Maurice Blackburn has commenced a class action against
Challenger Managed Investments Limited on behalf of a group of
investors who purchased units in the Challenger Howard Property
Trust for the Penrith Mega Homemaker Centre Sydney. The claim
alleges that investors subscribed for units in the trust as a
result of misleading and deceptive conduct by Challenger in the
course of issuing the prospectus.
Background
Challenger Managed Investments Limited is part of the Challenger
Financial Services group.
On 27 November 2002, Challenger Managed Investments Limited
issued a prospectus to members of the public inviting applications
for units in the Challenger Howard Property Trust for the Penrith
Mega Homemaker Centre Sydney. Money invested by the public in the
trust was pooled to create a fund by which to acquire the Penrith
Mega Homemaker Centre, a retail centre for bulky goods in Penrith,
New South Wales.
The trust failed to perform in accordance with the forecasts in
the prospectus, with both distributions and the property value
falling significantly below forecasts. Due to ongoing poor
performance of the property, the trust sold the centre for $55
million in June 2006, $10.5 million less than the original purchase
price of $65.5 million. The capital returned to investors at the
conclusion of the trust was approximately 40c per unit. Based on
the original issue price of $1 per unit, the loss of capital value
to investors was approximately 60c per unit.
The action
Maurice Blackburn has filed proceedings in the Supreme Court of
New South Wales for a group of investors in the trust.
The claim alleges that the representations in the prospectus as
to forecast yield and capital gain were misleading. It is also
alleged that Challenger's failure to provide any information or
warning in the prospectus regarding certain problems with the
centre was misleading and deceptive.
If you have any questions about the class action please contact
Rebecca Gilsenan at Maurice Blackburn on (02) 9261 1488 or email challengeraction@mauriceblackburn.com.au