Tormick said:
There was that article a couple month ago about how the site in receivership wasn't worth the asking price of $1.2B - and there weren't any buyers coming forward at that price. Has anyone heard anything on the street? I'd be interested in other projects that had their receivers finish a project.
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If anyone has the motivation there's some back of the napkin math you could do to find out a ballpark sale price that'd make it work. Most of the info would be in the KSV reports. Just take the total projected income from the project, take off the cost to complete (including soft costs, carrying costs, etc...), add in a very large contingency/safety/profit margin, and then you'll have what the project should realistically sell for. I'm betting it's far below a billion though.
 
From today. They are pouring the columns and I confirmed that the finished slab is level 64.

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DevDudeToronto said:
If anyone has the motivation there's some back of the napkin math you could do to find out a ballpark sale price that'd make it work. Most of the info would be in the KSV reports. Just take the total projected income from the project, take off the cost to complete (including soft costs, carrying costs, etc...), add in a very large contingency/safety/profit margin, and then you'll have what the project should realistically sell for. I'm betting it's far below a billion though.
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I’m (clearly) not trained in finance but I noticed REITs and other real estate players in Canada and the USA are still making money for investors despite the doom and gloom, and I realize the receiver here isn’t tasked to take a gamble… but if your theory is correct that the income will be greater than costs to finish etc. ... I’m curious why this wouldn’t still be a good long term investment for a REIT or other buyer… with the additional approved 11 storeys* (*big head-start on costs like engineering, architectural etc.).

Willing to be schooled on the other problems/barriers I'm missing (other than existing market conditions ;-). Also, did Sam change his phone number?
 
3Dementia said:
I’m (clearly) not trained in finance but I noticed REITs and other real estate players in Canada and the USA are still making money for investors despite the doom and gloom, and I realize the receiver here isn’t tasked to take a gamble… but if your theory is correct that the income will be greater than costs to finish etc. ... I’m curious why this wouldn’t still be a good long term investment for a REIT or other buyer… with the additional approved 11 storeys* (*big head-start on costs like engineering, architectural etc.).

Willing to be schooled on the other problems/barriers I'm missing (other than existing market conditions ;-). Also, did Sam change his phone number?
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Sorry if I wasn't clear. It's basically algebra to determine what the purchase price needs to be:

Cost to complete (A) + purchase price of project in its current state (B) + profit margin (C) = total projected revenue (D)

You can realistically create projections for A, C, and D. So just rearrange and solve for B. Does that make sense? Mind you, I'm super simplifying things here, but that's the gist of it.
 
That formula works for entities looking to buy this tower. It's a little different for the receivership though, as they looking for parties effected by the defaults to get paid off...so there is likely less wiggle room for them to haggle with the asking price currently. And to my understanding of this.
 
UtakataNoAnnex said:
That formula works for entities looking to buy this tower. It's a little different for the receivership though, as they looking for parties effected by the defaults to get paid off...so there is likely less wiggle room for them to haggle with the asking price currently. And to my understanding of this.
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I mean, they can be as inflexible as they want with the sale price. But no one is under any obligation to purchase the site. And make no mistake, no one is going to make it out of this mess unscathed. No one who provided capital is getting fully paid off on this project. KEB Hana is going to take a massive hair cut on this and I wouldn't be surprised if most equity is completely wiped at the end of the day.
 
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DevDudeToronto said:
I mean, they can be as inflexible as they want with the sale price. But no one is under any obligation to purchase the site. And make no mistake, no one is going to make it out of this mess unscathed. No one who provided capital is getting fully paid off on this project. KEB Hana is going to take a massive hair cut on this and I wouldn't be surprised if most equity is completely wiped at the end of the day.
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Regardless, they're selling it to whoever can make a profit on it to pay off the debts the previous owner defaulted on as the goal. Whether they are successful in doing so is another matter.
 
vinny_the_hack said:
Because their penis is too small to hang out the window.
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Hey just saying I drive a sedan and 90% of the time I have my arm out the window is probably because it's an older truck and the air conditioning doesn't work I know that was always our reasoning when I was a kid and it has just now turned into a habit of mine 😂😂😂or another thought most people that drive truck work construction and work out of their truck they're just used to their window will being open at all times
 
Beside, must be from around here...don't see the gun rack in the back. 😼
 
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