Wellington Capital PIF/Octaviar (MFS) PIF

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

Just a thought about the "results" of the Investor Advisory Committee election process.

1. We (PIF) obviously paid for it - mailouts, processing etc.

2. As no figures have been provided, surely we cannot be fully confident in the result.

3. If a Body Corporate election announcement did not reveal figures alongside candidates' names to owners when requested, there would be an uproar. Body Corporate members would immediately appeal to the Dept of Fair Trading or its equivalent.

4. Does Queensland have an authority to whom the AG could appeal on this matter?

From memory, the IAC has no powers. If so, then I expect any authority wouldn't be particularly interested in investigating.

IMO, in absolutely no way does the existence of the IAC diminish or subordinate WC's fiduciary duty to me, an investor.

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

John Fish chases $200m investors

Nick Nichols, business editor Gold Coast Bulletin | November 13th, 2009

...

He said Fish Capital could offer a solution for frozen mortgage funds still carrying debt-laden assets linked to failed Gold Coast companies MFS and City Pacific.

Stressed Raptis Group assets also were on the radar.

...

Oooh I love that word 'solution'. Especially when it's in my favourite phrase: 'innovative financial solutions'. All I read now is WARNING WARNING WARNING DANGER DANGER. Feels like there's more sharks on land in SE Queensland than in the heavily netted waters.


Mr Fish seems to have missed out on the Sheraton Mirage. If he was invited to the table and made an offer that didn't even top Pearl's price that looks like netting PIF .... NOTHING .... then his 'solutions' are likely to be very bitter to swallow.


In writing this I enjoyed revisiting Michael Wests' Dec 10, 2008 article 'Don't Blame the Crisis'.

"Since Wellington’s Jenny Hutson won control of the fund it has dropped to trade around 12 cents per unit, no payments, no buy-back, and practically no cash flow. Pensioners are getting out at 12 cents to ''bottom feeders'' with patient capital."

What sort of fish is Fish?

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

"What sort of fish is Fish?" asks Duped.
I think that leatherjackets could be in abundance.

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

Thanks for the articles:

k.smith: "Are our custodians doing their jobs properly?"
marcom: "Freeze makes no sense, says investor"

I enjoyed reading them. Here's one in return. Hold on to your sides. Some real insight into how embarrassing our federal institutions look like when they come up against the greed they let off the leash. I hope the same doesn't happen to us.

http://www.dailytelegraph.com.au/bu.../story-e6frez7r-1225797579171?from=public_rss

"Tax office says $680m Myer haul likely lost

* By Susannah Moran
* From: The Australian
* November 14, 2009 12:01AM

The tax office is unlikely to be paid the bill without setting off on a worldwide legal chase

THE Australian Tax Office has admitted it has little hope of clawing back the $452 million Myer share sale proceeds sent offshore in the past week by global private equity company TPG.

And despite hitting the Cayman Islands-based TPG parent company with an extra $226m penalty for being involved in an alleged tax avoidance scheme, the tax office is unlikely to be paid that money either without setting off on a worldwide legal chase.

TPG says it has complied with all relevant tax laws, The Australian reports.

The tax office appears to have been stung in the past by complex overseas structures - involving ultimate parent companies located offshore that are not paying tax on Australian deals - prompting its extraordinary actions this week.

On Wednesday night, the ATO asked the Victorian Supreme Court to freeze the National Australia Bank accounts relating to the $2.4 billion float of Myer, which listed on the stockmarket last week in a blaze of publicity involving model and shareholder Jennifer Hawkins.

Two TPG companies were also banned from dealing with the Myer share sale proceeds.

The float cystalised a huge profit for TPG, which led the $1.4bn 2006 purchase of Myer from the Coles Myer group. TPG and its minority partner Blum Capital, which comprehensively restructured Myer and had already recouped their original investments in Myer, pocketed an extra $1.58bn by selling their entire stake in Myer as part of the float.

Yesterday, further details of the tax office's arguments in urgently requesting the account freeze were made public. It took the action after discovering at lunchtime on Wednesday where the money had been deposited.

Judge David Habersberger was told on Wednesday night that, while the tax office had no specific allegations to make about TPG, "in the commissioner's experience when dealing with structures such as these, one of the effects of that structure is that once funds are remitted offshore, then there is nothing in Australia which can be used to satisfy a judgment debt".

TPG's Australian office is 100 per cent-owned by the Texas-based TPG Capital, and it is believed not to have any substantial assets in Australia.

The court was told the TPG structure involved the private Myer Holdings being owned by a Netherlands-based company, in turn owned by a Luxembourg company, and then, ultimately, the Cayman Islands-based TPG Newbridge Myer. The tax office believes the scheme was set up so that the Luxembourg and Caymans Islands companies would not pay tax on the profits they made on the share sale.

