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Management released an update on the status of Tower Melbourne last month.Still a deadlock, as they could not give a date on the resumption of works yet.
Perhaps shareholders attending this Friday's AGM can gain abit more insight of the ongoings of this matter.
http://celaustralia.com.au/images/upload...202016.pdf
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19-04-2016, 01:40 PM
(This post was last modified: 19-04-2016, 10:13 PM by BlueKelah.)
TM is likely not gonna happen, the guys across the street knows they can just sue and appeal and delay until the project is no longer viable. And with the upcoming election in July which will change all the parliament and senate people, its gonna take even longer for the new gov departments to get organised and review cases.
MARCH 2016
PROJECT UPDATE.
[We have unfortunately been further held up waiting for determinations from the Building Appeals Board for hearings that were held in September last year. We understand that these determinations will be available in the next few weeks, and while they will not provide us with the ability to continue work on site just yet, we anticipate that they will be a significant step closer to that point.
While the dispute concerning protection works is still ongoing, we are progressing. There will be further processes that will need to be completed before works can re-commence, and unfortunately we do not yet have a date that we are able to advise when that will occur.]
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An official update from Tower Melbourne website:
"As we have reported previously, delays to our Tower
Melbourne project have occurred due to the legal
dispute with the adjoining owner, who has raised
objections in regards to the proposed protection works
that form part of the demolition procedures involved
to demolish the existing building on the project site.
We are pleased to advise that we have obtained some
recent excellent progress in the form of two
determinations of the Building Appeals Board, ruling
in our favour. These determinations very clearly
uphold our position and are a large step towards work
recommencing on site.
While we are not just yet at the point of continuing
demolition works, we are now much closer. Although
we are not yet able to confirm exactly when works
will recommence, it is clear that it is only a matter of
time before we are able to see Tower Melbourne
realised.
We understand, and share your frustration with these
delays to date, however once again we want to take
this opportunity to let you know that we are
continuing to seek resolution of this issue as soon as
possible. With our recent wins in this regard, we will
be pressing home our position to obtain a speedy
resolution, so that construction works on site may
continue.
Once more, we reiterate our continued commitment to
Tower Melbourne, and again thank you for your
continued patience and understanding in this matter."
Depending on one's assumptions on the cost of putting up the
building, legal and other delay costs involved, one will arrive
at different profit figure for the project.
My original estimate a couple of years ago was a range of A$60-90m,
but taking into account costs involved in the delay, I would now lower
the figure to about A$50m.
Note that the update is positive, it's still not a total green light until works
begin.
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30-05-2016, 08:55 AM
(This post was last modified: 30-05-2016, 08:59 AM by BlueKelah.)
good to revise down the figure. but at this stage with the melbourne apartment market looking like its gonna sink further, would probably write this project off and factor that into your investment.
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(30-05-2016, 05:57 AM)Sumeria Wrote: An official update from Tower Melbourne website:
"As we have reported previously, delays to our Tower
Melbourne project have occurred due to the legal
dispute with the adjoining owner, who has raised
objections in regards to the proposed protection works
that form part of the demolition procedures involved
to demolish the existing building on the project site.
We are pleased to advise that we have obtained some
recent excellent progress in the form of two
determinations of the Building Appeals Board, ruling
in our favour. These determinations very clearly
uphold our position and are a large step towards work
recommencing on site.
While we are not just yet at the point of continuing
demolition works, we are now much closer. Although
we are not yet able to confirm exactly when works
will recommence, it is clear that it is only a matter of
time before we are able to see Tower Melbourne
realised.
We understand, and share your frustration with these
delays to date, however once again we want to take
this opportunity to let you know that we are
continuing to seek resolution of this issue as soon as
possible. With our recent wins in this regard, we will
be pressing home our position to obtain a speedy
resolution, so that construction works on site may
continue.
Once more, we reiterate our continued commitment to
Tower Melbourne, and again thank you for your
continued patience and understanding in this matter."
Depending on one's assumptions on the cost of putting up the
building, legal and other delay costs involved, one will arrive
at different profit figure for the project.
My original estimate a couple of years ago was a range of A$60-90m,
but taking into account costs involved in the delay, I would now lower
the figure to about A$50m.
Note that the update is positive, it's still not a total green light until works
begin.
____________________________________________________________________________________________________________________________________________________________________________
Thanks Sumeria for the update! Does look positive and hope the pace of progress towards demolition picks up from here.
Btw are you Sumer from the Nextinsight forum? I have benefited tremendously from his(your?) insightful analysis previously and was disappointed Sumer has not posted there for a long time.
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Does CEL need to pay penalty to buyers due to the long delay?
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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Hi vbReader, Yes previously I contributed in NI forum under the Nick "Sumer". And you are welcome.
I continue to like CES for not only the fundamental figures but its management and major shareholders. The co's successful land purchases, profitable projects and good sales execution are both good and consistent. Its consistently generous dividend payouts are also very assuring. However, I am keeping an eye on its P99 deal as I am not sure how good that purchase is.
Yesterday, CES raised $120m from an issuance of 4.75% notes. Apart from using it for P99, perhaps the remainder is for buying over Raymond's stakes in Adelaide land parcels (LGB)?
Meanwhile, Raymond has been granted 40m options, which are worth at least $4m to him given CES' current share price. I think it's a reasonable reward should his expertise propel CES forward.
CES and KSH remain 2 of my favourite property stocks.
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(07-06-2016, 11:12 PM)Sumeria Wrote: Hi vbReader, Yes previously I contributed in NI forum under the Nick "Sumer". And you are welcome.
I continue to like CES for not only the fundamental figures but its management and major shareholders. The co's successful land purchases, profitable projects and good sales execution are both good and consistent. Its consistently generous dividend payouts are also very assuring. However, I am keeping an eye on its P99 deal as I am not sure how good that purchase is.
Yesterday, CES raised $120m from an issuance of 4.75% notes. Apart from using it for P99, perhaps the remainder is for buying over Raymond's stakes in Adelaide land parcels (LGB)?
Meanwhile, Raymond has been granted 40m options, which are worth at least $4m to him given CES' current share price. I think it's a reasonable reward should his expertise propel CES forward.
CES and KSH remain 2 of my favourite property stocks.
any estimate for the upcoming Q2 EPS? tks.
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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How much does CES need to compensate buyers of TM project if project is delayed beyond the sunset clauses?
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
Posts: 3,805
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Joined: Mar 2011
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[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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