email i got from ciy

City Pacific First Mortgage Fund comprises of a pool of borrowers and investors. Investor funds are leant to the pool of borrowers. The borrowers provide property as security in which City Pacific holds a registered first mortgage over. The value of the properties in the Fund are currently valued at over $1.4billion. In the 10 years of operating the Fund we have maintained no capital loss.

Presently the Fund is experiencing delays in the repayment of loans due to the global credit issues. The assets in the Fund are most certainly in place but the delays in loan settlements are resulting in delayed cash flows thus following on to delay the redemptions in the Fund.

If major delays in settlements returning funds into the Fund continue to occur this could impact on our investors’ ability to redeem their funds in September when restrictions on redemptions are due to be lifted. Taking this into consideration the Board of City Pacific is considering alternative options for investors urgently requiring funds to be released. As an investor you will be able to choose to either remain in the Fund or take up an offer if it meets your needs. We are currently reviewing a proposal with independent experts and will provide further details as they become available.