Lemon scheme to continue
Investors in the troubled Soho lemon investment scheme have voted to continue with it and commissioned a study to look at expanding the scheme.
Australian Rural Group managing director Peter Flude says there was a unanimous vote at the investor meeting in Brisbane late last month to continue. ARG has now been appointed the permanent responsible entity.
"The investors have asked us to look at increasing the size of the scheme in line with the original prospectus," Flude says. "The present size of the scheme is marginally viable."
To be viable, Flude estimates the scheme will have to expand to 25,000 trees. The company hopes to complete the feasibility study by next February. An expanded scheme will probably be offered only to the original 90 investors, he says.
The land the trees are planted on is not owned by the investors. The Victorian property is owned by companies associated with the Soho scheme founders Peter Russell Clarke and Egon Grossberg.
Suncorp Metway has a mortgage over the land and Flude says ARG is negotiating with them to secure a lease on the land.
"Our job is to get a lease for the project as there wasn't one in the past," he says. "We are now trying to talk to Suncorp about a lease."
Recommended for you
As the government announces a public inquiry into the collapse of Dixon Advisory, risk adviser Richard Silberman has detailed the three areas that typically lead to an AFSL's collapse.
With a growing number of advisers now running their own business, they need to pivot their career identity to being a business owner rather than just as a financial adviser if they want to futureproof their business.
Zenith Investment Partners has launched a range of new managed account portfolios over the past quarter, including on Insignia Financial’s Expand platform.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.