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03-03-2013, 09:10 PM
Gateway Plaza was previously held by another trust, RREEF China Commercial Trust (RREEF), which was later sold to Mapletree India China Fund. RREEF was subsequently delisted from the HK stock exchange since the trust portfolio has no other asset than Gateway Plaza.
Prior to RREEF, the developer of Gateway Plaza, Tin Lik, misrepresented rental incomes and other information to the trustees of RREEF. These discrepancies were later discovered, and the share price of RREEF fell by 44%. It was a fraud case, and Tin Lik paid a sum of HK$287,497,000 to the trustees of RREEF as "compensation".
Tin Lik is now contending that he was coerced into admitting fraud and making the HK$287,497,000 payment to the Trustees in his new lawsuit, which seeks to recover that payment. This is the pending lawsuit which I believe is the one stated in the prospectus. I DO NOT UNDERSTAND WHY THE PROSPECTUS SAY THIS IS AN ALLEGED LOAN.
Quoting from some articles:
"Three years, Gateway Plaza's occupancy rate has been declining: in 2007 where the occupancy rate of 96%, 88.6% in 2008, dropped to 76.5% in 2009; At the same time, its net property income from 2008 202 million in 2009 down to 1.80 billion yuan."
"There was also a guarantee of billboard rental income of RMB35 million for the first year, 38 million for the second year, and 40 million for the third year, but the tenant defaulted. "
"The Government of Singapore Investment Corp (GIC) was also a major investor in RREEF trust's $288 million IPO."
The International Appraiser: Objective valuation advice on international commercial real estate: The Beijing Gateway Plaza fraud controversy
Sale of Gateway Plaza RREEF Real Estate Fund, the first exit into REITs - ventureData.org
Rare property trust digs out of China fraud mess | Reuters""
Prior to RREEF, the developer of Gateway Plaza, Tin Lik, misrepresented rental incomes and other information to the trustees of RREEF. These discrepancies were later discovered, and the share price of RREEF fell by 44%. It was a fraud case, and Tin Lik paid a sum of HK$287,497,000 to the trustees of RREEF as "compensation".
Tin Lik is now contending that he was coerced into admitting fraud and making the HK$287,497,000 payment to the Trustees in his new lawsuit, which seeks to recover that payment. This is the pending lawsuit which I believe is the one stated in the prospectus. I DO NOT UNDERSTAND WHY THE PROSPECTUS SAY THIS IS AN ALLEGED LOAN.
Quoting from some articles:
"Three years, Gateway Plaza's occupancy rate has been declining: in 2007 where the occupancy rate of 96%, 88.6% in 2008, dropped to 76.5% in 2009; At the same time, its net property income from 2008 202 million in 2009 down to 1.80 billion yuan."
"There was also a guarantee of billboard rental income of RMB35 million for the first year, 38 million for the second year, and 40 million for the third year, but the tenant defaulted. "
"The Government of Singapore Investment Corp (GIC) was also a major investor in RREEF trust's $288 million IPO."
The International Appraiser: Objective valuation advice on international commercial real estate: The Beijing Gateway Plaza fraud controversy
Sale of Gateway Plaza RREEF Real Estate Fund, the first exit into REITs - ventureData.org
Rare property trust digs out of China fraud mess | Reuters""