Birubi resort “like a bomb site in Beirut”

That’s how the mayor of Port Stephens, New South Wales describes the site of Birubi Beach Resort, a $50m tourist development started in 2011 and stalled not much later over a dispute between the developer and its Chinese financer, the rather ominously named CSST (China Security and Surveillance Technology). The resort was supposed to be built with Chinese prefabricated units by the now-liquidated Quick Home Australia. Its Hong Kong parent is suing CSST. As its name suggests, CSST comes from a rather different sector, but has gone into real estate both in China and abroad, with mixed results (witness the Henderson, NV stadium debacle, or the health village in Iceland). (Mostly from the Port Stephens Examiner.)

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beached in Birubi

Posted on Tumblr on Oct 3.

In the months since I mentioned it among other CSST-financed developments, the Birubi Beach Resort in Anna Bay, New South Wales, hasn’t advanced much. Contractors had walked off the site in mid 2012 over a payment dispute that was later settled, but work stopped again early this year. Last April, Newcastle, NSW-based NBN TV reported claims the developers had “gone into hiding”, and in June it emerged the builder, Quick Home Australia, had been liquidated. Quick Home’s Hong Kong parent is now said to be claiming $1m from CSST in a suit filed in NSW last month. The developer (not in hiding apparently) expects work to resume “in the very near future”.

no CSST money for health village

Posted on Tumblr on Sep 27.

Negotiations to get CSST (China Security and Surveillance Technology) to finance a ‘health village’ (Heilsuþorp á Flúðum) one hour from Reykjavik have fallen through over what the director of the Icelandic company behind the project calls the Chinese lender’s “unacceptable” conditions, RÚV reports. What the specific conditions were is unclear, but earlier comments suggest CSST might have required a sizeable part of the materials to be procured from China. An understandable demand, as CSST themselves would likely be have been able to supply some of those materials.

reverse merger to reverse-merge

Posted on Tumblr on Sep 30.

After listing in New York through a reverse merger, then going private in 2012 with CDB money, chairman Tu Guoshen 涂国身 is now marching a subsidiary of China Security and Surveillance Technology (中国安防技术有限公司) towards another reverse takeover – only this time in Shanghai. CSST had aired an intention to list domestically right after going private, but an IPO is not an option at the moment: a 900-long queue has grown since China suspended IPOs last year. It’s a peculiar operation. First, Feilo (上海飞乐股份有限公司), the Shanghai-listed auto part manufacturer expected to buy CSST subsidiary China Security and Fire Technology (中安消技术有限公司), isn’t quite a shell: it’s reported to have a higher revenue than CSST, yet they’re planning to abandon their current business. Shanghai city gov’t-owned Inesa (上海仪电控股集团公司) owns about a sixth of Feilo. Second, Feilo is said to be paying about $750m for one unit of CSST. That’s a third more than gu it cost Mr Tu to delist the whole company last year, and more than ten times Security & Fire’s June net asset value. Rumours that have been around for some time, now joined by unnamed sources on Chinese media, claim that Mr Tu’s success in listing CSST back in 2010 owed more than a bit to creative accounting, and that it was fear of SEC scrutiny what led him to delist it two years later. CSST’s activities abroad have included purchasing a row of Asian security firms (UTC’s HK unit Guardforce among them), as well as some involvement in (not always successful) construction projects in Iceland, Hungary, Australia, Bulgaria and Henderson, Nevada.