Terra Firma unveils inaugural US real estate debt fund

Toronto-based real estate finance Terra Firma Capital Corp has launched a US$37.5 million debt fund aimed at residential land and lot inventory for developers and landowners in the U.S. housing market.

Toronto-based real estate finance Terra Firma Capital Corp has launched a US$37.5 million debt fund aimed at residential land and lot inventory for developers and landowners in the U.S. housing market. Terra Firma will co-invest US$3.4 million of equity in the fund, the first in a series of private debt pools.

PRESS RELEASE

TORONTO, Jan. 28, 2021 (GLOBE NEWSWIRE) — Terra Firma Capital Corporation (TSX-V: TII) (“Terra Firma” or the “Company”), a real estate finance company, today announced the formation and launch of its first debt fund targeted for financing residential land and lot inventory for developers and landowners in the growing and vibrant U.S. housing market. The $37.5 million fund is comprised of $32.5 million of equity and $5.0 million of debt and is part of a series of anticipated funds to be created in the future. Terra Firma will co-invest $3.375 million of equity in this first debt fund. The fund is fully subscribed.

“The debt fund is a natural evolution of our loan syndication activity. To date, Terra Firma has raised over $400 million from a network of private investors on a deal-by-deal basis. The objective of this new initiative is to continue to offer investment opportunities to our private investors through a fund structure that affords a more efficient mode of investment coupled with the benefits of diversification of their holdings and duration of their investments.

Furthermore, the fund offers private investors the ability to earn higher returns due to a modest level of leverage through its line of credit,” said Y. Dov Meyer, Executive Chairman of Terra Firma Capital Corporation. “In the future, we plan on growing our private capital through subsequent funds, including funds dedicated to different loan products and strategies, depending on market conditions and investor demand.”

About Terra Firma
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 in Canada and throughout 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. For further information please visit Terra Firma’s website at www.tfcc.ca.