City Pacific announced the sale of its Gainsborough Greens project today for $16 million, of which it will book a $10 million payment after repaying $6 million to joint venturer Mirvac.
That asset sales are taking place to pay down debt in the First Mortgage Fund is all well and good. Still, investors would quite like to know what the book value of these developments is - the prospective total value of this one would appear to have been $1 billion or more - and more critically, what is the penalty interest deal with secured creditors CBA and Fortress.
The problem with keeping City alive is that the CBA knows it will get its $100 million-plus back in remaining loans. Meantime, how much will unitholders in the fund lose as City pays penalty interest?
To provide investors with more idea of the smorgasbord of action groups, here is an email from one organiser.
