[COM] East Park, Kent Town | 36m | 11 Levels

[Ben]

How did Hines build the Crowne Plaza and Mantra? With their own money? I think not. Or any other Hotel development for that matter.

For the record I agree with Rev

[how good is he]

You can agree with Rev or whoever you want but that doesn’t make it right. Why not EMAIL a financier/commercial banker and ask them & then come back to the forum with the reply. Deal?
Further I never said Hines (or similar) built it with his own money so I don’t understand your point?
But yes just because you sign a management agreement with a hotel chain counts for little if nothing financially with the banks.
If you read what I wrote, I said the banks will only lend a proportion of the construction cost (usually say 65%). Its then up to the developer to either put in the difference ie 35% or have enough equity/other real estate/enough pre-sales to satisfy this requirement. Do you agree with this? If not, why?
It’s no different than getting a home loan. You have to put in a deposit of say 20% and the bank will lend you the other 80%. Do you accept and understand that concept?
It doesn’t matter to the banks that you have signed up with an agent (hotel operator) to rent your property out thereafter does it? You still have to put in the deposit or find the equity in the first place!

[floplo]

I was told a couple of months ago that an announcement on construction was imminent... still waiting. This project was launched ages ago. Time to pull their finger out. No wonder Realm and Adelaidean have good sales because they have committed to construction and its not all empty promises. Realm have been exceptionally professional in this process. it was only launched this year.

Realm has spent a lot of money on international marketing (no idea about Adelaidean), while the sofitel project (Palumbo) seems to have kept it fairly local and focused on local owner/occupiers. Given the hotel component they might prefer a low-key approach with a more stable residential population over investment/foreign owners, though they seem to have run a similar marketing strategy with East Park as well.

the latest ad e-mail states that the sofitel project has sold out on 1br, has 4 3br and 'some' 2br left. Given the 2br floorplans they had left last time I looked at this a couple weeks back, I'd say they had less than 10 2br ones left, so that puts them at at least 80% sold as well.



P.S.: shouldn't that whole discussion be happening on the sofitel thread.