Over Fifty’s commercial mortgage activities over and out
Chris Martin
As a result of a strategic review, funds management group Over Fifty Group (OFG) has decided to close its commercial mortgage lending and related funds management activities.
OFG managing director Chris Martin said the decision to cease these activities is due to their small lending base tied in with increased competition within the sector.
“Our small lending base, coupled with an increasingly competitive commercial mortgages sector, has led the company to conclude that shareholder capital could be more effectively deployed to other activities,” said a company statement attributed to Martin.
He said OFG plans to manage the orderly rundown of the loan book held on its balance sheet over the next 12 to 18 months. As a consequence of the decision, approximately $27 million in capital will be progressively repaid to the company as current loans mature.
“Over Fifty Group remains committed to meeting the financial and lifestyle needs of Australia’s ageing population, and is focusing on activities in which it has a sustainable competitive advantage and strong outlook for growth,” Martin added.
OFG does not expect the change to impact on its 2007 or 2009 financial year results.
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