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ACQUISITION OF RESIDENTIAL MORTGAGE LOAN BOOK

CapitalGroup took advantage of the disruption in the financial markets following the Global Financial Crisis to acquire 68 housing loans secured by first mortgage over Auckland CBD residential apartments. The first tranche of these loans was settled in 2010 and the prevailing difficult market conditions enabled the loans to be purchased at an attractive price.

Active management of the loan book coupled with sensible use of bank debt funding has enabled an acceptable return to be generated for investors.

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