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Moody's assigns first-time "B2" rating to Landsea Properties
Moody's Investors Service has assigned a
first-time B2 corporate family rating to Landsea Green Properties Co., Ltd. (00106). The 
rating outlook is positive.
  "Landsea's B2 rating reflects its asset-light business model, allowing it to earn
service income while requiring limited invested capital and borrowed funds per development
project when compared to fully-owned projects," said Cedric Lai, a Moody's Assistant Vice
President and Analyst .
  As of 30 June 2017, the company had 15 wholly owned projects, 33 partially owned 
projects under its asset-light business models, and 14 projects which were purely under
management or service support and over which Landsea had no ownership.
  Under its asset-light business model the company takes various levels of ownership in
property development projects in China (A1 stable) through entrusted development 
(ownership of less than 10%), minority interest cooperations (30% or less), and joint
developments (50%).
  On 30 June 2017, Landsea had a weighted-average equity ownership of 41% in land reserves
of its property projects, as measured by attributable gross floor area (GFA) to total GFA
under management. The company aims to lower this ratio to 30% in the long run.
  Under its asset-light business model Landsea does not need to purchase land, thus
reducing its funding needs. Its property development is reliant instead on projects
brought in by investors

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