This article is from the Australian Property Journal archive
THE Balmain Trilogy managed Pacific First Mortgage Fund is a step closer to resuming distribution payments to unitholders in the new financial year, after closing a $81 million sale.
The 11,339 sqm development site known as Pacific Beach, on the beachfront on Old Burleigh Road, was purchased by Ridong (Gold Coast) Development Pty Ltd.
Ridong bought the property in August last year but the settlement period was extended from the original date of December 20 to enable the Ridong to finalise its funding arrangements.
Balmain Trilogy joint CEO Andrew Griffin said the sale enabled the fund to make further repayments on its loan to the Commonwealth Bank.
“Whilst Fortress, a co-lender with the fund on this property in accordance with an arrangement with the previous fund manager (City Pacific), was entitled to receive its repayment (together with all interest and costs on their loan) ahead of the fund, we will still be able to make a significant repayment to the CBA.
“Together with other repayments planned for early April 2010, we are confident that the CBA loan will be reduced to the $30 million target before the June 2010 deadline set out in the Facility. This will materially assist in our efforts to start payments to the fund’s unitholders early in the new financial year,” he added.
Meanwhile during the settlement period Balmain Trilogy successfully defended an action brought by the original borrower, Foresight Acquisitions, for $25 million in damages. Earlier in the year Balmain Trilogy also successfully defended an action by Foresight to prevent the sale from proceeding.
Balmain Trilogy is currently seeking to recover the costs incurred from these proceedings from Foresight.
Australian Property Journal