Becton offer delivers mixed bag
Fincorp’s 1,100 unsecured investors are unlikely to retrieve any of the $23 million they invested in Fincorp in total, despite a successful acquisition offer for the failed property company by Becton Property Group.
Accepted by Fincorp administrators KordaMentha yesterday, the offer will see Fincorp’s 7,000 secured investors receive the right to a cash-out price of 50 cents for each dollar of a total $201 million invested.
Becton is also offering Fincorp’s secured investors the right to reinvest their proceeds into the Becton Office Fund at a price of about 55 cents for each dollar invested.
Banks and other corporate lenders, who are owed $95 million collectively, will retrieve all their capital plus interest of $10 million.
In March KordaMentha said it expected secured investors of Fincorp, which went into administration in March, would retrieve only 30 cents in the dollar.
Becton’s offer will see it acquire nine of 10 Fincorp properties and invest up to $170 million to acquire a 10-year development pipeline, valued at more than $470 million.
Becton chief executive Hamish Macdonald said he hoped Fincorp investors would remain with the managed office fund, which is a passive fund holding completed office properties.
“We believe that our offer provides significantly more value to Fincorp first ranking/secured noteholders investors than would have been otherwise available from a straight liquidation.”
Meanwhile, the assets of Fincorp founder Eric Krecichwost, his wife, Tiffany, and 11 other directors and employees, have reportedly been frozen as part of an Australian Securities and Investments Commission investigation into the collapse.
The move follows the launch of a NSW Supreme Court action by the regulator last week.
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