Icelandic investment group and insurer Sjova-Almennar Tryggingar have cancelled plans to purchase the sixty-eight unit Tower Four of One Central Residences for HK$782.74 million or HK$4,410 per square foot and walked away from a 30% deposit.  

The insurer had been looking for a new buyer in the second half of last year before it completed the deal, as Iceland was among the countries worst hit by the global credit crunch.  The balance was due before the delivery of the units at the end of this year.

According to a managing director at Jones Lang LaSalle in Macau, many buyers had shown interest in the project and were willing to take it over at HK$3,800 to HK$4,000 per square foot. Owners needed to spend about HK$700 to HK$800 per square foot to furnish the units, as they would be bare upon delivery, he added.

Units at One Central Residences, launched for sale in the second half of 2006, fetched more than HK$8,000 per square foot when the market peaked in 2007. But selling prices have dropped to between HK$4,800 and HK$5,000 per square foot in the secondary market.  

"Taking up the properties by cancelling the sale-and-purchase agreement will provide an opportunity for the group to realise an attractive return and ... to benefit from the positive outlook of the property market," Shun Tak said in a statement. He expected Macau's property market to catch up with the Hong Kong and Zhuhai markets soon.  If this were true it would certainly benefit the likes of LVS which has a bunch of apartments to unload at Four Seasons.



Macau had a positive budget balance of around 10.451 million patacas at the end of May, according to The Macau Daily Times. This figure represents a decline of 35% over the same period of last year.   There were some positive signs, however; public revenue for the YTD rose 0.8% year-over-year.

The gambling sector is reported to have contributed 15.32 billion patacas through the direct taxation of 35%.  Total current expenditure reached 10.89 billion patacas for the first five months of the year, up by 111% over the same period of last year.

Cartoon of the Day: Acrophobia

"Most people who are making a ton of money right now are focused on growth companies seeing accelerations," Hedgeye CEO Keith McCullough wrote in today's Early Look. "That’s what happens in Quad 1."

read more

People's Bank of China Spins China’s Bad-Loan Data

PBoC Deputy Governor Yi says China's non-performing loan problem has “pretty much stabilized." "Yi is spinning. China’s bad-debt problem remains serious," write Benn Steil and Emma Smith, Council on Foreign Relations.

read more

UnderArmour: 'I Am Much More Bearish Than I Was 3 Hours Ago'

“The consumer has a short memory.” Yes, Plank actually said this," writes Hedgeye Retail analyst Brian McGough. "Last time I heard such arrogance was Ron Johnson."

read more

Buffalo Wild Wings: Complacency & Lack of Leadership (by Howard Penney)

"Buffalo Wild Wings has been plagued by complacency and a continued lack of adequate leadership," writes Hedgeye Restaurants analyst Howard Penney.

read more

Todd Jordan on Las Vegas Sands Earnings

"The quarter actually beat lowered expectations. Overall, the mass segment performed well although base mass lagging is a concern," writes Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan on Las Vegas Sands.

read more

An Update on Defense Spending by Lt. Gen Emo Gardner

"Congress' FY17 omnibus appropriation will fully fund the Pentagon's original budget request plus $15B of its $30B supplemental request," writes Hedgeye Potomac Defense Policy analyst Lt. Gen Emerson "Emo" Gardner USMC Ret.

read more

Got Process? Zero Hedge Sells Fear, Not Truth

Fear sells. Always has. Look no further than Zero Hedge.

read more

REPLAY: Review of $EXAS Earnings Call (A Hedgeye Best Idea Long)

Our Healthcare Team made a monster call to be long EXAS - hear their updated thoughts.

read more

Capital Brief: 5 Things to Watch Right Now In Washington

Here's a quick look at some key issues investors should keep an eye on from Hedgeye's JT Taylor and our team of Washington Policy analysts in D.C.

read more

Premium insight

[UNLOCKED] Today's Daily Trading Ranges

“If I could only have one thing of the many things we have it would be my daily ranges." Hedgeye CEO Keith McCullough said recently.

read more

We'll Say It Again: Leave Your Politics Out of Your Portfolio

If your politics dictates your portfolio positioning, the Democrats and #NeverTrump crowd out there have had a hell of a week.

read more

Cartoon of the Day: 'Biggest Tax Cut Ever'

President Donald Trump's economic team unveiled what he called last week, "the biggest tax cut we’ve ever had.” Before you get too excited about that hang on a sec. "Trump Tax Reform ain’t gettin’ done anytime soon," Hedgeye CEO Keith McCullough wrote in today's Early Look.

read more