Canucks News N Notes 25-26

[Chef Boi RD]

The big shot developers of BC are getting hit hard right now due to various reasons. This is the Aqualini’s bread n butter - real estate. It didn’t help their cause much when the government put an end to foreign investors buying up condo’s. The Aqualini’s and his kind relied on the outside investment, heavily. It’s why brand new condo’s ain’t selling right now. Especially the 600 square ft one bedrooms that are selling around $700,000 to $900,000. My nephew just bought a “house” in Kelowna for the same price a one bedroom rectangle 600 sq ft condo sells for in the lower mainland. It’s not trending well, especially in Vancouver, young families are leaving the lower mainland. Anyhow, the Aqualini’s could be bleeding money right now like a lot of the BC developers. I imagine the Paolo situation ain’t helping matters.

[donlever]

While I agree their original business model was in the condo market and they maintain a high volume in that industry, which equates to struggling as you suggest, they have also diversified their ownership portfolio well beyond the residential market place.

Granted they are also involved in the high end food platform (Blue Water Cafe, Cin Cin et al) which is also challenging in this day and age (although we just dropped 10K for an office Xmas party at CinCin and there was a number of 10K and up tables there that night (last Thursday) - the place was packed).

Anyway....yes Paulo doesn't help...yes condo market doesn't help...but they are still achieving replacement income from other avenues.

[Carl Yagro]

Do they have enough replacement income yet to pay for the rings they apparently just ordered? I'm sure they have the standard 90 days payment thing.

[rikster]

Who would want to spend 2.2 billion to get 40 million of revenue a year? It's insane. It only makes sense from a growth perspective.

It's one of the reasons franchise values in the NHL are exploding, having a hard salary cap....

The Maple leaves who are the most valuable NHL franchise at $4.4 Billion turned out a bottom line of $191 million....In decending valuation order, the Rangers produced a bottom line of $182 million, the Canadians $136 million....

The 14th most valuable franchise, the Canucks produced a $55 million bottom line...

Now compare that to MLB without a hard cap ... its most valuable franchise, the Yankess at $8.2 Billion, lost $57 million this past season...

The Dodgers valued at nearly $7 Billion turned a bottom line of just $21 million...

By comparison, none of the NHL franchises lost money last year....

These are not Mom and Pop owners, the world of institutional and Ultra Rich and Partnerships are now owners of professional sports teams ...

Most recently the Preditors ranked as the 24th most valuable franchise are selling a stake in the club to a Private Investment company at a vauation of nearly $2 billion...

What do the Aqualini's do with regards to Paolo?

Complete the buyout while maintaining 100% ownership of the Canucks?..........Take on a partner, and if so an institutional partner for the full 20% or a non institutional partner at a bigger stake?.........Sell the club altogether?

Does the decision rely on how they aquire and build things like practise facilities? Ideally taking over BC Place assuming the White Caps leave and renovating makes the most sense but might be the most expensive option...

Lots going on in the Aqualinis world right now...

[Chef Boi RD]

While I agree their original business model was in the condo market and they maintain a high volume in that industry, which equates to struggling as you suggest, they have also diversified their ownership portfolio well beyond the residential market place.

Granted they are also involved in the high end food platform (Blue Water Cafe, Cin Cin et al) which is also challenging in this day and age (although we just dropped 10K for an office Xmas party at CinCin and there was a number of 10K and up tables there that night (last Thursday) - the place was packed).

Anyway....yes Paulo doesn't help...yes condo market doesn't help...but they are still achieving replacement income from other avenues.

I think it might have to do with money being tied in projects in development that may have been put on hold due to market conditions or along those lines. They’ll be fine with their “landlord” properties, they do quite well there. I don’t think they are as liquid as they like to be due to projects in development, or land purchased for future development. The Aqualini’s like the DeCotis are in the restaurant business but from what I understand they ain’t huge money makers, more like a labour of love like trophies on the shelves to show off. They slam restaurants on the ground floor of the buildings they build so they are ahead of the game for not having the massive lease payment as they’d be paying themselves but still, there’s not much money in the restaurant racket. You work for any of the Aqualini’s? Bosa’s? DeCotis? There’s a new hotshot WOP builder in that racket he owns Etro. They all seem to be doing something right. Etro learned his craft through Ledcor then went on his own. He just opened up his headquarters on Nanaimo street, near Hastings.

[Carl Yagro]

I think it might have to do with money being tied in projects in development that may have been put on hold due to market conditions or along those lines. They’ll be fine with their “landlord” properties, they do quite well there. I don’t think they are as liquid as they like to be due to projects in development, or land purchased for future development.

Yes, the current market conditions for residential development and even commercial development in already city zoned and approved neighbourhoods have greatly affected all developers, including the Aquas. Lots of unsold and therefore new land purchases and planned or new projects have all been put on hold starting around late 2024.

As Donny knows, I have a vested interest in this area and the Aqua land near me is a key driver for others to start acquiring land and beginning stall projects again.

