Archive | Australia – Queensland

World property Sat5 Mar16 – Melbourne Quarter approval, big development outside Brisbane

Lendlease’s Melbourne Quarter gets stage 1 approval
$A6 billion development campaign opens for aspiring Brisbane cbd competitor

Lendlease’s Melbourne Quarter gets stage 1 approval

Victorian planning minister Richard Wynne approved the first stage of Lendlease Group’s $A1.9 billion Melbourne Quarter development on Thursday.

Mr Wynne said the precinct on Batman Hill, between Collins & Flinders Sts and across the road from Southern Cross station, would improve the link between the Hoddle Grid (the rectangle marked out 180 years ago as Melbourne’s centre) & Docklands. The approval includes a 2000m² elevated park to be built over part of Wurundjeri Way & Collins St, called Melbourne Skypark & expected to be complete in 2018.

A 30,000m² 19-level commercial tower has also been approved for Aurora Lane & Collins St. It will have 177 car spaces & 210 bike spaces.

All up, the development will have 7 commercial & residential buildings, 110,000m² of office space, 4500m² retail net lettable area, and 3 towers on Flinders St will contain 1700 apartments.

The managing director of Lendlease’s urban regeneration business in Australia, Jonathan Emery, said: “With its apartment neighbourhood located next to a thriving commercial district, Melbourne Quarter offers the opportunity to live next to work, which is increasingly appealing for young professional owner-occupiers & investors with a keen eye on the leasing market.

“Lendlease’s urban regeneration footprint across the globe has revealed that an increasing number of city dwellers are aspiring to live close to work, and where they have access to all a city has to offer – restaurants, shopping, public transport, workplaces & education. Melbourne Quarter delivers on this need.”

On completion, it is expected to be home to 10,000 workers & 3000 residents.

Links: Melbourne Quarter
Victorian Government, 3 March 2016: Elevated park & office tower approved for Docklands

$A6 billion development campaign opens for aspiring Brisbane cbd competitor

The developer of a city on the outskirts of Brisbane, which it wants to become a competitor of Brisbane’s central business district, launched an expressions of interest campaign on Monday for a medium-density apartment project with an estimated $A6 billion end value.

Springfield Land Corp chair Maha Sinnathamby, who bought the original 2860ha of Greater Springfield 30km south-west of Brisbane with business partner Bob Sharpless for $A7.2 million in 1990, has grown it to a population of 32,000 and is aiming for 86,000 by 2030.

He’s seeking development & capital partners to deliver the 10,000-apartment City Centre North project, and ancillary commercial & retail space, next to the rail station & transit hub in the heart of Greater Springfield over the next 15 years. UBS AG’s Australian branch, as financial advisor, is running the expressions campaign.

Springfield is a suburb of Ipswich, a city of 180,000 people, but has been changing fast. It’s had $A12 billion invested in it, and about $A600 million/year is being spent on construction. The University of Southern Queensland has just completed an $A45 million expansion of its campus, the Orion Springfield Central shopping centre has undergone an $A154 million expansion, and new office buildings include GE’s $A72 million Queensland headquarters, opened last year.

Mr Sinnathamby, 76, studied engineering in Sydney in the 1960s, and emigrated to Australia from Malaysia in the 1970s after working at the World Bank & Asian Development Bank. He said this week: “The City Centre North apartment project represents an exciting next step in the evolution of Greater Springfield, as an alternative to the Brisbane cbd, providing greater housing & work choices to the diverse mix of Greater Springfield residents across age cohorts & market segments. It also represents an opportunity for another visionary group to join existing major stakeholders who have been active in the development and commercialisation of Greater Springfield.”

Link: Greater Springfield

Image: Lendlease’s Melbourne Quarter (left foreground).

Attribution: Lendlease, Victorian Government, Greater Springfield

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property M14Dec15 – CDL Singapore develops in Brisbane

CDL Singapore enters Brisbane apartments joint venture

Singapore-listed City Developments Ltd has re-entered the Australian residential sector, this time directly rather than through the 2 NZX-listed companies it controls, Millennium & Copthorne Hotels (NZ) Ltd & CDL Investments (NZ) Ltd.

