C.A. Bancorp Inc.
TSX : BKP

C.A. Bancorp Inc.

January 23, 2008 10:57 ET

C.A. Bancorp Inc. (TSX:BKP) Announces Closing of Investment in the Kingswood Apartment Complex in Kitchener, Ontario

TORONTO, ONTARIO--(Marketwire - Jan. 23, 2008) - C.A. Bancorp Inc. ("C.A. Bancorp")(TSX:BKP) is pleased to announce that it has closed the investment, previously announced on December 11, 2007, in a recently formed limited partnership (the "Partnership") that has acquired a 360-unit apartment complex in Kitchener, Ontario (the "Kingswood Property") for an aggregate purchase price of $23 million, excluding closing costs (the "Acquisition"). C.A. Bancorp now holds an 80% interest in the Partnership and Centurion Apartment Properties Limited Partnership ("Centurion L.P.") holds 10% with the remaining 10% being held by an outside investor.

Property Description

The Kingswood Property is a freehold interest in eight garden-style apartment buildings on 16 acres of land, with an average of 45 units per building, located on Kingsway Drive in Kitchener, Ontario. The Kingswood Property is strategically located in the south end of Kitchener with excellent access to Highway 401, Highway 8, and the Conestoga Parkway. The buildings are comprised of one and two bedroom units and are presently over 99% leased. Now that the Acquisition has closed, it is the intention to upgrade both the property and units. The Kingswood Property will be managed by Centurion Property Asset Management, a property management company related to Centurion L.P., which currently manages over 800 apartment units in 23 locations in southern Ontario.

The Acquisition

C.A. Bancorp has invested $6.0 million in return for an 80% equity interest in the Partnership, with the residual $1.5 million equity interest invested by Centurion L.P. and an outside investor. The balance of the $23 million purchase price has been financed by the assumption of three mortgages currently on the Kingswood Property. These mortgages are non-recourse to C.A. Bancorp and are below existing market rates.

The Acquisition is representative of C.A. Bancorp's mandate in the real estate sector, providing its shareholders with exposure to investments that are not readily accessible to the retail investor.

Centurion Apartment Properties Limited Partnership

Centurion L.P. presently owns 820 apartment units within southern Ontario and is focused on the acquisition of apartment properties located in smaller Ontario markets.

C.A. Bancorp Inc.

C.A. Bancorp is a publicly traded Canadian merchant bank and alternative asset manager that provides investors with access to a range of private equity and other alternative asset class investment opportunities. C.A. Bancorp is focused on investments in small- and middle-capitalization public and private companies, with emphasis on the industrials, real estate, infrastructure and financial services sectors.

Trading information

C.A. Bancorp common shares trade on the Toronto Stock Exchange under the symbol BKP.

This news release contains forward-looking statements with respect to an interest in the Kingswood Property, and matters concerning the business, operations, and strategy of C.A. Bancorp and Centurion L.P. These statements relate to anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represent C.A. Bancorp's beliefs regarding future events. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur.

Often, but not always, forward-looking statements can be identified by the use of forward-looking words such as "will", "expect", "intend", "plan", "estimate", "anticipate", "believe" or "continue", similar words or the negative thereof. Additional important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, conditions affecting the real estate markets, ability to complete the proposed upgrades to the Kingswood Property, interest rates and tax related matters. C.A. Bancorp cautions that undue reliance should not be placed on forward-looking statements as events and results could differ materially from those expressed or implied by forward-looking statements made by C.A. Bancorp.

Unless otherwise stated, all forward looking statements speak only as of the date of this news release. C.A. Bancorp does not undertake, and specifically disclaims, any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.



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