Call to arms at Opus 21
The Age
Wednesday February 23, 2011
INVESTORS in the $240 million property fund Opus 21 should ditch manager Opus Capital in favour of raider John McBain's Century Funds Management, independent analysts Adviser Edge say.But Opus says the fund's 3000 unit holders should reject the move because it has secured a loan extension from its financier, Suncorp.The furious lobbying by Opus and Century, a division of the listed Over Fifty Group, comes ahead of a meeting of unit holders next Monday at which the issue will be decided.In its report, released last week, Adviser Edge said there was "material doubt" Opus could refinance the fund, given the limited track record of the company's new board.Adviser Edge also raised concerns about whether Opus would be able to hang on to its financial services licence, which the Australian Securities and Investments Commission is trying to revoke.In addition the report, commissioned by financial advisers Professional Investment Services, criticised the fund's high debt level and said a $17 million loan to a related Opus fund, which has been all but written off, "cast doubt over the independence of the manager and its ability to pursue the best interests on behalf of investors".But Opus chairman Graham Kluge said Suncorp had agreed to extend the fund's loan to September 30, rendering Century's bid "redundant".Opus had already held talks with other major financiers to replace the Queensland-based bank at the end of September, he said.
© 2011 The Age