CDL Singapore, part of the Hong Leong Group, has joined Australian developers Abacus Property Group & private company KPG Capital in a partnership to develop 2 30-storey towers on a 2733m² Merivale St site in Brisbane’s South Bank precinct. CDL & Abacus will jointly provide most of the equity funding via a preferred equity interest of about $A30 million each.

The 472 apartments will have an $A275 million gross development value. Site works have begun and both towers have been launched for presales.

CDL executive chairman Kwek Leng Beng said, “Our re-entry into Australia’s residential market is in line with CDL’s overseas expansion strategy, which we announced 2 years ago to supplement our existing Singapore operations. Brisbane’s residential market remains highly attractive due to its affordability when compared to other major cities in Australia. Both domestic & international buyers are looking to Brisbane for greater value & higher yield.”

Earlier story: World property Sun29Nov15 – CDL Singapore buys eighth London development site

Attribution: CDL.

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property W1Jul15 – Qataris fund Sydney tower, Brisbane congestion, Mirvac buys for apartments & houses

Qatar fund joins Lend Lease for $A2 billion Barangaroo tower
Lend Lease wins tender for Brisbane motorway widening
Mirvac buys Sydney apartments site & 481ha for Brisbane homes

Qatar fund joins Lend Lease for $A2 billion Barangaroo tower

Lend Lease Corp Ltd has launched a wholesale open-ended property fund to invest in the $A2 billion commercial Tower 1 at Barangaroo South, in the 22ha redevelopment zone between Darling Harbour and the Sydney Harbour Bridge. The former container port is being transformed to become a global financial hub, with a headland park.

Lend Lease One International Towers Sydney Trust is the second fund established to invest in the precinct and takes total equity raised to $A3.4 billion. Construction of Tower 1, the third & largest commercial tower, began in April 2014.

Barangaroo, beside the old Sydney cbd.

Barangaroo, beside the old Sydney cbd.

The new fund will acquire 100% of Tower 1 with $A1.4 billion of equity commitments from capital partners & $A600 million of debt financing. The Qatar Investment Authority has committed to a 37.5% investment and the Lend Lease-managed Australian Prime Property Fund Commercial has committed to a 25% investment. Consistent with its strategy of investing alongside capital partners, Lend Lease will hold the remaining 37.5% as a co-investor.

Lend Lease recently signed leasing arrangements with Marsh & McLennan Companies for 10,400m² (4½ floors) and Servcorp for 2300m² (one floor). PricewaterhouseCoopers & HSBC were already signed up.

Lend Lease group chief executive & managing director Steve McCann said pre-leasing of the 3 towers had reached 66%. All 3 are under construction. Completion of Towers 2 & 3 is expected in the 2016 financial year (which starts today) and Tower 1 in the 2017 financial year.

Tower 1, 48% leased, will have 101,000m² of commercial net lettable area & 6000m² retail, Tower 2 88,000m² & 1000m² (79% leased) & Tower 3 78,000m² & 4500m² (76% leased).

The Barangaroo South precinct will also host a Crown Resorts Ltd integrated resort, agreed a month ago after Lend Lease lodged a modification to its revised concept plan

Links: Barangaroo South
Lend Lease

Lend Lease wins tender for Brisbane motorway widening

Lend Lease Corp’s Lend Lease Engineering Pty Ltd was named last Friday as the successful tenderer for design & construction of the $A1.162 billion Gateway upgrade north project in Brisbane.

Queensland’s Assistant Minister for Infrastructure & Regional Development, Jamie Briggs, and Minister for Main Roads, Road Safety & Ports, Mark Bailey, said the project would fix one of the state’s most congested & important motorways which formed a vital link between key freight hubs, such as the Port of Brisbane & Brisbane Airport.

It will widen an 11km kilometre section of the motorway from 4 to 6 lanes and widen the Deagon Deviation to 2 lanes in each direction.

The Federal Government has committed up to $A929.58 million and the Queensland Government $A232.42 million to the project, scheduled for completion in 2018.

