They claimed they were not told, before entering into their investments, of the existence of a loan-to-value covenant in bank borrowings to secure the investments.
The property in question was acquired by the fund in February 2006 but in 2010 a receiver was appointed over it and it was sold in 2011. He says he and his company suffered loss following the appointment of a receiver on foot of the breach of the loan-to-value covenant and the subsequent sale of the property while it was in negative equity.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more: