THIS FUND PROVIDES ELIGIBLE INVESTORS AN OPPORTUNITY TO PARTICIPATE IN THE NZ SECURITIES FIRST MORTGAGE FUND.
The fund provides first mortgage loans to borrowers who are requiring funds for property investment and developments within the NZ property market. The fund provides investors with a fixed interest return of 8.5% per annum on their investment with maturity dates from 12 months to 3 years.
The Fund is managed by Reesby Management Limited who are part of the Reesby & Co group of companies. Reesby & Co has operated for nearly 30 years and in this time raised approximately $20 billion of funding for property investors and developers. Reesby & Co is highly respected in the business community and the major NZ banks. Reesby & Co manages an existing first mortgage loan book in excess of $350 million.
The recent changes to the New Zealand banking market and an increased demand by housing developers for residential house development funding has created an opportunity to provide secure first mortgage loans. The loans have a simple security structure being a first ranking registered mortgage and a general security agreement providing security over the assets of the borrower (where applicable) and unless otherwise specifically agreed, personal guarantees.
All the funds raised by NZ Securities First Mortgage Fund are advanced to Spinnaker Nominees who has agreed to maintain a minimum equity requirement of 5.0% of its total assets. This results in the manager of the fund investing up to $5 million of their own funds into the fund which will rank behind the investor funds in priority. This provides comfort to investors that the manager has their own funds at risk.
CONTACT US
+64 21 360 311
tomh@reesby.co.nz
GENERAL LOAN CRITERIA
The loan criteria applied in respect of loans made using proceeds from the Fund (through Spinnaker Nominees) is as follows:
1) Maximum loan amount of $15 million.
2) Security: the standard security requirement will be:
a) Registered first mortgage over residential and commercial properties in New Zealand metropolitan cities.
b) First ranking General Security Agreement over the entity that owns the property (where the Manager determines this is necessary for credit purposes).
c) Personal guarantee of the sponsor(s). Other relevant guarantees will be obtained where the Manager determines this is necessary for credit purposes.
d) Assignment over material leases, fixtures, agreements etc (where the Manager determines this is necessary for credit purposes).
For development loans the requirements are similar with security also taken over presales and construction contracts.
3) Maximum term of 24 months for each Loan.
4) Maximum loan to valuation ratio of 75% including all interest and fees based on the market value of the property. The maximum average loan to value ratio across the entire mortgage loan portfolio not to exceed 65%.
5) Property to be valued by a registered valuer approved by the Manager.
6) The Manager will lend on commercial, residential, industrial property and land. The Fund’s initial primary focus however is lending to develop affordable residential property in the Auckland region.
7) No lending to persons employed by Reesby & Co, RML, Spinnaker Nominees or Spinnaker Fund.
8) Any subsequent debt/charges behind Spinnaker Nominees’ security are to be subordinated.
9) For development loans, funds will only be advanced on a cost to complete.
REGISTER YOUR INTEREST
To find out more about the offer, please register your interest by clicking below and providing your name and contact details. You will then be able to download the Investment Offer Memorandum and the Application Pack.