$1.9 mill start for PAA Legacy Trust
The Professional Advisers Association is looking to realise $2.9 million from the sale of its holiday homes, and expects to use the bulk of this money for its proposed Legacy Trust.
Wednesday, June 1st 2016, 6:30AM
Rod Severn
It froze the scheme last year and has been going through a sales process at the moment.
PAA chief executive Rod Severn says after credits and other expenses are paid there will be a balance of $1.9 million which will be used to form a Legacy Trust.
The Trust may use the money to pay for learning and development services, government lobbying or consumer awareness programmes.
He says the PAA board is currently going through this due diligence process to set up the Trust.
Once the process is completed a meeting is planned to approve the PAA Legacy Trust deed, or alternatively, the appropriate vehicle and structure as a result of that due diligence process.
“We are very grateful to the founders of the Scheme. Their foresight and courage to invest funds for the benefit of all PAA Members have placed the Association in a very strong financial position and that foresight will not be lost going forward,” Severn says in an email to members.
Holiday houses in Rotorua, Taupo, Queenstown and Papanui were all sold to PAA members through a closed tender process.
Nelson and the two Australian properties did not sell through the tender process, however Nelson has now been sold using a real estate agent.
The sale of the two Australian properties is taking longer given the slow state of the Australian market for these types of properties.
The PAA estimates it will nett between $560,000 - $580,000 from the sale of these two properties.
Credits owed to Members at the close of the scheme was 21,402. This will represent a refund to eligible members of $577,820.55
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