FBU - Fletcher Building

[sb9]

Talked to a fundie who has exited their FBU position:

FBU’s biggest earner is its residential housing division. The company has been enjoying huge windfall profits from its land bank and ever escalating house prices. Division will continue to be profitable but will be hard pressed to deliver the sort of profits it has in recent years. In fact, the fundie expects the division to report reduced profits from 2023.

In the meantime they continue to buy another piece of land for development.

Ellerslie racecourse $100m+ deal: Fletcher Living to buy 6.2 hectares of land for 370 homes

https://www.nzherald.co.nz/business/...BSUCD3KXC5NPU/

[Greekwatchdog]

Good on them, great buy. You Aucklanders have any idea on value of the sort of homes around that area that those new homes/apartments could fetch?

[BlackPeter]

Good on them, great buy. You Aucklanders have any idea on value of the sort of homes around that area that those new homes/apartments could fetch?

Hmm 6.2 ha for 370 homes - this is 167 m2 per section. Take off 10% for common property (like driveways, access roads, ... leaves something like 150 m2 per property. Not really the quarter of an acre dream.

I suppose they want to use the high density rules our beloved government introduced?

Get probably less than the median Auckland house price, but still - if they do it right (not a given with Fletchers) - something like 750 k plus for a 2 to 3 bed room apartment seems realistic? I've seen some selling slightly below under 1 mill - but than obviously location and standard must be right.

[iceman]

Hold your horses. From the Herald:

"Fletcher fast-track plans for $100m+ Ellerslie site opposed by Ōrākei Local Board"

[Rawz]

Hold your horses. From the Herald:

"Fletcher fast-track plans for $100m+ Ellerslie site opposed by Ōrākei Local Board"

Not in my back yard!!

[Balance]

Hold your horses. From the Herald:

"Fletcher fast-track plans for $100m+ Ellerslie site opposed by Ōrākei Local Board"

They are objecting to the fast track process under COVID recovery plan. Fair enough as Local Councils must be able to vet high density developments properly rather than have central government over ride them.

[RTM]

Hold your horses. From the Herald:

"Fletcher fast-track plans for $100m+ Ellerslie site opposed by Ōrākei Local Board"

Not in my back yard!!

Completely agree that this should not be processed under the COVID-19 Fast Track Resource approval process . Completely inappropriate. Should go through the normal Resource Management process, warts and all, to ensure appropriate checks and balances are applied.

[iceman]

They are objecting to the fast track process under COVID recovery plan. Fair enough as Local Councils must be able to vet high density developments properly rather than have central government over ride them.

Yes they are saying it should go through a normal consenting process which is fair enough.

[bull....]

my prediction timber after the div

timber timber

[winner69]

FBU unloved at moment …..share price 604 …probably 5something tomorrow ……lowest price since Feb last year

Maybe the $500,000 the govt giving Winstone to put in a more energy efficient will help out

Does seem weird the government giveth on one hand while ‘accusing’ them of price gouging re plasterboard.