February 5, 2006 at 7:43 pm #51541
Polaris have taken the Murcia region by storm, build on time and quality has anyone had dealings, not all developers can be bad
February 5, 2006 at 8:23 pm #60797
Brief but interesting post.
PW build on time?
Well perhaps you ought to check this out:
La Torre is currently running several months late (at least 6). Mar Menor GR was also late. It seems that El Valle and Hacienda Riquelme will also be late. La Loma has not even started. Condada is still waiting to get all the formal permissions, so I guess will also be late. But when you get 40% up front, I guess it is more profitable to sell off plan than actually build the property. The main problem buyers currently have is lack of communication on late completion times. Do you have a direct line to the PW head honcho giving you inside information to the effect that everything is on time?
As for quality, well you may be right in this instance, compared to other developers. However, the only development that can be compared is Mar Menor as that is the only one completed. There were several problems with quality and changing specifications, but nothing too serious (e.g. worktops in the kitchem too low to fit white goods underneath).
Please feel free to post any evidence that does show that PW are on time with their developments, or that they are “taking Murcia by storm” (certainly causing a storm).
Or perhaps you have a vested interest.
February 6, 2006 at 1:05 pm #60803
Generally quality is in inverse proportion to marketing.
February 6, 2006 at 2:00 pm #60804
Quality comment Bert
Just heard that some of the MMGR Properties are suffering from severe damp problems and are having to have the foundations dug out to rectify. Maybe hard to believe with the current drought in Murcia, however, I believe this stems from some severe flash flooding last year.
One or two people are starting to worry over the cash flow situation at PW. Developments being delayed obviously impact upon the cash flow, and when this is combined with a slow down in off plan sales (@40% deposit a pop), and then add into this the plans to build their own desalination plant, you begin to wonder.
Also consider this. Over the next two years, PW are due to complete, hand over and snagg 4,500 properties on three developments. That is 11 properties per working day, every day. That is of course assuming all the people want to complete as they may well have bought with the idea of flipping before completion, but of course they may well struggle to sell.
I would love to see the accounts for PW. If PW was a UK PLC there would be loads of info/comment/opinion on the financial viability of this company. I can’t really believe there is no such scrutiny in Spain.
February 10, 2006 at 2:45 am #60895
For some reason i’m not overly concerned, the way I see it-we’d all paid 40% deposits. With this figure, shouldn’t this alone be more than enough to cover the build cost of each dwelling (with Spainish labour/materials cost?), with spare for fashioning the golf course and clubhouse, etc. Hotel obviously paid for by the hotel chain.
Seeing as we also paid this huge amount of money a long, long time ago, the interest accumulated on this alone would be vast. So I can’t see why they would have a cashflow problem.
The desalination plant will put a dent in the profits, but when they finally build the houses and we eventually complete, then their cashflow would be returned.
I don’t think I’m being naive here?
February 10, 2006 at 12:24 pm #60906
Good post with intersting points.
The thing is that I have come to one conclusion based upon the slow down in sales of off plan PW properties. You have come to another based upon your own deliberations. The real point is that you could be right, I could be right, or it could be anywhere in between.
Is PW the equivalent of a UK PLC? Is it possible to acurately assess the long term viability of their business model. What contingency is built into that model to cope with the slow down in sales and the delay in completions.
Yes, PW have a lot of 40% deposits, but they also have a lot of overheads, especially marketing (Jack don’t come cheap).
What is really missing here is open scrutiny and debate on the finances of PW similar to that you get on UK companies via sites such as Motley Fool (http://www.fool.co.uk).
February 13, 2006 at 4:58 pm #60943
Stop being so negative !!!!!!!!!!!
February 13, 2006 at 5:47 pm #60946
Balanced and rational yes
But never negative
Now declare yourself “Guest” is it Rick, Phil or somebody else?
February 16, 2006 at 4:16 pm #60979
PW have suffered a major setback this week with a local council blocking urbanisation of a mega 12500 property sprawl in Alhama – the news will seep into UK, its already caused a massive fuss here in Spain.
February 16, 2006 at 5:55 pm #60980
Yes, PW get furious, because they were ready to bluid in alhama. The ayuntamiento of alhama doesn’t let to build, in a meeting on tuesday night.
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