S Pattinson Buys Hatmax Mortgage
Sydney Morning Herald
Friday February 22, 1991
Washington H. Soul Pattinson and Co has further diversified its investment portfolio, with the purchase of Hatmax Mortgage Management Ltd, which has more than $100 million in mortgages under management.
The chairman of Soul Pattinson, Mr Jim Millner, said the business fully met the company's investment criteria.
Hatmax was acquired from Security Pacific Australia for an undisclosed price and has about 120 mortgages under management, of which $70 million is managed through The Hatmax Investment Trust.
The trust provides fixed-interest rates for individual mortgages, usually for fixed terms of two or three years.
The Hatmax trust is not obliged to redeem units, as a mechanism to protect long-term investors against it coming under pressure from a rush of redemption applications. It has also restricted itself to first mortgages over quality commercial and residential properties and does not lend more than 66 per cent of a property's valuation.
Development and rural properties are excluded from the investment criteria
Mr Millner will join the Hatmax board. The other directors are Messrs C.M. Lucas, D.J. Bayly, D.E. Gillard and W.R. Hattersley.
While Soul Pattinson is best known for its pharmacy stores, it has built up a large portfolio of other investment activities including 44 per cent of investment company Brickworks and Newcastle Television station, NBN.
© 1991 Sydney Morning Herald
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