The tax office's barrister, Terry Murphy SC, also said there was "virtually no hope" of being paid the $678m it has claimed - the $452m tax debt plus $226m penalty - once the money had left Australia. On Thursday, the ATO's worst nightmares were realised when it was discovered TPG Australia's account had $45 in it, with $1.5bn moved overseas in the previous 10 days. The freezing orders were lifted, and the tax office's application dismissed. "

_________________________________

According to BusinessSpectator, no tax was due anyway thanks to generous laws introduced by Costella and Dutton. Doh!
http://www.businessspectator.com.au...TPG-tax-pd20091116-XU86Q?opendocument&src=rss

 

[targav 8]

Re: Octaviar MFS Premium Income Fund PIF

There are many members using the forum and it is great to see. It would be nice if all of the users who are unit holders login, even if you don't have much to say, it would be nice if we could hear your views in order that the people who are really working on your behalf behind the scenes could get a sense of the mood out there and what future directions we should take. I am simply saying, "knowledge is power" "strength in numbers" and "people power". Please seriously consider this option.

yes i' been reading these post for a while , and i stopped crying last year. one question is what is happening to the income from the pif fund which is i believe is 19 to 20 million dollars a month? ALl

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

yes i' been reading these post for a while , and i stopped crying last year. one question is what is happening to the income from the pif fund which is i believe is 19 to 20 million dollars a month? ALl

Hi Targav and welcome. The PIF 'USED' to generate that sort of money before it was robbed by OCV/MFS. Since February 2008 any worthwhile PIF assets have been flogged off to repay the $200mill RBOS loan used to prop up related OCV/MFS entities. Nowdays I believe any income or capital from further sale of assets is chewed up by WC operating expenses and legal fees never to be seen again by unit holders and to date, rather than increase unit values and commence distributions as promised by WELLINGTON CAPITAL and JENNY HUTSON we have the complete opposite. A complete lose lose situation. Seamisty

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Hi all, Marcom has volunteered to collate investor complaints and issues that deserve an answer from WC. Is there a PIF investor with time, willing to collate details of all media journalists who has had previous association reporting on issues relating to PIF/OCV/MFS? I feel it will be an advantage to have a data base of interested/previous media contacts on stand by for future contact with PIF related issues in view of the fact that it is now known that PIF investors had legitimate complaints that went unadressed/ignored indefinitely from numerous contact points. For those that continued to support us in the media I feel that there is plenty more to come, including details from those in a position of power who not only did nothing to help, also did not even acknowledge original complaints. Including those govt elected bodies which departments in their wisdom, quaranteed vital correspondence from investors with indisputable evidence and concerns alerting them to blatant fraud and misconduct. I know this arguement is getting repetative, but from past experience, the louder the noise, eventually, the louder the response. So start SHOUTING PIF investors, we have not achieved a Class Action and (finally) ASIC support from sitting back and reading posts on aussie stock forums. BE HEARD!! MAKE NOISE!! Cheers Seamisty::::Wellington Hotline:: 1300 854 885 ASIC ::http://www.asic.gov.au/fido/fido.ns...ts+-+guide+to+making+a+complaint?openDocument

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

From todays AFR: (anyone got a copy?)

PIF backers get a $38m sale to savour

Long-suffering Premium Income Fund investors can expect some joy next year after the sale of the first major asset in the $300 million portfolio.

What has she sold??? Wollongong hotel??

 

[targav 8]

Re: Octaviar MFS Premium Income Fund PIF

Thanks seamisty i thought Jenny hutson was going to be our savior, now i just don't know.how can they take all that money ,and make it disappear on fees . is'nt there any control by lawers or administrators on our side?

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

Just received this email from our financial advisor:

Sent: Wednesday, November 18, 2009 8:02 AM
Subject: UPDATE: Wellington (MFS) Premium Income Fund

Dear Investor,

It is with great pleasure that I can finally provide you with some good news in relation to your investment in the Wellington Premium Income Fund.

It was announced yesterday that the Premium Income Fund had sold the partially completed City Beach Hotel in Wollongong for $38m. The development was the largest in the Premium Income Fund portfolio, comprising 168 hotel rooms, 75 apartments and 10 luxury penthouses.

This is the first major asset sale for the Premium Income Fund. Jenny Hutson of Wellington said that the sale will allow the Fund to make distributions to unitholders from next year.

Regards,

Never mind the price sensitive price disclosure to the NSX!!!!!!!!

