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  1. #3821
    …just try’n to manage expectations… Maverick's Avatar
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    Quote Originally Posted by winner69 View Post
    Yes you are correct - deferred management fees are revenue.

    Yes, there is a one off ‘development margin’ / realised gain when a unit is first sold. There last report said this was 29.5% so close to 30%


    And then when that is resold they realise another gain ( though could be a loss). The realised gain on resale is the difference between the incoming residents’ ORA licence payment and the ORA licence payment previously received from the outgoing resident. They reported a 30.3% resale margin in H119 - some $5.9m realised gains on resale (included in underlying profit)
    aye aye Winner, I concur captain . Plus.......
    -The 30% DMF collected on exit ("enjoy now pay later"- thank you Black Peter)
    -some extra "health care" profit by upselling the care suites to include premium care fees(PAC) .....on top of (if any) actual normal care profits.
    All the while the asset is keeping up with the inflation of the era.(as you have mentioned with the adjusted resell ORA liscense price).
    This seems a rort of our wealthy oldies but when you see what they are getting in return then it's win win for everyone.
    Last edited by Maverick; 10-06-2019 at 11:14 AM.

  2. #3822
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    Thanks for your update on The Sands Maverick, that's great to hear.
    I was talking to some OCA staff down country while visiting a relative recently & they were pretty excited about it too, one said if she moved to Auckland she was def keen to work there, such an appealing location for staff as well as the residents. Although costs starting at $800,000 might sound high, it's not at all for Auckland & extraordinarily cheap for a beach location.

    Personally am not worried if there were any delays finishing or even if initial sales figures were not brilliant, as there's going to be so much demand for this in the future.

  3. #3823
    …just try’n to manage expectations… Maverick's Avatar
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    Quote Originally Posted by Blue Skies View Post
    Thanks for your update on The Sands Maverick, that's great to hear.
    I was talking to some OCA staff down country while visiting a relative recently & they were pretty excited about it too, one said if she moved to Auckland she was def keen to work there, such an appealing location for staff as well as the residents. Although costs starting at $800,000 might sound high, it's not at all for Auckland & extraordinarily cheap for a beach location.

    Personally am not worried if there were any delays finishing or even if initial sales figures were not brilliant, as there's going to be so much demand for this in the future.
    Excellent post Blueskies-simply said but that's basically it. Good point about the staff, I'd go back to work if it was there. ( nah , who am I kidding?)
    BTW, although only 2 residence have moved in so far the cafeteria is 100 % operational as per the prospectus promise.I better learn how to make a mean scone and apply for that job.

  4. #3824
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    Quote Originally Posted by Maverick View Post
    Visited the Sands open day yesterday with a great mate. WOW!....it's STUNNING! Unbelievable position with units priced from 800k-$2.5 million. If I had not personally seen these units and position I would be concerned about OCA pricing themselves out of the market. After seeing them first hand and talking with a local multi house owner I am satisfied the asking prices are justified. FYI the $2.5 million units have nice red sold dots on them.(a total of 17 are sold and a further 7 on hold-2 residence have moved in)
    The internal work seems 100% finished except the care suit floor which is scheduled in another month or so. Ground work is only half finished. I would think it needs also one more month.But it's done enough to imagine how fabulous it will be when completed.
    The sales people were run off their feet taking tours and they were a bit over run with the high level of interest.
    This asset must surely be the jewel in OCAs crown. I could not think of a better place to spend my later years in and, yes, even a tight ar*se like myself would pay their asking prices to live there.
    I continue to hold OCA with great confidence in their business model and high quality of execution. If they need another month to finish the Sands at this calibre then they have no quarrel from me.
    I still haven't had the chance to go out there and see it but good to hear that it has interest. I think property downturn or not, well presented properties in good locations will always be desirable.

    By the sounds of it, a lot of the sales won't hit the FY19 results but possibly the FY20 half year result.

