City Pacific has succeeded in reducing its debt exposure, announcing to the Australian Securities Exchange (ASX) today that its City Pacific First Mortgage Fund has paid $50 million of its bank facility.
The company told the ASX that with the payment of the $50 million, the fund had reduced its bank facility from $240 million in January to $130 million, representing a gearing level for the $1 billion fund of 13 per cent.
Payment of the $50 million followed the company last week announcing that the fund had received a loan repayment of $60 million, bringing the total funds repaid by borrowers to the fund this financial year to approximately $855 million.
It said that of the $855 million received by the fund, $655 million was advanced to borrowers in order to complete existing projects in the usual course of their developments.
