TSX Symbol FC.UN

TORONTO, July 30 /CNW/ - Firm Capital Mortgage Investment Trust (the "Trust") (TSX FC.UN) announced today that Firm Capital Corporation, the Trust's Mortgage Banker, has entered into a purchase letter for the acquisition of a $12.5 million principal amount portfolio of 30 performing first mortgages in Ontario.

The mortgage portfolio purchase is priced at a 27% discount to the principal balance of the mortgages with the purchase yielding an estimated cash on cash return of approximately 14% per annum plus the profit to be made on the discount. The average loan to value on the purchased portfolio, based on purchase price, is 47%. In conjunction with the acquisition, Firm Capital Corporation has issued a commitment letter for a loan secured by another portfolio of mortgages held by the vendor.

Subject to the Trust's availability of capital, the Trust expects to acquire an interest in the portfolio acquisition. The Trust's objective for its ownership interest in each of the loan and purchased mortgages is in the range of 25% to 50%, subject to investment committee approval. The transactions are expected to close within 30 days. The transactions are subject to normal underwriting due diligence. The Trust cannot be certain that one or both of these transactions will close, and if they do close, the Trust cannot be certain that its percentage ownership will be within the indicated range.

About Firm Capital Mortgage Investment Trust

The Trust, through its Mortgage Banker, Firm Capital Corporation, is a non-bank lender providing residential and commercial short-term bridge and conventional real estate finance, including construction, mezzanine and equity investments. The Trust's investment objective is the preservation of Unitholders' equity, while providing Unitholders with a stable stream of monthly distributions from investments. The Trust achieves its investment objectives by pursuing a strategy of growth through investments in selected niche markets that are under-serviced by large lending institutions. Lending activities to date continue to develop a diversified mortgage portfolio, producing a stable return to Unitholders.

Additional information about the Trust is available on the SEDAR website at www.sedar.com.

Certain information in this news release may contain forward-looking statements with the meaning of applicable securities laws including, among others, statements relating to the Trust's objectives, strategies to achieve those objectives, the Trust's beliefs, plans, estimates, objectives and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts.