Trump pulling out or Cap Cana?????

Kemo

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Today industry sources point out strong but credible Rumors that Cap Cana and Trump are breaking their partnership in the recently announce project Trump Farallon Estates at Cap cana. Te reasons are not disclose but it has to do with stron disagreement between trump management and Grupo Abrisa headed by Ricardo Hazoury. Recently a big number of investors pull out their options due to the Credit problems in the U.S and world financial markets and also for the High debts that Cap Cana is carrying. Souces in New York point out Cap cana already negotiating with St regis ( Starwood Hotels) to develop St Regis residence in the same project to avoid investors from living. Cap Cana is great project but the level of debt the project is carrying in this world market is un managible """" Quote Stuart lowenstein the mercer group.
 

Cacique

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Makes lots of sense since Trump could be one of the big losers in the U.S. real estate crunch...
 

Chris

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Makes lots of sense since Trump could be one of the big losers in the U.S. real estate crunch...

There is no US 'real estate crunch'. There is a financial crisis. A stack of people are defaulting on adjustable mortgage loans in the sub-prime sector. Almost all banks or financial institutions of note or brokerages traded these loans which were bundled together as a tradeable commodities of various kinds. (This is simplistic .. there are other financial factors happening at the moment as well.)

To speculate that Trump could be a 'big loser' is truly a stretch that defies my imagination.
 

korejdk

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To speculate that Trump could be a 'big loser' is truly a stretch that defies my imagination.

It happened before...I like the guy but the facts speak for themselves...
The Trump Tower in Tampa - construction has stopped and the buyers who placed the deposits are contemplating lawsuits. Trump Tower in FLL is on hold indefinitely. A third of Trump Chicago condos are unsold.
 

Kemo

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Can you post your source please?!

I cannot disclose this info was given to me by a friend that is a realtor for Cap Cana and he is looking for job somewhere else???

This info came out in the wall street journal web site in december
 

Kemo

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There is no US 'real estate crunch'. There is a financial crisis. A stack of people are defaulting on adjustable mortgage loans in the sub-prime sector. Almost all banks or financial institutions of note or brokerages traded these loans which were bundled together as a tradeable commodities of various kinds. (This is simplistic .. there are other financial factors happening at the moment as well.)

To speculate that Trump could be a 'big loser' is truly a stretch that defies my imagination.

You are right about that there is a credit crunch but it has to do with real state correction. What happen in the U.S between 2002-2006 the housing market was so hot that Speculators and Investors were investing more in houses than Stock market this created that house prices to soar in 4 years form 30-200% there were people in Miami buying luxury condos on the beach for 1 million and flipping them a week after for 2 million this bubble made prices impossible for to be affordable for middle income families with regular or not so good credit to be pray to the creative financing that banks and lenders were formulating to sell houses. A Mortgage broker will tell this people this is the only way they could own a house but if they make the payments on time for a couple of years they could refinance for a fixed rate. What happen is that the banks started to loose money due to the high numbers of foreclosure and the Real State market with over supply had to correct itself in price so what happen this people that bought 3-5 years ago are now faced with a Balloon payment on the adjustable rates the price of their house fell 20-35% or in some cases more so the debt of the house is worth more than the house value so the cannot get refinance. It is the perfect storm people trusted the market and thought like always the value of their house was going to save them but that has created a ton of Foreclosures and the financial and credit crunch. What is happening now is that banks simply don't want to lend to anyone including big strong developers. Banks want to wait until storm pases by. Cap Cana is not immune to the world Credit crunch the project is heavily in debt and the Abrisa group which is headed by Ricardo Hazoury put all the land as collateral to get the Financing to construct the project. But there are allot of investors that are now either pulling back their investment or simply walking out because of fears that they wont get the financing themselves available to close the properties and in a world real state market that is slowing down by the day they are worry they wont sell. Trump right now is cutting loses and he wants to continue with his prime market NYC that so far the real state market is still pretty stable and also Panama and Mexico and Dubai which are outperforming everybody.
 

Lambada

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korejdk

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Lambada's post was made in November and it was a quote from Latin Finance about the Cap Cana bonds (the 2017 ones) being pulled from the market. It said nothing about Trump pulling out of Farallon. Lambada is not party to any info about Mr. Trump, his decisions, his intentions, his haircut.............and she hasn't been fired. :)

:) :) :) bonds still not placed, so ...
and she wouldn't need a job with that writing talent
 

Kemo

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Lambada's post was made in November and it was a quote from Latin Finance about the Cap Cana bonds (the 2017 ones) being pulled from the market. It said nothing about Trump pulling out of Farallon. Lambada is not party to any info about Mr. Trump, his decisions, his intentions, his haircut.............and she hasn't been fired. :)


Believe me that info is true and it gets worst!!!!! I have just spoken to one of the main construction contractors of Cap Cana he told me they have not gotten pay so far this month and that Cap Cana is stopping regular construction until they resolve a serious financial situation.
 

Kemo

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Nov 2, 2006
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The problem now and this is all over the world!!!! Not only in the U.S remember the largest banks in Europe and Asia invested heavily in subprime funds and they are loosing big there is no more financing until the storm passes by. Cap Cana is Heavily in debt so they either come with the money or banks investing in the project will take over. Difference with Cap Cana and casa de campo is that the owners of Casa de Campo the Fanjul family finance themselves they are very rich and powerful in the U.S they own the airport in la romana as well as Central la romana they own all the land. Also Casa de Campo is a well high end community that has actual residence all year around this community has strive for over 30 years.
 

johne

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Jun 28, 2003
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Close, closing, closed

What I am observing, is that the Great American Wallet is Snapping Closed :laugh:

Oh," wallet". I thought you were closing the thread! Think about it might not be such a bad idea and we can contribute all this wasted band space to Trump or the sub-prime market place.
Yours in bad humor,
john
 

Kemo

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Nov 2, 2006
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I remember the first reports when the project opened was that everything was sold in 48 hours. What happened?

The only thing that i could tell you is that i was there with a friend of mine from New York we drove from casa de campo to Cap Cana the event was beautiful but what they were sold there were options. People come with a suposely refundable deposit of about 120 thousand dollars that gives you the rights to buy it. They say it was sold in 48 hours because they got purchase contracts with deposits in that amount of time. What is happening now is that those people that option have to closed there sales some are pulling out all together some are not coming up with the money. So that you know each parcel of land runs between 3.5-5 million dollars and that is just the land????????????
 
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wow. It appeared to be an ambitious project with very little that would be different from other exclusive projects, except for the Trump name. Do you believe that the Cap Cana project can still be profitable with the Trump name behind it?
 

Kemo

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Nov 2, 2006
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Let me explain something Trump does not put one cent in that project. What trump does in that type of development is leased his name and Management of the project including marketing. You see trump puts its good and famous name behind any project and now the project is worth millions. Trump simply gets a cut of the profits but Cap Cana is putting the land the construction materials everything is put by Cap Cana Trump is just a brand.