This article is from the Australian Property Journal archive
THE Australian Securities and Investment Commission has commenced proceedings in the Federal Court in Brisbane against fund manager PE Capital Funds Management Ltd, alleging misconduct relating to the operation of managed investment schemes.
ASIC alleged PE Capital Funds Management operated unregistered managed investment schemes in circumstances that required registration.
The schemes include PE Capital’s Property Development Opportunities Fund (P1 Fund), Property Development Opportunities Fund (P3 Fund), Asia Wholesale Diversified Income Fund, and its Asia Wholesale Opportunities Fund.
ASIC also alleged PE Capital Funds Management issued interests and information memoranda in unregistered schemes without valid authorisation, and made misleading and deceptive statements in Product Disclosure Statements for registered schemes regarding investment strategy and asset security.
ASIC is looking to wind-up PE Capital Funds Management and its registered and unregistered schemes.
PE Capital was chaired by former Macquarie Bank executive Martyn Barnes, while Simon Day, formerly in corporate finance at PwC, is its CEO.
In the middle of 2019, it sold the last of its 1.1 hectare development in Melbourne’s south east suburbs for $8.25 million. The Cranbourne property includes a 7-Eleven and food outlets, and was part of a larger holding that included sites sold by PE Capital for $2.95 million to McDonald’s and to a KFC franchisee for $1.95 million.
The previous year it entered into an agreement with Hyatt for a 200-room hotel that it was developing in Springvale, on a corner lot of 5,170 sqm.
PE Capital has also developed multiple childcare centres.
