AF Global (formerly: LCD Global Investments Ltd)

[propertyinvestor]

This is the only NET Cash China property developer with hospitality assets in emerging economies.

At NAV of 33c with net cash of 3.5c/share, this stock is very undervalued.

Phase 1 of the Xuzhou project is 40% sold. The Xuzhou project will be the main profit driver and contributor for LC Dev bottomline upon completion in 2015.

Houses in Xuzhou are transacted at around 8000yuan psm at the moment.

[propertyinvestor]

land cost is 1083yuan psm for the Xuzhou Project! Gross are Margins are extremely high for this project.

[CY09]

Just curious How do you know that 40% of the project has been sold. Cant find it anywhere

[propertyinvestor]

I should clarify that its 40% of PHASE 1 sold.

[propertyinvestor]

Just curious How do you know that 40% of the project has been sold. Cant find it anywhere

I have friends working in Xuzhou. This project is located in the Gu Lou district.

[l0nEr]

Interesting company...

But most of their projects arent in China anyway.. just that particular one.

From the annual report 2012
"Between May to July 2012, we obtained pre-sale permits to launch the sale of 416 apartment units. Despite the slowdown in China’s economy and property cooling measures imposed by the Chinese government on property purchases, the take-up was encouraging,
with approximately 40% of launched units sold."

"Pursuant to the mandate given by shareholders in October 2011, the Company purchased 3,110,000 of its ordinary shares at an average price of $0.148 per share during the year under review and held them as treasury shares. Together with purchases from
previous years, the Company has in total 14,454,000 treasury shares."
==> 0.148 is around current market price.. hmmm..

Few things...
1) holiday Inn Guangzhou hotel lease will expire in December 2012 and ownership of the property will be transferred to the Chinese partner.
2) Holiday Inn Phuket is under refurbishment... carried out in phases
3) Rawai Beach, Phuket resort... also under refurbishment, first phase to be completed in 2014
4) Xuzhou project to be completed in 2015...
5) Owns Zone X in Singapore... er i dont visit arcades anymore. do you?
6) Owns 80% of Knight Frank Singapore...

Interesting company, just that they have been making losses for a number of years (At first glance). Last year's gain was also mainly due to the sale of the 50% stake in the airport hotel (nice hotel)
Thanks for the find.

[propertyinvestor]

Interesting company...

But most of their projects arent in China anyway.. just that particular one.

From the annual report 2012
"Between May to July 2012, we obtained pre-sale permits to launch the sale of 416 apartment units. Despite the slowdown in China’s economy and property cooling measures imposed by the Chinese government on property purchases, the take-up was encouraging,
with approximately 40% of launched units sold."

"Pursuant to the mandate given by shareholders in October 2011, the Company purchased 3,110,000 of its ordinary shares at an average price of $0.148 per share during the year under review and held them as treasury shares. Together with purchases from
previous years, the Company has in total 14,454,000 treasury shares."
==> 0.148 is around current market price.. hmmm..

Few things...
1) holiday Inn Guangzhou hotel lease will expire in December 2012 and ownership of the property will be transferred to the Chinese partner.
2) Holiday Inn Phuket is under refurbishment... carried out in phases
3) Rawai Beach, Phuket resort... also under refurbishment, first phase to be completed in 2014
4) Xuzhou project to be completed in 2015...
5) Owns Zone X in Singapore... er i dont visit arcades anymore. do you?
6) Owns 80% of Knight Frank Singapore...

Interesting company, just that they have been making losses for a number of years (At first glance). Last year's gain was also mainly due to the sale of the 50% stake in the airport hotel (nice hotel)
Thanks for the find.

Their losses are negligible. LC Dev profits are very lumpy in nature. The key to LC Dev lies in their cashflow generating ability and their jackpot profits upon successful project completion.

Buying Knight Frank is a good decision as it allows them to leverage on the KF Brand to market and sell their Xuzhou development

KF was bought for a song.

Zone X cashflow is very healthy too. They have already broken even on this investment.

[propertyinvestor]

KF doing brisk business selling Malaysian properties

[propertyinvestor]

Latest data from Xuzhou shows that average selling prices for the Xuzhou development has hit 9200RMB / psm

[arthurleebs]

Just curious How do you know that 40% of the project has been sold. Cant find it anywhere

I have friends working in Xuzhou. This project is located in the Gu Lou district.

Pardon my ignorance but Can you advise what is the project's name that LC Development competed it's sale of 40% in Gu Lou district in Xuzhou, please. China is a rather big place you know.