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Property Manager Remi Capital Collapses Owing $70m

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Urgent investigations are under way to find a resolution for the 450 investors left short-changed in the wake of the $70-million collapse of investment firm Remi Capital

The boutique investment firm has offices in both Brisbane and Melbourne, and property investments across Victoria, including a two-tower 176-apartment mixed use shopping centre development at Sunshine, and warehouses at Laverton. 

Chris Baskerville from Jirsch Sutherland has been appointed as voluntary administrator of the REMI Capital Group of companies, and he confirmed there was an estimated $70 million of debt outstanding.

“We are undertaking an urgent financial assessment and working closely with the directors to try to find a solution and provide the best outcome for investors and creditors,” Baskerville said. 

“One of these solutions is likely to be a Deed of Company Arrangement (DoCA) proposed by the directors.”

Baskerville said there was scant detail presently, but more would be known ahead of the first creditors meeting slated for June 6.

In an email to investors and shareholders Remi Capital managing director Mark Prestige apologised for a lack of communication recently.

“Remi had been advised by external legal counsel not to communicate over recent weeks until the modelling was complete that allowed this difficult decision to be made,” Prestige said.

“Remi apologises for any lack of communication in recent weeks. We ask you rely on any reports to creditors and not rely on any speculation you may hear.”

A deed of company arrangement would allow the investment firm to continue to operate with a view to providing a better return to investors.

The Urban Developer understands a number of self-managed super funds and private investors have been caught up in the collapse. 

Baskerville confirmed a number of Remi Capital investors had already made contact with the insolvency firm ahead of the June 6 meeting. 

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Article originally posted at: https://www.theurbandeveloper.com/articles/remi-capital-collapse-property-investment-melbourne-brisbane