Wazua
»
Investor
»
Stocks
»
Centum HY17
Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
|
MadDoc wrote:target1360 wrote:i dont admire this idea of companies planning to sell this and that in order to make a profit of x billions.
This seems more of a publicity stunt and a short term vision too
If the company is in the business of buying and selling plots then this would be acceptable. The business model isn't that bad. Buy acres of land, develop part of it, then sell off part of the land at a premium. Realistically, i doubt if they would be able to develop the whole parcel. It makes sense to sell it and use the cash to offset debts. It is an investment company. It has to know when to divest. However, if they sell the land and the value is not felt in terms of dividends, i'd consider that sacrilegious. Doubt it will be felt.... possunt quia posse videntur
|
|
|
Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
|
maka wrote:MadDoc wrote:target1360 wrote:i dont admire this idea of companies planning to sell this and that in order to make a profit of x billions.
This seems more of a publicity stunt and a short term vision too
If the company is in the business of buying and selling plots then this would be acceptable. The business model isn't that bad. Buy acres of land, develop part of it, then sell off part of the land at a premium. Realistically, i doubt if they would be able to develop the whole parcel. It makes sense to sell it and use the cash to offset debts. It is an investment company. It has to know when to divest. However, if they sell the land and the value is not felt in terms of dividends, i'd consider that sacrilegious. Doubt it will be felt.... Poor timing for selling maproti Doubt it will yield the desired outcome....not in the short term atleast. Again, TRDL is only 20% something owned by Centum, the company TRDL itself is in realestate. So perhaps, u guys need to delink centum from the business.
|
|
|
Rank: Veteran Joined: 12/11/2006 Posts: 930
|
MadDoc wrote:target1360 wrote:i dont admire this idea of companies planning to sell this and that in order to make a profit of x billions.
This seems more of a publicity stunt and a short term vision too
If the company is in the business of buying and selling plots then this would be acceptable. The business model isn't that bad. Buy acres of land, develop part of it, then sell off part of the land at a premium. Realistically, i doubt if they would be able to develop the whole parcel. It makes sense to sell it and use the cash to offset debts. It is an investment company. It has to know when to divest. However, if they sell the land and the value is not felt in terms of dividends, i'd consider that sacrilegious. Thats exactly where the problem is. Sell land at a premium and award themselves bonuses with shareholders getting nothing. Expect 1.5b in bonuses this time “Invest in yourself. Your career is the engine of your wealth.”
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
|
The way two Rivers project was undertaken was fishy. They should have started with houses i.e high end houses sitting on half an acre,build about 100 in the first 60 acres then sell. There they could have made a profit of more than a bn and debt they would have incurred would have been less. The mall should have been the last like the way other developers have done it e.g Greenspan,HFCK Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Elder Joined: 8/16/2011 Posts: 2,386
|
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
|
@realtreaty I love your patience. I personally would not have the energy to reply to such a misguided view as held by @ericsson
KQ ABP 4.26
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
|
The option of mall first only works if you are a cash rich investor like Actis who built Garden city and the owner of the hub in Karen. The days of over inflating the price of a house just because you built a mall are long gone. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi
|
maka wrote:VituVingiSana wrote:snipermnoma wrote:Ericsson wrote:Two Rivers seeks Sh2bn to fund real estate plansTwo Rivers Development Limited (TRDL), a company partly owned by investment firm Centum is seeking to raise Sh2 billion through short-term debt to fund its real estate projects. TRDL, whose other shareholders are Aviation Industry Corp of China (Avic), and the Industrial and Commercial Development Corporation, is issuing a one-year note with an interest rate offer of 14.5 per cent. Centum Investments, which owns 58 per cent of TRDL, will guarantee the note Madeni will finish Centum http://www.businessdaily...6510-hj9andz/index.html
If it is a 1 year note why not just get it from a bank e.g. Sidian at the max rate of 14%? Insider lending of this magnitude would attract the attention of CBK... What if they borrowed from another bank?If the company is that stable the rates would definetly be lower than this one year note...If the likes of KQ can get a facility @ 7-8% they should surely enjoy the same...or even 10% thats a whole 450bps. Please let us who is lending to KQ at 8%. Thank you. [In KES, not subsidized by GoK, a loan made today not negotiated when KQ was much healthier] I shall await your answer. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi
|
Ericsson wrote:The way two Rivers project was undertaken was fishy.
They should have started with houses i.e high end houses sitting on half an acre,build about 100 in the first 60 acres then sell.
There they could have made a profit of more than a bn and debt they would have incurred would have been less.
The mall should have been the last like the way other developers have done it e.g Greenspan,HFCK How is HFCK doing? Do we have the financials for Greenspan? I think building the mall & selling a huge part of it at a "high" valuation to Old Mutual was very smart. I hope they sell off the rest of the (shares) mall! The "parent" is now selling off "expensive" plots to various developers and this was possible because the Mall allowed TRDL to invest in infrastructure to make the entire 102 acres attractive. The security, roads, etc will make high-prices residential development attractive for many "foreign" [Green Zone e.g. UN, US, etc] staff. I believe cash is king but as a Warren Buffett fan, I don't mind (cash) profits that come in chunks and not monthly as long as Centum can manage its cashflows. BTW, I don't hold many Centum coz I feel I have better (potential) returns in other firms. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
|
VituVingiSana wrote:Ericsson wrote:The way two Rivers project was undertaken was fishy.
They should have started with houses i.e high end houses sitting on half an acre,build about 100 in the first 60 acres then sell.
There they could have made a profit of more than a bn and debt they would have incurred would have been less.
The mall should have been the last like the way other developers have done it e.g Greenspan,HFCK How is HFCK doing? Do we have the financials for Greenspan? I think building the mall & selling a huge part of it at a "high" valuation to Old Mutual was very smart. I hope they sell off the rest of the (shares) mall! The "parent" is now selling off "expensive" plots to various developers and this was possible because the Mall allowed TRDL to invest in infrastructure to make the entire 102 acres attractive. The security, roads, etc will make high-prices residential development attractive for many "foreign" [Green Zone e.g. UN, US, etc] staff. I believe cash is king but as a Warren Buffett fan, I don't mind (cash) profits that come in chunks and not monthly as long as Centum can manage its cashflows. BTW, I don't hold many Centum coz I feel I have better (potential) returns in other firms. @VVS HFCK did the houses then the mall last.The demand for shops at the mall will be build by the residents first not outsiders as most of them as it is becoming are idlers on the shopping mall. The financials for Greenspan you can get from Stanlib I Fahari REIT annual report As for the sale to Old Mutual of the mall;info I have is that this time Old Mutual squeezed centum thoroughly on the balls.They learnt from the UAP stake sale. The foreigner staff you are talking about prefer Runda,Kiambu road and Gigiri compared to Two Rivers. Problem with Two Rivers is the overlooking slum called Ruaka which they fear. The Embassies if they want a place they will book in advance and give you the necessary deposit/finance to start construction. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Wazua
»
Investor
»
Stocks
»
Centum HY17
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|