I'm a bit hesitant about the numbers though. $27 million total contract value for 24 townhouses? Seem pretty pricey. And I'm unsure what RDG's part is. Site preparation definitely, to be completed by September, but are they involved in the actual apartment construction that takes place over the following 18 months? And if not, how much of the $27 contract is there's?
The other thing that worried me just slightly is that there seems to be some vested interests that they haven't disclosed. Richard Eden, who just moved from executive to non-executive director of RDG, is behind the porperty developer Blue Ocean enterprises. So he's got one of his companies using another as a contractor. That sort of thing can lead to conflicts of interest (i.e. could he maximise his return from Blue Ocean by minimising RDG's profit from the deal....?).
RDG Price at posting:
2.6¢ Sentiment: Hold Disclosure: Held
