Vancouver seizes Millennium assets

Vancouver Mayor Gregor Robertson said the move had to be made to salvage the city’s investment.

From the CBC:

City officials say they intend to halt plans to rent out the units and sell them instead. Officials say they are still owed $758 million for the failed Olympic Village project built by Millennium, and once they sell off all the units, they still expect to lose $40 million to $50 million in the deal.

The city also says that the lawsuit by current owners over complaints of poor heating and leaking sewage at the Olympic Village are ‘bogus’.

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Junius
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Junius

#1 Ahab,

I am sticking with my original prediction of a loss of $450 million – all in including financing costs.

First step is to tell the public that there will be losses. Then watch the numbers swell over the next few years.

What a disaster.

patriotz
Member

The OV itself will surely lose $100mil++, but how much the city loses depends on how much it gets from Millennium's other assets.

I also think they are talking cash losses only and not including the value of the land.

Note also that the city is not interested in renting out any units (I mean market units which can be sold). An expeditious sale is both politically and economically smart and I don't see why anyone expected otherwise.

Shima
Guest
Shima

Off topic. Mish's comments and analysis on the Australian economy, including the housing market:

http://globaleconomicanalysis.blogspot.com/

cgh
Guest
cgh
@Anonymous: Excerpt from a comment on that article (sorry about the long post). Note that he hits all the cliches. "I work at Spadina and Front, in the densest condo area in Canada. Last month we helped sell 88 Units of a 300+ Pre Construction Development around $108 million to my calculations. Our Clients come in with cash. Very few are Canadian, in fact a large percentage are overseas and I have never met them outside of an email and fintrac requirements. There are 33 million people in Canada. Maybe 500,000 Millionaires. There are 100 million millionaires trying to come here and they all buy a condo. Harper opened the immigration floodgates last June. By the looks of this article Harper was right. Harper could not leave the growth of Canada up to the Citizens of this Country. We are… Read more »
Best place on meth
Member
Best place on meth

@cgh:

It means she screams out MLS numbers in bed.

onegreatbiggiantscam
Guest
onegreatbiggiantscam

@cgh: ““I work at Spadina and Front, in the densest condo area in Canada. Last month we helped sell 88 Units of a 300+ Pre Construction Development around $108 million to my calculations.

Or, you know, you could just enter it in a spreadsheet.

onegreatbiggiantscam
Guest
onegreatbiggiantscam

"Signs point to a severe housing correction in Canada"

After the erection, the correction. ~ Ancient Chinese Proverb

WFT?
Guest
WFT?

Renting has beaten owning for three decades. From an article in Canadian Business, linked to at http://financialinsights.wordpress.com/

As for the renter’s fear of losing out financially, that too is exaggerated. Today, the average home-price-to-rent ratio is at its highest level on record, which means renting may actually be more affordable than paying a mortgage. Furthermore, a 2007 study from the UBC Centre for Urban Economics and Real Estate found that over the past three decades, renters could have beat homeowners’ financial results. The study examined the theoretical returns of buying versus renting in nine Canadian cities. In four of them, renters who invested wisely could accumulate 24% more wealth than homeowners, and match it in three others.

Anonymous
Guest
Anonymous
@cgh: That's funny, a quick google search tells me that they are exaggerating their claim by an order of magnitude: "There are currently 10 million people around the globe who are classified as U.S.-dollar millionaires." http://en.wikipedia.org/wiki/Millionaire# I love that claim that all the millionaires want to live here. I think they mean visit Vancouver/Canada. Sure it's a beautiful city/country, but whenever I hear that from a co-worker I just say "so you're telling me that if you had the means to live anywhere in the world, and by that I mean spend the majority of your time, you want to live here?". They've never left Vancouver if they think this is really the best place on earth. I love it hear, but if it weren't for the family, I'd live elsewhere and vacation here… the rain 9 months of the… Read more »
Best place on meth
Member
Best place on meth

@Anonymous:

If I became a millionaire I would leave Vancouver immediately and never come back.

Troll
Guest
Troll

@Best place on meth: Maybe we can start a collection for you. I'll throw in 5 bucks.

whydoItry
Guest
whydoItry

If Vancouver is the number 1 choice for millionaires to live, what would the second choice be?

