Puteri Cove by RF

[enjoylife77]

Today pumped in my entire PCove budget into the shares of R&F Properties(Code 2777) as Hang Seng plunged 1.93%, -485 pt. Hope it pays off over time.

 

[RedsYNWA]

All the best. I think is a good buy but there is risk in every investment.

Layout for the commercial lots is risky in SG/MY context. The oval shape is still the safest layout for retail units. R&F a bit too ambitious in their commercial units' layout.

 

[malpaso]

Layout for the commercial lots is risky in SG/MY context. The oval shape is still the safest layout for retail units. R&F a bit too ambitious in their commercial units' layout.

i think the earlier bro was talking about R&F Guanzhou the stock. which has seen a slew of analyst downgrades in the past months.

 

[Funniman]

i think the earlier bro was talking about R&F Guanzhou the stock. which has seen a slew of analyst downgrades in the past months.

I read in some reports that in 2012, they were marketing junk bonds.
I just wonder why is it R& F and not Country Gardens or Vanke as the investor is trying to capitalise on Hang Seng which has a broad portfolio in its index.

 

[cslong]

Layout for the commercial lots is risky in SG/MY context. The oval shape is still the safest layout for retail units. R&F a bit too ambitious in their commercial units' layout.

well, at least they tried something different....

 

[snowbird]

Lately, R&F Properties is getting quite a bit of negative news.

Guangzhou R&F Properties tumbled 7.2 percent to HK$10.04, the biggest decline since June 2013.
The developer cut its full-year home-sales target to 60 billion yuan ($9.8 billion) from 70 billion yuan after reporting first-half net income dropped 26 percent to 1.07 billion yuan from a year earlier. "

http://www.bloomberg.com/news/2014-...s-slide-from-six-year-high-on-developers.html

Chinese property developers' new financial tool raises red flag!

http://www.perthnow.com.au/business...048490725?nk=2944444188bac108187875d865991f30

 

[enjoylife77]

Today closed at HK919

 

[OracleMasia]

if they sold all the commerical lots/shopping malls lot, it will be disasterous. It is a sign of financial weakness/loss in confidence of the developer.

Mixed development can only do well when the commercia parts is centrally managed.

The value of condo will be affected. Good Luck to R&F condo purchaser.

 

[cow138]

Have they confirmed that the commercial lots will be sold to private owners?

I agree that it should be centrally managed. Else you will end up with massage parlours and karaoke joints.
It then wouldn't matter whether you have a five star residence on top or not.

 

[cow138]

Haha. That's hardly an endorsement especially given the amount that you are paying for the psf

 

[DCputeri]

Chinese developers are all over the place. They are vultures going for the kill as they have eaten too much in the last couple of years in china. Hopes to survive better outside. Developers of Singapore are doing the opposite. It is really ironical.

 

[OracleMasia]

if they sold all the commerical lots/shopping malls lot, it will be disasterous. It is a sign of financial weakness/loss in confidence of the developer.

Mixed development can only do well when the commercia parts is centrally managed.

The value of condo will be affected. Good Luck to R&F condo purchaser.

Example of Centrally Managed Mall in Johor:
City Square
KSL
Komtar JBCC
Sutera Mall
Bukit Indah Shopping Centre
JB Premium Outlet

Example of Owners/Strata-owned Malls:
Holiday Plaza
Merlin Tower Retail Podium

Just compare , you will see the difference and the impact on the value of the mixed development.

I just heard that R&F and Country Gardens are selling their commerical lots. It is a warning sign. They are trying to cash out.

Compare them to KSL , you see the difference as KSL continue to own and manage the shopping mall and hotel. They only sell the condo.

 

[enjoylife77]

You 100% confirm R & F selling their commercial lots?

Sales staff told me they are selling shop lot but will still be centrally managed by R&F team. Did not probe further on sales condition.

 

[okkidoggi]

No point speculating now. Good or bad, we will not know but base on the developer reputation and the support from state Gov..... is just too hard to go wrong.

In Malaysia, there is nothing too hard to go wrong.

Singaporean just love being pampered. In Singapore, we can cry like a baby and the Gov will take care of us. Unfortunately, it is not the case in foreign countries.

 

[OracleMasia]

Sales staff told me they are selling shop lot but will still be centrally managed by R&F team. Did not probe further on sales condition.

That means it is sold and leaseback to the developer?

 

[enjoylife77]

That means it is sold and leaseback to the developer?

Not sure the terms and condition of the sales but indicative price is just under RM2000 psf.

 

[nickyu]

Guangzhou R&F's credit rating cut over weak sales
20140916_salesgalleryproperty_st.jpg
Guangzhou R&F has a sales gallery in East Coast Road to showcase its 3,224-unit Princess Cove development in Iskandar. It launched the sale of the project last month.
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Melissa Tan
The Straits Times
Thursday, Sep 18, 2014

Poor sales and rising debt have lowered the creditworthiness of Chinese developer Guangzhou R&F Properties, which is developing a swathe of land in Iskandar Malaysia.

Credit rating agency Standard & Poor's (S&P) said yesterday that it had downgraded Guangzhou R&F's credit rating from BB to BB-, citing the developer's "aggressive debt-funded expansion".

"Weak market demand and a tightened credit environment should also continue to weigh on R&F's sales performance, which has been lower than we expected this year," S&P added.




It noted that the developer's "aggressive growth aspirations and expansion, particularly in 2013, have significantly weakened its financial strength".

Guangzhou R&F bought about 46.9ha of land in Iskandar, along the coast near the Causeway, from the Sultan of Johor in December last year for RM4.5 billion (S$1.4 billion).

It has a Singapore sales gallery in East Coast Road for the project, and launched its 3,224-unit Princess Cove development for sale last month.

S&P noted in its statement yesterday that Guangzhou R&F may not be able to meet its sales target for the year.

"R&F's contracted sales have been below our expectation this year, and the company has lowered its annual target to 60 billion yuan (S$12 billion) from 70 billion yuan... We believe it will be challenging for R&F to achieve its 60 billion yuan sales target, given the oversupply in the market."

But S&P said the company's outlook was stable, adding that it expects the developer to improve its property sales and maintain "above-average" profit margins over the next 12 months.

But not all Chinese developers which have ventured into Iskandar have had their credit ratings lowered. China-based Country Garden, which is developing an integrated project in Iskandar's Danga Bay, had its credit rating upgraded a notch in July this year.

The ratings on Country Garden's long-term corporate credit and outstanding senior unsecured notes were both raised from BB to BB+.

This upgrade was based on expectations of steady growth in Country Garden's sales, a larger scale of operations and Country Garden's ability to avoid loading up on too much debt.
- See more at: http://business.asiaone.com/news/gu...ting-cut-over-weak-sales#sthash.EEVsXt8h.dpuf

 

[Funniman]

Guangzhou R & F is the BEST. It is one of the biggest developer in China. It is very cash rich.
All these reports are not true. They make baseless claims.

 

[enjoylife77]

HS generally weak so R&F HK861 now

 

[cow138]

Never heard about the buy and lease back policy.
Seems like its not yet well defined.

I would really worry if the China developers just sell the units without any central control over the tenant mix.
It would be disastrous