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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.
What you need to do if you would like to take action
IMF (Australia) Ltd is funding the case and has offered to fund litigation for other investors.
If you invested in the trust and you are interested in taking action to seek to recover your losses, you can download an information package from www.imf.com.au or you can obtain an information package by calling Denise Brailey at IMF on (08) 9225 2300.
If you have any questions about the legal aspects of the class action or about the Maurice Blackburn retainer agreement in the information package, please contact Rebecca Gilsenan at Maurice Blackburn on (02) 9261 1488 or email challengeraction@mauriceblackburn.com.au
Click here to view
the Challenger media release
