C.A. Bancorp Canadian Realty Finance Corporation

May 16, 2011 08:44 ET

Green Tree Capital Management Corp. Acquires 966,160 Class A Shares of C.A. Bancorp Canadian Realty Finance Corporation

TORONTO, ONTARIO--(Marketwire - May 16, 2011) - Green Tree Capital Management Corp. ("Green Tree") announced today that it has completed its acquisition of 966,160 Class A shares of C.A. Bancorp Canadian Realty Finance Corporation ("CRFC") from C.A. Bancorp Inc., which held the Class A shares directly and indirectly. The CRFC shares being acquired represent approximately 32% of the outstanding Class A shares of CRFC.

After giving effect to the purchase, Green Tree will own 966,160 Class A shares of CRFC, representing approximately 32% of the outstanding CRFC Class A shares.

Green Tree is acquiring the shares for an aggregate purchase price of $6,400,000. The price paid by Green Tree was $6.62 per Class A share. Green Tree is acquiring the shares for investment purposes. Green Tree has no current intention of acquiring ownership of or control or direction over any additional CRFC securities but reserves the right to acquire additional securities of CRFC, and to sell all or any portion of its holding of securities.

In conjunction with the share purchase, Green Tree also acquired from C.A. Bancorp Inc. all of the issued and outstanding shares of C.A. Bancorp Ltd., the manager of CRFC (the "Manager") and C.A. Bancorp Realty Finance Inc. Green Tree has assumed C.A. Bancorp Inc.'s obligations under the commitment agreement dated January 31, 2008 between C.A. Bancorp Inc. and CRFC. The Manager will remain responsible for the note payable to CRFC.

The approval of the Preferred Shareholders and Class A Shareholders (collectively, the "Shareholders") of CRFC voting separately as a class in each case by a 2/3 majority was obtained pursuant to a meeting of Shareholders held on May 5, 2011.

The sale of shares to Green Tree was a private transaction completed under the prospectus exemption contained in section 2.16 of National Instrument 45-106 (Takeover Bid Exemption) and the exemption from the formal take-over bid requirements in Section 100.1 of the Ontario Securities Act (Private Agreement Exemption).

The principals of Green Tree are Jacquie Boddaert and Daryl 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.

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

Green Tree has an experienced management team with expertise in originating, underwriting, approving and administering commercial real estate credit and attracting new sources of capital to increase the overall capital base of the CRFC. The Manager (C.A. Bancorp Ltd.) of CRFC will continue to support the current mandate of the Corporation with an enhanced infrastructure and access to a greater volume of mortgage deal flow through its strategic affiliation with Argentum Mortgage and Finance Corp. and Community Partners Group Inc.

The Board of Directors of the Corporation has been reconstituted, increasing the Board from three to five members, the majority of whom are independent of the Manager, including an independent Chairman.

The mandate of both the Manager and the Corporation will continue to be consistent with the overall objective of enhancing shareholder value and seeking to optimize mortgage portfolio performance and returns.

Contact Information

  • Green Tree Capital Management Corp.
    Jacqueline Boddaert
    Chief Executive Officer
    416-479-9510 x305
    1-866-362-2469 (FAX)
    36 Toronto Street, Suite 1150
    Toronto, Ontario, M5C 2C5