R 100NZ appears to me like a mezzanine scheme and newspaper...

R 100

NZ appears to me like a mezzanine scheme and newspaper reports indicates that it is a lot of retail investors caught up in NZ.

Guarantee rings a little like the Westpoint guarantee that a lot of investors relied on when investing in those schemes.

KIng would have felt for a long time invincible and giving a guarantee from the mothership if that what it took to get the funds in so be it.

Mezzanine funds are the top up where the bank or in this case PIF will not go. It should be the equity that the developer puts in but why risk your own money when you can risk other people and still get all the rewards.

Developments on paper all look great with all lenders getting repaid and a big profit. Throw in some delays, building costs escalations etc and it all goes pear shape pretty quickly if there is no equity in a deal.

Sorry to sound like a broken record but we need Wellington Cap to come clean about what is going to come out of work out of PIF to see where all this lands.