Monday 17 March 2014

Perennial China Retail Trust (PCRT) - Why prices remained low despite announcement of S$0.70 share offer?

Awesome! PCRT just announced St James will be offering a buy out of existing shareholders via issuance of shares issued by the new Retail Group with a diverse property portfolio. The Vendor will offer S$0.70 per share. This is a whopping 27% premium over the current market place of S$0.55 per share. Net assets per share is S$0.77 per share. I am currently holding on to 55 lots of PCRT (after selling off 20 lots) and have just received S$1200++ in terms of cash dividends. No prize for guessing PCRT as my star performer for 2014. 

Why then does the share price of PCRT still languish behind? Today, it touched S$0.60 briefly before dropping off and ended at S$0.55. Reason is simple: The market is pricing risk premiums extremely high and expecting a substantial discount from assets under construction as well the risk of not being able to secure quality tenants in view of overwhelming retail supply. There were even reports in mainland China of retail malls which offer free rental to their anchor tenants.

Anyway, chances are even if the new entity commenced trading, its share prices will eventually drop off to compensate for the market risk premiums. I would actually recommend current holders to sell off as soon as the new entity commenced trading. Just how much exactly? For those interested, jot down your request through your comments and I will oblige. 

Sunday 9 March 2014

Rivertrees Residences Review

Development NameRivertrees Residences
Developer: Frasers Centrepoint Homes, Fareast Orchard Ltd, Sekisui House Ltd
Address: Fernvale Close
District: 28 
Development Type: Residential
Tenure: 99 yrs
Site Area: 14,930.5 sqm / 160,712 sqft (approx.)
Gross Floor Area: 44,791.5 sqm / 482,136 sqft (approx.)
Plot Ratio (GPR): 3.0
Maximum Building Height: 80m AMSL (Above Mean Sea Level)
No. of Blocks / Storey: 5 Blockspart 20-Storey/22-Storey high & 8 Landed Homes
No. of Units: 495 (Residential) including 8 Cove Homes & 1 Shop Space
Facilities:  Full Condo Facilities.
Expected T.O.P: 13 June 2018
Beautiful 155m reservoir facing frontage. The ground level for the condo units are actually on an elevated platform that is already 2 storey high. Like Qbay Residences at Tampines, the developer has also introduced a chalet that one can book for relatives or friends to stay overnight....known as the River Villa (see below pic at bottom). This project reminded me of Clearwater Bay in Hong Kong and Monte Carlo.

Suites selling like hotcakes

Main entrance from the new Fernvale side road
Tennis court and another tower facing H20 Residences

Stack facing pool and former reserve site for "school"

Tower facing H2O Residences infinity pool and fitness clubhouse

The U shape design maximises pool view and reservoir view

The much coveted Cove House- HOT!

Reservoir facing tower with River Villa on the side

Impressive landscaping

This side will be facing River Bank

River Villa- Some naughty kid destroyed the fence and throw it into the SPA

Pictures of Showflat for 2 Bedroom Deluxe Suites

Taken from Entrance-Dining and Living room sizes

Small kitchen but still functional

Kitchen seen from dining area

Common bedroom-decent size

Balcony just the right size for a small family

Good size of living room and dining area

Kids can roam freely in the spacious living room

I find the kitchen a bit small but overall, the layout for all units are very functional and space efficient. Prices from 950psf to 1150psf which is fairly reasonable for such a well designed project. Suites due to their smaller size quantum selling like hot cakes. The cheaper units are those facing away from the pool and reservoir view. I would recommend prospective buyers to spend a bit more to get the better facing units as these will be easier to rent out or resell in future.
Location wise, not sure why many short sighted people keep bashing Fernvale and said that this place is remote and do not have much amenities. Seletar Mall is due for completion. Also, the upcoming BTOs will have commercial shops built into the ground level for the benefits of all residents. Park connector will link this up to Seng Kang Riverside Park and Punggol Promenade. There will also be a viaduct built to connect to the TPE. Rivertrees Residences represent an unique investment into the upcoming new town which is closely integrated with nature.