Syndicate wind-up plan approved

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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

by Niko Kloeten

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.”

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

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