SQM withdraws rating on Ironstone fund
Specialist ratings house, SQM Research (SQM) has withdrawn its rating on the Ironstone Residential Fund citing significant issues which have come to its attention.
The announcement from SQM came a day after Money Management reported that AMP had withdrawn from negotiations to acquire a significant holding in the specialist residential property funds manager.
Announcing its decision to withdraw its rating, SQM referenced financial losses incurred by Ironstone in 2011, and said SQM had been informed that AMP had withdrawn its bid to acquire the group.
"As such, there is a risk that Ironstone Group may not be able to financially support itself if it is unable to inject additional capital into group," the ratings house said.
It said existing unit holders should be aware that they had underlying rights to the assets of the fund.
"In the case that Ironstone Funds Pty Ltd is removed as the manager, unit holders can vote to replace the manager or wind up the fund, with the net proceeds being passed back to unit holders," SQM said.
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