January 23, 2014
VANCOUVER, – January 23, 2014: Trez Capital (“Trez”) is pleased to announce the successful initial closing of Trez Capital Finance Fund IV LP (“TCFF IV” or “Fund”) with $91.8 million of committed capital.
TCFF IV was launched to address the strong institutional investor response to its three predecessor institutional fund offerings. The three predecessor offerings raised a combined total of $276 million between 2008 and 2012. TCFF IV’s initial closing brings the total institutional capital raise to date to $368 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 IV is the preservation of investment capital while generating a consistent and predictable stream of interest income. 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 for our disciplined approach to short-term real estate bridge financing. Since the firm’s inception in 1997 we have funded over $3.3 billion in Canada and the western United States. Trez’s rigorous review process is focused on the preservation of our investors’ capital as a primary objective. Risk analysis procedures encompass reviews of the borrower’s track record, the economics of the project being funded, professional third party assessments, micro and macro market factors, security of each loan beyond the project, and probable exit strategies. This formula of funding well-secured first and second mortgages has historically provided consistent net rates of return to our institutional investors, resulting in strong demand for our investment management services. A number of our institutional investors have participated in more than one offering.
“We are very pleased with the initial closing of TCFF IV,” stated Morley Greene, Chairman and Managing Partner of Trez Capital. “Through our focused strategy, strong governance and compliance policies, and comprehensive reporting we continue to earn the trust of institutional investors, including some of the largest pension and endowment funds in Canada.”
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, and Dallas, TX, Trez manages a mortgage and investment portfolio of more than $1.6 billion. Trez offers a number of private and institutional mortgage funds, two publicly traded Mortgage Investment Corporations (TZZ: TSX and TZS: TSX) and private placement opportunities.
This press release contains forward-looking information including, without limitation, the statement as to the primary objective of TCFF IV. 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.
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