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Just received this email from our financial advisor:

Sent: Wednesday, November 18, 2009 8:02 AM
Subject: UPDATE: Wellington (MFS) Premium Income Fund

Dear Investor,

It is with great pleasure that I can finally provide you with some good news in relation to your investment in the Wellington Premium Income Fund.

It was announced yesterday that the Premium Income Fund had sold the partially completed City Beach Hotel in Wollongong for $38m. The development was the largest in the Premium Income Fund portfolio, comprising 168 hotel rooms, 75 apartments and 10 luxury penthouses.

This is the first major asset sale for the Premium Income Fund. Jenny Hutson of Wellington said that the sale will allow the Fund to make distributions to unitholders from next year.

Regards,

Never mind the price sensitive price disclosure to the NSX!!!!!!!!

Marcom and all, that property owed us $58million plus interest as at Mar 2007!!!! Disgusting, absolutely disgusting!!! When I met with Jenny Hutson and Caroline Snow, the only strategy offered regarding the rebuilding of PIF unit value was that dead assests would be weeded out and good assets would be VALUE ADDED with possible future capital raising. What happened to joint venture partnerships? and I quote::: "Wellington has undertaken an analysis of all assets with respect to identifying those that are suitable for immediate disposal, those that should be held as is pending market recovery, and those that can be developed and in time will deliver a premium to the fund."::::::Looks like we will receive our long awaited distribution before Xmas if we are lucky. Anyone care to hazard a guess as to our unit value now?
Seamisty

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

Thanks for making my day a little brighter, Marcom. How many distributions can be made out of 38 million?

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Heres your NSX announcement Marcom, what does it mean? Do we get $38mill next year when the hotel is completed? Do we get a share of the profits. very obscure announcement or am I just dumb? Seamisty

Commercial Loan Portfolio
Mortgagee in Possession: Harbour Street, Wollongong
Wellington Capital Limited as responsible entity for the Premium Income Fund in its capacity as mortgagee
in possession of 60 – 62 Harbour Street, Wollongong has sold the partially complete asset, hotel and
apartment complex to Harbour Street Development Pty Ltd for $38 million (plus GST).
This sale will see the Premium Income Fund realise its carrying value for the asset over time. Cash will be
available to the Fund following completion of building works and sale of the 75 apartments which form part
of the project. Completion of building works and completion of sales are expected to occur during 2010.
Jenny Hutson, Managing Director of Wellington Capital said ‘Our team has been in negotiations with
various parties in relation to this asset all year. This property was taken to auction in May 2009 and there was
significant interest in the project from a range of parties. The sale to Harbour Street Development Pty Ltd
represents a very positive outcome for the Premium Income Fund.’
It is anticipated that the net proceeds from the sale of the apartments will enable a cash payment to be made
to unitholders of the Premium Income Fund during 2010.

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

The NSX announcement states "This sale will see the [PIF] realise its carrying value for the asset over time." What does that mean? The Dec08 Investor update reported the asset owed us $58M by May 08.

Had the $20M difference already been written off (impaired) in the current 39.2c valuation per share? From my lay reading of the above sentence the $58M was already written down to $38M. (See Note 11 of the 09 Ann Report)

If I'm wrong then its $20m last week, $20M this week - gone forever.

A further $40M write off would bring the fund value down from $296M to $256M. Or from 39.2c per share to 33.9c (Based on the 30/6/09 audited figures.)

The 3c distribution WC needs before it can start paying itself a profit (?) would cost $23M.

The full $38M would deliver a return of capital of 5c a share. But expect much of it to evaporate into fees to WC and its top secret service providers.

Seems everything is selling at a 30-40% discount to the market peak. Last week it was the Sheraton Mirage.

Am I correct to assume that substantially contructed assets are the worst for us? Because they can don't bring income and can begin to deteriorate/date and lose value. Whereas empty land can just be land banked and completed assets can be bring income.

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

Looking through the 09 Annual Report again I note that Perpetual Nominees Ltd holds the units on behalf of the 84.4 million Wholesale Premium Income Fund units.

Are non 'Wholesale' unit holders paying for this Perpetual service? I fear we do. How else could Perpetual's fees come to nearly a $MILLION last financial year.

Note 2 (e) states "There are no separate classes of units and each unit has the same rights attaching to it as all other units of the Fund". Given that Wholesale unit holders get no extra benefit anymore, why don't they get rid of the WPIF structure so we can save us all some money and take a moment together to enjoy the pleasure of sacking Perpetual.

Or perhaps WC could offer WPIF holders the option of transferring out of WPIF. I'm guessing Perpetual's fees are proportional to the size of WPIF. Even if we could cut Perpetual's fees by $100K. Wouldn't that pay the salary of a couple of the nice people at WC who take all our nasty calls?

