TWC Enterprises Ltd T.TWC

The Country Club Application Approved

[BlueHorseshoe90]

Vaughan council approved the development application for the Country Club. Bittersweet news as this is a leased Clublink property so no direct benefit, however it does illustrate that getting these things done is not completely impossible even in the face of intense opposition from instransigent and hypocritical NIMBYist residents. Also, note that the developer's lawyer was Mark Flowers who has represented Clublink both in Glen Abbey and Kanata.

https://www.yorkregion.com/news-story/10530918-vaughan-historic-golf-course-approved-for-family-homes-bringing-end-to-years-of-tension/

[Malpeque2]

I didn;t see a price.    662 units and 200 plus acres,  what did it sell for in 2017 with unapproved development potential?  

[Valueguy13]

Sold for $230 million to de Gasperis led group. 

[Malpeque2]

ValueGuy 13,  Thanks for your help.   You prompted me to do a google search on The Board of Trade Golf course sale.    I found a page by CBRE Commercial.   There is even a brochure they developed.   I did not read it. Says they contacted over 1000 clients world=wide.    They had 8 bids.   Went to one more final round after the 8

[Valueguy13]

Yup. Impressive. My memory was off by $10 million - rounding error

[carbide]

A handsome sale.  But I don't think our golf courses are worth too much.  Maybe 10 million apiece.  Some of them...only 2 or 3 million.  Hardly anybody golfs nowadays.  At best you'd be lucky to graze a few pigs there.

[Valueguy13]

You are badly misinformed. The North American golf industry has had a significant boost in the past two years and is now under supplied in many major markets including the gta. Supply continues to decline with no new construction and courses being sold for real estate value.  Virtually all TWC golf properties are worth substantially more than their book value.  As a matter of

[carbide]

Suppose what you say is correct.  Would you say, as many others have commented, that the private market value is significantly greater than the public market value?  If so, then it should be an easy job to arbitrage it and give a massive boost the the NAV per share.  Yet, I do not see a lot of value creation at this company.  Why is that?

[Valueguy13]

Yes I think that is true but the value comes from a combination of the cash flow generated by the operation and the underlying long term real estate development potential value of the land, both of which should be realized in the fullness of time, but short term will likely be selective opportunities like Kanata, Islemere, Woodlands, Heron Bay, Palmaire, etc. 

[Malpeque2]

Don;t leave out our current development opportunity at Highland Gate. Anyone shareholders in GTA    been out there lately to do some DD and check on the progress? 

[Valueguy13]

Of course you're right - great example. The schedule of closings in q4 and beyond are in the q3 report as I recall