Terra Income Fund InternationalIDB Capital Corp.

Member: FINRA/SIPC

October 2016

This is neither an offer to sell nor a solicitation of an offer to buy the units in the Company. The offering may be made by means of the Private PlacementMemorandum. The sales literature must be accompanied or preceded by that Memorandum and read in conjunction therewith to fully understand theimplications and risks of the securities to which it relates. An investment in the Company’s units is illiquid and involves significant risks and therefore issuitable only for those persons who understand those risks and the consequences of their investment and who are able to bear the risk of loss of theirentire investment. See the “Risk Factors” section beginning on page 6 of the Private Placement Memorandum for a discussion on the material risks thatshould be considered before an investment in the units is made.

Table of Contents

1 Offering Summary

2 Sponsor

3 Current Loan Portfolio

4 Real Estate Financing Market

5 Mezzanine Lending

6 Representative Investments

Terra Income Fund International is a newly organized Cayman Islands exemptedcompany formed to acquire interests in real estate related loans in the U.S. originatedor acquired by Terra Property Trust, Inc. and/or affiliated funds controlled by TerraCapital Partners. It is the second in a series of funds sponsored by Terra CapitalPartners available exclusively to offshore investors. The first of such funds was TerraSecured Income Fund 5 International, which closed on June 30, 2015.

Terra Income Fund International

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Designed to provide consistent income while preserving principal.

Structure: Cayman Islands exempted company

Offering Size: $25,000,000

Share Price: $100,000

Strategy: Mezzanine & bridge lending backed by U.S. property (co-invest alongside Terra Property Trust, Terra’s primary U.S. investment vehicle)

Current Return: 9% per annum (distributed quarterly)

Management Fee: 1% of assets under management

Hold Period: Estimated five years from close of offering

Return of Principal: Through loan repayments

Sponsor: Terra Capital Partners (www.tcp-us.com)

Sponsor History & Management

Terra Capital Partners

• Established real estate mezzanine & bridge lender

• Founded 2002 – Completed transactions backed by over 350 U.S. properties

• Terra sold 100% of its interests at the market peak in mid-2007 & re-entered the lending market in mid-2009

• Since 2009, Terra has sponsored seven income funds for U.S. investors

• Fully Integrated Platform – Terra originates, manages & services its loans

• Terra is an SEC Registered Investment Adviser

• Real estate & credit market conditions in the U.S. are favorable for Terra’s investment strategy

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Senior ManagementSimon Mildé - Co-Founder & Chairman

• 45 years of experience in real estate finance, investment, development and management

• Founder and Chairman for 20 years of Jones Lang Wootton NA (now Jones Lang LaSalle)

• Co-founded JLW Realty Advisors (now Clarion, one of the largest institutional real estate managers)

Bruce Batkin - Co-Founder & CEO

• 38 years of experience in real estate finance, investment, development and management

• Held senior positions at Merrill Lynch, Donaldson Lufkin & Jenrette (now Credit Suisse) and ABN Amro

• Graduate of Cornell University and Harvard Business School

Greg Pinkus - Chief Financial Officer• Certified Public Accountant with 30 years of experience

• Previous positions at W.P. Carey & Co. and Bank of America

• Graduate of the Leonard N. Stern School of Business at New York University

Dan Cooperman - Chief Originations Officer

• 19 years of experience in real estate finance, investment, leasing and management

• Previous positions at Greenwich Group International and Chase Manhattan Bant

• Graduate of the University of Colorado at Boulder

Steve Hamrick - CEO, Terra Capital Markets

• 35 years of experience in investment management and fundraising

• Held senior positions at W.P. Carey & Co., UBS PaineWebber and EF Hutton

• Graduate of Duke University

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Terra Property TrustCurrent Loan Portfolio

Terra Property Trust – Current Portfolio as of October 2016

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Investment Property  Type Locat ion Loan  St ructure ProfileTPT  Current  Balance

