english zloty Posted January 11 Share Posted January 11 Any deal with DBC is only likley as a landswap. Not hard to guess where but MDC wouldn't be able to afford it, without digging even further into debt. Quote Link to comment Share on other sites More sharing options...
Hmmmm Posted January 11 Share Posted January 11 5 minutes ago, english zloty said: Yes they borrow the money from the Treasury approved loan provider and pay it back to Treasury (if DO I approve it) at a favourable interest rate over a very long time and in the meantime the property needs reinvestment. Hence the ever increasing deficiency. Neither Treasury, nor DOI will support that. 37 properties into 7-8million does not go. I believe a lot of people have reservations and don't understand how the MDA is going to turn a profit in the near term. They must have provided a business case to the bank for the loans - the fact Treasury underwrite them will have helped but there must be some hard numbers. This arms length approach is fraught with difficulty, effectively giving the small number of BoD from MDC a free hand with the money pot. 1 Quote Link to comment Share on other sites More sharing options...
Banker Posted January 11 Share Posted January 11 39 minutes ago, english zloty said: Yes they borrow the money from the Treasury approved loan provider and pay it back to Treasury (if DO I approve it) at a favourable interest rate over a very long time and in the meantime the property needs reinvestment. Hence the ever increasing deficiency. Neither Treasury, nor DOI will support that. 37 properties into 7-8million does not go. Local authorities borrow from HSBC who are current loan providers after treasury approval and pay back direct to HSBC not treasury. 1 Quote Link to comment Share on other sites More sharing options...
english zloty Posted January 11 Share Posted January 11 3 hours ago, Banker said: Local authorities borrow from HSBC who are current loan providers after treasury approval and pay back direct to HSBC not treasury. Not entirely true because of the deficiency arrangements. But yes HSBC provides the loans. Quote Link to comment Share on other sites More sharing options...
Max Power Posted January 11 Share Posted January 11 6 hours ago, english zloty said: Yes they borrow the money from the Treasury approved loan provider and pay it back to Treasury (if DO I approve it) at a favourable interest rate over a very long time and in the meantime the property needs reinvestment. Hence the ever increasing deficiency. Neither Treasury, nor DOI will support that. 37 properties into 7-8million does not go. There's a lot more than that in the whole development, it's not worth us speculating as there must be a business case somewhere, I'd like to see it though. 1 Quote Link to comment Share on other sites More sharing options...
english zloty Posted January 11 Share Posted January 11 52 minutes ago, Max Power said: There's a lot more than that in the whole development, it's not worth us speculating as there must be a business case somewhere, I'd like to see it though. ONH is a company in its own right though Quote Link to comment Share on other sites More sharing options...
Max Power Posted January 11 Share Posted January 11 6 minutes ago, english zloty said: ONH is a company in its own right though Which is ONH? Sorry, a bit out of the loop on this. Quote Link to comment Share on other sites More sharing options...
CrazyDave Posted January 11 Share Posted January 11 7 hours ago, Hmmmm said: I believe a lot of people have reservations and don't understand how the MDA is going to turn a profit in the near term. They must have provided a business case to the bank for the loans - the fact Treasury underwrite them will have helped but there must be some hard numbers. This arms length approach is fraught with difficulty, effectively giving the small number of BoD from MDC a free hand with the money pot. Not turning a profit from MDA would be quite a spectacular failure 😂 Quote Link to comment Share on other sites More sharing options...
Roger Mexico Posted January 12 Share Posted January 12 16 hours ago, Max Power said: Which is ONH? Sorry, a bit out of the loop on this. I presume FNH was meant - one of the subsidiary companies. 1 Quote Link to comment Share on other sites More sharing options...
asitis Posted January 13 Share Posted January 13 On 1/11/2024 at 8:03 PM, Max Power said: There's a lot more than that in the whole development, it's not worth us speculating as there must be a business case somewhere, I'd like to see it though. Not sure we do business cases ! If in fact we do, the Liverpool landing stage should be a cracking read ! 1 Quote Link to comment Share on other sites More sharing options...
Banker Posted January 13 Share Posted January 13 42 minutes ago, asitis said: Not sure we do business cases ! If in fact we do, the Liverpool landing stage should be a cracking read ! There’s always a business case but whether they would stack up in a large private business is another matter. Quote Link to comment Share on other sites More sharing options...
asitis Posted January 13 Share Posted January 13 26 minutes ago, Banker said: There’s always a business case but whether they would stack up in a large private business is another matter. I could take a guess that the board would roll around laughing ! 1 Quote Link to comment Share on other sites More sharing options...
english zloty Posted March 21 Share Posted March 21 Rejoice, for we are truly saved - 37 apartments due in 'early' 2025. the housing crisis is solved. But wait, how much is that per apartment ** - and how is it still on time and budget if there was no plan to remove one and a half floors and no expectation to find asbestos? I smell bullshite https://www.manxradio.com/news/isle-of-man-news/former-nurses-home-development-at-pace-and-on-budget/ ** rough maths say £220K each, which is more than a 3 bed house costs to build, so that's a bargain 1 1 Quote Link to comment Share on other sites More sharing options...
Banker Posted March 21 Share Posted March 21 29 minutes ago, english zloty said: Rejoice, for we are truly saved - 37 apartments due in 'early' 2025. the housing crisis is solved. But wait, how much is that per apartment ** - and how is it still on time and budget if there was no plan to remove one and a half floors and no expectation to find asbestos? I smell bullshite https://www.manxradio.com/news/isle-of-man-news/former-nurses-home-development-at-pace-and-on-budget/ ** rough maths say £220K each, which is more than a 3 bed house costs to build, so that's a bargain How have you calculated the cost per apartment and can you tell me where these 3 bedrooms houses for £220k are please. 1 1 Quote Link to comment Share on other sites More sharing options...
Dirty Buggane Posted March 21 Share Posted March 21 Where did the £220,000 come from. With all the extras I would be surprised if not more like£350,000. ? Quote Link to comment Share on other sites More sharing options...
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