Firm Capital Mortgage Investment Trust announces debt acquisition

About this update from Firm Capital Mortgage Investment Corporation

[{"type":"text","content":"\n\n\n\nTSX Symbol FC.UN\n\n\nTORONTO, July 30 /CNW/ - Firm Capital Mortgage Investment Trust (the\n"Trust") (TSX FC.UN) announced today that Firm Capital Corporation, the\nTrust's Mortgage Banker, has entered into a purchase letter for the\nacquisition of a $12.5 million principal amount portfolio of 30 performing\nfirst mortgages in Ontario.\n\n\nThe mortgage portfolio purchase is priced at a 27% discount to the\nprincipal balance of the mortgages with the purchase yielding an estimated\ncash on cash return of approximately 14% per annum plus the profit to be made\non the discount. The average loan to value on the purchased portfolio, based\non purchase price, is 47%. In conjunction with the acquisition, Firm Capital\nCorporation has issued a commitment letter for a loan secured by another\nportfolio of mortgages held by the vendor.\n\n\nSubject to the Trust's availability of capital, the Trust expects to\nacquire an interest in the portfolio acquisition. The Trust's objective for\nits ownership interest in each of the loan and purchased mortgages is in the\nrange of 25% to 50%, subject to investment committee approval. The\ntransactions are expected to close within 30 days. The transactions are\nsubject to normal underwriting due diligence. The Trust cannot be certain that\none or both of these transactions will close, and if they do close, the Trust\ncannot be certain that its percentage ownership will be within the indicated\nrange.\n\n\nAbout Firm Capital Mortgage Investment Trust\n\n\nThe Trust, through its Mortgage Banker, Firm Capital Corporation, is a\nnon-bank lender providing residential and commercial short-term bridge and\nconventional real estate finance, including construction, mezzanine and equity\ninvestments. The Trust's investment objective is the preservation of\nUnitholders' equity, while providing Unitholders with a stable stream of\nmonthly distributions from investments. The Trust achieves its investment\nobjectives by pursuing a strategy of growth through investments in selected\nniche markets that are under-serviced by large lending institutions. Lending\nactivities to date continue to develop a diversified mortgage portfolio,\nproducing a stable return to Unitholders.\n\n\nAdditional information about the Trust is available on the SEDAR website\nat www.sedar.com.\n\n\nCertain information in ...

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