Loan to Over 55 Lifestyle Villages

According to the 2024 Annual Financial Statement, the “Redeemable Preference Share Investment” in Over 55 Lifestyle Villages Pty Ltd / Retirement Village Developments Pty Ltd, was valued at $4,805,544 as of 2023.

As of the 2023-24 financial year end, this “investment” was determined by Management to be “fully impaired”. This means the entire value of the investment cannot be recovered, and as such has been written-off.

Retirees WA appear to have implemented a remedy for the loss of these funds, with a plan to establish a Funeral Fund Trust Deed. RWA have committed to replenishing the lost Funeral Fund funds using income from other RWA operations in the 24-25 financial year. In particular, $3.3 million will need to come from Deferred Management Fees earned across 5 villages.

Relevant information can be found in the 2024 RWA Annual Financial Statement, under:

• “Note 10: Investments” (p.20)
• “Note 16: Funeral Fund Liabilities” (p.23)
• “Note 23: Related Party Transactions” (p.27)

In 2005, Retirees WA issued a loan to Over 55 Lifestyle Villages Pty Ltd to the value of $1.6M, secured by Redeemable Preference Shares. There is indication in the RWA Financial Reports that this loan is has been funded using the discretionary trust held by the RWA Funeral Fund.

Over 55 Lifestyle Villages Pty Ltd was established in 2005 by Frank Pinner (Margaret Thomas‘ husband) and Roger Nicholls, with its subsidiary business RWA Housing created for the purpose of managing the sales of RWA lease-for-life contracts.

Since 2005 this loan to Over 55’s has fluctuated for various reasons, including additional funds being loaned.  The loan value peaked in 2008 at $5.8M.

By the end of the 19-20 financial year, the Funeral Fund loan balance of $4.8M had been transferred to Retirement Village Developments Pty Ltd. RVD later loaned this money back to RWA, apparently secured by a mortgage on Joseph Banks Estate.

In June 2021, Ms. Thomas was appointed as a Director of Over 55 Lifestyle Villages Pty Ltd. This may go some way to explaining why the Funeral Fund loan had been transferred from Over 55’s to RVD, as Ms. Thomas’ appointment would have established a clear Conflict of Interest.

RVD appears to have only been formally registered in Nov 2021 and its registered Directors are Graeme Wovodich (ex-Auditor of RWA) and Matthew Lee Mansfield. It appears to be a shell company with no tangible operations.

It is indicated in the 22-23 Financial Report that the loan “transaction was utilised fully for the expansion of building assets of Retirees[sic]”.  In other words, the loan issued by the RWA Funeral Fund via Over 55’s and RVD, and the related mortgage on JBE, has been undertaken to generate funds for the Lighthouse Estate development in Geraldton and/or the Salter Point Aged Care Facility.

Relevant information can be found in the RWA Annual Financial Reports, predominantly under:

• “Note 8: Other Financial Assets” itemised as “Investments in Unlisted Corporations at Cost”,
• “Note 21: Related Party Disclosure”