Challenge to Centro
Sydney-based property group Pelorus has written to investors in a key Centro Properties Group syndicate, the Centro MCS 11, asking that they elect Pelorus as the new responsible entity.
Pelorus said it had been asked by a New Zealand financial advisory firm with significant client investments in Centro, Money Managers, to stand for election as the responsible entity.
Its letter to investors said Pelorus proposed to significantly reduce fees charged for their investments.
“As a consequence of the financing difficulties disclosed by Centro on 17 December, 2007, and subsequent disclosures of banking and interest rate hedging problems within Centro MCS syndicates, we believe it is in the best interests of investors to separate the management of MCS 11 from Centro.”
The letter said that if Centro should not honour its obligations, in particular its interest rate hedging obligations, Pelorus if appointed responsible entity would take the necessary steps to enforce the obligations against Centro and recover any damages due to affected syndicates.
AUTHOR
Mike Taylor
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