Financing Solutions:
Managed Mortgage Funds

Canadian Mortgage Capital Corporation
(CMCC) provides innovative financing solutions for investors and borrowers. Its funds and their targeted activities are described below.



CMCC Capital Fund

CMCC manages various mezzanine and equity funds that provide capital to the real estate development community while simultaneously providing its investors with attractive risk adjusted returns. These funds are typically structured as limited partnerships and provide equity financing to a developer in a joint venture in exchange for a share of cash flow and profits in the particular real estate development.

CMCC is in the process of raising funds for its 3rd capital fund, the CMCC Capital Fund,CMCC Capital Fund, which is a proposed $50 million mezzanine and equity fund designed to generate a minimum 15% annualized return to investors, net of fees. The target commencement date of the Fund is no later than mid-2016 and the Manager (or its affiliates) is prepared to invest $3 million of the committed capital of the Fund. To learn more about The CMCC Capital Fund, please visit www.CMCapitalFunds.com

The Fund will primarily invest in major urban centers in Ontario and B.C., particularly the GTA and Vancouver, where the Manager has established operations and local market knowledge. CMCC traditionally sources off-market transactions through its team of nine (9) underwriters across Canada.

Fund 1, which is to be fully repaid by Q3 2016, yielded an internal rate of return of more than 22%, net of all management fees. Fund 2, which is fully committed and 85% deployed in its 2nd year of operation, is forecasted to yield 20% less management fees. The Fund 2 portfolio of investments is well diversified with investments in low, mid and high-rise multi-residential developments, as well as student residences and storefront retail properties

Mezzanine and equity financing are complex activities and require skilled underwriters, with a comprehensive knowledge of real estate and a thorough understanding of local markets. CMCC’s five offices give us the knowledge and coverage to source, analyze and underwrite high quality investment opportunities across Canada.

CMCC has developed strategic relationships with experienced real estate developers and investors in the major urban centers of Canada. We have developed a reputation for being a creative, responsive and reliable source of mezzanine and equity capital. Our innovative deal structures protect the potential downside exposure for our investors while at the same time meeting the unique needs of our real estate partners.

For further information about the CMCC Capital Funds, please call 416-607-4211, or email andrew.woods@cmcapitalcorp.com.

Atrium Mortgage Investment Corporation 

Canada’s Premier Non-Bank Lender™

CMCC has been the manager of Atrium Mortgage Investment Corporation; listed on the (symbol: AI), for 15 years. As manager, CMCC is responsible for originating, underwriting and servicing Atrium’s loan portfolio of almost $500 million.

Atrium is a non-bank lender filling the gap caused by the limited number of financial institutions operating in Canada. Atrium focuses on first and second mortgages in major urban centers where the stability and liquidity of real estate is at the highest level. The company targets its lending activities in Ontario, the Prairies and British Columbia, where the long-term economic growth prospects are strongest. The types of real estate financed includes residential houses, infill residential developments, apartment buildings, retail plazas, land acquisition, industrial buildings and other types of revenue producing properties. A typical loan in the portfolio is $2 – $5 million, has an interest rate of 7.75%-10.0% per annum, a one or two year term, and a loan-to-value ratio not exceeding 75%. In its 15 year history, Atrium has funded over $1 billion of mortgages across Canada.

Atrium’s objectives are to provide its shareholders with stable and secure dividends and preserve shareholders’ equity by lending within conservative risk parameters. Atrium is a Mortgage Investment Corporation (MIC) as defined in the Canada Income Tax Act, so is not taxed on income provided that its taxable income is paid to its shareholders in the form of dividends within 90 days after December 31 of each year. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same position as if the mortgage investments made by the company had been made directly by the shareholder.

For further information about Atrium, please see www.AtriumMIC.com

Senior Mortgage Funds

CMCC manages senior mortgage funds for institutional clients and other long-term investors looking for safe, reliable returns. These funds target first mortgage investments on revenue- producing properties in major urban centres. Typical real estate being financed includes:

These Funds will normally require geographic diversification and diversification by type of real estate. No loan will normally account for more than 5%-10% of the total fund.

Each loan will be less than or equal to 75% of appraised value, and have a minimum of 1.20:1 debt service coverage in place. Mortgages generally have 5-10 year terms, and have amortization periods of 20-30 years.

Mortgage origination comes from CMCC’s five offices across Canada, with nine underwriters, five of whom have a minimum of 25 years of lending experience. Prior to joining CMCC, those underwriters previously held positions as vice president or higher at major financial institutions. By having highly qualified and experienced local underwriters on the ground in the major urban centers of Ontario, the Prairies and British Columbia, we believe that we can more quickly identify, evaluate and fund high quality mortgage opportunities than our competition.

In short, CMCC has the unique ability to provide an institutional investor with a well underwritten and diversified portfolio of mortgages across Canada. CMCC has recently been awarded a mandate from a pension fund advisor to source and manage a $150 million mortgage portfolio in Ontario and western Canada.