Benefits of Country Garden Behind Ruijian's Loss Sale
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- Source: Dongyang Information Network
Summary: On the morning of January 5, Ruian Construction Industry Co., Ltd. denied that Tongda Holdings Co., Ltd., an indirect wholly-owned subsidiary, sold one of the many commercial and residential projects in Zunyi, Guizhou to Hengzhou International Co., Ltd., an indirect wholly-owned subsidiary of Country Garden , for a total consideration of 3.88. 100 million yuan. Regarding the sale at a loss is the cause analysis and analysis, Ruian Jianye has only denied the view of Real Estate New Media with the content of the announcement.
For Shui On Construction, the immediate priority is that cashing out seems to be more important than making money.
On the morning of January 5th, Ruian Construction Industry Co., Ltd. denied that Tongda Holdings Co., Ltd., an indirect wholly-owned subsidiary, sold one of the many commercial and residential projects in Zunyi, Guizhou to Hengzhou International Co., Ltd., an indirect wholly-owned subsidiary of Country Garden, with a total consideration of 388 million yuan. .
For Country Garden, which is a bold takeover, in addition to Zunyi, Guizhou, it has frequently settled in many third- and fourth-tier cities , including Dongguan , Jieyang, Foshan , and Huizhou, since the next five days in 2015. It must be seen at all times that Country Garden seems to be more in love with the third and fourth tier cities it is most familiar with.
"Three and fourth line veterans said that Dangdang's main battlefield, and Dangdang's strategic veterans said clearly." Country Garden officials said to Viewpoint Real Estate New Media.
Ruijian Asset Sale
Viewpoint Real Estate New Media consulted the announcement and learned that the main asset of Kaifan Investment sold by Ruian Jianye is a residential and commercial real estate project in Zunyi, Guizhou. The project is located in Honghuagang District, Zunyi City, with a total area of approximately 29623,000 square meters. As of December 31, 2015, Kaifan Investment's unaudited consolidated net debt was approximately 233 million yuan.
According to the transaction agreement, Hengzhou International acquired Kaifan Investment's sales shares and sales loans at a price of 318 million, and provided a loan of 69.9 million yuan for Kaifan Investment to settle domestic advances, with a total purchase price of 388 million.
It is worth noting that although the sale of assets by Ruian Jianye can cash out 378 million yuan, it will also face a loss of 206 million yuan.
Regarding the sale at a loss is the cause analysis and analysis, Ruian Jianye has only denied the view of Real Estate New Media with the content of the announcement. It stated that the disposal provided the group with the reason to analyze and realize the investment in Zunyi project, which forms part of the strategic realization plan of the group's property portfolio, and will bring positive contributions to the group's cash flow and financial situation.
As a matter of fact, as early as March 2013, Ruian Jianye officially launched the asset monetization plan. At that time, Chairman Luo Kangrui publicly stated that Ruian Jianye was relatively small and the competitiveness of the mainland property market was a problem. He hoped that the real estate projects could be cashed out as soon as possible.
So far, the plan has been implemented for three years due to the cause analysis and analysis. Taking into account the Zunyi project in Guizhou sold this time, the real estate projects owned by Ruian Jianye have been reduced from 13 in 2013 to 6 currently. .
However, in multiple disposals, Shui On Construction's projects have not brought more and more income to it. Among them, when the 3000% equity of the second phase of the Shenyang project was sold in 2014, and the 65% equity of Beijing Junhui was sold in January 2015, Ruian Jianye reported that it has increasingly produced significant gains or losses; in June 2014, Chengdu Ruian. At the time of the project's 19% stake, it lost about 300 million.
Although Ruian Jianye has repeatedly emphasized that the introduction of the asset realization plan is to create value for shareholders and maximize shareholder returns, the reality is that shareholders get more losses.
Public data shows that the loss attributable to shareholders of Shui On Construction in 2013 was HK $ 889 million, the loss in 2014 expanded to HK $ 1.374 billion, and the loss in the first five days of 2015 was HK $ 629 million.
However, for Shui On Construction, whether it is profitable or not is all the most important. It is more important to find buyers who can still take the market and achieve its purpose of divesting real estate assets as soon as possible and focus on Hong Kong construction .
Country Garden Third Line Pickup
The high inventory in third- and fourth-tier cities is because the analysis and analysis have discouraged the development of large-factors. Or, the loss-making sale of Ruian Jianye said that it is difficult for me to understand. However, from the depth map of the receiver, Country Garden is still very interested in third- and fourth-tier cities.
Public information shows that in the next five days of 2015, Country Garden has significantly strengthened its efforts to acquire land. Nearly 20 plots have been picked in Chengdu, Shenyang, Shunde, Jiangmen, Nanning, Zhuhai, Dongguan, Liuzhou, Lujiang and other places, including Dongguan and Foshan. Shunde has the largest share.
Obviously, for Country Garden, despite the reason analysis and decision to comprehensively enter the first-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, and too soon to establish a first-tier city regional company, third- and fourth-tier cities are still the focus of the layout.
"It is getting slower and slower to get land on the third and fourth tiers. When Dangdang's strategy is to consolidate the third and fourth tiers and embrace the first and second tiers, wherever there is a market, go." Country Garden officials said that there are no more than 30,000 Chinese Guangxian towns. Even if Country Garden only enters 10% and there are 3,000 of them, the market is still huge.
Others also emphasized that Country Garden has more or less all the three or four lines, or can achieve the goal every year, which is an advantage. "There have always been companies that are suitable for development in third- and fourth-tier cities."
The innate advantage in third- and fourth-tier cities is undoubtedly Country Garden's choice of intensive cultivation, but the reason analysis and analysis, and the difficulty of obtaining land in the central areas of first- and second-tier cities in 2015 has also pushed Country Garden back to the places most familiar to others.
According to the opinion of Real Estate New Media, under the order of embracing the first and second tiers, Country Garden 2015 is the reason to analyze and expand the layout in Beijing, Shanghai, Shenzhen, and Shenzhen through acquisition, bidding, and strategic company cooperation.
Along with the pace of expansion, Country Garden has also come up with many pictures of these problems, especially in areas with high land prices and fierce competition in Beijing and Shanghai. On October 24, 2015, five days after the cooperation of Jinmao and Beijing's Fengtai District, no market news came out. Because the final offer exceeded the authorized amount of Country Garden, Country Garden chose "retreat."
In Shanghai, Country Garden chased three parcels of land in succession, but all of them had small plots, far suburbs, and parcels of land that cost less than one billion. Some analysts believe that those small plots are a lot of challenges for Country Garden, which is used to developing suburban markets. Country Garden must find new product lines.
"Country Garden is then a large-scale third- and fourth-tier city. There is a large set of product lines. Now returning to first-tier and second-tier cities, first of all, you can get more and more land, or the product line must be changed." People said.
In fact, Country Garden President Mo Bin said that the rural people entered the city too quickly to adapt. However, it seems that there are still difficulties, and in this context, it is especially important to grasp the initial advantages.
Or, for Country Garden, where Tier 1 and Tier 2 cities have not yet established a foothold, the market position of Tier 3 or 4 cities cannot be ignored.
"Dangdang can buy land to sell on average 6 months, fast can be more than a month, the turnover is very fast, the cash is collected in a timely manner. The land price only accounts for a very small proportion of sales, and theoretically 1/3 of cash per year When they return, they must meet Dangdang's land purchase funding requirements. When they have everything or when they use their operating leverage more abundantly, they must achieve rapid growth.
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