Co-investor for City Pacific

City Pacific told the ASX yesterday that an "institutional investor" would "co-invest" approximately $100 million "in a portfolio of large first mortgage loans" with the firm's First Mortgage Fund.

The firm said the investor would chip in $30 million by tomorrow and the balance "during the second half of March".

The unidentified investor, as a co-investor in nominated loans, must rank ahead of retail investors in the fund. While City Pacific is still seeking retail investment in the fund, retail investors may not redeem investments without 180 days notice under changes to the fund's practices announced last week.

City Pacific also disclosed that 3.8 per cent of the fund's development loans are past due. The firm manages about $1.1 billion in loans through the fund.

The firm also said it would sell its interest in a Townsville commercial development to CEC Group for $30 million. The firm said CEC had until June 2 to complete due diligence and did not spell out a timeline for CEC to close the sale.