Link: Gateway project

Mirvac buys Sydney apartments site & 481ha for Brisbane homes

Australian masterplanned residential developer Mirvac Group has signed up for 2 new sites in the last 3 weeks, one for 500 apartments & 7500m² of commercial space at St Leonards, 5km from the Sydney cbd. The other is a 481ha acquisition in a Brisbane growth corridor for 3000 homes.

The 5000m² St Leonards site, near the train station at 472 & 486 Pacific Highway, has recently been zoned for mixed use. Mirvac has bought it from CIMIC Group Ltd for $A121 million.

In Brisbane, Mirvac has bought a 481ha parcel at Greenbank, in the greater Flagstone priority development area 30km south-west of the cbd. The Australian Financial Review estimated it cost $A15-20 million.

Links: Mirvac
Australian Financial Review story
Brisbane Courier-Mail story

Attribution: Lend Lease, Mirvac, AFR, Courier-Mail

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property M26Jan15 – Stockland buys land, small A-reit gain, US shops in Europe

Stockland buys 3 big Melbourne & Brisbane tracts for commuter suburbs
Small rise in A-reit returns follows solid revenue gain
US funds lap up distressed euro property

Stockland buys 3 big Melbourne & Brisbane tracts for commuter suburbs

Stockland Property Group said a week ago it had bought 3 big tracts of land for masterplanned suburban development on the outskirts of Melbourne & Brisbane.

The sites are all residentially zoned. Prices weren’t disclosed.

The biggest, Cloverton, is an 1141ha site 35km north of Melbourne. 45km south-east of Melbourne it’s bought 65ha at Clyde North. The 143ha Brisbane site is 38km north of the cbd at Scarborough, on the shore of Moreton Bay.

Stockland said last week it was about to embark on its largest masterplanned residential community development in Victoria, Cloverton, creating about 11,000 homes.

The $A4.6 billion development will occupy 1141ha at Kalkallo, in a growth corridor 35km north of the Melbourne cbd. The project will feature a 60ha city centre with a regional shopping centre, a train station, 4 additional local town centres and a retirement village.

Stockland managing director & chief executive Mark Steinert said last week construction would start in a few months.

Stockland is planning to invest more than $1.3 billion on residential, retail & retirement living projects in Victoria over the next 10 years. Cloverton is a 30-year project, expected to house 30,000 people at a gross 10 dwellings/ha.

The group’s residential development manager for Victoria, Mike Davis, said new rail lines were proving to be the gamechanger for opening up new tracts of land to create viable, sustainable & highly liveable new communities.

Stockland has acquired 65ha of residentially zoned land at Clyde North, in the rapidly developing urban growth corridor of Casey City, 45km south-east of the Melbourne cbd.

Casey is one of Victoria’s fastest developing growth areas. Its population is set to rise from 250,000 in 2011 to 400,000 2031. The state metropolitan planning authority says its transport connection to central Melbourne & outlying areas include 2 electrified railway lines and 2 freeways, and it’s a one-hour rail commute from the cbd.

The site at 120-130 Tuckers Rd is included in the Clyde Creek precinct structure plan, which Victoria’s planning minister approved for residential development in November. Stockland will create an 800-home masterplanned community over 6 years, at a total development cost of $A128 million. Construction will begin in 2017, with the first settlements in the 2019 financial year.

Clyde North is a mixed-use precinct which will ultimately provide 7500 jobs & 13,900 new homes. Stockland said its site, 4km east of Cranbourne, offered residents convenient access to the existing Cranbourne train station, Berwick bus station & Princes freeway. It was also near 3 shopping centres, numerous childcare facilities & state primary schools & Monash University Berwick. The Casey Fields Regional Sporting Complex is 2km away.

In Queensland, Stockland has acquired 143ha of residentially zoned land in the northern Brisbane suburb of Scarborough for $A67 million, its first major land acquisition in Queensland in 5 years. The project, known as The Isles of Newport, has been trading for a number of years and is on the shore of Moreton Bay, 38km north of the Brisbane cbd.

Stockland’s development of new waterfront lots & bayside residential areas will have a total end value of $A590 million. It will comprise 1500 new homes, a 28ha non-tidal lake with a navigable loch providing high-mast boat access to Moreton Bay, a village centre and a number of foreshore parks.

