Appeal to ASIC over 360 Capital Industrial Fund
One of the men who led the Timbercorp Growers Group through a number of legal battles, Chris Garnaut, has now written to the Australian Securities and Investments Commission (ASIC) raising issues around actions taken by the Responsible Entity for unlisted property fund, the 360 Capital Industrial Fund.
Garnaut's letter, a copy of which has been obtained by Money Management, expresses concern about the actions of the Responsible Entity, 360 Capital RE Limited, relating to a recently-completed wholesale capital raising and a further capital raising to finance the purchase of additional properties in the fund.
It specifically raises changes to the fund's constitution to allow the capital raisings, and alleges that "this action was unlawful".
The letter, addressed to ASIC commissioner Greg Tanzer, claims "the proposal has caused the Fund's capital structure to be altered to allow for the introduction of convertible notes".
"Although the Note holders are creditors of the Fund and rank ahead of unit holders for repayment of principal and the payment of interest, the amendment to the constitution gave Note holders equal voting rights with unit holders, which diminishes the value of the voting rights of unit holders," Garnaut's letter claimed.
The letter to ASIC asks for the regulator's intervention in the issue and cites ASIC intervention with respect to Centro MCS syndicates.
It specifically asks ASIC to intervene to suspend the 360 proposal until a meeting of unit-holders can be convened to reconsider the proposed amendments to the constitution.
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