Hey guys maybe he meant 1.5B riel and got misquoted

nerdlinger wrote: ↑Fri Jan 28, 2022 9:59 pm Hey guys maybe he meant 1.5B riel and got misquoted

Maybe he believes that $1.5B = $150M...

Well that hotel is a eye sore on what should be natural parkland, they have stuffed Phnom Penh so let sell so we can stuff Bokor mountain as well.

It is worth whatever someone will pay. I can see Bokor development struggling sooner or later, maybe the dreamers pulled out of investing in his dream. Wondering if the government would ever bail anyone out here.

One data point I found was that Sino Land spent over S$500M 25 years ago on acquiring and converting the Fullerton in Singapore to a 399-room hotel. This was when Singapore’s GDP was 1/5th of today’s.

Obviously I’m not saying the two are the same, but an optimistic investor with high hopes for the country’s long term prosperity might see a few parallels.

AndyKK wrote: ↑Fri Jan 28, 2022 11:09 pm Wondering if the government would ever bail anyone out here.

You mean they are not already?

Jerry Atrick wrote: ↑Fri Jan 28, 2022 10:15 pm

nerdlinger wrote: ↑Fri Jan 28, 2022 9:59 pm Hey guys maybe he meant 1.5B riel and got misquoted

Maybe he believes that $1.5B = $150M...

I've heard some Khmer get really lost when trying to quote large numbers.

Cooldude wrote: ↑Sat Jan 29, 2022 5:56 am

Jerry Atrick wrote: ↑Fri Jan 28, 2022 10:15 pm

nerdlinger wrote: ↑Fri Jan 28, 2022 9:59 pm Hey guys maybe he meant 1.5B riel and got misquoted

Maybe he believes that $1.5B = $150M...

I've heard some Khmer get really lost when trying to quote large numbers.

Seriously, I ended up quietly looking up my Khmer numbers from a textbook because my Khmer teacher got lost after 1,000, even with counting out the zeroes on her fingers. I guess this is why all transactions are done via the medium of calculator.

The Burj Khalifa cost $1.5B. That building is worth about 1/10th that, and most of the value would be in the land, not that eyesore of a building.

nerdlinger wrote: ↑Fri Jan 28, 2022 9:53 pm

Kammekor wrote: ↑Fri Jan 28, 2022 8:09 pm

nerdlinger wrote: ↑Fri Jan 28, 2022 5:51 pm

I guess he’s trying to strike while the iron’s hot, in terms of the hotel’s recent spell in the spotlight.

While the current market seems to be a bit wobbly, I’ve a feeling that in 20-30 years time that land may actually be worth what he’s asking.

If it's worth that in 20-30 years with an interest rate of 7% the nett present value is about 1/5th of what he is asking. With 5% interest it's still only 1/3 to 1/4 of the quoted price.
In that calculation there's no factoring in of the civil unrest which might depreciate the value during that period of 25 years.

I’m not basing it on the notion of steady year on year gain, but on the idea that Phnom Penh is likely to see seismic transformational growth over the next decades,

Or it might spiral into turmoil when the Iron Man descends from his throne.