|FLETTON KEY FOR LOCKED IN FINANCIAL SYNDROME?|
Peterborough residents (and the departing Paul Stainton from BBC Cambridgeshires' Big Conversation) will be concerned to learn that our cash strapped Peterborough City Council is to tip some £15 million of fresh public money (which could easily have covered the construction of a new Rhubarb bridge) into the faltering Fletton Quays project in a desperate effort to speed up construction of an hotel on the site, but in reality how safe is this latest investment?
Clearly the council must take immediate steps to ringfence any investment as it could well be swallowed up by losses on the three other projects in the scheme, projects not related to Peterborough.
It seems that some of the other projects in the portfolio have run into trouble as nett asset valuations (NAV) have not been established, so a realistic financial view of the viability of the projects cannot be presented.In addition, Peterborough City Council before handing over the public money bags might like to do some very simple financial background checks on the intended hotel partner Norlin Hotel Holdings Limited which seems to be a recently set up £100 Limited Company, with a hefty string of charges against it, all held by Ulster Bank Limited, clearly an injection of a fresh £15 million (from any new source) would be just the ticket, and possibly see off the paper held by Ulster Bank....
Could this be the Icelandic banks all over again? A recent note circulated to institutional investors contained new information which any prudent financial organisation might suggest needs urgent investigation before any funds are released by our old friend Conservative Cllr Peter Hiller, who some may recall criminally keyed a car in a car park, ended up with a conviction and a hefty fine, having first pleaded not guilty at his trial.Anyone investing £15 million in the Republic of Cyprus regulated GB Strategic Land Fund, and or it projects should also note:
GB Strategic Land Fund is a Dedicated Fund of KMG SICAV-SIF (the "Company" or the "Fund"), a Luxembourg-registered "Société d’Investissement à Capital Variable"authorised and regulated by the Luxembourg regulator, the Commission de Surveillance du Secteur Financier ("CSSF"), governed by the Law of 13 February 2007 and qualifies as an Alternative Investment Fund ("AIF") of the specialised investment funds type, managed by KMG Capital Markets Ltd ("KMG"), an external Alternative Investment Fund Manager ("AIFM"), established in the Republic of Cyprus, in accordance with Chapter II of Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers ("AIFMD") and regulated by the Cyprus Securities and Exchange Commission (‘CySEC’).
The key individuals involved include:
Ernie Battey – Director
Stuart Robinson – Lincolnshire Lakes
Nick Condon – RPW
Nick Weston – RPW
Richard Waltho – RPW
KMG SICAV Lucent (GB Strategic Land Fund) SuspensionIn July 2016: The Cyprus regulated KMG removed Lucent as the adviser to the fund and decided to take over the operation going forward. The fund it is alleged has been suspended from 30th June 2016, because it has a large exposure on an option which they say in the opinion of the Board, cannot be adequately valued in light of uncertainties related to its imminent sale.
This asset is part of the Lincolnshire Lakes project. The Fund was placed under suspension to protect investors until the uncertainty over the valuation of the option is resolved. It is not said to be linked with increased redemptions or liquidity issues.
The fund is currently invested in 4 projects including the Fletton Quays development, in Peterborough however they are currently not planning on exiting nor closing the Fund.
By April 2017: The fund has been renamed GB Strategic Land Fund and the fund managers expected the fund to reopen in the next four weeks. Investors are apparently still waiting for news of the opening pricing and options for investors. The issues remain about concern for the new opening price and how those who have put through surrender requests will be affected.
By August 2017: And the fund remains suspended and now there is serious talk, say insiders of a compulsory liquidation once a couple of the underlying projects have been sold off at deeply discounted prices.
Yet another AGM was due to held in Luxembourg on the 21st August 2017. No accounts were available at the original 15th June 2017 AGM! But did the PCC or their agents tell anyone about this?
Not a prospect any investor would welcome, so why not tap up some public money which seems to be the route forward with the news that Peterborough City Council is possibly on the hook for a cool £15 million!
Interestingly the current timetable of events when projected forward might well see this Cyprus administered fund written down, project sold off piecemeal, and or completed just about the time the Local council elections are being held. Conservative Cllr Christopher Harper, is Chair of the Planning Committee, and gets well remunerated for it, perhaps he will immediately open an investigation ?
This is not the first time, the Peterborough Tribune blog has urged caution over those managing or involved with the Fletton Quays project. Some elements previously tried to have our story taken down by Google, luckily it was already published on several platforms, but not a word in the Local newspaper...
https://parkfarmneighbourhoodwatch.blogspot.com E&OE google.com/+JulianBray Tel:+44 (0) 1733 345581 .