The Isles of Newport is near the new Kippa Ring train station, due to open in 2016.

Links: Stockland
Clyde Creek approval

Small rise in A-reit returns follows solid revenue gain

A-reit (Singapore-listed Ascendas Real Estate Investment Trust) increased third-quarter gross revenue by 11.2% to $S171.7 million (2013 revenue restated), net property income by 5.6% to $S114.6 million, the total available for distribution by 1.6% to $S86.4 million, and the distribution/unit by 1.4% to S3.59c.

Link: A-reit presentation

US funds lap up distressed euro property

The Daily Reckoning noted last week that the $US is trading at an 11-year high against the euro, Financial Times property correspondent Kate Allen wrote that 79% of commercial transactions in Europe involved US private equity firms, and CBRE Capital Advisors said sales of European loan portfolios rose 133% last year to €49 billion.

Europe still has plenty of unwanted real estate debt to sell, but Ms Allen wrote that the discount on it had been cut from 63% in 2012 to 44% in 2014.

International alternative assets research firm Preqin said this month closed-end private real estate funds that focus on debt investments raised a record $US20 billion, up from $US16 billion in 2013; funds focusing on Europe raised 131% more capital in 2014 than in 2013, up from $US15 billion to $US36 billion; and 39% of capital raised internationally last year had a primary focus on Europe, up from 17% in 2013.

Links: Financial Times (behind wall), European banks step up sales of distressed property loans
AI-CIO, Europe destination of choice for real estate investors
Prequin, Private real estate fundraising maintains momentum in 2014, while debt funds raised record $US20 billion

Attribution: Company releases, Victorian Metropolitan Planning Authority, A-reit.

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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$A16.85 million penthouse back on market as Soul completion nears

Published 25 April 2012

A 4-level penthouse apartment 240m above Surfers Paradise has been put on the market by its first owner, who bought off the plans for $A16.85 million in 2006. The building is nearing completion and therefore purchase settlement.

The 1040m² penthouse on levels 70-73 of the Soul building on Cavill Avenue, at the centre of the Gold Coast business district, has its own private internal Italian glass lift & staircase, and a rooftop pool, spa & entertainment area. The 6 bedrooms include chef/butler quarters and the apartment has an allocation of 6 parking spaces. The building has 24-hour room service plus concierge & housekeeping.

Marketing agent Karyn O’Dea of Ray White Robina Varsity said the first owner (unnamed) “is involved in one of the largest equipment hire businesses in Australia, now has a young family so he’s putting it on the market.” She’s seeking expressions of interest by 15 June.

The $A850 million building, on the site of the former Raptis Plaza, was developed by the Juniper Group and built by Grocon Pty Ltd. On completion it will have 288 apartments and a retail centre.

Link: Soul building

Want to comment? Go to the forum.

 

Attribution: Agency release, Grocon, story written by Bob Dey for the Bob Dey Property Report.

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Sunland puts Palazzo Versace on market

Published 25 April 2012

Sunland Group Ltd made a 4-line announced to the ASX on Tuesday: The Palazzo Versace Gold Coast Hotel is up for sale by tender so the company can focus on its core business of property development in Australia.

Expressions of interest close in June with the new boutique agency, McVay Real Estate, headed by former CBRE Queensland agents Dan McVay and his son Sam.

Sunland built the hotel in 2000. It has 200 rooms 7 suites, 72 condominiums, a 65m heated outdoor lagoon pool with its own beach, meeting spaces for up to 500 people and a private 90-berth marina on the Broadwater.

In 2004, Sunland entered a joint venture with Emirates Investment Group subsidiary Gulf Resources to deliver a second Palazzo Versace, this one in Dubai and financed by Gulf Resources. The deal also required Gulf Resources to buy 49% of the Gold Coast hotel, then valued at $A85 million.

Design & styling for the hotels came from the House of Versace, a partnership which required 15 resorts to be developed over 30 years.

Sunland took back full ownership of the Gold Coast hotel last October, pulling out of its half of the Dubai ventures in return.

