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Wellington Capital PIF/Octaviar (MFS) PIF

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Hi all, just got back. Plenty of reading to do to catch up on the forum.

Today in the Federal Court Sydney re Bond Street Custodians Ltd v Wellington Investment Management Ltd:

24-Sept-2010 9:30 Directions Justice Perram Court Room 18A

And previously:

14-Sept-2010 9:30 Directions Justice Perram Court Room 22B Adjourned - Pre-Hearing
Orders:
THE COURT ORDERS THAT:
1. The matter be stood over for further directions on 24 September 2010.
2. The defendant serve any written response to the proposed amendments contained in the letter dated 10 September 2010 by 1 pm Friday 17 September 2010.

And in relation to the cross claim - CROSS CLAIM filed by WELLINGTON INVESTMENT MANAGEMENT LIMITED ACN 101 634 146(X) on 27-FEB-2009

24-Sept-2010 Affidavit McCullough Robertson

Hearing dates for both matters are set for:
17-Dec-2010 10:15 Part Heard Justice Perram
16-Dec-2010 10:15 Part Heard Justice Perram
15-Dec-2010 10:15 Part Heard Justice Perram
14-Dec-2010 10:15 Part Heard Justice Perram
13-Dec-2010 10:15 Hearing Justice Perram

Marcom
 
 
The final paragraph on WC's recent 1c Cash Payment pdf announcement includes these words: "Our continuing focus is on the rebuilding of unit
value." Well,well. Isn't this a case of people NOT believing what is said irrespective of how often it is repeated? The propaganda machine is creaking.
 

Perhaps Breaker could send this out to all PIF Action Group members so they can individually comment to ASIC on performance as perceived by AG members. Just a suggestion....

I've already completed the survey and added plenty of extra comment at the end where space is provided.

Cookie1
 
Orders by J Perram yesterday in the Federal Court re Bond Street Custodians Ltd v Wellington Investment Management Ltd:

ORDER
JUDGE:
Justice Perram
DATE OF ORDER:
24 September 2010
WHERE MADE:
Sydney

THE COURT ORDERS THAT:

1. The plaintiff have leave to amend the originating application by substituting the name “Management Investments Pty Ltd” for “Wellington Investment Management Limited”.
2. The plaintiff have leave to file an amended statement of claim in terms accordant with the draft attached to the notice of motion filed on 20 September 2010.
3. Costs occasioned by the amendment and the notice of motion filed on 20 September 2010 be reserved until the trial.
4. Order 3 of the Orders made on 22 June 2010 be vacated.
5. The defendant file and serve before 8 October 2010 an amended defence.
6. The plaintiff file and serve before 15 October 2010 a reply, if any, to the amended defence.
7. The defendant file and serve any further lay evidence upon which it intends to rely at the hearing before 29 October 2010.
8. The defendant file and serve any expert evidence upon which it intends to rely by 12 November 2010.
9. The parties to exchange on or before 1 December 2010 lists specifying which of the opposing parties they intend to cross-examine.
10. The parties file and serve before 3 December 2010 a schedule of objections to the lay and expert evidence of the other party identifying the paragraph number or document objected to and the basis of the objection.
11. The parties to prepare and exchange and deliver to the Associate to his Honour Justice Perram two working days prior to the commencement of the hearing a summary outline of the factual and legal propositions relied upon and the parties may also provide a chronology of events as they consider appropriate.
12. The plaintiff to have available at the hearing for his Honour Justice Perram a working copy of the latest pleading.
Liberty to restore on two days prior written notice.

Any one who had a PIF redemption request mature in December 2007 which was subsequently frozen in January 2008 before payment should watch this case very carefully.
 

I dont think There are adequate words for how best to describe ASIC and the way it has handled PIF Investor pleading and warnings.
Utterly Useless and Totally pathetic just doesn't seem to work.
 
An interesting article present state of funds at http://www.smh.com.au/business/beware-of-funds-with-few-redeeming-features-20100924-15qjc.html

Beware of funds with few redeeming features
ANNETTE SAMPSON
September 25, 2010 Sydney Morning Herald

"One of the big cons of the boom before the global financial crisis was the liquidity lie - the promise that you could invest in illiquid assets such as property and infrastructure with the same ease that applied to shares...

The truth is that the promise of easy liquidity with property and mortgage investments has been exposed for the lie it was. Both direct property and mortgages have a role in bringing certainty and income to investment portfolios. But to fulfil that role, funds need to reinvent themselves and offer a more realistic proposition to investors. Merely hoping things will return to ''normal'' is an insult to long-suffering investors."(emphasis added)

Marcom
 
Hello PIF investors,
I have been following this thread and although not directly involved in PIF continue to be interested.

