NHT Chairman and board members do NOT understand business

Douglas, a three-time Government minister who has an MSc in urban land appraisal, said the NHT paid $180 million for land, buildings and related developments valued at $311,163,800 by deLisser, licensed land valuators, acting for Outameni, and $280 million by independent valuator Norma Breakenridge and Associates, chartered valuation surveyor and licensed real estate dealer.

“What we, in fact, achieved is immediate profit of $100 million or $131 million just by the purchase alone,” said Douglas. “That sounds like good business to me.”

DOUGLAS… what we, in fact, achieved is immediate profit of $100 million or $131 million just by the purchase alone

The above is the reason comrades should not be placed in positions in business operations, because they have no idea what it takes to run a business and neither do they understand basic business concepts. The man who  knows how to close businesses vs growing business is in full agreement with the board chairman

Easton Douglas asserts that the board made an immediate profit of between $100m and $131m based on the sale. This is totally inaccurate and here is why.

Easton, all the above means is you have assets (based on valuation)  in the region of $100m – $131m above what you paid for the property. This means your asset base ie the asset base of the NHT is larger than before ( fixed assets), that is it.

Easton and Lammie, you only realize a “profit” if you are able to sell this fixed asset and after expenses you gain monetary compensation above the $!80m you spent, that sirs is profit.

Until the land and building are sold, NHT has more fixed assets on its balance sheet and truth be told, it may not even realize a profit, given the fact that no one may be willing to buy the other stuff on the land save and except for the great house, which is said to be worth $59m.

I will point out to prove the Outameni may be NHT worst investment  yet.!


One Response

  1. I almost choked on my coffee when I read Douglas saying they immediately made a profit! Not to nitpicky, selling the property for more than you paid for it wouldn’t necessarily be considered profit unless you went with the explicit intention of reselling as the actual investment move. It seems to me they intend to operate it. So the profit should come from when the operating income is higher than your expenses. But your point is received.

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