ING Real Estate Community Living Group might have to repay a $US15.5 million facility in 120 days.
The fund yesterday warned investors, after it received an email from Huntington National Bank over the weekend that Huntington is taking a new strategic direction following the appointment of a new chairman.
ILF said though the fund has yet to receive formal notification, it is likely that ILF will have to repay its facility in 120 days time, currently drawn to $US15.5 million.
“We will endeavour to communicate with Huntington National Bank over the next few days to clarify the situation while at the same time pursue a contingency funding plan,” ILF said in a market statement.
Meanwhile the fund yesterday said it has completed the sale of its two United States Student assets located in Richmond, Virginia – Capital Garage and Ramz Hall, for $US19.3 million.
The sale represented a 8% discount to June 2008 valuations. Both properties were acquired in 2006.
The proceeds have been applied to reduce US debt.
The fund also announced it has exited its 50% interest in the Oak Tree Group portfolio for a nominal amount which it says will significantly improve ILF’s calendar year 2009 cash flows.
Australian Property Journal