August 17, 2016
Vancouver, August 17, 2016: Trez Capital (“Trez”) is pleased to announce the successful initial closing of Trez Capital Finance Fund VI LP (“TCFF VI” or the “Fund”) with $110 million of committed capital.
Trez launched TCFF VI to address the strong institutional investor response to its five predecessor institutional fund offerings. The five predecessor offerings raised a combined total of $520 million between 2008 and 2015. TCFF VI’s initial closing brings the total institutional exclusive capital raise to date to $630 million. The Fund will be managed by Trez Capital Fund Management Limited Partnership (the “Manager”). Consistent with previous offerings, the Manager will commit to an investment in the Fund along identical terms as other Limited Partners, demonstrating its confidence in the execution of the investment strategy. The primary objective of TCFF VI is to deliver to investors an annual weighted average net yield of 8.0%, with a focus on preservation of capital sourced and secured by real estate debt investments in Canadian and U.S. Commercial real estate. The fixed income nature of the Fund’s investments provides a material and predictable current income component, and often acts as a yield enhancer to a conventional fixed income portfolio.
Over the years, institutional investors have come to trust Trez’ disciplined approach to short-term real estate bridge financing. Since the firm’s inception in 1997, over $5.4 billion in loans have been funded primarily in Canada and to a lesser extent in the western United States. A strong track record of funding well-secured first and second mortgages has historically provided consistent returns to institutional investors, resulting in strong demand for investment management services. Many institutional investors have participated in more than one Trez offering.
“2016 continues to be a successful year for the Company and we are very pleased with the initial closing of TCFF VI,” stated Morley Greene, Chairman & CEO of Trez Capital. “Almost 40% of our total assets under management are managed on behalf of Canadian institutions. We continue to earn the trust of some of the largest pension and endowment funds in Canada due to our focused strategy, conservative underwriting standards and strong governance and compliance structure.”
About Trez Capital
Trez Capital is one of Canada’s largest private commercial mortgage lenders and provides mid-market property developers and owners with quick approvals on flexible short to mid-term bridge financing. Trez has provided innovative financing for commercial properties in major centres throughout Canada and selected US markets since 1997. With offices in Vancouver, BC, Toronto, ON, Dallas, TX, and Palm Beach, FL, Trez manages a mortgage and investment portfolio of more than $1.8 billion.
This press release contains forward-looking information including, without limitation, the statement as to the primary objective of TCFF VI. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, without limitation, the ability of the Manager to acquire and maintain a portfolio capable of generating the necessary annual yield or returns to enable the Fund to achieve its investment objectives, the ability of the Manager to establish and maintain relationships and agreements with key financial partners, the maintenance of prevailing interest rates at favourable levels, the ability of borrowers to service their obligations under the mortgages, the ability of the Manager to effectively perform its obligations to the Fund, anticipated costs and expenses, competition, and changes in general economic conditions. The Fund specifically disclaims any obligation to update these forward-looking statements, except as required by applicable law. Readers should not place undue reliance on forward-looking statements.
For further information, please contact:
Mario J. Abreu