This article is from the Australian Property Journal archive
CITY Pacific has sold a Townsville project and secured institutional cash injection for the City Pacific First Mortgage Fund.
City Pacific resumed trading yesterday and announced that it has entered into a conditional contract to sell its interest in the Townsville Ocean Terminal and Future Development Area Project to CEC Group for $30 million.
The development includes a dedicated cruise ship terminal and wharf area and the reclamation of land which will feature up to 700 luxury waterfront lots and waterfront units including a retail precinct.
City Pacific will receive proceeds of $12.5 million from the sale in FY08, $12.5 million in FY09 and $5 million in FY10.
City Pacific’s managing director Phil Sullivan said the company will announce the conclusion of other significant transactions.
“City Pacific will not sell any of its assets unless the sale is aligned with its business operations and objectives,” he added.
In addition to the sale, Sullivan said the $1.15 billion City Pacific First Mortgage Fund has secured $100 million from an unnamed institutional investor.
The institutional investor will become a joint first mortgage lender with the fund on the portfolio of loans. This co-investment will be in stages with the initial $30 million prior to March 14 and the balance to be received during the second half of March 2008.
The co-investment will release $100 million back to the FMF which will be used to continue the investment objectives of the fund.
The existing banking facility of the FMF is $240 million and the repayment is due by May 31 2008.
Meanwhile, Sullivan said he had a margin loan which represented less than 5% of his holdings.
But he added that the majority of this loan has been repaid with the balance of the loan secured by real property.
City Pacific’s share price closed 44.5 cents or 45.65% higher at $1.42 on the trade of 2.67 million shares.
Australian Property Journal
