the Company in the United States, nor shall there be any sale of the securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.  The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.

Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Company. The forward-looking statements are not historical facts but reflect the Manager's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Manager believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Manager undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other factors which affect this information, except as required by law.

Timbercreek Asset Management Ltd.
Carrie Morris
Vice President, Investor Relations
416-306-9967 x250
[email protected]