The fund, which invests in a portfolio of Australian registered first mortgages over commercial, residential, industrial, retail and vacant land, was closed in March 2009 due to the global financial crisis.
According to a director’s report audited by Ernest & Young, since the fund was closed in 2009, the “Responsible Entity’s (LM) prime focus has been to see the repayment of all loans to create the cash flow required to effect the progressive repayment of the fund’s line of credit facility and to realise distribution of capital for investors.”
LM chief executive Peter Drake said: “An intensive repayment of all loans has been critical to create the necessary cash flow to enable the progressive repayment of the Fund’s line of credit facility, and to realise distribution of investor capital.
“LM has successfully avoided unnecessary fire sale of assets, managing and maintaining assets for best value outcomes on behalf of all investors when ultimately sold.”
The strategy has so far seen LM reduce the number of outstanding loan assets from 55 when the fund closed to 28 and seen a reduction in the original credit facility from A$133m to A$29.4m, a reduction of A$103.6m. The fund’s unit price as at 16 November was 59 cent.
