There are now five retirement villages caught up in the LM administration cobweb, being remnants of the failure of Peet and Village Life that LM had been landed with as a mezzanine funder. Two weeks ago LM called in administrators FTI Consulting for the management company of their eight investment funds. It is understood the administrators have now applied to be appointed receivers and ASIC is supporting FTI to also be appointed receiver of the largest fund, the $400 million Managed Performance Fund. ASIC has also suspended LMs financial services license for two years, effectively ending their ability to raise funds. The impact on the retirement villages is unknown.
Legal Issues
VCAT rules Lifestyle Communities’ DMF model illegal
Lifestyle Communities’ business model is under serious threat after a ruling by VCAT President Justice Ted Woodward found its exit fee structure to be illegal. The ASX-listed land lease operator, which was valued at $861.9 million and placed in...
