Syndicate wind-up plan opposed
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.
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