City Pacific sells off more property assets
City Pacific has sold its 50 per cent interest in Mirvac Pacific for nearly $16 million to reduce its debt. Mirvac Pacific was sold to City Pacific’s joint venture partner, Mirvac Queensland.
Mirvac Pacific is the owner of a golf course and a developer of an adjacent residential development project.
City Pacific received a $10 million cash payment from the sale to reduce its debt. The company released its obligations as joint venture partner under the development facility provided by the financier by carrying out the sale, and has also released its obligations under an additional development expenditure facility of $6 million.
City Pacific sold its financial services business for $2.2 million last year. The company is selling its property and investment assets to reduce its project and corporate debt. Shareholders were hit with a 290 per cent net loss last year. The company’s chairman, Ian Donaldson, and the chief executive and managing director, Phil Sullivan, resigned last year over its recent problems.
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