%  of  Port . LTV

Interest  Rate

Years  to  Maturity

1 144  S.  Harrison  Street Mult ifamily East  Orange,  NJ First  Mortgage Construct ion 22,639,955           8.2% 66.4% 12.0% 0.3  years2 2700  NW  2nd  Ave Inf ill  Land Miami,  FL First  Mortgage Pre-­Development 19,620 ,000           7.1% 60 .0% 12.0% 1.2  years3 1733  Ocean  Avenue Off ice Santa  Monica,  CA Levered  Mortgage  (net) Value-­Add 16,450 ,061             6.0% 77.6% 13.6% 1.4  years4 Marriot t  Warner  Center Hotel Los  Angeles,  CA Preferred  Equity Stab ilized 16,250 ,000           5.9% 82.2% 13.3% 2.8  years5 Millennium  IV Inf ill  Land Conshohocken,  PA First  Mortgage Pre-­Development 13,980 ,000           5.1% 50 .5% 12.0% 0.0  years6 Park  Central  and  Park  East 1 Off ice Greenv ille,  SC Equity Value-­Add 13,785,167               5.0% N/ A 12.0% N/ A7 30  Warren  Street Mult ifamily Manhat tan,  NY Mezzanine Construct ion 13,078,123               4 .8% 69.2% 12.0% 2.8  years8 CSRA  Cred it  Facility Mult i-­Asset Mult i-­State Preferred  Equity Stab ilized 12,500 ,000           4 .5% N/ A 13.0% 0.8  years9 1100  Biscayne  Boulevard Hotel Miami,  FL Mezzanine Value-­Add 11,918,000               4 .3% 65.6% 15.0% 1.0  years10 Up town  Newport Inf ill  Land Newport  Beach,  CA First  Mortgage Pre-­Development 11,200 ,000             4 .1% 59.2% 12.0% 0.0  years11 42-­50  24 th  Street Inf ill  Land Long  Island  City ,  NY Mezzanine Pre-­Development 8,750 ,000             3.2% 80 .5% 14 .0% 0.7  years12 Nelson  Brothers  Cred it  Facility Student  Housing Mult i-­State Preferred  Equity Stab ilized 8,000 ,000             2.9% N/ A 15.0% 0.8  years13 Peachtree  Pointe Off ice At lanta,  GA Mezzanine Stab ilized 7,500 ,000             2.7% 70 .3% 12.0% 0.1  years14 BPG  Off ice  Port folio Off ice Wilming ton,  DE Mezzanine Stab ilized 7,000 ,000             2.5% 85.9% 13.5% 1.7  years15 Urbanea Mult ifamily Miami,  FL Mezzanine Construct ion 6,250 ,000             2.3% 74 .1% 13.0% 2.7  years16 UBS  Tower Off ice Nashv ille,  TN Mezzanine Stab ilized 6,225,000               2.3% 76.3% 15.0% 0.7  years17 San  Diego  Doub leTree Hotel San  Diego,  CA Preferred  Equity Value-­Add 5,200 ,000             1.9% 64 .2% 12.0% 0.3  years18 Port land  Airport  Hotel  Port folio Hotel Port land ,  OR Mezzanine Stab ilized 5,000 ,000             1.8% 70 .8% 13.0% 2.0  years19 Georg ia  Mult ifamily  Port folio Mult ifamily Various,  GA Mezzanine Stab ilized 5,000 ,000             1.8% 71.6% 14 .0% 2.3  years20 302  East  96th  Street Mult ifamily Manhat tan,  NY Mezzanine Construct ion 4 ,756,353               1.7% 71.8% 13.0% 2.3  years21 Ramada  Plaza  Beach  Resort Hotel Fort  Walton  Beach,  FL Mezzanine Stab ilized 4 ,500 ,000             1.6% 64 .7% 13.0% 0.8  years22 Z  Hotel  NYC Hotel Long  Island  City ,  NY Mezzanine Stab ilized 4 ,500 ,000             1.6% 59.6% 13.0% 1.2  years23 Myst ic  Hotel Hotel San  Francisco,  CA Preferred  Equity Stab ilized 4 ,325,000             1.6% 66.1% 12.0% 0.2  years24 Mayo  Port folio Mult ifamily Various,  MA Mezzanine Stab ilized 4 ,000 ,000             1.5% 68.7% 12.0% 5.9  years25 Museo  Apartments Mult ifamily Aust in,  TX Mezzanine Stab ilized 4 ,000 ,000             1.5% 83.5% 12.0% 2.2  years26 AHF  Port folio Mult ifamily Various,  TX Mezzanine Stab ilized 3,869,381                 1.4% 62.8% 14 .0% 5.9  years27 Hilton  Garden  Inn Hotel Fort  Washing ton,  PA Preferred  Equity Stab ilized 3,742,000             1.4% 79.7% 13.0% 0.0  years28 Doub leTree  by  Hilton Hotel Greensboro,  NC Mezzanine Stab ilized 3,500 ,000             1.3% 73.9% 14 .0% 1.4  years29 Pine  Tree  Drive Off ice Miami  Beach,  FL Mezzanine Pre-­Development 3,500 ,000             1.3% 85.7% 14 .0% 0.3  years30 Clemson  Student  Housing  Port folio Student  Housing Seneca,  SC Mezzanine Stab ilized 3,000 ,000             1.1% 75.5% 13.0% 7.3  years31 Kingsport  Mult ifamily  Port folio Mult ifamily Various,  TN Mezzanine Stab ilized 3,000 ,000             1.1% 74 .4% 13.0% 2.2  years32 Marriot t  Spartanburg Hotel Spartanburg ,  SC Mezzanine Stab ilized 3,000 ,000             1.1% 75.1% 13.5% 2.3  years33 Ball  State  Student  Housing  Port folio Student  Housing Muncie,  IN Mezzanine Stab ilized 2,700 ,000             1.0% 84 .8% 13.0% 6.9  years34 Encino  Courtyard Retail Encino,  CA Mezzanine Stab ilized 2,500 ,000             0 .9% 73.3% 13.5% 6.3  years35 Holiday  Inn  Mid town Hotel Aust in,  TX Mezzanine Stab ilized 2,450 ,000             0 .9% 81.8% 12.5% 4.0  years36 55  Miracle  Mile Mixed  Use Coral  Gab les,  FL Mezzanine Stab ilized 2,380 ,000             0 .9% 79.3% 14 .0% 2.9  years37 Arbor  Stat ion Mult ifamily Montgomery,  AL Preferred  Equity Stab ilized 2,100 ,000               0 .8% 83.4% 15.0% 5.8  years38 Strat ford  Village Mult ifamily Montgomery,  AL Preferred  Equity Stab ilized 1,600 ,000               0 .6% 84 .1% 15.0% 5.8  years39 BPG  Hotel  Port folio Hotel King  of  Prussia,  PA Mezzanine Stab ilized 1,260 ,000               0 .5% 81.3% 13.0% 6.2  years

