C.A. Bancorp Inc.

C.A. Bancorp Inc.

March 30, 2007 16:07 ET

C.A. Bancorp Inc. (TSX-V: BKP) Announces Subordinate Loan Facility and Management Agreement With Charter Realty Holdings Ltd.

TORONTO, ONTARIO--(CCNMatthews - March 30, 2007) - C.A. Bancorp Inc. (TSX VENTURE:BKP) ("the Company") is pleased to announce that it has provided a $10 million subordinated loan facility ("Subordinated Facility") to Charter Realty Holdings Ltd., $4.5 million of which was drawn as of March 30th, 2007. The Subordinated Facility is subordinated to a first mortgage loan from a Canadian chartered bank and a loan facility from KingSett Capital. Outstanding principal amounts on the Subordinated Facility earn interest at a rate of 12% per annum, payable monthly. The Subordinated Facility has a maximum term of two years.

The Company is also pleased to announce that its wholly-owned subsidiary C.A. Realty Management Inc. ("Realty Management") and its majority-owned subsidiary Charter Realty Holdings Inc. ("Charter") have entered into a management agreement ("Management Agreement") whereby Realty Management will provide Charter with ongoing strategic, advisory, asset management and administrative services in return for an annual management fee of 0.30% based on the adjusted book value of Charter's assets and a fee of 0.50% of the costs of any acquired properties.

Details of the Management Agreement and Subordinated Facility are available on SEDAR.

C.A. Bancorp Inc.

C.A. Bancorp Inc., a Toronto-based merchant bank and alternative asset investment manager, is involved in transactions with both private and public companies across a range of industries, predominantly in Canada, with a specific focus on mid-market investments in private equity, real estate, infrastructure and financial services. C.A. Bancorp conducts its business through two areas of focus: direct investing, and fund management for the institutional, high-net-worth and retail markets.

Charter Realty Holdings Ltd.

Charter Realty Holdings Ltd. is focused on acquiring a portfolio of retail and mixed-use retail real estate comprised of stable cash flow and value-add properties from both primary and secondary markets throughout Canada, with the principal goal of generating a reliable and growing yield for its investors. The Company owns four commercial real estate properties located in Ontario and Quebec. Charter trades on the TSX Venture Exchange under the symbol CRH and is controlled by C.A. Bancorp Inc. through its 57% holdings in Charter's outstanding common shares.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • C.A. Bancorp Inc.
    Mark Gardhouse
    (416) 364-2398 (FAX)
    C.A. Bancorp Inc.
    Paolo De Luca
    Chief Financial Officer
    (416) 364-2398 (FAX)
    Email: info@cabancorp.com
    Website: www.cabancorp.com