Can you imagine how much of a hell hole the rest of the world must be – if it's not possible to have a clear consensus on the second best city in the world?

My vote is for Flin Flon, Alberta

patriotz
Member

@cgh:

Even more awesome is that he admits in another comment that he is a renter, but his wife is a “real estate tiger”, whatever that means.

I think he means his wife is like the Annette Bening character in "American Beauty".

cgh
Guest
cgh
@Anonymous: To be fair, that guy specifically said those millionaires have no intention of living here. Here's another part of his comment: "Hearing what $50 million net worth individuals think is the only way to foreshadow coming events. Toronto's average of $500 per square foot is at 50% off currently because of global uncertainty. Expect a doubling of Real Estate to a more 'normal' metric of around $1000 per sq. ft. You will see through the next 5 years. I come from a blue collar town. It is an uncomfortable situation to bring this to light at family functions but fact is fact and truth is truth. Toronto's residential properties are going no where but up for the forseeable future. It sounds arrogant, I re-read my comments but I really do have investore arguing in parking lots, out-bidding one another,… Read more »
Anonymous
Guest
Anonymous
@cgh: ….If you do not buy property now in Toronto you and your kids will be priced out of the market for a generation or more. Stop complaining you do not have any money and get in the game now as a group, as an individual. However you can. This article is written by a fellow that makes 50k a year and can not count past a million. It is easier for him to complain than to try to understand what is happening.”….. Funny how those 100 million millionaires all want to live in Toronto (obviously they've never been there) when they could live anywhere in the world and at a far less cost (and with a much greater chance their ‘investment’ will grow. Hmm. let’s see, Toronto, or San Deigo? Na, take rainy Vancouver instead – it’s a great… Read more »
Anonymous
Guest
Anonymous

@cgh:

They never even intend to live here – just rent to all of you!

With the current price/rent in Vancouver it sounds more like a charitable donation to me than an investment to me. Good trolling by that poster though, I bet they have the most (angry) replies.

Anonymous
Guest
Anonymous

@Best place on meth:

$1,000,000? Give me a hundred and sixty eight bucks and I'm out!

Best place on meth
Member
Best place on meth

@Troll:

>>>Maybe we can start a collection for you. I’ll throw in 5 bucks.<<<

How generous of you.

Now if you can get another 199,999 assholes like yourself to do the same, I'll be on my way.

space889
Guest
space889
@cgh: Wow I didn't realize there were that many millionaires in the world. Given that there are what, roughly 6 billion people in developed and emerging nations. 100 millionaires works out to be 1 millionaire out of every 600 people (including every man, woman, child, and elderly). That ratio seems to be awefully high! Even 500,000 millionaires in Canada works out to be like 1 millionaire in 60, still seems awefully high, even if we count primary residence as part of networth. Lastly, how many millionaires actually can buy a condo/house for $1 million in another country? That's $500K to over $1 millions dollars of cold hard cash and/or debt that will be tied up in a condo/house in another country that you probably wouldn't be using that much, with low yields in current Canadian housing market, and could probably… Read more »
jesse
Member

Forbes: Chinese Purchases Of U.S. Real Estate Poised To Rise

Growth in the number of well-off mainland Chinese, an increase in overseas study by their children, and a drop in U.S. property prices are leading to more purchases of U.S. real estate by buyers from China. Where are they buying and why? How can U.S. developers and other sellers connect with Chinese buyers?

Why buy USTs and T. skyboxes when you can get a house close to UCLA that yields 7%?

space889
Guest
space889

@jesse: Uhm…don't you have to report worldwide income and pay US taxes if you own a residence in US? ok yes, I realize that Canada probably has the same rules but realistically does CRA actually chase up and audit people from mainland China and HK? I don't believe there are actual tax treaties between Canada and China?

SamanthaD
Guest
SamanthaD

Best city in the world, best hockey team in the world, beautiful day. Is monday too early in the week to hit the patio?

Ahab
Guest
Ahab

Only a $50 million loss expected? Sounds optimistic to me.

Best place on meth
Member
Best place on meth

@SamanthaD:

Not at all, it's a scorching 8 degrees so go for it.

Patiently Waiting
Member
Patiently Waiting

@SamanthaD: If business is slow, start doing cold calls, or you will soon have lots of time for the patio.

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