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https://thelawassociation.nz/fma-ham...leak-to-media/
FMA hammers Du Val Group, investors leak to media
16.3.23
Reprimands from the Financial Markets Authority (FMA) are piling up against Du Val Group, while the embattled property developer scrambles to block disaffected investors from leaking to the media.
The regulator issued Du Val Capital Partners (DVCP), the general partner of the Du Val Mortgage Fund and Du Val Group, a formal warning last week for misleading investors about its suspension of cash distributions from the mortgage fund in January. In the FMA’s view, Du Val breached s 19 of the Financial Markets Conduct Act 2013.
Complaints were made to the FMA after the suspension. Investors had been told the fund would be wound up and the cash distributions converted into units at a 25% premium to be placed in a new company, pending a potential public listing on the NZ Stock Exchange or an alternate.
FMA executive director (response and enforcement) Paul Gregory says this was misleading as the payments were suspended because Du Val’s board could not approve cash distributions as it would leave the company unable to meet its other obligations. And, Gregory says, the proposal to convert cash distributions into units in the fund is not permitted under the terms of the limited partnership agreement governing the investment and investors were not obliged to accept that decision.
Du Val Capital Partners, in a brief statement, says it is disappointed the FMA has issued a public warning against the company for a direct communication made to a small group of investors. “The fund is closed and the communications have no relevance to the New Zealand public. Investors have received further communication to clarify statements that may have been misunderstood,” the statement said.
DVCP sold units under its mortgage fund to wholesale investors over the past two years at a minimum buy-in of $250,000. The units are backed by a portfolio of nine South Auckland apartment developments valued by Du Val at $750 million. The investment offered a fixed return of 10% per year, paid quarterly, equating to cash distributions of $2.5 million per quarter or $10 million per year. Most of the investors relied on the fund’s interest payments.
One elderly investor, who has $800,000 in the mortgage fund and leaked information to BusinessDesk, was this week reminded of his obligations by Du Val’s senior legal counsel Matthew Hawkes, who advised the investor to “keep all information relating to the business” confidential under the terms of the limited partnership agreement. Du Val says all investors are bound by non-disclosure agreements.
Hawkes told the investor the company required him to remedy the ‘breach’ immediately by, amongst other things, destroying confidential information leaked to BusinessDesk. Requests to exit the fund have got investors nowhere. In further leaked information to BusinessDesk, Du Val general manager of investor relations Glen Williams told investors the company continues to priortise funds for the completion of projects and the protection of investor funds. “Redemptions will be considered as part of the upcoming liquidity events on the terms of the limited partnership agreement,” he said. No details of the liquidity events have been given.
More at Link
https://www.interest.co.nz/investing...oup-misleading
Financial Markets Authority issues formal warning to Du Val group for misleading investors over why it suspended cash distributions
23.3.2023
The Financial Markets Authority (FMA) has issued property development firm Du Val Capital Partners with a formal warning for misleading investors over the suspension of cash distributions.
Du Val halted cash payments from its Mortgage Fund in January this year, telling investors it was looking to restructure the fund ahead of a potential listing on the NZX or another stock market.
Cash distributions promised to investors would instead be converted into units in the fund at a 25% premium.
The FMA said investors were told the cash payments had been suspended in the context of this restructure. But this was misleading, as it was actually because paying out to investors would leave the company unable to pay other liabilities.
In essence, the regulator said Du Val didn’t have enough cash to pay investors and all its other costs — and so had suspended distributions.
Paul Gregory, the FMA’s executive director of response and enforcement, said investors in Du Val’s Mortgage Fund had not been given enough information to properly accept or reject the proposal.
“In particular, investors were misled about the reason Du Val has suspended the prominently advertised cash distributions, which was because Du Val’s Board could not approve a cash distribution which would leave the fund unable to meet its other obligations.”
Also, investors were not obligated to accept the decision, as the proposal was not permitted under the terms of the limited partnership agreement governing the investment.
The regulator said Du Val’s statements may have been misleading or deceptive, because investors were not informed of the underlying reason the board had suspended and capitalised distributions.
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https://www.stuff.co.nz/business/300...ing-statements
Du Val issued with formal warning over 'misleading' statements
10.3.2023
Du Val Capital Partners has been issued with a warning over what the Financial Markets Authority says are misleading or deceptive statements made to investors in the Du Val Mortgage Fund.
Du Val is a property development company. In recent years, it has offered investors a 10% return a year in its mortgage fund, with a $250,000 minimum investment.
But investors have since had their money locked in while plans were finalised for a listing on the stock exchange.
The Financial Markets Authority said Du Val Capital Partners and Du Val Group might have breached the Financial Markets Conduct Act by engaging in misleading or deceptive conduct, in its communication about that decision.
