Syndicate wind-up plan approved

The vote, which took place in Auckland, was passed by 119-70 (63%), which met the required threshold of 55% under the Management and Ownership deed.

Christchurch-based Chartered Accountancy company Taurus Group has been appointed by SPI Capital to wind up the affairs of the syndicate, after concerns were raised by some investors about the process.

Over the next week, Taurus will distribute the initial pay-out of $27,000 per unit, which is more than the $25,000 originally invested, on top of the $14,000 already paid to investors in cash distributions.

Taurus will then manage the sale of the land, which according to SPI is estimated to produce another significant pay-out to investors dependent on the sale of that asset.

SPI said the $1.1 million related-party loan at the heart of the investors’ concerns would be realised and on the settlement of that asset investors would receive the net proceeds from that repayment; the syndicate will then be wound up when all the assets are realised.

Murray Alcock, director of SPI Capital said the vote had led to a good result for the syndicate’s investors.

“It is good to see this positive news for property investors after the tragic events in Canterbury. This is a good outcome for Gloucester Syndicate investors and we encourage people to re-invest in the Canterbury region where they can, particularly now that the Christchurch blueprint is a reality.”

Comments from our readers

On 30 August 2012 at 7:28 pm Andrew said:

Good Result - many thanks to the Chairman for controlling what was a difficult situation at times. No thanks to Mr Gale and Mr Jones who nearly got frog marched out by myself and a number of other investors. Glad it now has formal direction and purpose and will be resolved as anticipated.

On 31 August 2012 at 1:10 pm Simon said:

Who wants to bet whether any investors will ever get the $1.1 million owed to them?

The money was used incorrectly in an inter-party related loan and API Capital have got away with it thanks to a natural disaster and kind NZ tax-payers. There should be a fire sale on the Hamilton property to give the money back to the original investors in this syndicate.

On 3 September 2012 at 10:52 am Simon said:

Is it coincidence that the FMA has now brought property syndicates into its regime too? Pity it is too late for this syndicate as it is being wound up.

This now means that SPI Capital and other property syndicates would not be able to make future inter-party related loans, unless the fund/syndicate is in the business of borrowing or lending money in the ordinary course of the client's business on terms consistent with the client's normal business terms.

For those interested check out the link below.

http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2012/fma-proposes-overhaul-of-rules-around-property-proportionate-ownership-schemes/?utm_medium=email&utm_campaign=FMAs+latest+media+releases&utm_content=FMAs+latest+media+releases+CID_e714089673051fc3c1e479a1afd5daa2&utm_source=Email+marketing+software&utm_term=media+release

Syndicate wind-up plan approved

Investors in SPI Capital’s Gloucester property syndicate have voted to terminate the syndicate after the insurer paid out $40 million on the earthquake-damaged Farmers Car Park building.

Thursday, August 30th 2012, 7:00PM 3 Comments

Comments from our readers

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