RETRANSMISSION: C.A. Bancorp Canadian Realty Finance Corporation Provides Investment Update

TORONTO, ONTARIO--(Marketwire - Oct. 27, 2008) - C.A. Bancorp Canadian Realty Finance Corporation ("CRFC") (TSX: RF-A.TO)(TSX: RF-PR.A.TO)(TSX: RF-WT.TO) is pleased to provide an investment update to its investors. CRFC was created to obtain exposure to an investment portfolio of mortgages and loans ("Mortgage Portfolio") in the Canadian commercial real estate sector.

CRFC is pleased to report that it is fulfilling its investment mandate ahead of schedule and expects to be fully invested by February 2009, or earlier. To date, approximately $50.4 million of the total $72.0 million in investable capital has funded, or has been committed to fund ($44.6 million funded and $5.8 million committed but not yet funded) Canadian commercial real estate mortgages or loans.

The average effective yield on the Mortgage Portfolio (including fees) is currently 11.9%.

Management is pleased with the credit quality of the Mortgage Portfolio to date. Each mortgage and loan is supported by a personal guarantee of the principal shareholders and/or a corporate guarantee, with the exception of one. As of October 15, 2008, the Mortgage Portfolio is in good standing and all payments are current.

CRFC seeks exposure to a secure portfolio of mortgages and loans whereby it:

- Does not invest outside of Canada,

- Does not invest in mortgage-backed securities,

- Does not invest in subprime single-family residential owner-occupied real estate,

The following table provides a summarized breakdown of the CRFC Mortgage Portfolio exposure as of October 15, 2008:

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                BREAKDOWN OF THE MORTGAGE PORTFOLIO                
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                                          Portfolio      Effective
By Type                                   Weighting          Yield
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 1st Mortgages                                   79%          11.6%
 2nd Mortgages                                   20%          13.0%
 Secured Loans                                    1%          12.0%
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                                                100%          11.9%
By Geography
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 Ontario                                         52%          11.4%
 Eastern Canada                                  18%          12.6%
 Western Canada                                  30%          12.1%
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                                                100%          11.9%

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Weighted Average Loan-to-Value Ratio                          64.2%
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Average Mortgage Size                                 $1.9 million
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Total Amount Advanced and Committed                  $50.4 million
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The Class A Shares

The Corporation's investment objectives with respect to the Class A Shares are to:

i) Pay quarterly cash distributions, initially expected to be $0.19 per quarter per Class A Share or 7.6% per annum, based on the original issue price of $10.00; and

ii) To preserve the net asset value of the Class A Shares.

The Warrants

Each Warrant will entitle the holder to purchase one Series 1 Preferred Share at a subscription price of $23.75 at any time on or before 4:00 p.m. (Toronto time) on September 30, 2011.

The Series 1 Preferred Shares

The Corporation's investment objectives with respect to the Series 1 Preferred Shares are to:

i) Pay fixed cumulative preferential quarterly cash distributions in the amount of $0.4219 per Series 1 Preferred Share representing a yield of 6.75% per annum on the original issue price of $25.00 per Series 1 Preferred Share; and

ii) Return the original issue price of the Series 1 Preferred Shares ($25.00 per Share) on March 31, 2018.

Trading information

The Class A Shares, Warrants and Series 1 Preferred Shares trade separately on the TSX under the symbols RF.A, RF.WT and RF.PR.A respectively.

C.A. Bancorp Canadian Realty Finance Corporation

CRFC is a mutual fund corporation incorporated under the laws of the Province of Ontario. It was created to obtain exposure to the investment performance of an actively managed portfolio of mortgages and secured loans in the Canadian commercial real estate sector on a tax-efficient basis.

C.A. Bancorp Inc.

C.A. Bancorp Inc. (TSX: BKP.TO) is a publicly traded Canadian merchant bank and alternative asset manager that provides investors with access to a range of private equity and other alternative asset class investment opportunities. With over $515 million of assets invested or under management, C.A. Bancorp Inc. is focused on investments in small- and middle-capitalization public and private companies, with emphasis on the industrials, real estate, infrastructure and financial services sectors.

C.A Bancorp Inc. is a significant shareholder of CRFC and manages CRFC through its wholly-owned subsidiary C.A. Bancorp Ltd.

This news release contains forward-looking statements with respect to matters concerning the business, operations, commitments and strategy of CRFC. These statements relate to anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represents CRFC's beliefs regarding future events. Often, but not always, forward-looking statements can be identified by the use of forward-looking words such as "will", "expect", "intend", "plan", "estimate", "anticipate", "believe" or "continue", similar words or the negative thereof, or variations of such words and phrases that certain actions, events or anticipated outcomes "may", "would" or "might" be taken, occur or be achieved. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur.

CRFC cautions that risk factors discussed in CRFC's prospectus and applicable continuous disclosure filings required by law that CRFC has made and filed on SEDAR at www.sedar.com should also be considered carefully and that undue reliance not be placed on forward-looking statements as events and results could differ materially from those expressed or implied by forward-looking statements made by CRFC due to factors including, but not limited to, the timing and completion of funding of committed loans, the time required for CRFC to become fully invested, and the suitability of the Class A Shares, Warrants and the Preferred Shares for any given investor. The cautionary statements qualify all forward-looking statements attributable to CRFC and persons acting on its behalf. Readers are cautioned to assess both risk and return before making their investment decisions.

Unless otherwise stated, all forward-looking statements speak only as of the date of this news release. CRFC does not undertake, and specifically disclaims, any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

C.A. Bancorp Inc.
The Exchange Tower
130 King Street West
Suite 2810, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone: (416) 214-5985
Fax: (416) 861-8166

Contacts

Michael Lovett
C.A. Bancorp Canadian Realty Finance Corporation
Managing Director, Real Estate Capital
(416) 214-5985 ext. 619
Email: mlovett@cabrealtyfinance.com

Kamal Gurung
C.A. Bancorp Inc.
Manager - Investor Relations
(416) 214-5985 ext. 283
Email: kgurung@cabancorp.com