Welcome to the first of our monthly newsletters for 2008. We ended last year on a high note with brisk sales and a very successful Annual General Meeting. We are pleased to start the year with some great news as we announce the latest addition to our real estate portfolio. The goal with the newsletter is to keep you informed of major events and happenings at M, as well as give you some personal insights into the company and its people. As always I welcome your feedback. Sincerely, Paul Poscente - President & CEO |
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| M PORTFOLIO | ||
We are thrilled to announce the acquisition of our 17th home on the Big Island of Hawaii. The 3 bedroom, 3.5 bathroom detached home is within the world class Mauna Lani Resort. Along with all the home amenities which include a pool, spa, covered lanai, built-in outdoor cooktop and wet bar, the property comes with access to a number of great resort amenities. Choose from 2 championship golf courses at 50% of the retail rate, play at the private beach club, work out in the fitness center, or dine seaside at world class restaurants at preferred rates. We believe we have purchased the nicest home in the development. With south and west facing views of the mountains and golf course you can enjoy all 365 Hawaiian sunsets while lounging poolside. We have been following the market in this resort for over a year and are extremely satisfied with the purchase price we were able to negotiate. The property will be available for use in late March or early April (we will announce specifics as they become available). The home will be opened with existing furniture and decorating (we will bring in M soft goods immediately), we will then take the home out of the portfolio for two weeks (late May or early June) to redecorate, paint, and do some minor renovations in order to bring it to M standards. |
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| Where will you go next? | ||
| Pursuant to our real estate strategy, our next focus is on doubling up on two existing locations; the Coachella Valley (Palm Springs) and New York City. We have been pursuing a number of opportunities in both geographies and evaluating them against the backdrop of the US real estate market. The market in the Palm Springs area is softer relative to that of Manhattan at this point in time. We believe we have not yet seen the bottom of the desert market but a few good opportunities are beginning to appear. In NYC we have seen an increase in supply but not the commensurate reduction in pricing. Which property will be purchased first will depend on the relative opportunities presented to us. | ||
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| M Forecast | ||
| With core inflation hitting two year lows and a high probability of a shallow recession in the US, we believe 2008 will be a year of moderate world growth and low interest rates. As a result it is likely we will see a moderation of world crude prices and thereby pressure on the Canadian dollar. We are forecasting a dollar in the .90-.95 US for the upcoming year. In terms of the real estate market in the USA specifically, we continue to see an increase in listings and DOM (Days on Market) in many of our target areas. However, the sub prime crisis in the USA has not affected the upper end of the market significantly. Therefore we are not yet seeing the drastic price reductions and foreclosures there have been at the lower end. If, as we believe, we have not yet seen the bottom of the market, the increase in supply and the lack of buyers will eventually bring a crack in prices at the upper end of the market as well. Certain markets (Hawaii, NYC) are more insulated from the general forces of the real estate slump, but all markets are seeing some effect. With revenue in Canadian dollars and costs in US dollars, we believe 2008 will not only bring some exceptional buying opportunities, but also significantly help keep our operating costs under control. | ||
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Kelowna Lottery 45 Park Avenue Expansion M Home Improvements |
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| M People | ||
| In an effort to help you get to know the M team a little better we will be doing a short biography each month on an M team member. This month we would like to introduce you to (in his own words) our very capable (and humorous) local host from London David Clarke: | ||
My name is David Clarke, and I was born and bred in a beautiful part of the world called South Wales. Lived here until I reached the impressionable age of 23 and worked in Hotel & Retail Management and then onto IT in the Insurance industry. I moved to London back in 1998 with the same insurance company to work on their ‘Millennium Project' which was aimed at saving their IT systems from catastrophic consequences when the year 2000 came about. My move was a hugely exciting experience, and I thrived on every opportunity that the `Big Smoke' gave me. I continued working in the same line of work until 2003 when I was made redundant. Not a bad thing at all - and I grabbed this opportunity to set up my own company called `Sentinel Residential' with a main aim of looking after the houses of absent owners. After a slow and quite scary start (i.e. very few clients....!) we are now the only Company in the UK to provide this type of service to its clients. Before joining ‘M’ I have turned down many prominent film roles alongside the likes of Daniel Craig and Johnny Depp as I just made them look so much older and far less professional. Have a habit of thinking ‘of course I can sing’ after the odd glass of wine. My claim to fame is the front cover of a property magazine, which actually looked more like something out of FBI’s most wanted. I hate spiders and small annoying flying things that bite. I have enjoyed my time with ‘M’, meeting all the shareholders, and look forward to meeting those that have yet to come to London! |
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