Hi StockchapSorry for delay in a reply.Where did you hear...

Hi Stockchap

Sorry for delay in a reply.

Where did you hear Paradise Resort is under contract? I haven't seen any media or ASX announcements to support this. I'd love to see in writing that there is a contract. Certainly there has been talk that CP1 is 'close' to securing a contract but that means nothing to me. It only counts when it's a done deal imo. (Remember sale of GCI land fell through once already, and although under contract again - currently the receivers still have not returned their decision on the offers made).

Also "strong interest by buyers regarding Martha Cove", hey call me a cynic but again just cause CP1 says it doesn't mean i believe it. CP1 admitted that "Martha Cove is their only source of cash flow" so they're hardly about to tell you that things are lookimg like they're up the proverbial creek without a paddle!

Ok so they sold GC International Hotel but CP1's share only represents $28M. That won't go far.

You mention $30M regarding the Foundry. It was Fortress that ranked ahead of unit holders in the FMF so it certainly relieves UH's partially of their debt to Fortress but who's to know how it affects the FMF otherwise? Not enough information imo to make an informed decision on that one.

Oh and of course CP1 said in relation to selling some of their assets - "By taking these actions weve been able to NEGOTIATE an extension to the finance packages on Martha Cove and Lake Views until 27/2/09". Well, well, suprisingly (or not) it happens to be the FMF that is aiding them in this endeavour. The CBA loan for the FMF is due on the same date - my what a coincedence!! I mean the question remains, if it weren't a related party would the finance package have been renegotiated??

Market cap for CP1 is around $4M, for CIY it's around $11M. Doensn't instil confidence in me.

What you say about:
"If the FMF was restructured to cover a broad range of mortgages incl. Industrial, Commercial, Offices and not property development mortgages it could continue down a more secure path with no major commitments"

Yes that's fair comment, it would certainly reduce the risk. But whoever takes on the FMF first has to unravel everything that's already been done. It may be that once they've had a good look at the books they may no longer be interested. Unfortunately for unit holders there is simply not enough information coming from City Pacific to have any idea as to the financial health of the fund. (Yes sometimes what they TELL us sounds good, but it's all done with a 'blanket' approach that can muddy the real status of individual property situations).

My sentiments are negative for the stock, yours are positive. Obviously one of us is right!?? It will be interesting to see what develops. In any case as you ARE buying shares i wish you luck. For the moment at least you can be pretty certain of $30M per annum from the FMF in fees! Personally, i just think there are other stocks out there that offer a healthier outlook with less risk.

Nic