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https://www.fma.govt.nz/news/all-rel...mortgage-fund/
FMA warns Du Val Capital Partners Limited over misleading or deceptive statements to investors in the Du Val Mortgage Fund
10.3.2023
FMA Release at link
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https://www.nzherald.co.nz/business/...AKR2VZQXQLBWY/
Du Val negotiating to resume investor payments
12.4.2023
Residential property developer Du Val Capital Partners is working to reassure investors that its build-to-rent fund has adequate reserves to meet its obligations, BusinessDesk reports.
Du Val’s manager of investor relations, Ben Good, said that directors are now focusing on “financial modelling” to ensure that sufficient reserves are maintained to meet obligations.
Last month the Financial Markets Authority warned the company about misleading and deceptive statements to investors in its mortgage fund.
The regulator said investors may have been given a misleading impression of the reasons for Du Val suspending cash distributions on the fund and proposing instead to convert cash distributions into units, pending a potential public listing.
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And so - Mortgage Fund Investors appear to be continuing to suffer an Interest Payout freeze
The matter of repayment or otherwise of Mortgage Fund Investors continues to remain outstanding
The FMA may be be continuing to watch in respect of the Mortgage Fund Investors
Last edited by nztx; 12-02-2024 at 10:24 PM.
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https://www.stuff.co.nz/waikato-time...-firms-owe-50m
Bust firms owe $50m
31 Jan 2009
A Hamilton property developer who sources say owes more than $50 million to the Bank of Scotland International is adamant he will not "roll over and die" over the debts.
The Waikato Times revealed yesterday that mother and son Jenepher and Kenyon Clarke, developers of many Hamilton studio apartment properties, had at least 12 of their companies placed in receivership on Friday.
Many of the units they have built and rent are well tenanted - with CTC trainee pilots and hospital staff living in both the Peachgrove Rd and Knox St apartment owned by their companies.
The Waikato Times spoke to Mr Clarke yesterday at the Newstead house he shares with his mother. Mr Clarke said that all the businesses were still running and he was working with his advisers to recover the situation.
"I think the situation is retrievable or else I might as well f--- off or roll over and die."
Mr Clarke has more than 27 companies listed with the Companies Office and 12 were placed in receivership last week under the instructions of the Bank of Scotland. It is understood that Mr Clarke was several hundred thousand dollars behind in interest payments.
Mrs Clarke's silver Jaguar and Mr Clarke's black Range Rover were in the driveway, but a black Ferrari, which the Times understands is in the midst of being repossessed, was not.
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https://www.nzherald.co.nz/entertain...6FLP4WYUMQYMA/
Spy: High-roller property developers head for Singapore and Fiji
7 May 2022
One of New Zealand's most successful high-flying property couples have left Auckland to set up their global headquarters in Singapore and eventually settle their family in a luxury gated community in Fiji.
Kenyon Clarke, CEO of property company Du Val Group, and wife Charlotte, who is the company's COO, packed up their clifftop Remuera home early this week and headed for Singapore to launch their Du Val Group International strategy.
The couple are known for splashing the cash on luxury lodges, expensive cars (including a Rolls-Royce Phantom,) private jets and chopper rides, not to mention creating a property developing reality show last year yet to be screened.
According to its website, the Du Val Group is valued at $750 million and the Clarkes don't plan to stop there. Plans include property development in New Zealand, Australia and the UK, with Singapore as the hub for the operation.
The couple, now searching for Singapore office space, plan to relocate Du Val's head office there within the next 11 months. Several of the company's key executives will also relocate to Singapore. The Clarkes tell Spy that although they will no longer live in New Zealand, they consider themselves very much Kiwis and hope to take a little Kiwi ingenuity to the rest of the world.
Du Val's business in New Zealand will remain a core focus for the group, they say, run by a management team in Auckland, who will routinely visit the Singaporean head office to keep business operations running seamlessly across the two markets.
Last edited by nztx; 12-02-2024 at 11:11 PM.
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https://newsroom.co.nz/2024/02/09/wo...-legal-action/
Work stops on big Du Val site as contractors threaten legal action
9 Feb 2024
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 Originally Posted by nztx
IMHO this is a really sad situation for a N Z home builder, we , N Z inc need risk takers who are willing and able to build what is necessary to help home other N Zers, I truly hope that this does not finish in tears.
Yes they look like a power couple and possible should have kept their heads down and not believe their own p r but that not a reason why we should want ill will of them. There is nothing wrong with success surely we need that and the people who have the courage to try and keep trying again and again.
As the great Martin crow said , " only weeds grow under tall poppies " !!.
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Junior Member
This is already finishing in tears for investors and unfortunately that seems to be a pattern with this 'internally focused management group' (that's as nicely as I can phrase it without appearing personal...)
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