Primelife will continue to manage the Bayside Aged Care Facility in Mordialloc, Victoria as part of the orders made in the Federal Court yesterday.
The Federal Court orders will see the final winding up of the managed investment scheme relating to the Bayside facility.
On April 01, 2005, Primelife settled proceedings brought by the Australian Securities and Investment Commission relating to the company’s association with allegedly non-compliant managed investment schemes established by promoters between 1998 and 2002 to invest in the development and ownership of 23 retirement and aged care facilities operated by Primelife.
As part of the ASIC settlement, Primelife agreed that it would consent to ASIC’s winding up proposals for the investment schemes.
To date, schemes relating to eight of the 23 facilities have been wound up on terms acceptable to Primelife, with schemes relating to nine facilities currently subject to winding up orders.
It is anticipated that the remaining schemes relating to six facilities will be finalised in this calendar year.
Primelife will manage Bayside on behalf of a new owner who has agreed to acquire the facility from the syndicate as part of the winding up of the scheme.
The transaction will see the outstanding syndicate loan of $2 million be repaid to Primelife and will also have a positive balance sheet impact for Primelife in the 06/07 financial year.
By Kathryn O’Meara
