Terra Firma Capital Corporation Announces the Closing of two Transactions with Reichmann International Realty Advisors Totaling US$14 Million (CDN$18.8 Million)
TORONTO–Terra Firma Capital Corporation (TSX-V: TII) (“Terra Firma” or the “Company”), has announced the closing of two preferred equity investments (the “Investments”) totaling US$14million (CDN$18.8 million) in two separate assisted living and memory care projects to be developed in two separate locations in Florida, Del Ray Beach and Royal Palm Beach.
The Company committed to invest US$7 million (CDN$9.4 million) into the Del Ray Beach project which will consist of 130 units for both assisted living and memory care. The Company also committed to invest US$7 million (CDN$9.4 million) into the Royal Palm Beach project which will consist of 104 units for both assisted living and memory care.
The Investments were both partially funded during the month of April 2019 with available cash balances. The remainder of the capital commitments is expected to be fully funded by the end of 2019. The Investments have already been partially syndicated and the Company’s retained portion of the Investments will be accretive.
“We are very excited to invest with Reichmann International Realty Advisors given their long standing reputation and their specific experience and knowledge in senior housing and care which we believe to be a strong and growing sector,” said Glenn Watchorn, President and Chief Executive Officer.
Terra Firma is a full service, publicly traded real estate finance company that provides real estate financings secured by investment properties and real estate developments throughout Canada and the United States. The Company focuses on arranging and providing financing with flexible terms to real estate developers and owners who require shorter-term loans to bridge a transitional period of one to five years where they require capital at various stages of development or redevelopment of a property. These loans are typically repaid with lower cost, longer-term debt obtained from other Canadian financial institutions once the applicable transitional period is over or the redevelopment is complete, or from proceeds generated from the sale of the real estate assets. Terra Firma offers a full spectrum of real estate financing under the guidance of strict corporate governance, clarity and transparency.