Aust finance company operating in NZ collapses

An Australian property investment group, that had been raising funds in New Zealand, has gone into voluntary administration.

Wednesday, 30 May 2007

ACR had raised more than A$300 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.

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Deposit Rates go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.