Senior Trust boosts loan to Quail Ridge development

Listed finance company Senior Trust Retirement Village Listed Fund has extended a loan facility to the Quail Ridge Country Club retirement village in Kerikeri, Bay of Islands.

Senior Trust has now increased its loan to Quail Ridge from $5 million to a maximum of $14m.

The low-profile property company has a target of 6 per cent pre-tax returns to investors based on its development loans varying between 10 per cent and 12 per cent, with one loan at nearly 15 per cent.

The fund has first mortgage advances over Wellington’s Whitby Village, the Arrowtown Lifestyle Retirement Village, Kerikeri’s Quail Ridge Country Club, Auckland’s Palm Grove Retirement Village and Wanaka’s Roys Bay Estate.

Senior Trust executive director Scott Lester said the fund is continuing to investigate loans to other ‘‘well-located and soundly run’’ retirement villages and aged-care facilities. The loans are up to a maximum of 60 per cent of the value of the retirement village.

The fund units are currently trading at 98 cents each based on the last intermittent trade, a discount to the listing value of $1.

The fund co-lends with another unlisted fund, Portfolio E, to the Quail Ridge Country Club on arm’s length terms.

In accordance with a security sharing deed, the fund and Portfolio E have a proportionate share based on their contributions in the first mortgage and other securities.

Last month the fund announced a first mortgage advance to Arrowtown Lifestyle Retirement Village for the development of a planned 195-unit retirement village at Arrowtown.

The loan will be up to a maximum of $9m.

Senior Trust Retirement Village Listed Fund has a market capitalisation of $15.5m.