Mr. Blair Tamblyn reports

TIMBERCREEK FINANCIAL PROVIDES UPDATE ON RESOLUTION OF GROUP SELECTION LOANS

Timbercreek Financial Corp. has provided an update on its progress with two loans that were originally made to Groupe Selection Inc. As previously disclosed (on Dec. 13, 2022), Groupe Selection filed an application under the Companies' Creditors Arrangement Act to proceed with a restructuring.

The loans related to two assets in Quebec: a high-quality operating retirement residence in Montreal called Rosemont Les Quartiers and a multifamily residential building that was approximately 60 per cent complete at that time. Subsequently, the company has worked diligently toward a successful resolution of these investments:

• In August, 2023, Timbercreek and its syndicated partners acquired Rosemont Les Quartiers with the intent to pursue a sale at the appropriate time. On Jan. 30, 2025, Chartwell Retirement Residences announced a definitive agreement to acquire the residence. The proceeds will allow the company to recover all principal and interest (Timbercreek Financial's 50-per-cent ownership interest was valued at approximately $62.0-million at year-end).
• The company has also made meaningful progress on resolution of the second loan (approximately $18.0-million outstanding at year-end). Through extensive asset management work, the loan is performing, construction of the apartment building is now more than 90 per cent complete and the company expects to receive repayment of all principal upon the near-term refinancing of the asset.

"We appreciate the significant work done by our team and partners to resolve these two loans and recover the company's capital," said Blair Tamblyn, chief executive officer of Timbercreek Financial. "We continue working to ensure the best outcomes for our shareholders from the remaining staged loans in the portfolio and look forward to redeploying this capital into new loans in our core asset types."

About Timbercreek Financial Corp.

Timbercreek is a leading non-bank, commercial real estate lender providing shorter-duration, structured financing solutions to commercial real estate professionals. Its sophisticated, service-oriented approach allows it to meet the needs of borrowers, including faster execution and more flexible terms that are not typically provided by Canadian financial institutions. By employing thorough underwriting, active management and strong governance, it is able to meet these needs while generating strong risk-adjusted yields for investors.