<<the fund is unfolding as it should!>>
Real Estate Update:
Japan ... Apparently Singapore has a tax treaty with Japan that allows preferential tax treatment of Singapore investors in Japan, and so the Japan real estate vehicle will be held by a Singapore-registered company. The rental payment will flow from Japan to Singapore and then to Hong Kong, as off shore sourced income ! And so, it appears that Singapore, when astutely Tee-ed up, rocks as well.
Mongkok Building ... and the earlier club, the Mongkok building achamchen.com (as opposed to the earlier still Mongkok street-level shops), originally purchased for USD 10.8, with 50% financing, then refinanced to fund the renovation which also paid out a 50% of original capital back to club members, is now being negotiated for sale at USD 45 mn.
Given that there is a 17 odd% capital gains tax for buildings traded within 7 years of purchase, the club is arranging a convoluted deal whereby we sell the building now, as in locking in the price, and still retain title, until 5 years passes. We can then presumably take the paperwork to the friendly bankers for maxi-refinancing round.
Mongkok Street-level Shops ... have appreciated something ridiculous, like 7 fold in 2.5 years on cost, 14x more on capital, and rent money, sharply increased, simply pouring in, with millions of mainland Chinese visitors milling about the shops. The club is generating a fair return :0)
Should there be democratic elections on the mainland now, I would give serious thought to voting for the Communist Party :0)
Pure Money Rock Hong Kong magic. Shock and Awe.
Macau Apartment Development ... I may serve on the Board. We have decided to skip on the hotel development and focus only on the apartment development, as the apartment is an one-of-a-kind up-scale effort in Macau, whereas the hotel is one of many, all already featured in Times Magazine (how bearish is that!)
Thailand Vacation Property ... all 29 lots (15 Ocean view, 14 Plantation) have been sold. The return to the land investors is a solid double, and my effectively free plot (separate deal from the land club) has also doubled (on top of the club double), again, ready for construction. We will start something once everyone else is done building, so we can make a mess :0)
Old Hong Kong Airport Industrial Units w/ Harbour View ... imputed land value has done a 6 fold, now awaiting government announcement in September on finalized decision on redevelopment master plan. The government had spent USD 1.2 billion of the tax payers moolah to clean up the area, and so it should be something good for the early birds to really clean up. I figure selling one unit at 10x, and hold the second one for 12x. Re-invest in the area before constructions start, and go for another 6x. In any case, seven years have passed on the units, and so defintely no cap gain tax assessable.
I adore Maestro Greensputin :0) Professor BurnAndKaput? bigger idiot, and so even better. The communists, best of all, and may get better still.
May have to short more US housing and sub-prime shares to tap the rich vein of financing, and get in early on the game of US carry trade, round II.
And then, never forget, time to dial 1.800.GET.ME.OUT, before planet-wide repricing to the down side, tolock-in the value, in terms of gold, and perhaps squander the days by watching movies on QCOM-enabled phones while on the beach :0)
Chugs, Jay |
