CDI - CDL Investments NZ Ltd

[Dolcile]

Interesting company.  I am curious why it is trading at such a discount to the Net assets if valued to market.

[notmaurice]

only my opinion as an amateur investor and i think its because 75% of the company is owned by the one family and imo they have no need for the share price to be high.

[notmaurice]

Just purchased approx 25 acres of industrial land in CHCh.Sounds like the will develop it,on sell some and keep some to increase rental income.Great stuff imo.

[Clearasmud]

Just purchased approx 25 acres of industrial land in CHCh.Sounds like the will develop it,on sell some and keep some to increase rental income.Great stuff imo.

They are not going to let a recession go to waste.
Does this appear low risk and profitable to you?

[Mos]

They are not going to let a recession go to waste.
Does this appear low risk and profitable to you?

Yes. Acquisition cost of $170 per sq m hard to go wrong. Should be a good earner and relatively quick turnaround.

[Raven]

Yes. Acquisition cost of $170 per sq m hard to go wrong. Should be a good earner and relatively quick turnaround.

I'm sure it will be great for the majority shareholder, less sure about the minor shareholders.

[BlackPeter]

OK - given the way the majority holder tries to play retail shareholders at MCK, probably better taken with caution.

On the other hand - they are basically debt free, sit on a large (and undervalued) landbank, worth more than market cap and - interest rates are dropping.

I suppose they will stay undervalued, but it will be hard for CDL to prevent their SP from rising at all.

Current dividend yield (4.4%) looks as well better with interest rates lower.

[Basil]

Been hoovering up a few MCK. They'll have to pay $3+ to get the takeover over the 90% line, in my opinion.

[lorraina]

Wife and I both have very modest holdings in CDI/CDL.
Everytime we try to add a few more we quickly get out bidded.
Major shareholder is a concern because I doubt they will share the rewards with others.

[BlackPeter]

Been hoovering up a few MCK. They'll have to pay $3+ to get the takeover over the 90% line, in my opinion.

So - this was you driving the SP up when I still tried to get some at a discount ?

[Basil]

So - this was you driving the SP up when I still tried to get some at a discount ?

Yes, sorry mate...when the Beagle senses there's a feed, he just follows his nose and starts accumulating lol. No final dividend.  We are not stupid so whatever you are thinking is a takeover price you can tolerate, such as $3.50, add 3 cents to it which was last years final dividend.
https://api.nzx.com/public/announcement/447140/attachment/437958/447140-437958.pdf

Adrian Capital open letter, well worth a read if you haven;t read it already.
https://adriancapital.wordpress.com/2025/02/10/millennium-copthorne-hotels-an-open-letter/

[lorraina]

The Press this morning.
Another 60 luxury homes should soon adorn the Port Hills after a Singaporean led company got the go-ahead for its development.
 
The 26-hectare block is on Worsleys Rd, near the top of the Christchurch Adventure Park and overlooking the Hoon Hay Valley.
 
Subdivision developer CDL Land NZ Ltd has owned the land for 18 months. The company is Auckland-based with majority Singaporean ownership and was granted permission by the Overseas Investment Office to buy it for $5.5 million in a mortgagee sale.
 
The Christchurch City Council has now issued CDL resource consent for earthworks on the hillside site to ready it for sections for 60 new homes, plus roading.
 
The land is zoned for low-density housing development and faces north and west. Section sizes are likely to be at least 3000m2.
 
Existing homes in the area are valued in excess of $1.5m.
 
The project is eventually expected to involve more than 100,000m3 of earthworks, and removal of non-native vegetation. Under the consent, the land will be surveyed to check for lizards before works begin.
 
The land was previously owned by another developer, Worsley Prestige Ltd, which had Christchurch and Auckland shareholders and was put into liquidation by the Inland Revenue Department in 2011. It was later sold by mortgagee Oxford Finance Ltd, which is part of the Turners Automotive Group, to CDL in late 2023.
 
Before going into liquidation, Worsley Prestige developed and sold seven sections, ranging from 300m² to 4000m², around Aglaia Pl, at the southern end of the block now sold.
 
The directors attributed the insolvency to the economic downturn of 2008 and the inability to refinance to complete the development.
 
The land was affected by the 2017 Port Hills fires, but escaped damage in the 2024 fires.
 
CDL Land NZ Ltd has subdivision developments across the country from Auckland to Queenstown, including Prestons Park in Christchurch and Stonebrook in Rolleston.

[Mos]

The Press this morning.
Another 60 luxury homes should soon adorn the Port Hills after a Singaporean led company got the go-ahead for its development.
 
The 26-hectare block is on Worsleys Rd, near the top of the Christchurch Adventure Park and overlooking the Hoon Hay Valley.
 
Subdivision developer CDL Land NZ Ltd has owned the land for 18 months. The company is Auckland-based with majority Singaporean ownership and was granted permission by the Overseas Investment Office to buy it for $5.5 million in a mortgagee sale.
 
The Christchurch City Council has now issued CDL resource consent for earthworks on the hillside site to ready it for sections for 60 new homes, plus roading.
 
The land is zoned for low-density housing development and faces north and west. Section sizes are likely to be at least 3000m2.
 
Existing homes in the area are valued in excess of $1.5m.
 

Thanks for sharing Lorraina. Acquisition cost of just under $92,000 per section before development costs very compelling. Should deliver strong margins and cash flows over the next few years.

[Basil]

Makes it more compelling for the Kwek's to take over MCK at a somewhat more reasonable price.  $2.25 is totally derisory and deserving of upmost contempt. 

[BlackPeter]

Makes it more compelling for the Kwek's to take over MCK at a somewhat more reasonable price.  $2.25 is totally derisory and deserving of upmost contempt. 

You would think so. But yes, not sure, time is in this case on the side of the potential buyers, so - waiting is good. Some more good news and holders might need to review the underlying value of MCK upwards ; MCK's NTA was already end of last year at $5.39 and no doubt is drifitng upwards given the consolidation of the property market and CDI doing well.;