Saturday, July 26, 2008

The Sharp End of Jacks Point

Hanover Finance co-owner Mark Hotchin says that he and Eric Watson won't leave investors out of pocket.
They've got a restructuring plan and they'll pour in money to make it work, Hotchin says

I'll believe it when I see it. Weren't they saying the other day the "model" is stuffed.

"Against a backdrop of global credit uncertainties, falling property prices and lower reinvestment rates, the industry model has collapsed," said Mark Hotchin, joint owner of the company with Eric Watson.

I hope Jacks Point isn't where they plan to "pour" the money because it looked like a bloody big hole to me,
I had a look at it a couple of months ago and was amazed by the scale. Minor downsides were the distance from Queenstown and only distant lake views from the completed houses we saw.

I suspect the major technical hitch will be lack of "oil"

- Finding punters with the money to buy and the means to live there.

1 comment:

Anonymous said...

Was down in QT last week. Hendo's hole is aptly named and Jack's Point even has advertising on the uniforms of the staff at Coronet Peak.

Certainly the business model of build anything and it will sell seems to have collapsed.