Mortgage Company of Canada Halts Redemptions on Liquidity Stress

Mortgage Company of Canada Inc. paused redemptions and monthly distributions in the latest sign of stress rippling through Canada’s private real estate investment sector.

Investors will not be able to redeem investments or buy new shares effective immediately, the Markham, Ontario-based mortgage investment company said in a May 14 letter to shareholders seen by Bloomberg News. Monthly income distributions will also be suspended following the June 15 payout, according to the letter signed by Chief Executive Officer Raj Babber.