mysteryman
Active Member
that image has changed so that the little plaza is filled in with a more appropriate density. Doesn't look so out of place now.
Toronto Fashion House | ?m | 12s | Freed | Core Architects
- Thread starter SpadinaBus
- Start date
cdr108
Senior Member
From the latest email from Freed, he's got 5 projects on the go with 4 at ~70% sold and 1 at ~50% sold.
I like his projects exterior designs and mid-rise density; however, I think he should drop Fashion House and get these purchasers into similar units in the other projects.
In the context of the changing market conditions and current financial credit crunch, I'd hate to see him fall victim of circumstances.
I like his projects exterior designs and mid-rise density; however, I think he should drop Fashion House and get these purchasers into similar units in the other projects.
In the context of the changing market conditions and current financial credit crunch, I'd hate to see him fall victim of circumstances.
grey
Senior Member
Care to share some of your deep understanding of the present financial standing of Freed Developments Ltd.? I wasn't aware that his financing came from failing US banks...
cdr108
Senior Member
I wasn't referring specifically to Freed's financing, but to the tightening of credit markets in general, and that includes in Canada.
As I noted, he's got 5 projects on the go with 4 at ~70% sold and 1 at ~50%sold. I don't know the breakdown of suites available, but if you add up the unsold portions it equals upto 170% unsold.
That's almost 2 complete projects = alot of money and capital at risk.
DZ2007
New Member
Its funny you mentioned that ... it also just occurred to me a couple of weeks ago that he's probably stretching himself too thin. Anybody who's been involved in a rapidly growing business knows that a cash crunch can easily result even for a very profitable company ... and add on top of this sudden tightness in credit markets and nothing is out of the question.
joel in to
New Member
I was talking to the owner of one of Toronto's more well known real estate developers last night. He mentioned several other local companies that are known in the development community to be in a financing jam right now. However, when i asked him about Freed, he said not to worry - that Freed had immense amounts of capital available relative to the size of his current projects.
cmystikal
New Member
I wasn't referring specifically to Freed's financing, but to the tightening of credit markets in general, and that includes in Canada.
As I noted, he's got 5 projects on the go with 4 at ~70% sold and 1 at ~50%sold. I don't know the breakdown of suites available, but if you add up the unsold portions it equals upto 170% unsold.
That's almost 2 complete projects = alot of money and capital at risk.
170% of what? You may want to check your math there
If you really want to determine the amount of unsold units, you would need to determine the # of sold units over all projects divided by the # of unsold units, and there is no way that number will be greater than 100%.
cdr108
Senior Member
170% of what? You may want to check your math there
If you really want to determine the amount of unsold units, you would need to determine the # of sold units over all projects divided by the # of unsold units, and there is no way that number will be greater than 100%.
I think you misunderstood my comments, I wasn't referring to the average % sold/unsold.
Freed has 5 projects in TO of which 4 are ~ 70% sold and 1 at ~ 50% sold:
1. 550 Wellington - 336 units @ 70% sold = 235 sold, 101 left;
2. 75 Portland - 212 units @ 70% = 148 sold, 64 left;
3. 650 King - 214 units @ 70% = 150 sold, 64 left;
4. FashionHouse - 361 units @ 50% = 180 sold, 181 left;
5. 500 Wellington - 17 units @ 65% = 11 sold, 6 left.
500 Wellington is an exclusive project so I will exclude this from the total because it's marketed towards a different type of buyer.
Total # units of the other 4 projects is 1123, average project has 281 units.
410 units remain unsold; so that's 146% of the average project.
If it's feasible, I would suggest that he would be better off getting all his FashionHouse purchasers into suites in his other buildings at the same $psf or even slight discount to get those off his inventory.
Even after all of that, he would still have 49 units left [(101+64+64)-180)], and FashionHouse would still be empty ! ! !
Mind you, the above is not exact since I don't know what the composition of unsold units are (ie. 1/1+1/2/2+1 bed etc).
joelinto stated that an owner of one of Toronto's more well known real estate developers mentioned that Freed had immense amounts of capital available relative to the size of his current projects, but that's a lot of $$$ to have tied up if things turn bad.
nekz
Active Member
cdr108
Senior Member
All the UT real estate naysayers would have a field day if this happened
Why, what do you mean?
jaborandi
Active Member
How very clever! Using your formula, I calculate I still have 132% of my life span ahead of me.
nekz
Active Member
Another project cancelled? The sky is falling!!
cdr108
Senior Member
LOL ... I wouldn't consider it that the sky is falling but prudent money and risk management, something the US financials didn't do.
condoboy
Banned
I think someone needs to brush up on their math...146% ?????????
condoboy
Banned
cdr...you forgot to divide the units that remain unsold in his projects to get the average % of units that are unsold which would be 410/4 = 102 divided by 281 units which equals 36%....a much more realistic number of average units that remain unsold for Freed!