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Looking through the 09 Annual Report again I note that Perpetual Nominees Ltd holds the units on behalf of the 84.4 million Wholesale Premium Income Fund units.

Are non 'Wholesale' unit holders paying for this Perpetual service? I fear we do. How else could Perpetual's fees come to nearly a $MILLION last financial year.

Note 2 (e) states "There are no separate classes of units and each unit has the same rights attaching to it as all other units of the Fund". Given that Wholesale unit holders get no extra benefit anymore, why don't they get rid of the WPIF structure so we can save us all some money and take a moment together to enjoy the pleasure of sacking Perpetual.

Or perhaps WC could offer WPIF holders the option of transferring out of WPIF. I'm guessing Perpetual's fees are proportional to the size of WPIF. Even if we could cut Perpetual's fees by $100K. Wouldn't that pay the salary of a couple of the nice people at WC who take all our nasty calls?

Yes Duped, but would it also not relinquish WC's 11% voting control? Seamisty

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

Yes Duped, but would it also not relinquish WC's 11% voting control? Seamisty

I didn't know WC had voting control. Can I see the WPIF PDS and constitution?

 

[lawry1dog]

Re: Octaviar MFS Premium Income Fund PIF

Good to see something has been sold by WC.

The problem I have, is that WC will give us a Distribution, all from the $38million, but then we will be back to square one again.
This Distribution amount will be laughable to me.

The NSX Unit value will go down, because the fund worth has gone down.

I thought the idea was to increase the NSX unit value to $1.00, so then we
can get our money back.

The $38 million should be kept in the fund, so as to increase its value.

What exactly are we trying to do here. Waiting on some compensation from
the ASIC and Class actions. I do not think so.

I am totally confused on you people, thinking it is a great outcome.
WC has to have a lot more money in the fund, before it is back to
its original value.

Isn't a matter of mathematics.

Or am I missing something?

Lawry1Dog

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

Wellington Capital Limited as responsible entity for the Premium Income Fund in its capacity as mortgagee in possession of 60 – 62 Harbour Street, Wollongong has sold the partially complete asset, hotel and
apartment complex to Harbour Street Development Pty Ltd for $38 million (plus GST).

This is a substantial asset in the fund, so I want to know who the purchaser is?

Searched the ASIC company database for this company:

Extracted from ASIC's database at AEST 13:49:01 on 18/11/2009
Name HARBOUR STREET DEVELOPMENT PTY LTD
ACN 140 144 869
Type Australian Proprietary Company, Limited By Shares
Registration Date 22/10/2009
Next Review Date 22/10/2010
Status Registered
Locality of Registered Office Capalaba QLD 4157
Jurisdiction Australian Securities & Investments Commission
Documents Lodged 22/10/2009 1E5925831 pages 3 201C Application For Registration as a Proprietary Company

The company was only registered on 22/10/09 - could be a special purpose vehicle set up for the project, BUT
- Who are they?
- Do they have the requisite funds to complete the purchase and the project?
- What are the terms of the sale?
- Are we in effect financing them into the purchase?
- When and how much will the sale realise?
- Are we protected if they default?

TOTALLY INADEQUATE DISCLOSURE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! iT'S OUR MONEY JENNY!!!!!!!!!

 

[evelyn]

Re: Octaviar MFS Premium Income Fund PIF

There are many members using the forum and it is great to see. It would be nice if all of the users who are unit holders login, even if you don't have much to say, it would be nice if we could hear your views in order that the people who are really working on your behalf behind the scenes could get a sense of the mood out there and what future directions we should take. I am simply saying, "knowledge is power" "strength in numbers" and "people power". Please seriously consider this option.

Hi All, I discovered this forum just before the CA was announced and have been regularly logging on to keep up to date with the posts. I have been a unit holder since approx. 03/04 and unfortunately also suggested the fund to my mother (82yrs). We moved from Qld to Tas. in dec 06. The ceasing of distributions has caused my partner to take up odd jobs at a very low hourly rate in this isolated part of Tas, we have been unable to visit family members, are pretty much mostly 'holed up' here and have delayed medical attention, etc, many of you have similar or worse tales.
I appreciate all the effort many of you have and still do put into the PIF (I was unaware of the PIF AG unitl I discovered ASF).
Both ours and my mother's terms were 'rolling over' 31.01.08 and we were told the same spin I have read of in the posts - ie PIF is at arm's length", etc, etc. I had actually written a cheque to add to our investment, filled out the form, stamped the envelope, but my "higher self" prevented me from posting it, couldn't explain it at the time! wish it had kicked in earlier!
Anyway there may be others out there like me logging on and appreciative but not contributing.
Thanks again for all efforts by all.