tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, March 29th, 10:40AM

News

rss
Latest Headlines

Syndicate wind-up plan opposed

Investors in one of SPI Capital’s property syndicates are being called on to vote against winding it up until a $1.1m unauthorised loan – and the bill for the manager’s apology – has been repaid.

Thursday, August 23rd 2012, 7:00AM 6 Comments

by Niko Kloeten

SPI recently sent a letter to investors in its Gloucester syndicate advising them of its plan to terminate the scheme, which will be put to the vote at a special meeting next week.

The move to close down the syndicate comes after an insurance pay-out of $40.6 million was finalised for the syndicate’s earthquake-damaged building in the Christchurch CBD, which is to be demolished. 

The syndicate has 215 units issued at a unit contribution of $25,000; the wind-up plan will see investors get $27,000 each from the proceeds of the insurance settlement.

“The Gloucester Syndicate has provided a cash paid return to investors from inception of $14,790 (an average of 10.3% pa) up until the time of the earthquake… total cash returned to investors will be $41,790,” the letter said.

“Further to this there is more to come following the realisation of the SPI Assets advance [the $1.1 million related-party loan] and the land.” 

However, not everyone is happy with the proposal.  Accountants Cliff Jones, Robert Gale and Bill Cooney, who are all invested in the syndicate, have sent a letter to other investors urging them to vote against the plan as it stands.

They will be putting forward resolutions that would require SPI directors Murray Alcock and Allister Knight to repay the $1.1 million loan, which was funded by increasing the size of the mortgage without the knowledge of Gloucester’s investors.

They are also pushing for any fees owing to the manager to be offset against the outstanding loan advances, and for the manager to “repay the $36,846 they charged the syndicate to apologise to investors for Alcock and Knight acting outside of their legal authority.”

The proposed $27,000 pay-out should be $10,000 higher, they said.

“In addition to the $5,000 not being paid because of the $1.1M taken by Alcock and Knight investors would have received an extra $5,460 if SPI had done their job and ensured Loss of Rents insurance was in place for the Syndicate.

“So the first pay-out would have been over $37,000 not $27,000 SPI saying is a job well done.”

Jones told Good Returns the outcome for investors in the syndicate could have been much worse had it not been for the earthquake and subsequent insurance pay-out.

“It looks like investors will get their money back because the insurance paid out on replacement value which was higher than the market value of the building.”

Alcock said he was aware of the letter by Jones, Gale and Cooney but wasn’t aware of its contents.

Niko Kloeten can be contacted at niko@goodreturns.co.nz

« SFO to appeal Capital + Merchant verdictFund managers call for level playing field »

Special Offers

Comments from our readers

On 23 August 2012 at 9:44 am Raewyn Moore said:
I have been appalled at the SPI manager's actions, their constant covering/hiding of true facts and continually failing to keep promises to pay back the $1.1 million loan to investors. Gale, Jones and Cooney have always acted in the interests of investors and I applaud their work and agree with their recommendations.
On 23 August 2012 at 12:13 pm Andrew Donnison said:
Yes - but others don’t share yours nor their sentiments either Raewyn. Just my ten cents - but I look after my own affairs thanks very much.
On 23 August 2012 at 10:47 pm Glen Adair said:
Good on Gale, Jones and Cooney. So pleased to see the tricks of these SPI guys brought into the light. They certainly have some questions that require fronting up to.Certainly the mortgage (increased without investors knowledge) should be repaid, that is if SPI has any integrity.
On 24 August 2012 at 1:43 pm Crawfords said:
We are extremely grateful to Messrs Jones, Gale and Cooney for their tireless unpaid work in scrutinizing and overseeing the actions of the SPI Managers and ensuring our investment in the Gloucester Syndicate is going to return to us all what is rightfully ours, including the outstanding repayment of the $1.1million loan!!We consider ourselves very fortunate to have three such professionals acting on our behalf.
On 26 August 2012 at 3:38 pm Mel Hepple said:
We couldn't agree more with the above comments(except Mr Donnison's). Just google Alcock or knight and it will confirm the mess they have left behind over and over again .
On 26 August 2012 at 5:40 pm Simon said:
I simply can not believe that only Good Returns are putting this in the media. This should be in the Herald. You only need to look at ALL the other syndicates run by SPI Capital to realise how incompetent they are at managing commercial property.

All I can say is "thank god for the Chch Earthquake, otherwise this syndicate would have been like the others run by SPI Capital.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 ▼8.09 ▼7.59 ▼7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 ▼9.09 ▼8.59 ▼8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 28 March 2024 9:42am

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