Warning For The Florence Residences condo Developer

[Huatable]

The Florence Residences is heavily advertised lately and I would like to give you some warnings about the developer - Logan Property Holdings.

This is a China-based developer listed in HK. They are the largest property developer in Shenzhen but Shenzhen is not doing well.
https://www.businesstimes.com.sg/real-estate/developers-cashflow-squeezed-as-shenzhen-tightens-rules
The above article from was in the second half of Logan Property's financial year. The financial year 2018 ended on 31 Dec and results are to be announced soon. Therefore it is likely to lower than the previous FY.

Two days ago, Logan issued unsecured bonds on SGX at a whopping 7.5%pa. This is the kind of yields that risky offshore and marine companies paid in Singapore before they defaulted. As of today, it is already trading below par value.
https://www.bondsupermart.com/main/bond-info/bond-factsheet/AX3064588

The project is due to complete in mid-2021. Logan is a risky developer with tight cashflows due to increasing loan quantum to repay in the next 2-3 years. These are the loans and bonds due based on the last FY (better year):

Bank Loans
Due in 2019 RMB 2.7billion
Due in 2020 RMB 6.7billion
Due in 2021 RMB 4.7billion

Bonds
Due in 2019 RMB 3.2billion
Due in 2020 RMB 4.5 billion
Due in 2021 RMB 4.4 billion
Due in 2022 RMB 5.0 billion

Source: https://www.bondsupermart.com/main/...ramCategory=bondDocument&paramDocumentNo=3505

Caveat emptor, buyers and suppliers to the project should be wary.

 

[Scrooball (clone)]

7.5% per annum.

Lol.... if something is too good to be true, it probably is.

 

[nayr69sg]

In other words will probably never TOP lah!

 

[KuanTi01]

Logan has another condo project in Stirling Road. Singapore Suckers beware!

 

[borom]

Actually a lot of these China developer's projects attract large number of PRC buyers with cash -probably advertise in China ?
Anyway the LOGAN PTY HLD US$300M 7.5% N220825 (ISIN Code:XS1954961295 ) are traded in denomination of USD200,000 -so these Hyflux type of kuku buyer now crying father/mother cannot afford to smell the papers meant for institutional or "sophisticated" investors .
I hope mostly PRC's invest in them and if the crunch do come, will MAS step in to help these PRC's in future while they have previously left locals in the lurch

 

[laksaboy]

Logan has another condo project in Stirling Road. Singapore Suckers beware!

This one?

http://official-stirling-residences-sg.com/stirling-residences-by-nanshan-group-and-logan-property

LN Development (Stirling) Pte Ltd
Nanshan Group and Logan Property

You can see the construction site on Google Maps street view. (Coordinates: 1.292264, 103.804857)

 

[LordElrond]

 

[KuanTi01]

This one?

http://official-stirling-residences-sg.com/stirling-residences-by-nanshan-group-and-logan-property

LN Development (Stirling) Pte Ltd
Nanshan Group and Logan Property

You can see the construction site on Google Maps street view. (Coordinates: 1.292264, 103.804857)

Yes that's the one! I was passing by the area just last Sunday. lol

 

[laksaboy]

Yes that's the one! I was passing by the area just last Sunday. lol

It was a nice hill and open field at the Y junction of Stirling Road, but of course the pappies could not leave it alone.

 

[Huatable]

Stirling Residences has Nanshan group's backing, so not too bad.
https://www.businesstimes.com.sg/real-estate/nanshan-family-in-s40m-gcb-purchase

 

[Huatable]

7.5% per annum.

Lol.... if something is too good to be true, it probably is.

ya, capitaland and many local developers pay less than 3.5%pa for similar dated bonds. This hints the significantly higher risk of Logan Property Holdings. In addition, there are just too much debts to refinance in 2020 and 2021.

At 7.5% yield, don't need to buy condo to collect rental returns, just buy logan bonds right?

 

[Asterix]

Toufu buildings coming to Sinkieland. Thanks to the people who brought you Hyflux and Noble ------- your wonderful PayAndPay miniSTARs and their lackeys. Dumbass 70% Sinkies very shiok.

 

[apogee]

Buyers are protected by the project account

 

[syed putra]

ya, capitaland and many local developers pay less than 3.5%pa for similar dated bonds. This hints the significantly higher risk of Logan Property Holdings. In addition, there are just too much debts to refinance in 2020 and 2021.

At 7.5% yield, don't need to buy condo to collect rental returns, just buy logan bonds right?

Are you nuts? Logan bonds will be longan soon.

 

[rushifa666]

Sinkies are ripe fpr the taking. If you dint scam them someone else will

 

[1234567890]

So, does this mean there's a risk buying Florence residence? As in the developer will go bust before TOP and final legal completion?

 

[1234567890]

Location isn't that great.. in between 2 MRT stations (Kovan & Hougang). It's probably the type of property that it's neither here nor there location. Near but not so near when walking in this Singapore weather. The last thing I want is to end up having to take MRT and then have to transfer to feeder bus which is a waste of commuting time. And finally I will give up and buy a car or take taxi and grab...

 

[Scrooball (clone)]

A half fuck location indeed. Definitely one to pick up only if u have a shit budget of below $1 million. If that's the case, might as well stay resale HDB in a central area.

 

[IndoMee]

Sounds like they are really fucked..

 

[laksaboy]

So, does this mean there's a risk buying Florence residence? As in the developer will go bust before TOP and final legal completion?

Nobody can predict the future, and I can't tell you how to spend your money.