Doubts on property firm's value Ben Butler

Doubts on property firm's valueBen Butler

But only if the company's valuations hold up.

Inflated property valuations was one of the key reasons given by the corporate watchdog when it stopped the company raising any more money on April 23.

ACR collapsed last Monday owing 7000 investors $330 million and its bankers about $220 million.

More than 350 investors turned out to yesterday's meeting at the Grand Hyatt.

Those attending were mostly older people. Several said they were pensioners.

More than 800 irate investors attended a meeting in Sydney, forcing organisers to arrange an overflow room.

Administrator Greg Hall of PricewaterhouseCoopers, speaking by link-up from Sydney, said projects under development would be finished.

"There will be a sizeable return to noteholders ultimately, but the size and the timing of that is not yet known," he said.

Under questioning from sceptical investors, Mr Hall admitted the company's book valuation of $624 million in assets was unlikely to hold.

"I think it's unlikely that valuations of that order will be achieved, but I can't give you any guidance on what valuations are likely," he said.

Investors will only see a return if there is anything left after paying the group's bankers.

Investor David Roberts, who sunk $50,000 into ACR, said he didn't find the administrators' presentation reassuring.

He estimated a return of 20 per cent to 30 per cent.

Mr Roberts said he felt sympathy for people who had put all their money into ACR.

"I've lost a lot for my family, but again I knew what I was doing," he said.

One woman attended on behalf of her son, a 25-year-old urban designer from Brunswick who left for an overseas holiday yesterday.

Her son had $20,000 invested in the company, but withdrew $10,000 in December.

"He said he had a bad feeling," she said.

PricewaterhouseCoopers was appointed administrator to the investment part of the group at 2pm yesterday. McGrathNicol, who were appointed by group directors Sam Pogson and Murray Lapham, remain in charge of development arm Estate Property Group.

The group is the third high-risk property investment scheme to collapse in the past two years.

Perth group Westpoint fell over owing investors up to $600 million.

Sydney company Fincorp went broke owing more than $295 million.