Shenzhen strictly prohibits development enterprises from entering urban villages privately

 Shenzhen strictly prohibits development enterprises from entering urban villages privately

Screenshot of Shenzhen Municipal Bureau of Planning and Natural Resources

According to Daily Economic News, a city renewal project in Shenzhen has always been stationed in two or more developers to collect demolition willingness, which often leads to disputes between developers and the improvement of compensation standards for demolition, among which there are many well-known housing enterprises.

For example, in 2015, Shenzhen Huafa A (000020, SZ) and its controlling shareholders, Wuhan Zhongheng Group and Vanke, cooperated to develop the old renovation project of Shenzhen Guangming New Area Huafa Industrial Zone. However, only a year later, Shenhua Fair asked Vanke to withdraw on the grounds that the demolition led to lagging progress and Vanke changed its plan. Vanke filed an arbitration application for failure of Wuhan Zhongheng Group to fulfill the contract on time. A ruling in 2017 showed that Vanke won the dispute and Shenhua Fa and Wuhan Zhongheng Group needed to pay liquidated damages to Vanke.

It is noteworthy that in December 2016, Wuhan Zhongheng Group cooperated with Overseas Chinese Town, including the old renovation project of Huafa Industrial Zone in Guangming New Area.

Until August 2018, a bulletin issued by Huangbei Street in Luohu showed that Lianmei had provided relevant materials to prove that it was a legitimate market subject and authorized to carry out various work in the community; the head of Hengda Project Department said that all activities of urban renewal business in Bibo Garden had been stopped.

Luo Yu, managing director of Heyi Urban Renewal Group, told Daily Economic News that in the past, village collective assets used to choose cooperative subjects through platform trading, and often adopted competitive negotiation mode. However, this time, it was clearly required to use public bidding and whether to cancel competitive negotiation deserved high attention from the market. After the pre-intervention window of village reform closes, the cooperation between village and enterprise inevitably needs to explore new modes. For developers, it may be impossible to pre-intervene in the village reform project, and it will be more difficult to lock in the development rights of the project in advance.

A Shenzhen local housing enterprise old reform personage also agrees with this view, can not directly communicate with the demolition residents, can not understand the demolition residentsideas on a large scale, can not use the mobilization conference to publicize widely. However, because the enterprise is still trying to explore the urban renewal project, so the impact is not significant, the greater impact is mainly relying on the enterprise of the old renovation project.

Luo Yu also pointed out that the new policy not only reiterates the requirement of plan clearance, but also urges market participants to speed up project implementation by time limit. At the same time, it also puts forward ways to find solutions to relocation problems, and calls for strict prohibition of reselling old and reformed projects. It can be seen that strengthening the professional ability of project maturation implementation and changing the short speculation and reselling ideas and modes are the inevitable choice of the old housing enterprises.

The above TOP10 real estate business people told reporters that the release of a number of measures will allow them to make careful consideration in the project intervention, to make more stringent control of the investment of their own funds in the early stage. Because the most difficult and unavoidable problem of urban renewal is the demolition progress of the project, if the company does not have in-depth understanding of the project, no matter how the bidding scheme is set, at which stage the project starts the bidding, they dare not rush to bid. In the future, we will pay more attention to the expansion of project partners. After all, many foreign real estate enterprises lack experience and resources in renovation and maturation. If there are high-quality and comparable partners, we prefer to do secondary development with less risk.

In fact, it has become a trend for foreign real estate enterprises to cooperate with experienced local real estate enterprises. In May this year, Sunshine City signed a strategic cooperation framework agreement with Jia Zhaoye, the King of the Old Reform. The two sides jointly established a project company to actively promote cooperation in the real estate development areas of Guangdong, Hong Kong, Macao and the surrounding areas. Prior to this, Binjiang Group also cooperated with Shenzhen Anyuan Holdings to develop a industrial reform project in Longhua, Shenzhen.