By ANNE GIBSON
The future of Bayleys Waikato's status as a franchise office of Bayleys Group is in doubt after the Securities Commission found an investment offered by the Hamilton office broke the law.
Bayleys Realty Group managing director Jeff Davidson said the Hamilton office was in breach of its franchise agreement
and he had not seen the now-banned offer document before it was issued to the public.
He said Bayleys chairman John Bayley would meet him and Bayleys Waikato's managing director, Mark Winter, on Monday to discuss the situation.
The commission this week banned an offer from Bayleys Waikato, through Regional Realty, for the James Smith's Carpark Proportionate Ownership Scheme - a $21 million Wellington carpark investment - and ruled that $13 million must be returned to investors.
It ordered Bayleys to put any new documentation on the deal before the commission if it redrafted the offer.
Davidson said the Hamilton office had failed to provide a copy of the offer document to the Viaduct Harbour group headquarters before issuing it.
"We are very disappointed that it does not comply with the act," Davidson said.
"Our policy on this - which has been clearly communicated to all our franchisees in writing - requires that offerings of securities to the public by any of our franchise offices must meet the requirements of the Securities Act.
"We are disappointed and concerned that this offering by Regional Realty has not done so in this case and we will obviously be discussing the matter further with them."
Through the Bayleys subsidiary Investment Property Titles, the Viaduct Harbour headquarters is involved in five proportionate title ownership deals, including the Donaghy's offer made last month.
The Securities Commission
