SECOND MORTGAGE INVESTMENT FUNDING
CapitalGroup was approached to assist with the settlement of a strip of retail shops in a key Auckland retail precinct. The purchaser was under a tight time frame requiring due diligence and settlement to occur quickly. Due to the location of the property, we were comfortable that in the event any of the tenants were to leave, that a replacement tenant would be found shortly.
CapitalGroup invested funds for the following reasons:
- The purchaser was providing collateral security over another quality property.
- He had considerable additional equity which was tied up in other investments. Whilst we didn’t have security over these additional investments they provided us with a degree of comfort that he would be able to repay our facility should the market deteriorate for such investments.
- The property was extremely well located in a highly sought after retail precinct.