Actually - I don't mind them leaving the money in the business. They did show again and again that they are able to grow shareholder funds and still paying a reasonable return as dividend ;
----
"Prediction is very difficult, especially about the future" (Niels Bohr)
So looks like the recent massive land acquisition announced last month was worth ~$56 million judging by the "contractural commitments for land purchases"
Also interesting they are planning almost $25 million on capex in "investment property" which is triple there current retail property portfolio.
Whats also interesting is that MCK is breaking out the retail investment property in CDL as an all new seperate reporting segment. currently assets of just $8.4 million, but with that ~$25 million of capex planned it looks like MCK/CDL have large plans for getting into retail property ownership. I assume it's primarily driven by MCK to diversify its revenue base somewhat.
but with that ~$25 million of capex planned it looks like MCK/CDL have large plans for getting into retail property ownership. I assume it's primarily driven by MCK to diversify its revenue base somewhat.
My pick is that the majority of the $25m relates to the Wiri Design Build Lease Industrial development project rather than the Rolleston or Preston’s Park retail. As I have noted previously, CDI have been cagey on details on the project. If I’m right, I’m expecting a sizeable revaluation gain on completion. Question is whether it’s a long term hold or whether the capital invested will be recycled (although the commitment is categorised as Investment Property so I guess in the short term it’s a hold).
Last edited by Southern Lad; 02-08-2021 at 07:04 PM.
Interesting that there was $5.101m spent on the purchase of investment property and no commentary on this I've spotted. The $56.258m land purchase commitment was unchanged on Dec 2020 so this wasn't part of that deal (or deals - its still possible that the $56.258m represents the 67.1ha and something else).
It would appear this $5.1m is just another smaller subdivision somewhere that was purchased and settled during the half year that adds to the future pipeline of development sales. To me its just a reminder that in addition to the bigger developments they do a few smaller bits around the edges.
The supply constraints in the construction sector have some sites grinding to a halt. no word from cdl with regard to how their developments are progressing, or not, with this in mind ...
The supply constraints in the construction sector have some sites grinding to a halt. no word from cdl with regard to how their developments are progressing, or not, with this in mind ...
Wouldn’t think the supply shortages talked about would be preventing CDL from developing sections outside the level 4 area. It’s more a factor for those building houses.
yes, that's right. but to sell the sections, cdl requires buyers who are of the view they can build on those sections in a timely manner. which is why i pose the question ...
Originally Posted by BlackPeter
Reply With Quote
;
Bookmarks