Monarch Group

[argos]

Source: http://www.thestar.com/article/572606

Tony Wong
BUSINESS REPORTER

Monarch Homes, Canada's oldest home builder, has been seeking a buyer as its British parent company struggles under a crushing debt load.

The Canadian arm carries an asking price in the range of $200 million (U.S.), says one source familiar with details of the sale.

Finding a buyer for a major home builder in this economic climate may prove difficult, however, as home buying continues to slide.

Monarch, founded in 1917, built its first home in Toronto's Forest Hill neighbourhood, and has been affected by the fortunes of the global real estate market. It is the Canadian division of Taylor Wimpey PLC, the world's fifth-largest homebuilder. The firm last year wrote off £586 million ($1.07 billion Canadian) and said this week it may need "further provisions" if business doesn't pick up in the U.K.

The Canadian firm, run by industry veteran Brian Johnston, has been a jewel in the company's portfolio and has outperformed the market in recent years.

Johnston would not comment on whether the company is in play.

Taylor Wimpey has been particularly hurt by the real estate downturn since its key markets – Florida, California, the U.K. and Spain – were the hardest hit.

And this year is not expected to get a lot better for the building industry, with analysts forecasting slower sales and economic confidence shattered by a plethora of grim statistics that show the situation may get worse before it improves.

"It might seem odd that builders can enjoy a happy new year, but Ontario builders are still out there building homes," a seemingly frustrated Ontario Home Builders' president Frank Giannone told an industry dinner last week.

"This has been exaggerated by a media that has a death wish for the economy."

Ontario's Energy and Infrastructure Minister George Smitherman, the guest speaker, got a standing ovation after he urged builders to remain positive.

"In these difficult times we ask you to remain upbeat and resilient, not to hang your heads but rather to raise them up."

 

[argos]

does anyone know if this will greatly affect the Monarch Division?

possibly going bankrupt or being bought out??

 

[cdr108]

Source: http://www.thestar.com/article/572606
"It might seem odd that builders can enjoy a happy new year, but Ontario builders are still out there building homes," a seemingly frustrated Ontario Home Builders' president Frank Giannone told an industry dinner last week.

"This has been exaggerated by a media that has a death wish for the economy."

Why is it that builders and RE industry didn't come out with complaints of exaggerated exuberance during the boom years of the past decade.

Funny how they forget that RE is cyclical, as is the business cycle and stock markets ... screw any bailouts and let the normal pattern take its course.

 

[Alvar]

They indicated that the Canadian arm is in good shape. Perhaps Tridel or Pemberton would be interested in taking them over. Time to scoop up a 'bargain' ?

 

[xstatik]

They seemed to have pushed back construction by a year at some of their condo projects at Scarborough Town Centre. Purchasers were given an ammendement to either agree to a later date or are free to walk away with their deposits.

 

[Urban Newbie]

I wonder if the sale has anything to do with the lightening fast registration of the Zip condo in Liberty Village? The building started occupying in November, registration complete in Mid-December.

 

[Alvar]

Monarch tends to have quick registration.

 

[Meemee]

They seemed to have pushed back construction by a year at some of their condo projects at Scarborough Town Centre. Purchasers were given an ammendement to either agree to a later date or are free to walk away with their deposits.

Yes, that is true. I bought a unit at Red. The sales program is extended to December 2009. The original date was December 2008.

 

[Rocky]

Monarch tends to have quick registration.

Just curious, what factors effect registration ? is the total units sold or occupied by any chance as well ? In the case of lets say Legacy at Heron hills, whose occupancy will be in 2010, and the Ultra whose occupancy is slated in 2012, would this help get the registration faster for Ultra as it is almost the same location but a different building !?

 

[Observer Walt]

For whatever it may be worth, it has been reported, within the past couple of weeks, that Monarch has closed on the purchase of about 35 acres of land on the northeastern fringe of Brampton, on Airport Road near Mayfield Road. It's probably going to be developed with detached houses. I doubt that they would go ahead with such a major land purchase if they were on the verge of bankruptcy.

 

[Josef]

For whatever it may be worth, it has been reported, within the past couple of weeks, that Monarch has closed on the purchase of about 35 acres of land on the northeastern fringe of Brampton, on Airport Road near Mayfield Road. It's probably going to be developed with detached houses. I doubt that they would go ahead with such a major land purchase if they were on the verge of bankruptcy.

That's very likely true. I live a few kilometers from the area and it's definitely a prime location.

 

[argos]

Just curious, what factors effect registration ? is the total units sold or occupied by any chance as well ? In the case of lets say Legacy at Heron hills, whose occupancy will be in 2010, and the Ultra whose occupancy is slated in 2012, would this help get the registration faster for Ultra as it is almost the same location but a different building !?

not necessary, since Ultra has not started excavation yet and does not share the same foundation as Legacy. The hole you see now is mostly for the Legacy tower + podium. It is very likely that Ultra will be postponed if it does get built.

 

[luxome]

For whatever it may be worth, it has been reported, within the past couple of weeks, that Monarch has closed on the purchase of about 35 acres of land on the northeastern fringe of Brampton, on Airport Road near Mayfield Road. It's probably going to be developed with detached houses. I doubt that they would go ahead with such a major land purchase if they were on the verge of bankruptcy.

interesting.

great find. just curious, where did you get this info from? (no pun intended, just wana know how you get info so fast ).

 

[Rocky]

not necessary, since Ultra has not started excavation yet and does not share the same foundation as Legacy. The hole you see now is mostly for the Legacy tower + podium. It is very likely that Ultra will be postponed if it does get built.

This would be wague to ask but i am curious If they do postpone Ultra for instance, would the ones who bought it earlier and were notified that 2012 will the estimated occupancy date - be allowed to walk away with their money, I guess what i am trying to ask is how much off a leeway does the builder have to tamper with the occupancy timelines ?

 

[Granny]

"This has been exaggerated by a media that has a death wish for the economy."


The president of Toronto Home Builders nailed it on the head there.
The biggest culprit by far and away is our Toronto Star. I simply cannot believe how the quality of reporting / writing has degraded in the last few years.
Sensational headlines followed up with highly negative and innacurate articles that barely hold any truly accurate truth seems to be the norm.
What happened to balanced and accurate reporting? It seems that just about anyone you talk to these days on this subject, agrees. Anyone who has had any personal involvement in some issue or incident will tell you how inacurate an article written about it, was.
Respect for this once great paper certainly seems to have evaporated. Perhaps we now live in a world where the media feels it needs to dumb itself down to keep the great unwashed interested. Sadly, that may be a truth. This is the Homer Simpson/Family Guy era.
Perhaps those of us who are in the habit of continuing to subscribe to this paper are the ones that are really at fault. As long as we continue to throw our money into that newspaper box we are supporting this junk.
Well I ain't buying.
As for this present recession we all find ourseves in? It may be here for a while and it may get worst before it gets better. I know I certainly don't need to have the Toronto Star telling me that world is coming to an end on a daily basis.
No matter what, you can be sure the Toronto Star will continue to stoke that fire for all it's worth. It's selling newspapers.