Australia's Lifestyle Communities hits over 3-1/2-yr low on overcharging claims

Lifestyle Communities

15/07/2024 07:06

July 15 (Reuters) - Lifestyle Communities'  LIC.AX 
stock slid as much as 17.3% to a more than 3-1/2-year low on
Monday after the Australian real estate rental company took note
of client allegations accusing it of collecting excess fees,
with some homeowners also filing legal applications.
    Shares touched their lowest levels since November 2020, with
the stock having lost over 30% in value so far this year. 
    Lifestyle Communities, which is on track to mark its biggest
intraday percentage loss since March 2020, said it has been
engaging with some homeowners at one of its communities at
Wollert in northwest Melbourne since February.
    "The homeowners have not been satisfied with our responses
and have made applications to the Victorian Civil and
Administrative Tribunal (VCAT)," the company said in a
statement, in response to a media report that highlighted
complaints around over-charging management fees and issues
regarding its exit fee policy.
    Lifestyle Communities has denied the allegations made in the
VCAT applications, with intentions to defend them. 
    The company's shares pared some losses at 0440 GMT and
traded 15.5% lower, emerging as the biggest percentage loser on
the ASX 200 benchmark index  .AXJO .


 (Reporting by Sneha Kumar; Editing by Janane Venkatraman
)
 ((Sneha.Kumar@thomsonreuters.com;))