Soho gets lease of life
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."
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