The NZX-listed Senior Trust Retirement Village Listed Fund said yesterday it had committed to making a first mortgage advance for expansion of the Palm Grove retirement village at Orewa, owned & operated by David & Verla Dawick.
Trust management company director Scott Lester said Senior Trust Capital Ltd, an associated entity, would provide up to $17 million of debt funding, and the interest rate on the loan would support the fund achieving its targeted distribution rate of 6% before tax.
The first retirement village loan by the newly listed fund was to Whitby Village (2009) Ltd, Wellington. The fund limits loans to a maximum of 60% of the independently determined valuation of the retirement village or aged-care facility.
Attribution: Trust release.