News
Ray White’s Response to the Fincorp Saga
“The Fincorp receivership is deeply distressing. Following on the heels of Westpoint and Henry Kaye, it highlights how poorly less experienced investors have been treated over the years,” says Dan White, CEO Ray White Invest.
To have a private company raising debentures to fund the company’s own developments and providing so called ‘guarantees’, is deceptive. It goes against all the basics of good investment and it goes against any concept of proper care and responsibility towards all the individual investors. The use of words such as ‘debentures’ and ‘guarantees’ is highly soothing and encourages a relaxation of proper analysis.
Will there be more to come? Quite likely. The immediate reaction from the community will be for more legislation and more restrictions from Government regulatory authorities. Yet the true crisis lies in the lack of education to investors. The regulatory environment has been tightened substantially in recent years, yet the Fincorps still emerge.
Ray White Invest espouses none of the philosophies of these so called investment groups and the full details of our investments are contained in separate offer documents. Ray White Invest supports introducing an appropriate investment education program and we would be prepared to participate in any program.
Would it not be far more profitable to serve the Australian community by implementing or endorsing investment education seminars so that Australian investors have better skills to see through the blatantly high risk structures of so called ‘guaranteed’ investment opportunities? Education has to be a better answer than more unworkable regulations.
All Ray White Invest investment opportunities are separately analysed with that analysis being made available to potential investors. In addition the White family invests in each opportunity on the same basis as all other investors. Most importantly, those investments that carry a higher level of risk are not made available to smaller or less experienced investors. Put simply, not all investments are suitable for everyone.
Ray White Invest is the funds management arm of the Ray White Group. It has invested in over $1.6bn of property investment since forming in 2001.
Private Developers Symposium Discusses Big Issues
Sydney, 16-17 April 2008
A Private Developers Symposium held in April by Ray White Invest has discussed the big issues faced by developers in the current economic climate.
Ray White Invest had a range of speakers about their approach to delivering projects, how they manage their teams, getting focus and certainty, whilst trying to keep a discipline on costs.
A number of key topics were explored over the course of two days which included:
* Backing private entrepreneurs - parallels with the private equity industry
* Raising capital for property development in a volatile environment
* Building a team - how best avoided/how best achieved?
* When does a development company become a business?
* Separating business value from personal skill
* Specialist or generalist, traveler or local?
The symposium emerged from the belief that there were important stories and ideas to share amongst Australia's leading private developers, all of whom have different approaches to their trade yet are all equally ambitious and passionate about their chosen profession.
Since its formation, Ray White Invest has always been fascinated by the whole "business side" of property development. Property development is a business in which experiences continue to re-shape over time.
The Private Developers Symposium was the perfect forum for these experiences to be shared.
Ray White Invest joins forces in airport development
23 November 2006
In another Group effort, Ray White Invest has joined forces with the Brisbane Airport Corporation and Dimensions Property Group to develop a $22 million speculative office block at Brisbane Airport.
Brisbane Airport Corporation development manager Mark Wallis said the four-level office block would take about 11 months to complete and would comprise 4800 square metres of A-grade office and 190 car spaces. Construction is due to start mid-December.
Mr Wallis said the joint venture was looking to sell the office block slated for 12-14 The Circuit, Number One Airport Drive once it is tenanted. Ray White and CB Richard Ellis will lease and sell the building.
Tenders have also just closed for developers to build and operate a child-care centre, gymnasium and medical centre at Number One Airport Drive through Ray White Commercial agent Rick Bird. Final negotiations are under way for each tender.
Ray White Invest in major Canberra industrial investment
21 November 2006
A Canberra property sourced by Ray White Invest in conjunction with Ray White Commercial Canberra has been bought by the Merrill Lynch Property Trust for $12.3 million.
The deal was secured by BlackRock Investment Management, one of world's largest publicly traded investment management firms. Following the deal, Ray White Invest will take on a new role as project adviser for the Canberra property for the life of the Merrill Lynch involvement. The property, at 32-40 Sheppard Street in Hume, consists of a warehouse of more than 15,700 square metres on land of almost 29,000 sq m. The purchase price will show an initial yield of about 7.5 per cent but the trust and its advisers believe there is significant upside.
At present, the property is leased to a number of short- to medium term tenants, most of whom are on rentals that are perhaps 20 per cent or more below market. Ray White Invest's Hans Pearson said the investment strategy aimed to achieve value growth through the negotiation of market rental reviews, together with a refurbishment and expansion program. "We have a great opportunity here to bring together the collective skills of the Ray White Group to deliver a strong outcome for BlackRock," Mr Pearson said.
RWI Service Centre Trust
Update of Ray White Invest Service Centre Trust Product Disclosure Statement
This is an update of information contained in the Product Disclosure Statement dated 9 June 2006 (“PDS”) and the Supplementary Product Disclosure Statement dated 30 October 2007 ("SPDS")for the Ray White Invest Service Centre Trust ARSN 116 239 760 (“Trust”). Terms which are defined in the PDS and SPDS have the same meaning when used in this notice, unless otherwise indicated. This update is to be read in conjunction with the PDS and SPDS.
This update is dated 21 May 2008 and is issued by Elfred Enterprises Limited ABN 08 096 077 575 AFSL 240412 (“we”).
On 9 June 2006, we issued the PDS, which relates to the offer of Units in the Trust. In the PDS, we confirmed that information in the PDS may change from time to time; and if a change is not materially adverse to the Offer, then we will publish the updated information on this website.
The purpose of this notice is to inform applicants of the following:
Ballan Westbound Property
Settlement of the Ballan Westbound property took place on 15 November 2007. $408,550 (Retention Amount) was retained from the purchase price and is to be held in trust by the purchaser’s solicitors. Under the contract, the Vendor is required to remediate the contamination in accordance with the cleanup notice issued by the Environmental Protection Authority of Victoria. The Vendor has engaged an environmental consultant, Environmental Earth Science, on a fixed price contract to undertake the remediation works. The Retention Amount will be released to the environmental consultant on a cost to complete basis.
Mobil Scoresby
We are in the final stages of negotiation with Freedom Fuels in respect of the Service Station lease and will continue to source a fast food tenant. Further, we are continuing our negotiations with Mobil in respect of a lease surrender. Mobil continues to fulfill its obligations under the lease. Upon finalisation of the above, we will arrange for this property to be revalued.