Toronto Stock Exchange: TF
TORONTO, Dec. 13, 2022 (GLOBE NEWSWIRE) — Timbercreek Financial Corp. (TSX: TF) (the “Company” or “Timbercreek Financial”) today provided commentary and clarification on its loans to Groupe Sélection Inc. (“Groupe Sélection”), one of Canada’s largest private companies in the retirement community sector.
On November 13, 2022, Groupe Sélection filed an application under the Companies’ Creditors Arrangement Act (CCAA) in order to proceed with a restructuring. Several recent media articles have stated that Timbercreek’s investments to Groupe Sélection total approximately $212 million. Timbercreek is in the business of originating commercial mortgages and often works with third-party lenders to share loans based on different risk and return criteria. This total amount represents the gross amount of the first ranking registered and secured hypothecs (mortgages) on two investments in Quebec: an apartment construction loan of $81.6 million and a retirement home loan of $130.0 million.
Net of syndicated amounts, Timbercreek Financial’s total commitment to Groupe Selection is $78.1 million. This includes $13.1 million on the apartment construction project that is approximately 60% complete ($7.4 million currently advanced) and $65.0 million (fully advanced) on a high-quality operating retirement home in Montreal. As at September 30, 2022, Timbercreek Financial’s net mortgage investments were $1,255.4 million.
Timbercreek Financial is actively representing itself and its syndication partners legally and is closely involved in the current proceedings before the courts. The Company has legal options as a first ranking secured creditor and will continue to act in the best interest of shareholders, including potentially seeking to lift the CCAA stay in order to enforce its security against these two projects. The Company has considerable experience in these situations and will work towards a successful resolution of these investments.
Blair Tamblyn, CEO of Timbercreek Financial, said: “While we do not typically comment on individual loans, we felt it was important to clarify our net exposure in this circumstance. Having originated more than $13 billion in commercial real estate debt since launching our lending platform in 2007, and actively managed a sizable portfolio through multiple economic cycles, we are experienced in navigating these kinds of situations to preserve our investors’ principal.”
About the Company
Timbercreek Financial is a leading non-bank, commercial real estate lender providing shorter-duration, structured financing solutions to commercial real estate professionals. Our sophisticated, service-oriented approach allows us to meet the needs of borrowers, including faster execution and more flexible terms that are not typically provided by Canadian financial institutions. By employing thorough underwriting, active management and strong governance, we are able to meet these needs while generating strong risk-adjusted yields for investors.
Further information is available on our website, www.timbercreekfinancial.com.
SOURCE: Timbercreek Financial
For further information, please contact:
Blair Tamblyn, CEO