Terra Firma Capital Corporation Closes Its First Senior 'A' Financing in the U.S.

TORONTO, ONTARIO--(Marketwired - Jan. 11, 2016) -

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All amounts are stated in Canadian dollars.

Terra Firma Capital Corporation (TSX VENTURE:TII) ("Terra Firma" or the "Company") is pleased to announce that it has successfully completed the closing of its first senior 'A' tranche in the U.S. totaling approximately $5.3 million (US $3.8 million).

The financing forms the senior tranche of the previously announced $7.7 million first mortgage loan (at 70% LTV) that was funded in Tampa, Florida with Coronado West. The remaining junior 'B' tranche of $2.4 million will provide Terra Firma with a yield in excess of 20%. This is consistent with the strategy that the Company has been successfully employing in Canada. The Company is now in the process of closing its second senior 'A' financing with another private investment group.

"This is an important milestone for our U.S. expansion. In Canada, there is an established network of senior 'A' tranche buyers from large companies and institutions for loans on land. However, in the U.S. there is no established network for such financings. The closing of this transaction gives us confidence that we can identify sources of capital that will provide us with a positive yield spread not only from a co-investment perspective from our syndicated investor base, but also through the use of lower cost senior tranche asset specific financings with no recourse to Terra Firma," commented Glenn Watchorn, President and Chief Operating Officer.

"We are constantly looking for ways to perfect our business model," commented Y. Dov Meyer, Chief Executive Officer. "This is a meaningful development for Terra Firma and a testament of our ability to create innovative solutions in new markets. The creation of senior debt tranches in the U.S. will contribute to the scalability of our business, and allow us to deploy more funds as well as create a real competitive advantage in the marketplace."

About Terra Firma

Terra Firma is a full service, publicly traded real estate finance company that provides customized equity and debt solutions to the real estate industry. Our focus is to arrange and provide financing with flexible terms to property owners and developers. Terra Firma offers a full spectrum of real estate financing under the guidance of strict corporate governance, clarity and transparency. For further information please visit Terra Firma's website at www.tfcc.ca.

The TSXV has neither approved nor disapproved the contents of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

This Press Release contains forward‐looking statements with respect matters concerning the business, operations, strategy and financial performance of Terra Firma. These statements generally can be identified by use of forward-looking word such as "may", "will", "expects", "estimates", "anticipates", "intends", "believe" or "could" or the negative thereof or similar variations. The future business, operations and performance of Terra Firma could differ materially from those expressed or implied by such statements. Such forward‐looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward‐looking statements are based on a number of assumptions which may prove to be incorrect. Additional, important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, local real estate conditions, competition, changes in government regulation, dependence on tenants' financial conditions, interest rates, the availability of equity and debt financing, environmental and tax related matters, and reliance on key personnel. There can be no assurances that forward‐looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward‐looking statements. The cautionary statements qualify all forward‐looking statements attributable to Terra Firma and persons acting on its behalf. Unless otherwise stated, all forward looking statements speak only as of the date of this Press Release and Terra Firma has no obligation to update such statements except as required by law.