  5. #3825
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    Quote Originally Posted by value_investor View Post
    I still haven't had the chance to go out there and see it but good to hear that it has interest. I think property downturn or not, well presented properties in good locations will always be desirable.

    By the sounds of it, a lot of the sales won't hit the FY19 results but possibly the FY20 half year result.
    Happy with that, good to hear from those who visited on site, sounds and looks very impressive. Compared to the Bob Scott (RYM) low rise monolith right next to a railway commuter line (for example) it looks like heaven. Regardless of location, the standard of OCA dwellings and facilities is emerging as a differentiator.

    It's times like these where true quality long term investments emerge at attractive prices. Thankfully these attractive prices sustain while not so rich folks can quietly accumulate. Maybe one day, thanks to some extent investing in OCA, we can all afford a lovely retirement by the beach.

  6. #3826
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    Lightbulb Good offering, great staff, and you certainly pay for it

    I went for a tour (with a few other family members) on Saturday... here are my thoughts in no particular order
    - It did feel fairly unfinished, with the tour guide having to explain what a few outdoor areas should look like, it seemed we were also only allowed in 1 apartment as well (I think we had another tour group or someone having to wait outside until we were finished as our group asked a fair few questions I felt, hence took longer... if they were all finished, why couldn't they have gone into another one I wonder...). We were also not able to see Level 2 - the care suites... despite the above, I feel the build was very well done (high quality) and had some well thought out features in it.
    - The show apartment felt fairly cramped (in some places) if I am honest, not terribly cramped, but a little tight around the bedroom areas for my liking, but I suppose they have to do this to squeeze as many as possible in, and it is a small site at the end of the day. ARV's units down the road I toured a year and a bit ago felt a bit more roomy.
    - I like how there will only be about 100 residents... this is a smaller offering I feel those will prefer to the hundreds and hundreds (perhaps thousand(s)) of residents filed into sum other villages (where walking to and from your apartment feels more like you are transiting through an airport terminal)... in return, these smaller more niche villages (alot of ARV's are also like this by the way) will be more costly (ie higher unit prices), but, in my view, it is worth the additional cost (and there are certainly enough people who can afford this offering)
    - The care suites [all and only on level 2] of which there are 40 odd start at $290k (I think it was this, 2 something) and go to $650k, the apartments of which there are 64 I think start at $750k (well $850k if you exclude the one 1 bedroom unit [lol] and go to $2.5m)... the DMF (same for both care suites and apartments I think) was pretty much the most expensive possible - 3 years, 10% each year, 30% total (ARV down the road was 30% for their apartments as well, but 7.5% over 4 years)
    - They have sold over 25% of the apartments, with the first residents moving in this week (two weeks later than previously announced "late may" move in date for the first residents). I didn't think this was terribly strong, but I felt interest was very strong so things will fairly swiftly take off from here. I doubt any settlements were in FY19. Of interest, ARV's village's apartments which were finished just over a year ago (25 or so I think) were sold for an average price of $997k, I would like to think OCA's average sell price will be more around the $1.3-$1.4m mark, helped by a few top end units priced at $2.5m. The lowest priced unit (1 bedroom - of which there is only 1 [lol] is $750k). All the rest are 2 bedroom or 2+ bedroom. I personal would have liked to see a few more 1 bedrooms, but this may have come at the cost of 2 bedrooms (which start at $850k - $100k more than the one 1 bedroom unit) and hence would have reduced the amount OCA receives.
    - I was intrigued with the Oceania's '3 month guarantee' where if the resident doesn't like their unit/village within this period, they can leave and get the money they paid or their unit back (I can't remember the exact name at this moment they used for it but there was a little stick on each book)... is this an Oceania wide initiative? If so, I would have thought this was mentioned in the booklet, not just a small sticker I had to inquire about.
    - Another person on our tour did point out (to the group) their is no pool... I nearly felt like interjecting and telling her she could consider the Arvida village down the road if one wanted a pool
    - Afterwards, we had a good chat to the village manager where we went down to see the underground carpark and further my understanding of the care suite side of things (although was not allowed to go see a show care suite on that day) ... their isn't a dementia part of this facility, but there is the other 2 levels: Rest home and hospital level, so this is pretty good... I nearly felt like mentioning that if one wanted Dementia level care, they [OCA] could recommend that person head 1km ish down the road to ARV's village [Aria Bay] which will soon have this (as well as rest home, hospital, serviced apartments, independent living units).

