Australian property group in voluntary admin

News release

29 May 2007

Australian property group in voluntary administration – implications for New Zealand investors

An Australian property investment group, that had been raising funds in New Zealand, has gone into voluntary administration. The Estate Property Group, including its finance company Australian Capital Reserve (ACR), appointed administrators yesterday, according to the Australian Securities and Investments Commission (ASIC). ACR had raised over $A300 million between 2000 and 2007, ASIC said.

The group was raising funds in New Zealand from February until late April this year, through its New Zealand sister company, Australian Capital Reserve (NZ) Limited.

Earlier this year ASIC stopped ACR in Australia from raising money because of concerns about disclosure in the Australian prospectus.

“We were concerned about the implications of this for New Zealand investors,” the Securities Commission’s Director of Primary Markets, Kathryn Rogers said.

“We raised concerns about the property valuations in the New Zealand finance company’s offer documents, also that they had not disclosed the ASIC stop orders and the effect this could have on New Zealand investors.”

The company subsequently voluntarily withdrew its offer in New Zealand.

The Commission is informed that all New Zealand investors in that company have been repaid.

Any New Zealand investors who have not been repaid should contact the Securities Commission.

ENDS

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