Land banking Jamie McIntyre's 21st Century Group facing ASIC proceedings

Land banking Jamie McIntyre's 21st Century Group facing ASIC proceedings
Land banking Jamie McIntyre's 21st Century Group facing ASIC proceedings

ASIC has commenced proceedings in the Federal Court of Australia against companies associated with Jamie McIntyre and the 21st Century Group in relation to their promotion to investors of five land banking schemes.

Land banking Jamie McIntyre's 21st Century Group facing ASIC proceedings

ASIC alleges that the schemes are unregistered managed investment schemes and that the 21st Century Group companies and Mr McIntyre have been unlawfully carrying on an unlicensed financial services business.

The five schemes are promoted and advertised as:

  • Botanica, located at 805 Archer Rd, Kialla, Victoria 3631
  • Secret Valley Estate, located at  955, Old Sydney Road, Bylands, Victoria 3762
  • Oak Valley Lakes Estate & Resort, located at  124 Booth Road, Brookhill, Townsville, Qld 4816.
  • Bendigo Vineyard Estate & Resort, located at  51 Andrews Road, Bendigo, Victoria 3551
  • Melbourne Grove Estate, located at  1491 Dohertys Road, Mount Cottrell, Victoria 3024

ASIC understands that there are over 100 investors in the schemes, which have been promoted to investors, including through seminars, by entities associated with Mr  McIntyre's 21st Century Group.

Companies associated with Mr McIntyre and the 21st Century Group are also the developers of the schemes (development companies). 

ASIC is seeking orders to appoint a provisional liquidator or receiver and manager to each of the five schemes and the development companies in order to take control of any assets and protect the interests of investors.

The development companies are:

  • Archery Road Pty Ltd (ACN 162 921 735)
  • Bendigo Vineyard Estate Pty Ltd (ACN 600 088 211)
  • Secret Valley Estate Pty Ltd (ACN 602 817 532)
  • Kingsway South Holdings Pty Ltd (ACN 159 230 976)
  • Melbourne Tarniet Estate Pty Ltd (ACN 603 945 393)

ASIC is also taking action against the development companies and the following for being involved in an unlicensed financial services business.

  • Mr Jamie Neville McIntyre (Surfers Paradise Qld)
  • Mr Dennis McIntyre (Surfers Paradise Qld)
  • Property Tuition Pty Ltd (ACN 129 421 281)
  • Education Holdings Pty Ltd (ACN 129 551 917)
  • Sourcing Property Pty Ltd (ACN 602 474 779)

ASIC is also seeking orders that each of the defendants, including Mr McIntyre, be restrained from promoting, further promoting or operating any of the schemes and from operating a financial services business.

The matter is set down for a first hearing on Friday 14 August 2015.

ASIC’s proceedings are part of ASIC's wider and ongoing investigation into land banking schemes. 

ASIC last week took proceedings against Midland HWY, which was the developer of a land banking scheme known as, 'Hermitage Bendigo' (formerly, 'Acacia Banks')  located  outside of Bendigo in Victoria.  The 21st Century Group also promoted this development.

Land banking is a real estate investment scheme involving the acquisition of large blocks of land by a promoter or developer of the scheme, often in undeveloped rural areas, who then offer portions of the land to investors. 

Land banking companies typically promote the investment with representations of high potential returns if the land is redeveloped, or if plans for rezoning and development are finalised.

Investors either purchase a lot in the land, or acquire an option to purchase a lot of land in an unregistered plan of subdivision.  The option agreement is triggered at a time that the necessary development is approved by the local council.

While ASIC does not regulate direct property investment, ASIC considers that land banking schemes, depending on the particular scheme, may be a managed investment scheme and/or a financial product and that the promoters of these schemes should therefore hold an Australian financial services licence and register these schemes with ASIC.

Tags: 
Victoria Land

Comments

Be the first one to comment on this article
What would you like to say about this project?