Sunland reported low half-year earnings – net profit down from $A7.8 million a year ago to $A185,000 announced in February –  and an expectation that full-year earnings would be around $A14-15 million after many settlements were pushed into the second half of the year. Its gearing is very low – a debt:equity ratio of 23%, debt:assets ratio of 14%.

Want to comment? Go to the forum.

 

Attribution: Sunland announcement & websites, story written by Bob Dey for the Bob Dey Property Report.

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Delfin prepares 1600ha Townsville masterplanned community

Published 5 June 2007

Lend Lease Corp Ltd subsidiary Delfin Lend Lease Ltd has finalised a heads of agreement to create a new 1594ha masterplanned community at Rocky Springs, a major growth corridor in Townsville.

Delfin Lend Lease plans to develop 15,000 residential lots plus retail & community facilities, and potential commercial business, schools, parklands & conservation areas. Work should start in 2008 for a first release of sections in 2009. Rocky Springs, 15km east of Townsville, is expected to have an eventual population of 55,000, 70% of it developed by Delfin Lend Lease.

The company has 25 masterplanned communities across Australia, making it the country’s largest developer of this kind of property.

Want to comment? Click on The new BD Central Forum or email [email protected].

 

Attribution: Company release, story written by Bob Dey for this website.

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Abacus buys Twin Waters from Lend Lease & GPT

Published 27 October 2005


Lend Lease Corp Ltd has exchanged contracts with the property trust it used to manage, now called the GPT Group, to sell the Twin Waters Resort on the Sunshine Coast to listed property company Abacus Property Group for $A58 million.The deal included sale of management rights of 2 neighbouring resort villages to Twin Waters manager Accor Asia Pacific for an additional $A3.5 million. The management rights comprise the Lend Lease/GPT-owned Twin Waters Coastal Community for up to $A1 million and Lend Lease’s wholly owned North Shore Coastal Village for $A2.5 million. Lend Lease & the General Property Trust bought the Twin Waters resort & golfcourse in August 2003. The golfcourse was sold in June to a specialist operator for $A7.9 million. Settlement of the resort sale is expected to occur in the first half of 2006. Lend Lease owns 51%, GPT 49%. They’ve retained a beachfront site at Twin Waters Resort and have approval to develop 64 dwellings – apartments, houses & villas.


 


If you want to comment on this story, write to the BD Central Discussion forum or send an email to [email protected].

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Motorway puts Gold Coast in Brisbane commuter distance

Gold Coast apartment sector healthier in June quarter

Gold Coast is the new home for Brisbane commuters, Alan Midwood says in his quarterly Midwood Report.

He says developers are recognising the change, and catering for permanent residents in some of their new developments.

“The opening of the new eight-lane Pacific Motorway has put the Southport Broadwater less than an hour’s commuter drive from Brisbane cbd. This opportunity is gradually becoming apparent to Brisbane office workers, especially those moving up from Sydney who are used to commuting,” Mr Midwood says.

New Zealand investors have thrown millions of dollars at the Gold Coast over the past decade, mostly on new apartment projects and often at a loss, as they have found returns are below expectations and capital growth has been defeated by the continuing arrival of new stock.

Downturns such as the 1997 Asian crisis and the continuing Japanese slump haven’t helped.

Visitor statistics show New Zealanders leapt from second place, well behind the Japanese, in 1995 to become Queensland’s top visitor source in 2000 with a 53% rise to 821,100. In the same period, the Japanese visitor number fell 8% to 720,300. However, New Zealand visitor numbers fell 12% in the September quarter to 203,000.

The Midwood Report becomes valuable reading to get a perspective on growth throughout Queensland, but especially in the coastal areas, where Mr Midwood provides detailed unit sales studies. There are gaps in these studies — Mr Midwood couldn’t rely on details about properties promoted by rogue marketer Chris Couper and stopped running information about whole projects.

His studies also don’t extend to the secondary market, sales after the initial round of developer disposal. And, the other side of the investor equation, they don’t show returns, either gross or net. But, in a climate where legislators are finally trying to defeat marketing at different price levels outside the state, the Midwood unit analyses are invaluable.

