Record Realty Trust
- Record Realty Trust
Record Realty Trust
Receivers and managers were appointed over the assets of Record Realty Trust (RRT) on 1 April 2009. The assets of RRT continue to be managed and controlled by receivers and managers.
Set out below is a summary of events leading up to the appointment of receivers and managers and the current position of RRT.
One Investment Group acquired the responsibility entity of RRT in March 2010, nearly a year after the appointment of receivers and managers. Given the continuing receivership, we have little ongoing role in the management or control of the fund’s assets. However, we have prepared this information in order to provide RRT investors with a clearer picture on the position of RRT and its assets. To the extent future events occur which are material to RRT and investors, we will update this page.
Record Realty Trust (RRT) was listed on the ASX in December 2002 (ASX code: RRT). RRT’s responsible entity continues to be Record Funds Management Limited (RFML). At the time of RRT’s demise, RFML was a subsidiary of Allco Finance Group Limited (AFG) (formerly known as Record Investments Limited).
During 2008, RRT became increasingly under pressure due to the high level of borrowings in the fund and the response of various parties to the “global financial crisis”.
In November 2008, AFG and a number of its subsidiaries went into voluntary administration and had receivers and managers appointed to their assets; however, this did not include RFML.
On 5 February 2009, trading on the ASX in RRT’s securities was suspended.
On 1 April 2009, RFML as the RE of RRT, advised investors that it had been served with a Notice of Default by BOS International (Australia) Limited (BOSI), demanding immediate payment of all sums under the loan agreement between RFML and BOSI dated 29 June 2006. As RRT was not in a position to meet the payment demand, BOSI Security Services Limited, as the security trustee for BOSI, appointed Craig Shepard and Mark Korda of Korda Mentha Pty Ltd (Korda Mentha) as receivers and managers to the assets of RFML, in its capacity as RE of RRT. Click here to see RFML’s ASX announcement of 1 April 2009.
On 10 August 2009, RFML advised it had appointed Anthony Milton Sims and Neil Geoffrey Singleton of PPB as Voluntary Administrators to the company. Click here to see RFML’s ASX announcement. RFML subsequently entered into a deed of arrangement with its creditors.
On 17 March 2010, RFML’s deed administrators declared that they had reasonable grounds to believe that there was no likelihood that unit holders of RRT would receive any distribution in the course of the administration. The deed administrators also stated that they believed that a capital loss could be claimed by unit holders. As stated in the letter, investors who propose to claim such a tax loss should only do so after seeking advice from a suitably qualified advisor. Click here to see the deed administrators’ letter to unitholders.
RFML exited administration and One Investment Group took control of the company in April 2010.
In terms of the current position, RRT investors should note that:
- Last asset sold – RRT’s last secured property (134 Reed Street, Greenway, ACT) was sold late last year;
- RRT receivership has concluded – after completing the final post settlement obligations and adjustments on 29 June 2016, the receivers and managers of RRT and related entities resigned on 27 July 2016;
- Conclusion of receivership –RFML can now finalise the winding up of RRT; and
- No likelihood of distributions –RRT investors are not expected to receive any further distributions from the fund.
As stated above, One Investment Group will update this page where we become aware of events or information which we believe is material to RRT and its investors.
If you have any questions, investors may email them to email@example.com.