Dunn Funds put on hold

Dunn Funds investors were told last month that the launch of the company had been delayed.

It was to raise $7.5 million by offering shares at $1 each and buying 10 residential properties in the Auckland market.

The company would then hold the properties for at least 11 years, during which time investors would receive dividends from the rental income.

After 11 years, they would vote on whether to sell the properties and any capital gains would be distributed among the shareholders.

A prospectus available from the companies office said it expected to provide gross returns to shareholders equivalent to 8.4% a year at the end of the 11-year term.

The clear plan to sell had raised questions about the tax implications for shareholders.

An email was sent this morning to those who had registered their interest on the Dunn Funds website, saying that it was being put on hold.

Marketing manager Scott Dunn said a decision had been made to go for a simpler option.

He said he could not comment on what that would be at the moment but there should be more information available within a couple of months.