Molina de Agua - Price Reductions
The developers of Molina de Aqua have quietly reduced prices by about 15% across the board on all unsold units.
The reduction came as a surprise since the project had been marketed as nearly sold out for 6 months. Now it appears that a good 30-40% of the units are still available.
Sunday, August 26, 2007
Oversight Long Over-Due
After the partial collapse of two condominiums and damage to a third from a falling boulder in the Amapas and Conchas Chinas neighborhoods, the municipal government has taken steps to supervise construction sites. The municipality does not have the resources to post full-time supervisors. Instead, special supervision units have been set up by sharing resources of the municipal Civil Defense, Urban Planning, Environmental and Ecological departments – with the objedctive of avoiding disasters.
In essence, the municipality is treating the forecast outcome of another potential collapse to be similar in nature to a hurricane hitting the immediate local area.
This is good news from an operational risk perspective as it should improve the standard of excavation and development. However, there is potential for increased insurance risk, which not only impacts on secondary market sales but may prevent financing.
After the partial collapse of two condominiums and damage to a third from a falling boulder in the Amapas and Conchas Chinas neighborhoods, the municipal government has taken steps to supervise construction sites. The municipality does not have the resources to post full-time supervisors. Instead, special supervision units have been set up by sharing resources of the municipal Civil Defense, Urban Planning, Environmental and Ecological departments – with the objedctive of avoiding disasters.
In essence, the municipality is treating the forecast outcome of another potential collapse to be similar in nature to a hurricane hitting the immediate local area.
This is good news from an operational risk perspective as it should improve the standard of excavation and development. However, there is potential for increased insurance risk, which not only impacts on secondary market sales but may prevent financing.
Gran Venetian Construction Site Shut Down for 5th Time
The Grand Venetian construction site was closed down for the 5th time this year, this time by the Urban Planning Department, which had already warned of the lack of safety measures for workers. Now the developers will have to pay millions of pesos in fines. Two people have already lost their lives there in 2007, falling from great heights. Despite the closure, none of the site’s 200+ workers have been given any kind of safety equipment. Although the Grand Venetian was notified by City Hall on August 14th to correct 102 matters requiring attention, only minor details changed. Some people believe the entire project should be closed down as the developer is building more floors than the permit allows.
The Gran Venetian has dropped its prices slightly reducing financing risk. There continues to be significant risk of completion within contracted time frames.
Recommendation: Pass
The Grand Venetian construction site was closed down for the 5th time this year, this time by the Urban Planning Department, which had already warned of the lack of safety measures for workers. Now the developers will have to pay millions of pesos in fines. Two people have already lost their lives there in 2007, falling from great heights. Despite the closure, none of the site’s 200+ workers have been given any kind of safety equipment. Although the Grand Venetian was notified by City Hall on August 14th to correct 102 matters requiring attention, only minor details changed. Some people believe the entire project should be closed down as the developer is building more floors than the permit allows.
The Gran Venetian has dropped its prices slightly reducing financing risk. There continues to be significant risk of completion within contracted time frames.
Recommendation: Pass
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