Central Equity- Melbourne

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From: B Ready


Hi All,

Has anyone had any dealings, good, bad or indifferent, with Central Equity in Melbourne?

Any comments would be appreciated.

Thanks

B Ready
 
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Reply: 1
From: Jeremy Laws


Mange poeple, with mange properties advertised everywhere, and have filled my mail box (email and snail) with junk for the last 3 years.
 
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Reply: 1.1
From: Waverly Bay



A quote from the article below:

"There's evidence emerging now showing the resale prices of these apartments
to be at a capital loss, particularly when the rental guarantee runs out and
the owners find they can't get the rent they used to earn," he said.



Central Equity hit by triple whammy
Apr 11 - Sydney Morning Herald
Karina Barrymore

Investors have wiped more than $25 million from the market capitalisation of
developer Central Equity over the past month because of concerns about an
apartment market slowdown.

The Melbourne developer appears to have been hit by a triple economic
whammy, in which the removal of the first-home owners grant and the spectre
of rising interest rates have joined concerns about a slowdown in the
apartment market.

As expected, the company's shares dipped slightly after a one-for-20 rights
issue in late February, but the removal of the shares from the S&P/ASX 300
in the April update also knocked them out of the trading pool for many fund
managers.

The stock has fallen 15 per cent, from $2.12 on March 4 to $1.80 yesterday.

Independent research analyst Alan Cobb said investors might also be
concerned about the lack of diversity within the business, which has focused
on inner-city apartment building.


"Rising interest rates, an apartment development slowdown and the housing
cycle reaching its peak may all be contributing," he said.

"There may be concern out there that if the market is slowing down, just
what can Central Equity do instead? There's no diversity," Mr Cobb said.



Another Melbourne analyst pointed to the company's recent negative operating
cash flow. The most recent six-month result showed a $71 million shortfall.

The analyst also said the company's apartments were priced at the cheaper
end of the market and targeted at investors.

"There's evidence emerging now showing the resale prices of these apartments
to be at a capital loss, particularly when the rental guarantee runs out and
the owners find they can't get the rent they used to earn," he said.

Central Equity's chief executive, Eddie Kutner, said yesterday there was no
specific reason for the share price fall.

"We are going well and on track. We're experiencing good demand for
Melbourne property and we are having a strong second half," Mr Kutner said.

"There will be a profit increase for the full year over last year."

The company's cash shortfall was "co-ordinated and planned" he said, as the
larger projects and longer construction times of its latest projects
required a heavier cash use.

Central Equity had "in excess of $400 million signed unconditional sales
contracts" awaiting settlement, Mr Kutner said.
 
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Sim

Administrator
Reply: 1.1.1
From: Sim' Hampel


They were running seminars at the hotel I was staying at in Hong Kong last weekend. I believe they run seminars in Singapore and the UK as well, and probably elsewhere promoting their product.

I wonder who pays for these junkets ? (or is it deseperation marketting ???) Might I guess that it is the investors in the units ? Could be wrong of course !

 
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Reply: 1.1.1.1
From: Wei Ng


Most of my friends who live in or own Central Equity apartment have bad experiences. Firstly, MICM as building managers- slow response to complaints etc. Secondly & more importantly, the quality of the buildings seem pretty poor, from what I've seen. I've personally repainted an apartment for a friend who purchased it. It was 2 years old then (built July 99), and the balcony door was leaking, the main door was coming off the hinges. Another mate's got tiles falling off in the shower...
 
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