C.A. Bancorp Inc.
TSX : BKP

C.A. Bancorp Inc.

October 10, 2007 09:51 ET

C.A. Bancorp Inc. (TSX:BKP) Provides Update on its Real Estate Lending Activities

TORONTO, ONTARIO--(Marketwire - Oct. 10, 2007) - C.A. Bancorp Inc. (TSX:BKP), with the underwriting experience of its wholly owned subsidiary C.A. Bancorp Realty Finance Inc. (collectively "C.A. Bancorp" or the "Company"), is pleased to announce it has made six direct investments to date in superior yielding, actively managed commercial real estate mortgages. These six mortgages total approximately $4 million in funding and that figure is expected to increase to eight mortgages totaling approximately $7 million (based on outstanding but yet to be funded commitments) within the next two weeks.

The funded and committed loans provide interest returns ranging from 10% to 16% per annum. All of these loans, with the exception of one, are first mortgages (the one exception is a second mortgage) at an average loan-to-value of less than 70%. All loans contain personal guarantees of the principal shareholders of the respective borrowers.

C.A. Bancorp's intention is to build a diversified portfolio of mortgage investments by:

1) Loan type - including both term and construction loans;

2) Asset type - income producing commercial real estate as well as and multi-residential properties;

3) Geography - investing in major markets across Canada.

In the future C.A. Bancorp may continue to use its balance sheet to fund such investments or may create a separate entity (either private or public) to be managed by C.A. Bancorp Realty Finance Inc. to allow outside investors direct participation in this type of asset class which has traditionally been funded by private individuals investing in local projects.

The Company believes this niche of the commercial mortgage market is highly fragmented. There is limited competition from traditional lenders, which offers the Company excellent opportunities to underwrite well structured loans with attractive yields.

Trading information

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

C.A. Bancorp Realty Finance Inc.

C.A. Bancorp Realty Finance Inc. provides fee-based, structured, and client-focused commercial real estate finance solutions tailored to the requirements of each transaction and aligned with its clients' overall investment criteria.

C.A. Bancorp Inc.

C.A. Bancorp Inc. is a publicly traded Canadian merchant bank and asset manager that provides investors with access to a range of private equity and alternative asset class investment opportunities, typically available only to institutional and high-net-worth investors. The Company 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.

More information

For further information about C.A. Bancorp Realty Finance and the services it provides, please contact Michael Lovett at (416) 214-5985 ext. 619 or mlovett@cabancorp.com.

This news release contains forward-looking statements with respect to the commitments, and matters concerning the business, operations, and strategy of the Company. These statements relate to anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represent the Company's beliefs regarding future events. 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, or variations of such words and phrases that certain actions, events or anticipated outcomes "may", "would" or "might" be taken, occur or be achieved. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur.

C.A. Bancorp cautions that risk factors discussed in applicable continuous disclosure filings required by law that C.A. Bancorp has made and filed on SEDAR should also be considered carefully and that undue reliance 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. The cautionary statements qualify all forward-looking statements attributable to C.A. Bancorp and persons acting on its behalf.

Unless otherwise stated, all forward looking statements speak only as of the date of this press 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.



The Exchange Tower
130 King Street West
Suite 2810, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone: (416) 214-5985
Fax: (416) 861-8166

Contact Information