Analysis for Abacus Property Group Australiaâ€Myassignmenthelp.Com

Question: Analysis for Abacus Property Group Australia? Answer: Introducation: Abacus Property Group (APG) is a company dealing in real estate and also provides financial services regarding property development ("History, Abacus Property Group," 2017). The companys strong liquidity and robust bottom line performance lines up as its major strengths whereas the overreliance on Australian markets remain a course of concern. The companys financial performance may be gravely impacted by the inability to effective collect rent from tenants. Also, the staunch rules and regulation relayed down by the Australian government on real estate is a major drawback on the effective performance of Abacus Property Group (APG). Nevertheless, the need for Australians for modern housing is a depicted a good future for Abacus Property Group (APG). This paper focuses on the SWOT analysis for Abacus Property Group (APG) Strengths Abacus Property Group has a strong portfolio which is a basis for it to increase its revenues. Abacus Property Group holds a portfolio of one hundred and thirty valued at 2.3 billion Australian dollars. Abacus Property Group operates in four divisions. One of the division is property, where the company has key properties as such as Oasis Shopping Centre, Liver Pool Plaza, and 180 Queen Street among others. The second division is the storage where the division has properties across Australia and New Zealand. The third division that involves itself in a construction project and provides financial services in construction deals is property ventures. Funds management as the last division, is responsible for controlling the usage of financial resources. Such a diverse and robust portfolio is a recipe for a strong Abacus Property Group. Another strength that characterizes Abacus Property Group is the fact that it has a strong operating performance. In 2016 for instance, Abacus Property Group was reported to have an annual growth of 7.2 percent. Such a strong operating performance makes the company have confidence that makes the investors interested. Weakness As per Dransfield, (2004), for all companies, borrowing of loans to expand a business is inevitable. At present, Abacus Property Group has a substantial amount of liabilities regarding debts which may compromise its operations. By 2016, Abacus Property Group had an accumulated total debt of around 802 million Australian dollars. Abacus Property Group has been reported to have an annual increase of debt. This increase in debts makes Abacus Property Group not be eligible to have any financial assistance in the near future when a dire need arises. Also, the increase of debts put Abacus Property Group in a position where its financial position is not certain. Opportunities The Australian construction industry has registered improvements thus leading to a positive opportunity for Abacus Property Group. The Australian government initiative for affordable housing puts Abacus Property Group at a spot where it will engage with government in the construction of houses. Also, the urbanization trend that characterizes many parts of Australia including the countryside is also an opportunity for Abacus Property Group to invest in serious construction projects. According to Borowski, Encel, and Ozanne, (2007), the increase in population, in this case, in Australia, is a sign that more people will be in need of housing hence Abacus Property Group can construct for the extra population. This positive outlook in the future for the construction industry in Australia is a great opportunity for Abacus Property Group. Abacus Property Group supports for its diverse portfolio through acquisition and also mergers is an opportunity for growth. For instance, in 2016, Abacus Property Group engaged with Investec Australia Property by consolidating resources to acquire property, 324 Queen Street, Brisbane, Queensland for a whopping 132 million Australian dollars (Wilmot, and Wilmot, 2017). The fact that Abacus Property Group is engaging other construction companies in construction projects, not only means that it strengthens its trading position but also ensures that it has an opportunity for growth. Threats Rules and regulations of many governments serve a setback for many businesses (Johnson, 2014). Abacus Property Group is not different, in Australia, there is a myriad of rules and regulation both at the state and federal level that have a grave impact on the growth of Abacus Property Group. This implies that products and services that are not in tandem with the requirements will take more than the expected time to reach the consumers. Also, when one is found in contempt of the regulations and rules, litigation process or fines may apply which may have serious financial consequences to companies such as Abacus Property Group. Also, change or introduction of new regulations may make Abacus Property Group change in its structure thus cause increase in expenditure. The inability for Abacus Property Group to effectively collect rent from the tenants has significant negative consequences regarding financial accumulation. When a tenants delays in remitting the rent on time the company may face financial problems. When tenants fail to occupy the shopping centers in malls, means that Abacus Property Group will not get any return on investment and may be declared bankrupt. References Abacus property group (ABP): Company profile and SWOT analysis.(2015). (). London: Progressive Media Group, 1-35. Retrieved from https://search.proquest.com/docview/1705532916?accountid=45049 Borowski, A., Encel, S., Ozanne, E. (2007).Longevity and social change in Australia(1st ed., p. 224). Sydney: UNSW Press. Dransfield, R. (2004).Business for foundation degrees and higher awards(1st ed., p. 360). Oxford: Heinemann. History. (2017).Abacus Property Group. Retrieved 9 May 2017, https://www.abacusproperty.com.au/history Johnson, W. (2014).Public Administration: Partnerships in Public Service(5th ed., p. 271W aveland Press. Wilmot, B., Wilmot, B. (2017).$132m tower boosts partnership.Theaustralian.com.au Retrieved 9 May 2017, from https://www.theaustralian.com.au/business/property/abacusproperty-group-partnership-boosted-with-132m-tower/news- story/bd61dcee466f255885ff15474fda75ab