I am finding it difficult to post links here...
so any tips would be appreciated..
OHHH just got the message re "not enough posts to post a link"
This is my first post on Aussie.

I wonder if you have read Adele Furgusons article dated 13th September?
If you are interested in the article...just google news search "Jim Byrnes"
and read the article titled...
"Once again the liquidators get all the spoils, but this time ASIC must take account "

For anyone who wishes to read about 'some' dealings in the development industry ...
get Richard Vereker and Mark Abernethy's novel
"The fast Life and sudden death of Michael McGurk"
The book starts in Wollongong.

Its a very sad topic but it's an interesting and educatational read.

I think that ASIC need more funds, unbiased advisors, and more powers.
Political persuasions and networks seem to influence things and from my observations we are not protecting our countrys wealth adequately.

The GFC has united people to seek out answers and correct the flaws in our economic system...this thread seeks to do that and I applaud your efforts.
Journalists have generally done a mighty good job too.

Good Luck,
LTD.
 
I need to post a few more times.
or the links feature will not be available.

Remember early posts saying there were a number of interested parties in
becoming the RE of the PIF?
and the parallels and bids from City Pacific just after the SP crash?

How posters lamented that those bids werent taken seriously.
Page 209 of the book mentioned, says
He (Michael M) made a failed bid for City Pacific, which had recently lost control of its $650 mil First Morgage Fund ...cont.
If correct.
Thats one bid many would be relieved....failed.

I cant endorse the info in the book, of course, but it is enlightening just reading about the way some business operates.
I read it as 'one perspective' and its a bold and apparently open perspective. Without such writers... one player can manipulate another, the general public can be hoodwinked and politics can be weakened.

Millions of superanuation investors, here and in NZ deserve transparency and greater protection but is there a political will that cant be stood over and without skelatons?

Scarey isnt it?
 

Hello All
Talking about our 3 cents distribution, I drove past the Wollongong PIF Investment property a couple of weeks ago, the one sold by JH for $38 million having passed the block in at auction for $42 million earlier last year. (It's a very difficult area in which to park with WIN Stadium and the Steelers Club close by, and council parking meters recently installed creating an even more unfriendly precinct ) The hotel portion which opened over a month ago and is called The Chifley Hotel appears to be operating OK with some people habiting the foyer area, clerks at the desk and a concierge at the door. The shops facing Beach Street are as yet unoccupied except for the Colliers sales office which was closed anyway.
The sign on the window of the office said that there were eight apartments still for sale; down from 22 as at last April. This means that The Beach Street Trust (see last years annual report) will not be paid the $38 Million for the sale of the property for some time yet. As I understand how trusts work, after the Trust pays all the expenses (legal costs, sales costs, administration costs, etc) then disbursements will be made to PIF. WC will be paid out of the trust funds ie the 37 Million, before disbursement is made to PIF. This avoids the order placed by Justice McMurdo that WC receive no fees until the 3 cent distribution is paid to PIF members.
It will be some time yet before the last unit is sold, triggering the payment of the $38 Million. The market in Wollongong is still slow with units in the over $500,000 price range being in oversupply - those under being snapped up by buyers eligible for government handout. There are six or seven high rise blocks within half a kilometre with units for sale in the same price range.

It will be some time yet before we see any possibility of a 3 cent distribution.

I still can not believe the naivety of WC in making the settlement subject to the last unit being sold. The developer has finished the hotel and the units, sold 67 units ranging from $450,000 up to $1 million each (the four penthouses), is generating a cash flow now and still does not have to settle on the purchase from WC!

Commiserations
Steve
 
Yes, I agree, that WC does not have the money to pay a 1c distribution in
October.

WC should resign and give it to someone else, or sell all assets and give us
our money back.

Hope we get the balance owing from the Class Action in 18 months.

Hey, how long can we WAIT. How long is a piece of string?


Cheers
Your Lawry1Dog
 
lawry1dog writes: "Yes, I agree, that WC does not have the money to pay a 1c distribution in October." If that is the case, could we find eventually that the millions required for the 1c cash payment were being funded by a loan?
 
selciper, writes, that the 1c distribution could be funded by loan, makes sense to me.

Anyway, how else can WC pay the millions out, when they have Bond Street hanging over
their heads, where they could be paying out over 20 million.

