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Uchumi - A value play?
Rank: Elder Joined: 2/26/2012 Posts: 15,980
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RETAIL chain Uchumi Supermarkets will sell 20 acres in Kasarani valued at Sh2.2 billion, as part of its plans to raise cash for its turnaround programme. The company which has been facing financial problems partly blamed on poor governance, announced yesterday that the sale process for the land will begin immediately. - See more at: http://www.the-star.co.k...oon#sthash.NjJgh6fM.dpuf"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 7/22/2009 Posts: 7,455
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murchr wrote:RETAIL chain Uchumi Supermarkets will sell 20 acres in Kasarani valued at Sh2.2 billion, as part of its plans to raise cash for its turnaround programme. The company which has been facing financial problems partly blamed on poor governance, announced yesterday that the sale process for the land will begin immediately. - See more at: http://www.the-star.co.k...on#sthash.NjJgh6fM.dpuf ^ So they are valuing an acre at Kshs. 110 million??? And the CFO says it is a "conservative" valuation! Someone is mad here!!! Kenyans or the market or the valuer or the company or the individual or the reporter! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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MaichBlack wrote:murchr wrote:RETAIL chain Uchumi Supermarkets will sell 20 acres in Kasarani valued at Sh2.2 billion, as part of its plans to raise cash for its turnaround programme. The company which has been facing financial problems partly blamed on poor governance, announced yesterday that the sale process for the land will begin immediately. - See more at: http://www.the-star.co.k...on#sthash.NjJgh6fM.dpuf ^ So the are valuing an acre at Kshs. 110 million??? And the CFO says it is a "conservative" valuation! Someone is mad here!!! Kenyans or the market or the valuer or the company or the individual or the reporter! Man if people gonna buy land at that price then this is a rich country . An acre selling for 1.1 million USD . Even a plot in North America doesn't go at that price . As you said MaichBlack someone somewhere is lying
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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@enyands There are people called institutional investors,pension schemes like NSSF who might grab that land very first at that price Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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Our real estate market has been experiencing sectional irrationality since the post election violence. Prior to 2003 land as a viable investment was not exciting. With the advent credit and economy expansion that changed and totally went Parabolic after 2007. Land these days will sell at whatever crazy price is quoted as long as there is a willing buyer. Once speculators(both smart money and wanjiku money) set into the market and are the dominant players in land transactions prices increase exponentially irrespective of return considerations. Couple this with the fact that a lot of illegal money regularly finds refuge in the country and you can see why even land worth billions of shillings changes hands in cash. It is like when stocks trade at premiums way beyond the underlying fundamentals on the basis of the greater fool theory. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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enyands wrote:MaichBlack wrote:murchr wrote:RETAIL chain Uchumi Supermarkets will sell 20 acres in Kasarani valued at Sh2.2 billion, as part of its plans to raise cash for its turnaround programme. The company which has been facing financial problems partly blamed on poor governance, announced yesterday that the sale process for the land will begin immediately. - See more at: http://www.the-star.co.k...on#sthash.NjJgh6fM.dpuf ^ So the are valuing an acre at Kshs. 110 million??? And the CFO says it is a "conservative" valuation! Someone is mad here!!! Kenyans or the market or the valuer or the company or the individual or the reporter! Man if people gonna buy land at that price then this is a rich country . An acre selling for 1.1 million USD . Even a plot in North America doesn't go at that price . As you said MaichBlack someone somewhere is lying I saw a sign in Kilileshwa advertising an acre for 320mn. Prices in Westlands are quoted at 350mn per acre. Upper Hill 300-500mn per acre. For a developer who wants a large chunk to develop a well-designed mall, housing, etc perhaps $1.1mn [110mn] is not a 'heavy' price to pay. What did Centum pay for the 100 acres for Two Rivers? This is an observation NOT a vindication of these crazy prices! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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VituVingiSana wrote:enyands wrote:MaichBlack wrote:murchr wrote:RETAIL chain Uchumi Supermarkets will sell 20 acres in Kasarani valued at Sh2.2 billion, as part of its plans to raise cash for its turnaround programme. The company which has been facing financial problems partly blamed on poor governance, announced yesterday that the sale process for the land will begin immediately. - See more at: http://www.the-star.co.k...on#sthash.NjJgh6fM.dpuf ^ So the are valuing an acre at Kshs. 110 million??? And the CFO says it is a "conservative" valuation! Someone is mad here!!! Kenyans or the market or the valuer or the company or the individual or the reporter! Man if people gonna buy land at that price then this is a rich country . An acre selling for 1.1 million USD . Even a plot in North America doesn't go at that price . As you said MaichBlack someone somewhere is lying I saw a sign in Kilileshwa advertising an acre for 320mn. Prices in Westlands are quoted at 350mn per acre. Upper Hill 300-500mn per acre. For a developer who wants a large chunk to develop a well-designed mall, housing, etc perhaps $1.1mn [110mn] is not a 'heavy' price to pay. What did Centum pay for the 100 acres for Two Rivers? This is an observation NOT a vindication of these crazy prices! Silicon valley is one of the most expensive places to live in North America . A place called Saratoga an acre of land goes for 1.2 million dollars . In this vicinity is the home of Google and all the high tech companies . I wonder kama home we have reached that level of charging 3.2 million(3 times more ) dollars an acre and yet we are no where ever close to that silicon valley in that USA country .we have no all this IT companies and boosted economy like there in the USA . I still stand by someone is lying somewhere http://www.cnbc.com/id/48848810
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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@enyands; Go and check the price of an acre in manhattan Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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Ericsson wrote:@enyands;
Go and check the price of an acre in manhattan @ericsson I just checked that manhattan place .its crazy . how can 0.17 acre cost 70,000,000 USD meaning an acre is around 400 million. Anyway beside the point I chose Saratoga silicon valley because its an emerging market huko USA just like here in Kenya its an emerging market too infrastructurewise. But I cant compare relatively manhattan and Upperhill.both logically and economically.Manhattan underwent both economic and industrial revolution in the 50's if not 60's but here home is when we are getting started .So I guess they are roughly 60yrs ahead of us but thanks for pointing that out  
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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enyands wrote:Ericsson wrote:@enyands;
Go and check the price of an acre in manhattan @ericsson I just checked that manhattan place .its crazy . how can 0.17 acre cost 70,000,000 USD meaning an acre is around 400 million. Anyway beside the point I chose Saratoga silicon valley because its an emerging market huko USA just like here in Kenya its an emerging market too infrastructurewise. But I cant compare relatively manhattan and Upperhill.both logically and economically.Manhattan underwent both economic and industrial revolution in the 50's if not 60's but here home is when we are getting started .So I guess they are roughly 60yrs ahead of us but thanks for pointing that out Comparing Nairobi to Manhattan? Manhattan houses the HQs of some of the world's largest firms. Many $$$ billionaires live in Manhattan or have a place there. Anyway, outside of the major metros, there are 2nd-tier cities (e.g. Minneapolis, Dallas, Tampa, Las Vegas, etc) with far better infrastructure than Nairobi but the prices for housing is far lower. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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@VituVingiSana In Kenya where do the rich;Nairobi. HQs of some of the largest firms in Kenya and east-central Africa is where;Nairobi Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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Ericsson wrote:@VituVingiSana
In Kenya where do the rich;Nairobi.
