TORONTO, Sept. 05, 2023 (GLOBE NEWSWIRE) -- Timbercreek Financial Corp. (TSX: TF) (the “Company” or “Timbercreek Financial”) today provided commentary and clarification on its loans to Groupe Huot Inc. (“Groupe Huot”), a Quebec-based real estate developer.
As disclosed in the Company’s Q2 2023 financial results, Timbercreek Financial is a secured creditor to Groupe Huot on seven recently constructed, income-producing multi-family assets in Quebec. Several recent media articles have stated that Timbercreek’s investments to Groupe Huot total approximately $253 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 registered and secured hypothecs (mortgages). Net of syndicated amounts, Timbercreek Financial’s total commitment to Groupe Huot is $143.3 million ($139.8 million on six assets are first ranking with the balance of $3.5 million on one asset being a second mortgage).
As previously disclosed, the Company, along with a broader lender group, moved to put a receiver in place to resolve these loans via a sales process, with the voluntary consent of the borrower. This enforcement process is being run separately from any announced actions by the President of the borrower whose personal financial issues were reported in the Quebec media in recent days
As at June 30, 2023, Timbercreek Financial’s net mortgage investments were $1,123.7 million.
Forward-Looking Statements
Certain statements contained in this news release may contain projections and "forward looking statements" within the meaning of that phrase under Canadian securities laws. When used in this news release, the words "may", "would", "should", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "objective" and similar expressions may be used to identify forward looking statements. By their nature, forward looking statements reflect the Company's current views, beliefs, assumptions and intentions and are subject to certain risks and uncertainties, known and unknown, including, without limitation, those risks disclosed in the Company's public filings. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by these forward looking statements. The Company does not intend to nor assumes any obligation to update these forward looking statements whether as a result of new information, plans, events or otherwise, unless required by law.
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:
Timbercreek Financial
Blair Tamblyn, CEO
Tracy Johnston, CFO
Karynna Ma, Vice President, Investor Relations
416-923-9967
www.timbercreekfinancial.com