Total  /  W eighted  Average: 275,0 29 ,0 40   10 0 .0 % 70 .4% 13.0 % 1.6  years

Cash  Balance: 12,000 ,000          

Total  Investments  &  Cash: 287,0 29 ,0 40  

1 Park  Central  and  Park  East  is  an  equity  investment .  LTV  and  Years  to  Maturity  are  not  app licab le.  Interest  Rate  rep resents  the  cash-­on-­cash  d iv idend .

U.S. Commercial Real Estate Financing Market

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Insufficient Supply of Real Estate Credit to Meet Demand

• Shrinking Bank Market - In January 2016, there were 1,915 fewer commercial banks than January 2008.

• Shrinking Securitization Market - Issuance peaked at 230 billion in 2007; issuance for 2016 projected at $70 billion.

• Strong Demand for Real Estate Credit - $1.4 trillion of mortgage loan maturities between 2016 and 2019.

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$166

$198

$229

$12$3

$12

$33$48

$86$94 $101

$50

$0

$50

$100

$150

$200

$250

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

U.S.  Commercial  Mortgage  Backed  Securit ies  Issuance($  Billions)

$132   $130   $144   $156  

$110   $137  $41   $29  

$26  $27  

$26   $26  

$90  $98  

$102   $97  

$357  $391  

$314   $30 8  

$0

$100

$200

$300

$400

$500

2016 2017 2018 2019

Total  Commercial  Real  Estate  Maturit ies($  Billions)

Banks CMBS Life  Companies Other  LendersSource:  Trepp

*Issuance  through  Q'3  2016Source:  Commercial  Mortgage  Alert

Mezzanine Lending

Terra’s portfolio consists primarily of mezzanine loans and bridge loans backed by U.S. commercial properties. Mezzanine loans are junior to first mortgage loans and senior to the borrower’s equity. The capital stack below shows where Terra invests. Today, the addition of mezzanine financing adds about 1.70% to our borrower’s financing cost.

