This article is from the Australian Property Journal archive
FUND manager Blue Sky Alternative Investments is expecting a $30 million interim loss, as it continues to reel from an investigation nearly one year ago that challenged its reporting integrity.
Its half-year results, to be released on February 27, are set to include impairments and adjustments of $7 million to investments in funds, including student accommodation; $7 million of recommended impairments to working capital loans provided to certain private equity and private real estate development funds; $4 million due to investment trust reimbursements where third-party expenses were incorrectly charged.
Another $8 million will come from restructuring costs, including external service providers, staff redundancies, terminations, and retention incentives.
It will also include a positive of impact $2.5 million from the reversal of employee share option expenses of prior periods, resulting mostly from staff terminations.
A new board of directors was appointed in December; while a new chief financial officer commenced last month, and a new chief risk officer was appointed on a permanent basis.
The restructure of Blue Sky’s investment management business continued through the first, with the fund manager exiting its hedge fund business and retirement living real estate development business; selling its share of the retirement village operating business, and reduced its headcount across all remaining divisions.
“Blue Sky remains focused on its three core businesses: real assets; private equity and select opportunities in private real estate,” it said.
Former managing director Robert Shand stepped down after California-based short-seller Glaucus accused Blue Sky in March last year of inflating its asset value and toying with its reported fee-earning assets under management figure.
Blue Sky then revealed in June it had received a section 33 notice from the Australian Securities & Investments Commission.
Australian Property Journal