HQs of some of the largest firms in Kenya and east-central Africa is where;Nairobi That's great but the rich are a very small proportion of Nairobi's population. The HQs are of subsidiaries of major firms dealing in Africa not global firms. Anyway, it is what it is. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Who can be kind enough to help me with the Full Year Results for 2011/2012...Please possunt quia posse videntur
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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Check the website if it's available Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Ericsson wrote:Check the website if it's available Only 2013/2014 is available and 2011...the email given there investor@uchumi.com doesnt even work... possunt quia posse videntur
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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maka wrote:Ericsson wrote:Check the website if it's available Only 2013/2014 is available and 2011...the email given there investor@uchumi.com doesnt even work... You can read it on this site but you can't download. http://www.africanfinanc...N=ke&CshortName=UCHMTime is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Gatheuzi wrote:maka wrote:[quote=Ericsson]Check the website if it's available Only 2013/2014 is available and 2011...the email given there investor@uchumi.com doesnt even work... You can read it on this site but you can't download. http://www.africanfinanc...=ke&CshortName=UCHM[/quote] Thanks a lot...  possunt quia posse videntur
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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mkonomtupu wrote:sparkly wrote:mkonomtupu wrote:Gatheuzi wrote:sparkly wrote:www.businessdailyafrica.com/Corporate-News/Uchumi-acquires-Dar-supermarket-in-growth-drive/-/539550/2509572/-/24g47z/-/index.html
Uchumi on an acquisition spree.
While Shoprite is exiting TZ.
They have not paid suppliers in Kenya.
They have taken loan of KES 600m from KCB.
Acquisition was financed by debt.
Rights issue to expand into small and insignificant markets of Rwanda Burundi.
Shareholders should be very afraid... Insolvency 2.0 coming soon. A loan at 18% interest from KCB. And another 405M from Coop bank. That means close to 200M per annum will go in payment of interest leave alone the principal. I wish they were applying the rights to reduce these expensive loans. We have bonds, so why not consider such or place a commercial paper What insolvency ? if your annual turnover is 14 billion, your annual profits 400 million, and you are borrowing 1 billion secured by 2.2 billion assets. Stop fearing leverage. If your suppliers have claims to your 2.2B assets and you only get 2.85% return from your 14B turnover, then you have a problem. Aiii wee mboss... in retail you look at credit lines in most suppliers tell you lets put this on the shelf once sold pay us. Anyway looking at the IM Uchumi paid 675m to GoK and 956m to KCB and PTA banks without default or insolvency. Management says "with benefit of hindsight, the management now observes strict controls on debt management" You can see this from the fact that the ICDC loan of 300m about 109m has been paid and balance outstanding at 191m KCB overdraft of 200m and short term of 600m- 150m repaid balance of 650m Now turning to Tanzania, sales grew 10%. The TZ economy grew at 7% in the last 2 years and the formal retail penetration is less than 10%. Now that's huge potential even if it was to get to Kenya's 30% penetration. Uchumi shareholders you will make me rich again 8 months down the line ... a rights issue, loans, Creditors not paid, JC out, selling property to pay creditors, creditors yet to be paid! @mkonomtupu needs to come back and respond to this. Life is short. Live passionately.
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Rank: Elder Joined: 7/28/2015 Posts: 9,562 Location: Rodi Kopany, Homa Bay
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MaichBlack wrote:murchr wrote:RETAIL chain Uchumi Supermarkets will sell 20 acres in Kasarani valued at Sh2.2 billion, as part of its plans to raise cash for its turnaround programme. The company which has been facing financial problems partly blamed on poor governance, announced yesterday that the sale process for the land will begin immediately. - See more at: http://www.the-star.co.k...on#sthash.NjJgh6fM.dpuf ^ So they are valuing an acre at Kshs. 110 million??? And the CFO says it is a "conservative" valuation! Someone is mad here!!! Kenyans or the market or the valuer or the company or the individual or the reporter! TRM to buy the 20acre Uchumi land at 3 billion. TRM to also buy Uchumi Ngong road hyper mall at 2b. http://www.businessdaily...04/-/hmj90d/-/index.html
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Rank: Member Joined: 8/16/2012 Posts: 660
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Live and learn; and don’t forget, nothing ventured, nothing gained.
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