Originally Posted by
flyinglizard
Hi lease,
I will be very disappointed, If that is the answer. The timeframe for approval of demolition, design and build new one is longer than purchase new site, design and build method. Let's think about the cost and benefit. Time and money.
Write down the assets and finance to build new assets??? The main contractor needs to remove the old underground pipes, cables and services. Even costy when you perform construction work besides other apartment where some occupants live in, more health and safety requirement, water down the dust daily, cannot work during certain hours, and noise control, etc. If we suffer more lockdowns in the future, the construction work may be delayed. The main contractor may claim extra liquidated damage from OCA, NZS3910 does not cover the current pandemic situation. Extra legal expense.
Other competitors apparently purchase new land, then design and build, they may complete the whole new development within 2-3 years. OCA may redevelop the site within 3-5 years under thread 6374 business model.
If the demolition, design and build business model is really the strategy from their management team, I would dump OCA shares and walk away to its competitors.