But elites like the Aquas have many pokers in the fire, so we lowly blue collar or white collar plebes don't need to feel too badly about if they have enough to manage their lifestyles.

[donlever]

Blue Water and CinCin will be profit generators as restaurants.

Overall your comment is factual....lots to lose in the food biz, tough to make $$ over the long haul.

But those are long term, high end iconic eateries they are involved with....

They were tied up in West with Hawksworth originally...not sure if they're involved in his place at The Georgia (another high end joint) or not.

Imma dig into what other restaurants they're into.

Where's Topper when you need him.

[rikster]

While I agree their original business model was in the condo market and they maintain a high volume in that industry, which equates to struggling as you suggest, they have also diversified their ownership portfolio well beyond the residential market place.

Granted they are also involved in the high end food platform (Blue Water Cafe, Cin Cin et al) which is also challenging in this day and age (although we just dropped 10K for an office Xmas party at CinCin and there was a number of 10K and up tables there that night (last Thursday) - the place was packed).

Anyway....yes Paulo doesn't help...yes condo market doesn't help...but they are still achieving replacement income from other avenues.

I think it might have to do with money being tied in projects in development that may have been put on hold due to market conditions or along those lines. They’ll be fine with their “landlord” properties, they do quite well there. I don’t think they are as liquid as they like to be due to projects in development, or land purchased for future development. The Aqualini’s like the DeCotis are in the restaurant business but from what I understand they ain’t huge money makers, more like a labour of love like trophies on the shelves to show off. They slam restaurants on the ground floor of the buildings they build so they are ahead of the game for not having the massive lease payment as they’d be paying themselves but still, there’s not much money in the restaurant racket. You work for any of the Aqualini’s? Bosa’s? DeCotis? There’s a new hotshot WOP builder in that racket he owns Etro. They all seem to be doing something right. Etro learned his craft through Ledcor then went on his own. He just opened up his headquarters on Nanaimo street, near Hastings.

Not sure the restaurants would get away from paying market rents regardless if he owns them or not...

My guess is that the consolidated p&l is healthy when you consider his diversifications ....

For one, I would think that his hotels in Montreal and the Maritimes are doing very well given the uptick in toursim last year and expectations going forward...

Vancouver real estate development is significant, but just one of a number of places around the globe they are active in...

I'm not an accountant, but can't imagine what the gains taxes will be on the purchase of the brothers shares given that the book value of the club is +/- $250 million and the market value is in excess of $2 Billion....

Heck even the Abbotsford Canucks are rumored to have a valuation of nearly $70 million...

Paying for rings is the least of the Aqualini's worries, I'm guessing that they need write offs and lots of them....

[Chef Boi RD]

Blue Water and CinCin will be profit generators as restaurants.

Overall your comment is factual....lots to lose in the food biz, tough to make $$ over the long haul.

But those are long term, high end iconic eateries they are involved with....

They were tied up in West with Hawksworth originally...not sure if they're involved in his place at The Georgia (another high end joint) or not.

Imma dig into what other restaurants they're into.

Where's Topper when you need him.

I’m sure they make money on some of their restaurants, but the level of profits in the restaurant racket isn’t what they make in real estate which is why I say it’s more of a labour of love. Heard a rumour that the Bosa’s bought the property Tony Parsons restaurant - The Poor Italian sits on at Rupert/Kerr and first ave and are going to develop multi family on the propety and put the Poor Italian back in at the ground floor. Seems to be a thing. I don’t believe Bosa Developments is into restaurants the way the Aquas and DeCotis’ are. The DeCotis family recently opened up a restaurant called Folietta on Nanaimo Street on the ground floor of a multi-family they just built there. Been meaning to check this one out.

[donlever]

Yeah...been figuring to hear about development there since I heard Poor Italian was shutting down.

Had not heard reopen was part of the new gig though.....

[Chef Boi RD]

Here is a list of the Aqualini restaurants. We did Merilena in Victoria two years back, it was quite nice. Cost me an arm and a leg, though. It’s on the ground floor of one of the buildings they built in downtown Victoria. It was voted best new restaurant in Canada the year it came out.

https://toptable.ca/restaurants/

[Chef Boi RD]

Yeah...been figuring to hear about development there since I heard Poor Italian was shutting down.

Had not heard reopen was part of the new gig though.....

Second hand source, an east Van WOP of course, he heard it through a relative of the developer.

[Ronning's Ghost]

Who is that for the Canucks?

Is Chip Wilson a Canucks fan ?

Maybe David Cheriton ?

[donlever]

...read a nice comment when researching their restaurant holdings.

Apparently 48 BC Pizza Huts are included in their portfolio.

Some Dude says...."the fact the Aquas are Italian and own Pizza Huts selling what they think is acceptable pizza out of them tells you all you need to know about thse guys..."

[donlever]

Here is a list of the Aqualini restaurants.

https://toptable.ca/restaurants/

Yeah...there are some high end spots on that list for sure...

.....restaurants are (allegedly) a good business for "moving money" around (allegedly) not that any of that would be happening at any of those.

....just a general comment.