C.A. Bancorp Canadian Realty Finance Corporation

May 13, 2011 08:50 ET

C.A. Bancorp Canadian Realty Finance Corporation Announces Completion of Change of Control of the Manager and Name Change

TORONTO, ONTARIO--(Marketwire - May 13, 2011) - C.A. Bancorp Canadian Realty Finance Corporation ("CRFC" or the "Corporation") (TSX:RF.PR.A)(TSX:RF.A)(TSX:RF.WT) announced that the change of control of its manager, and related transactions, which received CRFC shareholder approval on May 5th, 2011, have been completed.

Green Tree Capital Management Corp. ("Green Tree") has acquired ownership of C.A. Bancorp Ltd. (the manager of CRFC) (the "Manager"), and has also acquired (directly and indirectly) 966,160 Class A Shares, representing approximately 32% of the outstanding Class A Shares. In addition, Green Tree, through its acquisition of the Manager, has assumed the note payable to CRFC in the amount of approximately $1.3 million (as at the date hereof) and has assumed the obligations of C.A. Bancorp Inc. ("CAB") under the commitment agreement dated January 31, 2008 between CAB and CRFC.

In connection with these transactions, the following individuals have resigned from their respective positions with CRFC:

  • John F. Driscoll – Director & Chairman

  • Paul Haggis – Director & Interim Chief Executive Officer

  • Jillian Crump – Chief Financial Officer

  • Michael Lovett – Managing Director

  • Helen Martin – In-house Counsel

CRFC has appointed the following individuals:

  • Gordon Pridham – Director & Chairman (independent)

  • Jane Davis – Director (independent)

  • Norman McPhedran, CA – Director (independent)

  • Jacquie Boddaert – Director (Manager nominee) & Chief Executive Officer

  • Darryl Abbott – Director (Manager nominee)

  • Al Quong – Chief Financial Officer

Name Change

CRFC is pleased to announce that its name will be changed to NorRock Realty Finance Corporation.

The Corporation

The Corporation is a mutual fund corporation incorporated under the laws of the Province of Ontario. It was created to obtain exposure to the investment performance of an actively managed portfolio of mortgages and secured loans in the Canadian commercial real estate sector on a tax-efficient basis.

Green Tree Capital Management Corp.

Green Tree owns approximately 32% of the Class A Shares of the Corporation and manages the Corporation through its wholly-owned subsidiary C.A. Bancorp Ltd. (name to be changed at a later date).

Green Tree Capital Management Corp. is a private holding company, newly incorporated under the laws of the Province of Ontario.

The principals of Green Tree are Jacquie Boddaert and Darryl Abbott. Ms. Boddaert served as Chief Executive Officer, President and Ultimate Designated Person for Monarch Wealth Corporation as well as President of Monarch Wealth Assurance Agencies Inc. and Monarch Wealth Deposit Group Inc. from 2004 to 2010. These businesses collectively managed over $700 million of client assets. Darryl Abbott is currently a Partner in Fovere Investments Inc., a private investment firm that specializes in placing capital on behalf of high net worth and institutional investors into structured real estate and infrastructure ventures. Mr. Abbott was previously a director of Lytton Financial, a boutique investment bank and a director of GE Real Estate's single tenant group, prior to which he was with the Royal Bank of Canada where he managed industry specific portfolios with concentrations in the financial services, logistics and industrial sectors.

Information regarding Green Tree and its principals was provided by Green Tree.

This release includes certain forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue" or the negative thereof or variations thereon or similar terminology. Although the Company and the Manager believe that the expectations reflected in such forward-looking statements are reasonable, they can give no assurance that such expectations will prove to be correct. These forward- looking statements are subject to a number of risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. Reference should be made to the risk factors published in the Company's most recent annual information form and management report on fund performance, both of which are available at www.sedar.com.

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