Home Capital Group Inc. to purchase $61 million mortgage portfolio
TORONTO, Sept. 13 /CNW/ - Home Capital Group Inc. (TSE:HCG.B) today
announced that its wholly owned subsidiary, Home Savings & Loan Corporation,
has entered into an agreement to purchase a mortgage portfolio of
approximately $61 million from CIBC Trust Corporation.
This portfolio consists of 500 residential and non-residential accounts
primarily in Ontario. The transaction is scheduled to close over the next
three months, with approximately $20 million closing in September 1999.
''This agreement represents an excellent opportunity for Home Savings &
Loan,'' said Gerald M. Soloway, President and Chief Executive Officer, Home
Capital Group. ''We are acquiring a proven and quality portfolio of first
mortgages that meets our Company's criteria.''
Mr. Soloway added that the vast majority of these mortgages are
residential and the acquisition will complement and significantly grow Home
Savings & Loan's existing mortgage portfolio.
''While the acquisition will not materially increase Home Capital Group's
earnings in 1999, we expect that our assets will exceed $700 million at year
end which will help us achieve higher levels of profitability in 2000 and
beyond,'' said Mr. Soloway.
Home Capital Group Inc. is a holding company, publicly traded on the
Toronto Stock Exchange (HCG.B), operating thorough its principal subsidiary,
Home Savings & Loan Corporation. Home Savings & Loan was incorporated in 1977
and is a regulated financial institution that offers deposit and mortgage
lending services. The Company services Ontario and Western Canada. Home
Savings & Loan Corporation is an innovative niche player that focuses on
providing residential first mortgages to the self-employed, owners of small
businesses and other consumers. |
