Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of wealth4life.comwealth4life.com
    Member
    @wealth4life.com
    Join Date: 2003
    Post Count: 1,248

    Hello I have just been put onto this site … does anybody here know anything about them or had dealings with them …

    http://www.codevelop.com.au

    D

    Profile photo of bendbanksbendbanks
    Participant
    @bendbanks
    Join Date: 2007
    Post Count: 46

    Hi,
     I asked around to some of my contacts. If the company is the same then from all accounts they are not to bad. My understanding is they or may offer second tier lending as well(they move very quickly on deals as well). Other than that can't really help sorry I have a contact who has had three deals with them and has offered to answer any direct questions you might have if you want to ask me send me an email, only to happy to help.

    Profile photo of businessglobalbusinessglobal
    Participant
    @businessglobal
    Join Date: 2005
    Post Count: 118

    I work in a lot of advisory and legal areas of property, and in my database have found this which is fromt he ASIC site. Go to http://www.asic.gov.au  and there is a site there fido which shows scams, problems, watch dog. Hopes this assists with your research. Bye

    04-416 Co-Develop property schemes to be wound up

    Friday 17 December 2004

    The Australian Securities and Investments Commission (ASIC) has obtained orders in the Supreme Court of Queensland to wind up managed investment schemes operated by the Brisbane-based property developer, Co-Develop Australia Pty Ltd and eight related companies (the Co-Develop Group).

    The Court ordered that each scheme be wound up, and appointed Mr Lachlan Stuart McIntosh and Mr John Richard Park of KordaMentha to supervise the winding up. Mr McIntosh will also assume control of the Co-Develop Group.

    The Co-Develop Group, the sole director, Mrs Kylie Jane Freeman and Chief Executive Officer, Mr Leslie Raymond Freeman, also undertook not to seek any further money from investors for the schemes. They also undertook to refrain from declaring that sophisticated investors, joint venture agreements and promissory notes were exempt from regulation under the Corporations Act 2001.

    Furthermore, as part of the order, the Co-Develop Group, Mrs Freeman and Mr Freeman undertook not to seek to recover management fees until investors had been re-paid their principal investments and interest.

    ASIC alleged that the Co-Develop Group operated an unregistered managed investment scheme, carried on a financial services business without holding an Australian financial services license, offered securities without a current disclosure document, and engaged in conduct that was misleading and deceptive or likely to mislead and deceive.

    ‘ASIC has a structure in place to regulate managed investment schemes that aims to ensure that investor’s money is protected. Those who invest in schemes that aren’t registered are not provided with these protections’, ASIC’s Executive Director of Enforcement, Ms Jan Redfern said.

    ‘While we will take action to protect the interests of investors, consumers need to be vigilant, and always check their money is invested with responsible and compliant operators’, Ms Redfern added.

    The final hearing of the matter was adjourned to a date to be fixed.

    Background
    ASIC alleged that in the course of financing various property developments, the Co-Develop Group sought and obtained money from the public through the use of promissory notes, joint venture agreements and debentures. The funds are used as mezzanine finance, that is, as additional funds to finance obtained by the Co-Develop Group from a financial institution. There are at least nine schemes where the money invested by members of the public are used in connection with the property developments being undertaken by the Co-Develop Group. The property developments are located in Toowoomba, Beaudesert, Redbank Plains, Coombabah, Morayfield, Margate, St Lucia and Westbrook in Queensland and Evans Head in Northern NSW. Each scheme has up to 17 investors and funds invested in the schemes total $28.8 million. Returns between 35 per cent and 100 per cent per annum were offered to investors.

    Profile photo of bendbanksbendbanks
    Participant
    @bendbanks
    Join Date: 2007
    Post Count: 46

    I think you need to confirm the company we are all talking about 1st as whilst I can confirm the above statement I have down load a copy of the report and looked at the website and the two do not match up. I think what you may have come across is either an old website or a front. Based on that I'd stay clear.

    Profile photo of wealth4life.comwealth4life.com
    Member
    @wealth4life.com
    Join Date: 2003
    Post Count: 1,248

    Yes we have been doing some checking as well … Les Freeman was CEO of Co-Develop Australia and did Henry Kaye seminars (god people never forget when you stuff up)

    This site and company (soory don't know the trading name) is run by a Mr Smid (think thats correct) … they bought a site in Balmain in Sydney for 4.5 million the changed the DA then had it revalued and onsold it for 8.5 million all in under 8 months which we were very impressed about … take a quick profit pay tax and move on with out settling on the site … very smart

    D

    Profile photo of businessglobalbusinessglobal
    Participant
    @businessglobal
    Join Date: 2005
    Post Count: 118

    check with asic and cross check all info- often the greater return the greater risk- so check really behind the scenes exactly how your funds/ investment is secured, and maybe get a finance broker to also explain the whole money lending/ securitisation of deals like this, and where you shall be placed as a creditor should they go belly up.

    Lots of red belly black snakes out there, I am a specialist adviser and also sit on the crown law advisory board for property matters, development bungles, bankruptcies, mortgagees, creditor issues.

    Dont let 1 deal impress you- thoroughly do your homework and always see if worst case scenario ever happens, what is your plan?

    Bye

    Profile photo of Bob AndersenBob Andersen
    Participant
    @bob-andersen
    Join Date: 2007
    Post Count: 36

    Hi,

    I'm not sure if this crowd has any connection to the previously mentioned Co-develop Australia but you really have to wonder about a website spruiking for property development clients where no names or background experience is given. And if they're not connected why would they ever use such a tainted name?
     
    As a Brisbane developer of 27 years experience I followed the rise and fall of Co-Develop Australia quite closely. They were obviously running managed investment schemes, using promisory etc so it was inevitable that ASIC would come down on them like the proverbial ton of bricks. 

    This current co-develop crew seem to be sailing very close to the wind in regards to operating managed investment schemes. I quote "syndicates that jointly carry out developments". I regularly come across operators who either purposely or probably through ignorance are contravening the Corporations Act, Managed Investments Act and the Financial Services reform Act.

    Section 9 of the Corporations Act defines a managed investment scheme if it has the following features:
    (a) people contribute money or monies worth as consideration to acquire rights (interests) to benefits produced by the scheme….
    (b) any of the contributions are to be pooled, or used in common enterprise, to produce financial benefits, or benefits consisting of rights, or interests in property, for people who hold interests in the scheme ….
    (c) the members do not have the day to day control over the operation of the scheme..

    Sounds to me like the proposed 5 or 6 person syndicates with co-develop running the show fit the bill. While real estate is not a financial product under the definitions of the Financial Services Reform Act, a managed investment scheme is (Section 764A 1ba). To deal in a financial product requires an Australian Financial Services Licence. The bottom line is if investors get involved in a scheme that is operated outside of these Acts and ASIC winds it up they will be the big losers.

    In reality it is even more complicated than I have described. I'll leave discussion about registered or unregistered schemes, product disclosure statements, excluded offers etc for another day.

    My advice. Don't get involved without top shelf legal advice by a lawyer who specialises in corporation law such as McMahon Clarke http://www.mcmahonclarke.com 

    Profile photo of wealth4life.comwealth4life.com
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    @wealth4life.com
    Join Date: 2003
    Post Count: 1,248

    Thanks guys very much … not interested in investing money with them however love to find out about on-selling or flicks or DAs and simultaneous settlements …

    D

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