Borrower Equity25.0%

Terra Mezzanine Debt15.0%

Senior Debt60.0%

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Loan-to-ValueRatio: 75.0%

Mezzanine DebtInterest Rate: 13.5%

Senior DebtInterest Rate: 5.0%

Weighted AverageInterest Rate: 6.7%

(6.7% - 5.0% = 1.70%)

Typical Mezzanine Capital Structure

Relative Risk – Mezzanine Debt vs. Equity

Mezzanine investments involve less risk and generate a higher current return than equity investments.

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Mezzanine Equity

Current Yield: Higher Lower

Predictability: Higher Lower

Ongoing Capital Costs: No Yes

Dependent on Capital Growth: No Yes

Safety of Principal: More Less

Representative Investments

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The following loans are examples of those in which Terra’s first international fund(Terra Secured Income Fund 5 International) has participated. The full list is set forthin the accompanying Private Placement Memorandum.

Class A Office Building - Santa Monica, CA

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1733 Ocean Avenue, Santa Monica, CA

Terra closed a First Mortgage in March 2016 to fund the recapitalization of a 96,000 square foot Class-A office building in Santa Monica, CA.

Loan Amount: $54 million

Loan Type: First Mortgage

Interest Rate: LIBOR + 8.5%

Loan Term: 24 months

Minimum Return: 18 months

Appraised Value: $65 million

Loan-to-Value Ratio: 76.9%

Status: Performing

Note: Terra utilized $34 million of financing;interest rate of LIBOR + 5.25%; net investment of$20 million yields 13.6%.

Residential & Retail Project - New York, NY

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30 Warren Street, New York, NY

Terra closed a Mezzanine Loan in March 2016 to fund the development of a 23-unit residential and retail condominium in New York, NY.

Loan Amount: $19.05 million

Loan Type: Mezzanine Loan

Interest Rate: 12.0%

Loan Term: 40 months

Minimum Return: 22 months

Appraised Value: $121.12 million

Loan-to-Value Ratio: 69.2%

Status: Performing

Note: The unit sizes and economics of theproperty enable it to work as rental apartments.

Edition Hotel Site Acquisition - West Hollywood, CA

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9040 Sunset Boulevard, West Hollywood, CA

Terra closed a Mezzanine Loan in October 2014 to fund the acquisition of six parcels of land and the pre-development costs for the construction of a 190-room Marriott EDITION hotel in West Hollywood, CA.

Loan Amount: $25 million

Loan Type: Mezzanine Loan

Interest Rate: 12.0%

Loan Term: 12 months

Minimum Return: 12 months

Appraised Value: $57 million

Loan-to-Value Ratio: 87.7%

Status: Repaid

Marriott Hotel - Los Angeles, CA

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Marriott Warner Center, Los Angeles, CA

Terra closed a Preferred Equity Investment in July 2014 to fund the acquisition and renovation of a 474-room Marriott hotel in Los Angeles, CA.

Loan Amount: $20 million

Loan Type: Preferred Equity

Interest Rate: 13.25%

Loan Term: 60 months

Minimum Return: 30 months

Appraised Value: $115 million

Loan-to-Value Ratio: 82.2%

Status: Performing

Residential Project - Miami, FL

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Urbanea, Miami, FL

Terra closed a Mezzanine Loan in June 2016 to fund the development of a 100-unit residential building in Miami, FL.

Loan Amount: $6.25 million

Loan Type: Mezzanine Loan

Interest Rate: 13.0%

Loan Term: 36 months

Minimum Return: 24 months

Appraised Value: $38.1 million

Loan-to-Value Ratio: 74.1%

Status: Performing