About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, September 3rd, 7:55AM
rss
Latest Headlines

Waltus merger objectors lose again but win costs

The objectors to last year’s merger of 27 Waltus property syndicates lost the last part of their court battle this week, although they did win the right to reasonable costs against the wishes of Waltus’ management.

Sunday, September 16th 2001, 9:10PM

by Jenny Ruth

Last year, Master James Thomson of the High Court agreed with the objectors’ argument that it appeared that the management company, Waltus Investments which is owned by the Hodge family, would pocket $2.95 million in pre-paid management fees if the $227 million merger proceeded.

Given Waltus’ explanations delivered at a hearing in June, "I am satisfied that there is no double payment involved in the way first thought," Master Thomson says in his judgement this week.

Last year, he said the matter had caused him "real concern" and that "I think the objectors criticisms on this issue are well made."

The Master’s view has changed radically. "It has to be said that it was somewhat of an opportunist submission made late in the original hearing," he says in his latest judgement.

At the time each syndicate was formed, investors paid a 3% management fee to cover 10-years worth of management. The objectors argued that because some syndicates haven’t existed for 10 years yet, their investors shouldn’t be charged fees twice. The amounts range from zero for some syndicates to $663,982. A new fee structure started from the date of the merger.

Waltus successfully argued that investors were compensated through a variety of measures, including specific fee reductions and the cancellation of promoter’s shares in the syndicates, which had a total value of $2.58 million. That and other concessions were worth more to the investors than the prepaid fees, it claimed.

In any case, the prepaid fees were non-refundable and were written off in the year they were received and so weren’t an asset in the books of each syndicate.

On the matter of costs, Master Thomson says the merger process was structured in a way which allowed any objectors the right to be heard in court.

The fact that they were "greatly assisted the Master in making his decision by testing the integrity of the arrangement," he says.

"Further, I do not think, given the massive task this exercise was for all involved, that the quantum of costs claimed by the objectors is unreasonable and they are ordered to be paid."

Waltus director Shayne Hodge says the decision "vindicates the integrity of Waltus."

The merged syndicates have since been renamed Urbus Properties.

« Demystifying Hedge FundsSovereign takes regulation bull by the horns »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • 800 AML returns sent to FMA
    “Maybe those 50 entities have concluded it is an absolute nonsense. ...”
    5 hours ago by Stan walker
  • 800 AML returns sent to FMA
    “I'm now curious as to how all of the submitted information will be used by the FMA. My review of the questionnaire was...”
    6 hours ago by Pragmatic
  • What’s the point of independent advisers?
    “I agree with John’s view that independent financial advisers have a key role to play in the market. At ANZ we fully support...”
    21 hours ago by John Body
  • Bank advice 'an area of concern'
    “A few weeks ago, I provided advice to a new client in a comprehensive financial plan. There were numerous recommendations,...”
    21 hours ago by AFA Muggins
  • New course for mortgage advisers
    “I would like to join the course, I have recently registered my self as a RFA ...”
    21 hours ago by Dilkhush Surani
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AMP Home Loans 7.24 5.99 6.39 6.65
AMP Home Loans $200k+ 7.14 5.89 6.29 6.55
AMP Home Loans LVR <80% - - 5.85 6.29
ANZ 6.74 ▲6.15 6.49 ▼6.49
ANZ LVR > 90 6.74 ▲6.65 6.99 ▼6.99
ANZ Special - 5.75 5.99 -
ASB Bank 6.75 6.09 6.40 6.65
ASB Bank Special - - 5.99 6.19
BankDirect 6.75 6.09 6.99 6.65
BankDirect Special - - 5.99 6.19
BNZ - Classic - - 5.99 ▼6.19
Lender Flt 1yr 2yr 3yr
BNZ - GlobalPlus 6.74 5.99 6.39 6.59
BNZ - Mortgage One 7.15 - - -
BNZ - Rapid Repay 6.74 - - -
BNZ - Std, FlyBuys 6.74 5.99 6.39 6.59
BNZ - TotalMoney 6.74 - - -
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 5.90 6.50 -
Credit Union North 6.45 - - -
Credit Union South 5.75 - - -
eMortgage 6.04 6.15 6.69 7.19
Finance Direct 6.10 6.45 6.69 7.10
Lender Flt 1yr 2yr 3yr
First Credit Union 6.45 - - -
General Finance 5.95 6.25 6.50 7.10
HBS Bank 6.15 5.85 5.99 6.25
HBS Special - - - 5.95
Heartland 6.45 6.75 7.00 7.60
Heretaunga Building Society ▲6.70 ▲6.00 6.50 -
Housing NZ Corp 6.74 5.99 6.19 6.60
HSBC Premier 6.84 5.95 5.95 6.55
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 6.75 5.99 6.39 -
Lender Flt 1yr 2yr 3yr
Kiwibank 6.65 5.99 6.39 6.65
Kiwibank - Capped 5.65 6.50 - -
Kiwibank - Offset 6.55 - - -
Kiwibank LVR > 80% - - 5.89 -
Liberty 5.64 - - -
Napier Building Society 5.80 6.00 6.70 -
Nelson Building Society 6.95 6.15 6.60 -
NZ Home Loans 6.85 6.09 6.40 6.65
Perpetual Trust 7.70 - - -
RESIMAC LVR < 80% 6.59 6.35 6.58 6.77
RESIMAC LVR < 85% - - - -
Lender Flt 1yr 2yr 3yr
RESIMAC LVR < 90% - - - -
RESIMAC LW DOC - - - -
SBS Bank 6.15 5.85 5.99 6.25
SBS Bank Special - - - 5.95
Silver Fern 5.95 6.10 6.55 7.05
Sovereign 6.85 6.09 6.40 6.65
Sovereign Special - - - 6.19
The Co-operative Bank 6.70 6.00 6.00 6.25
TSB Bank 6.74 6.00 6.19 6.60
TSB Special - - ▼5.79 -
Wairarapa Building Society 6.20 5.75 5.95 -
Lender Flt 1yr 2yr 3yr
Westpac 6.59 6.09 6.39 6.65
Westpac - Capped rates - 6.74 6.99 -
Westpac - Offset 6.59 - - -
Westpac Special - - 5.99 6.19
Median 6.70 6.00 6.39 6.59

Last updated: 2 September 2014 5:21pm

News Quiz

What is the name of a new website aimed at improving the financial literacy of New Zealanders?

Get Smart

Money Sorted

Be Dollar Wise

Financial Literacy for You

The Exchange

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by PHP Developer and eyelovedesign.com