November report highlights

Brisbane was the outstanding performer in the accommodation sector for the quarter, with a 7% increase in room sales, 13% increase in net revenue on top of gst. The number of rooms also fell 2% as some apartments were switched to long-term leases because holiday lettings gave poor returns.

One thing Australia does well is for governments to pick up the slack when economic times are tough. In the wake of the 1987 crash, Australia’s federal government was far less rigid than New Zealand’s, which meant the trough after the crash was less severe there. It also means that Australians are adept at taking advantage of these conditions, so the first-home-buyer grants brought in after the introduction of gst — combined with low interest rates & a natural increase after the initial collapse in home-building when gst came in — means there’s a surge in housing development.

BIS Shrapnel has forecast a 38% rise in new dwellings in Queensland in the 2002 financial year after a 34% slump. The state government, meanwhile, says Queensland’s population should grow at a rate of 67,000/year over the next 20 years, compared to 60,000/year in the recent past. That’s a future rate of 1.6%, compared to 1.7% on the lower figure for the past five years.

Serviced apartments do better, but not on Sunshine Coast

Midwood figures on daily service accommodation (for the June quarter) show a slight fall in rooms available on the Gold Coast, a 2% fall in Brisbane, a 6% rise on the Sunshine Coast, 11% fall in the Whitsundays & 3% rise in Cairns.

Hotel occupancy fell 1.3 points on the Gold Coast (compared to the June 2000 quarter) to 61.9%, but rose 4 points in Brisbane to 75.4%.

Serviced apartment occupancy on the Gold Coast rose 5.2 points to 55.9%, and in Brisbane rose 11.2 points to 66%. Sunshine Coast occupancy fell from 43.1% to 42.4%, confirming an oversupply.

Room nights sold across all accommodation types on the Gold Coast rose 3% but takings rose only 2% for a 1% fall in room rate. In the serviced apartment sector alone, the number of room nights sold rose 7.6%, taking rose just under 9%, and the average room rate was $A82.70/night.

Construction/marketing/sales charts

One of the most important statistical areas for investors is the calculation of unit construction/marketing/sales.

Since a decline in the number of units marketed at the end of 1991, when close to 800 new units were on the market at a time, there have been three peaks — in late 1994 & early 1996, when about 600 units were available, and early this year, when the number on the market got up to 642.

The sales graph runs 1-2 quarters behind the marketing graph, with construction another six months back. The Midwood construction graph hit 776 in the August quarter, still below the peaks of 1996-98, but only 14 new units were marketed in the August quarter and only 63 in the November quarter, bringing the amount of new stock still available at the end of the quarter down to 306 units, less than half the number six months earlier.

Two smaller new projects, Marquis on Main at Main Beach (42 units) 7 Sonata at Broadbeach (23 units) are aimed at permanent occupants, but big developers have either started building or are about to start on some major new serviced apartment projects: Austcorp has a $A300 million, 1100-unit complex for the old Sundale shopping centre at Southport, the owners of the Meteora offices at the Broadwater end of Nerang St are planning a 90-unit block for that site, Thakral has 127 units planned above its Oasis shopping centre, Australand is redesigning its Accent project at Broadbeach, Sunland will launch its 600-unit Jimna project on Cavill Avenue soon and a $A500 million residential tower on Northcliffe Terrace.

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Apartments promoter exits

Couper company closes

Chris Couper & Associates Ltd, the New Zealand-registered marketing firm of Gold Coast real estate agent Chris Couper, has given notice of its application to be removed from the New Zealand companies register.

The notice, published on 4 April and signed by director Bob Buys, says the company has ceased carrying on business, discharged in full its liabilities to all known creditors and distributed its surplus assets in accordance with the Companies Act.

Any objection to the removal has to be delivered to the Registrar of Companies within 20 working days which, with Easter intervening, takes the objection period to 4 May.

Messrs Couper and Buys were highly successful in promoting Gold Coast apartments in 1995 and 1996 in Auckland, but were later accused of misrepresentation over the sale of apartments in Raptis Group’s Phoenician development. Raptis has fought attempts to bring a class action in court over the claims by investors, but was negotiating a settlement out of court this year.

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