The owner of the controversial proposed 157 lot ‘River Glen’ subdivision at Maclean, Global Capital Property Fund was placed into liquidation this month by the Federal Court after deposits were taken on at least 20 lots.
When Global Capital Property Fund updated investors about the River Glen project on its website in November 2021, it stated “the team currently has EOI’s and deposits paid on 20 lots”, and the CV Independent was informed further deposits were taken on blocks in the subdivision.
On June 20, 2024, in the Federal Court, Justice David O’Callaghan instructed the Australian Securities and Investment Commission ASIC to freeze the assets of United Global Capital Pty Ltd UCG and Global Capital Property Fund Limited GCPF.
In July 2024 when the CV Independent visited the site, a former sugar cane paddock to the northeast of Wherrett Park, neighbours expressed concerns that nearby a C3 Conservation zone that is visited by threatened species was under threat from the proposed development.
United Global Capital was a financial advice business with an Australian Financial Services Licence held by sole director Joel Hewish, and GCPF has been an authorised representative of UGC since March 25, 2020.
On July 5 and 21, August 29 and September 13, 2022, ASIC made interim stop orders preventing the offer of shares to retail investors under GCPF’s prospectus as well as stop orders preventing the issue of shares due to a deficient target market determination.
As a result of ASIC’s investigation into UGC, on June 3, 2024, UGC’s Australian Financial Services Licence was cancelled, and ASIC made an order banning Mr Hewish for 10 years from involvement in a financial services business.
UGC entered voluntary administration on July 5, 2024, with creditors resolving to wind-up UGC and appoint David Stimpson of SV Partners as liquidator on August 9.
Then on September 9, 2024, ASIC filed an amended application seeking orders including the appointment of liquidators to Global Capital Property Fund GCPF, which was consented to by the Victorian based company.
The Federal Court made orders for property investment company Global Capital Property Fund Limited GCPF to be wound up on just and equitable grounds, appointing Ross Blakeley, and Kelly-Anne Trenfield of FTI Consulting as liquidators at a hearing on October 3.
“ASIC applied for the winding-up of GCPF as it holds numerous concerns about the management of GCPF’s business,” the organisation said in a statement.
“On June 20, 2024, ASIC obtained interim orders from the Federal Court freezing the assets of GCPF and related financial advice licensee United Global Capital Pty Ltd (UGC) (now in liquidation).
“The Court subsequently discharged the freezing orders against UGC following the appointment of a liquidator to that company and on 1 October 2024, dismissed the proceeding against UGC by consent.
“At a hearing, the Court appointed liquidators to GCPF and varied the freezing orders to allow the liquidators to take any action regarding GCPF’s property.”
ASIC’s investigation into both United Global Capital Pty Ltd UCG and Global Capital Property Fund Limited GCPF is ongoing and investors and creditors of GCPF can email either investors@fticonsulting.com or creditors@fticonsulting.com with any queries.
For general enquiries about the liquidation of GCPF email gcpf@fticonsulting.com.
This article appeared in the Clarence Valley Independent, 16 October 2024.
