Clarke Overlooked Lewski Deals
Unitholders may wish to note the articles in The Australian Financial Review and The Age dated 20 October 2012.
The articles refer to the Public Examination of Mr Peter Clarke conducted in the Supreme Court of Victoria on 19 October 2012. Amongst other things, the articles note that Mr Clarke, a former director of the Prime Trust's manager:
* did not take any steps to prevent Mr Lewski being granted the management rights to retirement villages for no consideration, rights which Mr Lewski subsequently sold in aggregate for $60 million;
* did not take any steps to ensure the Trust received independent legal advice, noting that Madgwicks, who were advising the Trust, were also the solicitors for Mr Lewski;
* had no recollection of the independent valuations which showed that the value of the Trust's villages had been seriously eroded by giving away the management rights.