ASIC winds up property fundraising group

The Australian Securities and Investments Commission (ASIC) will be winding up four companies that operated as part of the fundraising arm of Gold Coast-based property developers IC Group.

Vincents Chartered Accountants in Brisbane have been appointed liquidators to wind up Supersafe Australia, Supersafe Qld, Northcoast (Qld) Australia and Supersafe NSW, according to ASIC. Another IC Group investment company, Bricks and Mortar, was deregistered by ASIC in May 2010.

The group was operated and controlled by Susanne Rae Percival, who was declared bankrupt on 24 November 2009, the regulator said.

The four companies were set up to raise funds from retail investors to finance property development projects. Investors were offered 15 to 20 per cent per annum in interest payments through unsecured loan contracts, according to ASIC.

The IC Group investment companies raised over $20 million from at least 500 investors between May 2002 and September 2008, with investors encouraged to invest on the basis that their funds were to be on-lent to particular related property development companies at a higher interest rate.

Bricks and Mortar had raised funds from investors through the offer of redeemable preference shares offering similar returns, ASIC said.

Financial difficulties started to emerge in 2008 and the group was forced to sell some development properties to satisfy debts. Once the companies were unable to meet their commitments to investors they became insolvent, according to ASIC.