Thursday 1 October 2009

The Late Tom Hedley

Kitchenslut reports that Hedley has finally released its annual report, with a going concern qualification. He says that HLG will trade again on the ASX today.

  • "Leisure & Gaming Property Fund (HLG) has finally released, a month late, its annual report for FY09 with a going concern qualification from the auditor and will be coming out of ASX listing suspension. I wont try to comment broadly and leave that to other reports but rather focus on just a couple of other aspects of perhaps more local significance.

    The IPO in 2007 came with a slew of agreements between the publicly listed HLG and ‘Tom Private’ in a now widely discredited externally managed structure which made KS vomit from the perspective of any potential investor. One of these was the ‘development deed’ which gave Tom development rights over fund properties. Among the related party transactions (note 30 in the accounts) Tom received $1.19 million under ‘development deeds payable’ for public shareholders to buy out these private rights during the year.

    The year got off to a flying start when on July 1, 2008, HLG’s public shareholders paid Tom $200k “in lieu of future development rights for the surplus land at 213 Sheridan St, Cairns.”

    Google Map tells me this is the small strip centre with a Liquorland outlet at the Grove and Sheridan traffic lights. This is a newly redeveloped centre anyway in the last few years which I can only now suspect was flogged brand new into the float? Surplus land?


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