http://www.interest.co.nz
The Trustees Executors-owned 1st Mortgage Fund, branded TOWER Mortgage Plus, was being wound up, Tower Investments Chief Executive Sam Stubbs said. The fund lent on a diversified portfolio of residential and commercial first mortgages and was no longer relevant given heavy competition from banks, Stubbs said.
“The current credit environment and increasing arrears and defaults require more conservative provisioning for bad and doubtful debts, which impacts the interest rate payable,” Stubbs said. “This has led to increasing redemption requests and it is prudent and appropriate to act in the best interests of all investors by winding up the fund. We recommended this to the Trustee and they agreed.”
The fund is a group investment fund and was therefore difficult to convert into a PIE (Portfolio Investment Entity) fund.
“As the mortgages are paid and/or sold to other parties in an orderly wind up process, the proceeds will be returned to investors. The first payment is anticipated within 30 days and quarterly thereafter,” Stubbs said.
The fund currently has NZ$242million of assets, including 450 residential and commercial 1st mortgages worth NZ$220million and NZ$22 million in cash.
Tower sold Trustees Executors, which is chaired by former Prime Minister Jim Bolger, in 2003 to US group Sheffield Investments Ltd.
Duration : 0:2:51
Related posts:
- Rod Petricevic is missing
- 2010 Real Estate Market Collapse – Prime Mortgage / Alt-A / Option ARM / Commerical – Investor Alert
- Can I change mortgage lender in the 1st 3 years if bought from local council?
- How long after a change does it take for the fed prime rate to affect the lending rantes offered on mortgages?
- What are the risks associated with refinancing home loan with a local lender instead of the big companies?
