Torchlight Fund No 1 LP, the Pyne Gould Corporation-owned property funds manager, has confirmed it will invest another $15.5 million in South Canterbury Finance.
The money, on top of $22m investment previously announced, brings Torchlight's total investment in the finance company to $37.5 million.
Allan Hubbard's Southbury Corp will continue to own 100 percent of South Canterbury Finance and will subscribe for the same dollar value of new fully paid ordinary shares in South Canterbury Finance.
The investment will be subscribed in full on May 31.
The deal will see South Canterbury Finance guarantee the redemption by Timaru-based Southbury Corp of the securities issued to Torchlight Fund and will grant a prior ranking charge over its assets in support of the guarantee.
Southbury Corp will also indemnify South Canterbury Finance for any payments required to be made under the guarantee.
South Canterbury Finance chairman Allan Hubbard said Torchlight's additional funds were a further endorsement of the repositioning of the business in the last six months.
South Canterbury Finance was one of only a handful of finance companies with the ability to provide funds for business growth and development beyond the traditional banking sector, he said.
Torchlight is run by significant Pyne Gould shareholder George Kerr, who said he was committed to helping South Canterbury Finance to execute its strategy of moving towards three distinct business groups: traditional finance, private equity and real estate and asset management.
Mr Kerr is the great-great grandson of F H Pyne, who started one of Pyne Gould Corp's founding businesses in 1887.