I still contend that WC should resign and give it to someone else, or sell all assets and give usour money back.

I still hope we get the balance owing from the Class Action in 18 months.



Cheers
Your Lawry1Dog
 
Seamisty, It's good to see you back on line; we missed you.

When I was at the Icon apartments late July, 11 apartments had been sold, 1 was under contract and 14 remained to be sold. The complex had not been completely finished with some work remaining to be done.

I recall seeing in the Port Macquarie Domain in the last few weeks that half (12 of 24) of the Icon apartments have now been sold, although it doesn't say that in the current ad. (Ray White & LJ Hooker have a joint listing for sale of the apartments.)

Does anyone know what kind of deal JH did with the developer/contractor who is finishing the apartments? Was it the same deal as done with Wollongong Hotel or is money coming into the fund as apartments are sold? Total asking price of all apartments is $21,055,000 (and we know they wouldn't have sold for the asking price). I understand the developer has one of the penthouses which had an asking price of $1.2 million.

Cookie1
 
My two bobs worth on the pending PIF 1 cent distribution due to be paid on the 29th october 2010. Interestingly the 1 cent cash payment it is described as 'final dividend' on the NSX http://www.nsxa.com.au/security_dividends.asp?nsxcode=PIN&coname=Premium Income Fund

'Jenny Hutson of G8 education has also pledged a maiden dividend of 1 cent for G8 shareholders the September 2010 quarter.
Ms Hutson said that she hoped G8, whose financial year ends on December 31, would be in a position announce its planned dividend 'soon'. 'http://www.goldcoast.com.au/article/2010/08/17/247725_gold-coast-business.html

G8 1 cent dividend is due to be paid on 7th Oct 2010. My guess is that Jenny Hutson of Wellington Capital Ltd, Qld business woman of the year in 2007 does not want the media coming out and drawing attention to the fact that shareholders of her new baby, G8 education will receive a dividend BEFORE Premium Income Investors who have waited for 2 years for a promised dividend and if they a VERY VERY lucky may get a 1 Cent return of their own CAPITAL in the same month. WOOP WOOP, TOOT TOOT we can hardly wait, that is of course if it does in fact eventuate this time!!!

Seamisty
 
Hi Cookie1. IMO if Wollongong delivers enough $ to deliver the 3c payment then there's little incentive for WC to get the rest of the sales completed. WC will start collecting fees based on total assets.

High valuations = No sales = Higher fee for WC.

And we're all locked in forever. JH can keep this going for years until she decides she's done with us or we kick WC out.

JH did say PIF was a great fund. For investors? Or for the RE?

Anyone know if Bond Street can apply to the court for an injunction to lock the Wollongong $ up? I mean after all, WC have been telling the market they've embarked on a marketing campaign. For the last 15 months. With little or no sales. How do we think a judge would view our capacity to pay in the light of WC's performance over the last 15 months? I'd say ... not very well.

How else are we going to pay if Bond Street wins? Fire sale? Loan?

What was the word that MIchael King used .... Pretenders?
 
Hi Cookie, It was Geocal Constructions that did the Joint venture with WC to complete Icon (previously known as Aston Hills Apartments.)
George Callianiotis = Geocal Construction::: Anthony Stanton = Current Business Manager at The Geocal Group
(Venture Capital & Private Equity industry)

So I imagine that money from the sale of those apartments will be used to pay the 1 cent. The rest has probablly been goobbled up by WC in operating and legal expenses. Funds would be needed to prop up once profitable assets that have languished under Wellington Capital management. Removing graffitti, running a luxury 4 wheel drive vehicle (removed from a repossessed resort) flying tradies interstate and providing limos to pick them up from the airport etc etc.

Interesting to see the new better $43 million Wollongong deal negotiated by Hutson. Coincidently better than the $40.5 offer rejected by Wellington Capital at auction 7/05/09 as it 'was not acceptable to the Vendors' (WC)

Now if WC had of accepted that deal of $40.5million nearly 18 months ago it would still have been a far better outcome than the new renegotiated deal(not sure how the corporate mafia wangled that one!!) Is WC trying to deflect another missile here? They know we have the bidding results of the auction.

Welcome back Marcom and good to see a few 'diehards' still waving the red flag and keeping us all informed!!

Seamisty
 

I have advised most of our members about the ASIC Survey - another group gmail email to go tomorrow.

Any PIF Investors not already in the PIF Action Group and interested in enquiring about membership - please email me on:
pifactiongroup@gmail.com
 
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