Augusta Commercial Property Investment Funds

Discussion in 'Financial campaigns and consultations' started by MrEarl, 1 Dec 2012.

  1. MrEarl

    MrEarl Frequent Poster

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    Hello,

    I was wondering what are peoples' general experiences and views, of the various Augusta Property Funds, please ?

    It seems to me that the people managing the funds, are doing whatever they want and the investors have no influence and are lucky, if they get detailed information on what is being done with their money.

    Here is an example:

    The 6th Augusta Fund (a German commercial investment property fund) was due to mature several months ago. Augusta wrote to it's investors, advising that they had a plan for the properties held in the fund which they think will add value, so they are proceeding with this regardless of the maturity date of the fund or individual investors wishes. No clear timeframe for exit, assurances of returns etc were provided (each investor put a minumum of €50 into this fund, by the way). There was no general meeting of all investors to discuss this decision, no opportunity to have a questions & answer session etc. No furher update has been provided, since this communication of (I think) almost six months ago.

    The above appears very unsatisfactory to me, but perhaps there is a genuine explanation.

    Are other people having similar experiences, or am I perhaps missing something very important with regards to both my own investment in the 6th fund and other funds managed by Augusta ?

    Thank you

    Mr. Earl.
     
  2. MrEarl

    MrEarl Frequent Poster

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    Hello,

    Sorry I do not know how to edit my post above but I would like to correct a comment above please.

    The Augusta website says the 6th Fund was due to mature in Q3, 2012 - per this link: http://www.augusta.ie/the-sixth-augusta-syndicate (I had an earlier date in mind, perhaps they have changed their website or I have it wrong, I am not sure but want to correct myself if I am indeed wrong please).

    Thank you.
     
  3. philzer

    philzer Registered User

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    6
    MrEarl, I have also had this experience with Augusta - I am involved with their original UK syndicate. Similar experience at exit time. It's obvious the only winners here are the directors. My returns are approximately 40% of investment.
    Wouldn't go near them if you are looking for an outlet for funds.
     
  4. MrEarl

    MrEarl Frequent Poster

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    1,633
    Hello,

    Thank you for your update.

    Have you now been repaid in full (even, if only 40% of your original investment) - their website still suggests the first UK syndicate is exiting but does not appear to have completed (and no activity on their second UK syndicate but that is not due yet in fairness) ?

    I just noticed I had a mistake in my original post - it should have read a minimum of €50k investment - sorry.

    With regards to your UK syndicate Philzer, can I please ask you if you lodged any objection with the Directors of Augusta or elsewhere ?

    .. my reason for asking is like you, I have funds already with Augusta and am very annoyed with the way they are treating me. I also know of others in the same position.

    I suspect this is a wide spread problem for all of us and wonder if there is a way to remove the directors perhaps or force them to act under the investors instructions ?

    Thank you.

    Mr. Earl.
     
  5. cremeegg

    cremeegg Frequent Poster

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    I am also invested in "The Augusta UK Commercial Property Fund PLC" which I think is the same first UK syndicate.

    In 2005 they bought 2 UK properties a car park in Birmingham and a Homebase in Sudbury, for just over GBP£10m.

    In March 2013 the wrote to say that they are selling the Homebase for GBP£4.33m, and will be winding up the fund returning approx 35% of the original investment. That is in sterling.

    I cannot see what happened to the Birmingham car park but unless they gave it away the 35% return seems inexplicable.

    Does anyone have any further info?
     
  6. MrEarl

    MrEarl Frequent Poster

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    1,633
    Hello,

    No, but like you I have grave concerns - it's time we start seeing some evidence of these properties being marked openly, valued by professional independent parties etc.

    I gather they have a buyer lined up for Homebase also ... equally worrying situation, needless to say....

    Suffice to say, I have lost a lot of confidence since Mr. Kennedy left Augusta a few years ago.
     
  7. mercman

    mercman Guest

    Surely, the Investors hold some rights in the Augusta projects. A group of the Investors should get together to oust the Managers and get some proper Management there to give the Investors some level of honesty.

    I am involved with other UK co-ownerships and similar to this the Property Managers (based in Ireland) have done a pathetic and careless job. The time has now arrived where the Investors need to take care of the Investments themselves.

    It really is all quite maddening. Read through the original paperwork and then decide what can be done.
     
  8. MrEarl

    MrEarl Frequent Poster

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    1,633

    Hello Mercman,

    Without wanting to ask you to give too much detail of your personal experiences, would you please give some clues as to what to look out for in the original paperwork (it was little more than a marketing brochure and the actual investment funds are not Central Bank Regulated from what I gather) ?

    Also, any thoughts on how to get in contact with fellow investors within the various Augusta funds ?

    Thank you.
     
  9. mercman

    mercman Guest

    Mr.Earl, I'll assist you in any manner I can. I think you will have to get a group of Investors together and to start pursuing your money. Start by bombarding the Management of the funds with questions -- plenty of them.

    I'm unsure if this fund is encompassed in a company. Check this out and do a search on the submitted records. The solicitors that acted for the fund must be noted. They are duty bound to answer investor questions. The only way you are going to receive answers is by persistence.

    You might have to run a newspaper advertisement to find other investors. Alternatively place a post on AAM seeking other Investors. Also Boards.ie may be a help.

    The Management of the fund are obliged to answer your queries. It's your money that pays their wages indirectly. Otherwise you should put down a motion to have them removed. Question their fees ??

    It is not clear how much you invested in this fund but you are entitled to ask questions. In a best case scenario, you might be co-joined by an investor who is a solicitor. These people are not immune to losses either.