Residential property developer Du Val Capital Partners is working to reassure investors that its build-to-rent fund has adequate reserves to meet its obligations, BusinessDesk reports.
Du Val’s manager of investor relations, Ben Good, said that directors are now focusing on “financial modelling” to ensure that sufficient reserves are maintained to meet obligations.
Last month the Financial Markets Authority warned the company about misleading and deceptive statements to investors in its mortgage fund.
The regulator said investors may have been given a misleading impression of the reasons for Du Val suspending cash distributions on the fund and proposing instead to convert cash distributions into units, pending a potential public listing.
BusinessDesk has spoken to one person who invested more than $900,000 in the Du Val mortgage fund because of its high interest rate.
