Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors. Watch the full video here.
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DCI's interim accounts were published today 6 months ended 30th June 2020.
Miltos Kambourides, Founder of Dolphin and Managing Partner of Dolphin Capital Partners, commented:
"In the new social-distancing and remote working landscape that prevails after the COVID-19 outbreak, we have witnessed that the demand for quality second-homes remains healthy, as affluent and increasingly mobile individuals are looking for fully serviced properties, offering privacy and longer term use potential. We believe that this trend will continue and enable us to monetize our project portfolio in accordance with our divestment strategy."
Under market dynamics they put:
"beyond the immediate challenges, the pandemic is likely to create transformative and lasting changes in our industry. The hospitality and real estate sectors were already materially impacted during 2020 and the persistence of travel restrictions may permanently affect demand for hospitality assets going forward.
On the other hand, we have seen that the affluent investors' demand for quality second homes during this crisis has remained resilient, if not enhanced, helped by remote-working arrangements and social distancing considerations."
Seems as though the CS project offers the best of both worlds to a developer. Four sites for hotels and residential properties on the coast with breathtaking views within reach of a golf course, conference centre and hotel complex and more residential units.
In relation to projects under development, there are some who believe that in order to maximise the divestment returns, the company should aim to sell its share of those assets when their construction has made significant progress in order to minimise development risk and be able to appeal to a larger investment audience.
Another (Undeveloped) golf course / hotel complex / residential units that DCI own is Lavender Bay Resort in Magnesia Greece. Projected Cash generation potential (back in 2012) came out at (all in Euros) Residential sales 521M costs 264M giving projected cash 257M (initial costs for the land etc I believe were about 27M not included).
Another (Undeveloped) golf course / hotel complex / residential units that DCI had was Sitia Bay Golf Resort, again quite close to CS. Projected Cash generation potential (back in 2012) came out at (all in Euros) Residential sales 560M costs 276M giving projected cash 284M (initial costs for the land etc I believe were about 24M not included).
FWIW DCI did a portfolio cash generation potential calculation (way back in 2012)and Plaka Bay resort came out (in Euros) at Residential sales 147M costs 93M Projected cash 54M.
(CS has (taken very liberally) four coastal resorts 54M multiply by 4 = Projected cash 216M.)
However phase 2 at Kilada Hills which relates to the golf course and a hotel etc was projected at Residential sales 541M plus land plots 33M less costs 269M Projected cash 305M.
(Both exclude the costs already incurred for land etc which I believe were 15M for Plaka and 95M for Kilada Hills golf complex).
Remains to be seen what design the CS golf course / hotel complex will take but possibly food for thought.
As far as I can see the site has cost them 95M Euros to get to the "bulldozers in" stage.
They've also forked out about 15M euros for the (yet to be developed) Plaka Bay resort which is located on the Grandes Bay peninsula ie pretty close by.
Those 2,000sqm plots were being sold for 500,000 Euros each (50 in total), called Founders Memberships offering freehold title to a 2,000sqm lot overlooking the golf course with the right to build a villa of up to 800sqm, lifetime golf m'ship and additional privileges. They have planned 260 golf residences in total but those were the biggest & best, AND they're selling.
One can only aspire to somrthing like this:
https://www.mykilada.com/wp-content/uploads/2020/08/KILADA_BROCHURE.pdf
Maybe Mr Gilbert will be interested particularly in the golf course development??