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