SCV rental villages update – management fee increase approved

The rental village market looks less grim this week. Over the past ten days SCV has achieved
the seemingly impossible with 15 out of 15 investor groups agreeing for SCV increasing
its management fees for six months. This makes it financially viable for SCV to continue its
management role. Last week we outlined the potential abandonment of their residents if
negotiations failed. (SCV state they would have made an orderly transition of the villages to a
new manager but the fees are obviously not viable for another manager). SCV will use the six
months to create long term options for investors, who could then appoint another manager,
for instance. SCV believes that at last they can make a viable rental model for the Australian
market.