    Overall, I was impressed by the village and the village staff and pleased by the interest supposedly expressed. I do not think it is cheap at all, given I live in a 2 story 5 bedroom house with a great sea view, less than 2km away from the village, and on one of the most desirable streets in browns bay (so they say), and it is 'only' worth $1.5m (in today's market), but given the villages niche offering and desirability it will likely still sell well.

    Disclosure: Before I am accused of favoring ARV heavily, please note I own substantial amounts (for me anyway) of both ARV and OCA, although do have a higher holding in ARV... I have been a shareholder of both since day 1 of their respective listings.
    Last edited by trader_jackson; 11-06-2019 at 01:22 PM.

  7. #3827
    …just try’n to manage expectations… Maverick's Avatar
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    Quote Originally Posted by trader_jackson View Post
    .....I do not think it is cheap at all......
    Great post Trader. Thankyou for taking the time to pass on your experience. I agree with all you have said and my tour experience was similar.
    As you probably know I come from a provincial town so its good to get your local view.
    A miss conception which may exist out there about this particular block is that its` focus is on late stage health care (OCA`s point of difference). IT IS MOST CERTAINLY NOT! It used to be a Salvation Army and older rest home site but now has been transformed to high end living.
    Browns Bay is all about accommodating the the "rich and famous."- So are the units cheap? Hell no, but as you predict, they should sell just fine.
    One last point to add- these units are available to anyone over 70 yrs old. I see this lower age as a tool used to widen the customer base, rather than dropping the price) and this age limit will no doubt ratchet up when the units start to fill up.
    Personally , I applaud any company that focuses on service and quality allowing a premium price tag. (i.e the opposite of WHS).
    Once again Trader Jackson, I rally do appreciate you taking the time.

  8. #3828
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    Quote Originally Posted by Maverick View Post
    Great post Trader. Thankyou for taking the time to pass on your experience. I agree with all you have said and my tour experience was similar.
    As you probably know I come from a provincial town so its good to get your local view.
    A miss conception which may exist out there about this particular block is that its` focus is on late stage health care (OCA`s point of difference). IT IS MOST CERTAINLY NOT! It used to be a Salvation Army and older rest home site but now has been transformed to high end living.
    Browns Bay is all about accommodating the the "rich and famous."- So are the units cheap? Hell no, but as you predict, they should sell just fine.
    One last point to add- these units are available to anyone over 70 yrs old. I see this lower age as a tool used to widen the customer base, rather than dropping the price) and this age limit will no doubt ratchet up when the units start to fill up.
    Personally , I applaud any company that focuses on service and quality allowing a premium price tag. (i.e the opposite of WHS).
    Once again Trader Jackson, I rally do appreciate you taking the time.
    Yup, it is very much transformed from the rest home that it was that is for sure... totally different product... But some saying it is a 'bargain for the area' and 'cheap' are telling porkies I reckon... it is neither of those, but service and quality are right up there that is for sure. By the way, the age of entry for the care suites is actually 65.
    I got brochures on both the care suites and apartment living.
    Last edited by trader_jackson; 11-06-2019 at 11:46 AM.

  9. #3829
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    Thanks for a well-written and objective report trader_jackson, I appreciate it and am sure many others do too.

  10. #3830
    …just try’n to manage expectations… Maverick's Avatar
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    Quote Originally Posted by trader_jackson View Post
    By the way, the age of entry for the care suites is actually 65.
    Cheryl the sales lady told our group it was 70 yrs so maybe the ratcheting has already begun

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