IMC Completes Third Canadian CMBS Transaction: Looks forward to expanding market size

Feb 15, 2013, 13:10 ET from Institutional Mortgage Capital Canada Inc.

TORONTO, Feb. 15, 2013 /CNW/ - Institutional Mortgage Capital ("IMC") announces the successful completion of its third Canadian CMBS (commercial mortgage backed securities) issuance in 24 months, adding even more support to this outperforming asset class.

The most recent IMC CMBS issue of approximately $250 million (Institutional Mortgage Securities Canada Inc., Series 2013-3) was distributed by private placement and received very strong interest from investors.  This is the 3rd Canadian CMBS transaction IMC has brought to market since February, 2011, for a total of $739.1 million.

      John Ho, President and CEO of IMC, commented:
        "This transaction was significantly over-subscribed.  There is very strong investor demand for Canadian CMBS and we expect it to grow significantly.  Investors see Canadian CMBS as a tested asset class that has demonstrated excellent credit performance over the past 15 year and want more of it in their portfolios."

Canadian CMBS has performed exceptionally well.  Over 3,700 loans totaling $25.0 billion of Canadian CMBS have been sold in the public markets since 1998 with an cumulative loss rate of less than 9 basis points (0.09%), outperforming all global CMBS markets.  IMC's capital markets professionals have been dominant players in the Canadian CMBS market since inception (1998) and have originated and sold more than $10.0 billion of Canadian CMBS.

IMC is unique in the CMBS industry.  As a major investor in Canadian CMBS bonds, IMC also invests in the first loss position (commonly called the "B-piece") in its own CMBS transactions.  IMC believes strongly in the credit quality of the mortgages it originates and the performance of Canadian commercial mortgage loans.

IMC continues to accelerate its loan origination program and plans are in place to increase the frequency and size of future CMBS issuance.  IMC intends to issue its next transaction by the summer of 2013, and expects the size of its next transaction to exceed $300 million.  IMC was joined by another issuer in the Canadian market in 2012, and expects other participants to begin adding to the Canadian CMBS pipeline in the future.  IMC welcomes the addition of new players into the Canadian CMBS market.

IMC was established in 2009 and operates as an exempt market dealer and investment fund manager with expertise in Canadian real estate debt and related securities.  It originates and services commercial mortgage loans in all Canadian provinces.

SOURCE Institutional Mortgage Capital Canada Inc.