Li Jiachengs Resale of Assets: Over 4 billion yuan for Dalian Real Estate Project, Sun Hongbin took over
Its normal to buy and sell in business, but these decisions are all made out of market and economic conditions. At the same time, the interests of shareholders should also bear absolute responsibility, so its absolutely not withdrawal of capital.
Every sale of Li Chaoren attracts peoples attention and is often interpreted as withdrawal of capital. Changshi always taboos the saying of withdrawal from the Mainland.
On the evening of October 10, the media reported that Changshi Group had sold the Xigang project in Dalian to Rongchuang China, with a transaction price of more than 4 billion yuan.
In response to this, Changshi immediately responded to the view of the new real estate media, Dalian project reached an agreement to sell six months ago, signed more than four months ago to implement. The extent of the benefits of this transaction is not much discussed.
Changshis response specifically mentioned that the Mainland is the key market of the Yangtze River Group, which has been looking for development opportunities in the Mainland. But it is undeniable that after the completion of the sale, Changshi Mainland took another step back.
Now, behind the sale of this Dalian project, we are trying to restore a long retreat and the heartfelt waves in the process.
Backward Set in Mainland China
All the world is prosperous and all the earth is prosperous. Changshi Mainland also sold a project, this transaction is the acquisition king Sun Hongbin.
Data show that the sale of the project is long in 2011 with 1.9 billion yuan to invest in Dalian project. With an area of about 142,900 square meters, it will be developed into residential and commercial property with a total construction area of more than 720,000 square meters.
However, eight years later, the project has not been completed for sale. Changshi attributes the long-term development of the project to the delayed handover by the government, and discloses that some buildings of the project are close to the top.
Viewpoint Real Estate New Media understands that after Rongchuang China took over, the project was confirmed as Rongchuang No. 1 Hospital on October 1. According to relevant sources, temporary exhibition halls have been set up, and the project will be officially opened as soon as next month at a price of about 30,000 yuan per square meter.
Everyone said that Hong Kongs capital preferred slow-cycle development, as did Li Ka-shing. The eight-year development cycle has brought a certain degree of asset value-added benefits to Changshi.
However, Sun Hongbin is also a winner in this transaction. If according to the average price of 30,000 yuan per square meter, the total construction area of 314,900 square meters of eight residential buildings is estimated, there will be considerable profit margin.
Rongchuang people also responded: the acquisition price is the result of friendly negotiations between the two sides, in line with market conditions, will bring satisfactory profit margin for the company.
As a rare large-scale complex project in the main urban area of Dalian, the project has accessibility, comfort and scarcity of land.
There are many long-term trading partners, Rongchuang is only one of them. Since 2013, Changshi Group has sold Shanghai Lujiazui Oriental Meridian Center for about 7 billion yuan, Guangzhou Xicheng Duyi Plaza for about 2.6 billion yuan, and Nanjing International Financial Center Building for about 3 billion yuan.
In 2019, foreign media reported that Changshi Group planned to sell project rights and interests in Shanghais noble field.
In the past, the movements of the Li family were the same pace. On April 8, 2014, Li Zekai, the second son of Li Ka-shing, sold the Beijing PCCW Center for HK$7.1 billion. In the same year, the Hong Kong Huixian Industrial Trust, managed by Huixian Housing Trust Management Co., Ltd., announced that it would acquire all the rights and interests of Chongqing Metropolitan Plaza from Hutchison Whampoa Co., Ltd. and Yangtze River Industry Co., Ltd. for 3.91 billion yuan.
According to Changshis latest disclosure, it currently has more than 50 real estate projects in the mainland, distributed in more than 20 cities.
Is this a long retreat? Different people have different opinions, but wise people have different opinions.
Land Donation and Heping Hegemony in Hong Kong
So, what has Changshi Hong Kong been doing recently? The latest observation window comes from the launch of a Pingba project.
On October 9, the residential project Aihaishong, which Changshi cooperated with the Municipal Construction Bureau, announced its pricing. The price ranged from HK$92.533 million to HK$20.741 million, with a maximum discount of 22% for developers. The discount price ranges from HK$7.217 million to HK$16.178 million, with an average price of HK$14.054-20.983 million.
In the past, some people have claimed that discounting long and solid buildings is really good for Hong Kong.
Therefore, several other large families have expressed their desire and action to donate land. On September 25, Zheng Yutongs grandson, Zheng Zhigang, announced that he would donate 2,800 square meters of land to charity organizations for the construction of social housing at a symbolic rent of HK$1.
He said that in order to alleviate the housing problem in Hong Kong, three million square feet of land, or about 270,000 square meters, under the name of New World Development Limited, would be donated one after another.
According to the data, if the average price of completed houses is HK$100,000 per square meter, the floor price will account for 60% of the housing price, even if the land price that needs to be paid in the formal development is excluded, the value of the above-mentioned land will exceed HK$10 billion.
Zheng Zhigang, Executive Vice President and General Manager of New World Development, said that the donation of land is not a temporary idea, but a year ago has begun to prepare relevant plans, and in the future, more social responsibility should be assumed, rather than just considering the interests of shareholders.
Equally noteworthy is the announcement issued by the Hong Kong Lands Department on 27 September that the government will recover 784 private land (about 68 hectares) and land occupied by nine graves (about 752.8 square meters) in the form of preferential compensation.
According to the Merrill Lynch report, by the end of June 2019, the four major developers, Hengji Zhaoye, Xinhongji, New World and Long-term Real Estate, had a total agricultural area of about 9.55 million square meters. Among them, Hengji Zhaoye holds 4.26 million square meters, Xinhongji holds 2.88 million square meters, New World holds 1.57 million square meters and long-term real estate holds 840,000 square meters.
The biggest impact is Hengji, which will take back one seventh of the governments land reserves. Nevertheless, it welcomed Sun Hung-chi and was willing to cooperate with the government in land acquisition.
Even earlier in 2013, Henderson had a precedent of land donation, donating 9.29 hectares of land to build houses for vulnerable groups in Hong Kong.
Everyones eyes were fixed on the richest man, Li Jia.
Perhaps the Li Ka-shing family, the richest Chinese, has not yet figured out what to do, at least with caution.
According to Hong Kong media reports, Changshi spokesman responded that it would take a long time for the development of farmland housing to benefit those in need. The company will study this aspect.
It continued that the Li Ka-shing Foundation and Changshi have been directly supporting different social welfare projects through donations.
This has given the Li family a lot of criticism, but Changshi also has its own response: farmland for housing development, it takes a long time to benefit those in need. In other words, land donation is not as good as donation.
On October 4, the Li Ka-shing Foundation announced a donation of HK$1 billion to assist local SMEs in need in a timely manner, in line with the support measures and distribution mechanism of the Hong Kong SAR Government of China.
It has to be said that the rules of conduct of Hong Kongs real estate families are changing to some extent, whether they donate land or donate money or launch the lowest-priced housing projects. Since the 1960s, the real estate millionaires who have made a lot of money have begun to consider both gains and losses.
However, the public has also noticed another fact that the Li family, which accounts for half of Hong Kongs wealth, has taken a step backwards in the Mainland and, at the same time, taken a step further overseas.
Viewpoint Real Estate New Media understands that on October 9, Changshi Group held a special shareholder meeting to buy Greene King, the British pub operator, with about 99% of the votes.
The cash cost of the acquisition is estimated at 2.7 billion, equivalent to about HK$25.2 billion, based on the total issued equity of the target company and the value of the issued equity on a comprehensive dilution basis. With an additional 1.9 billion in debt, the target company ultimately paid 4.6 billion, or about 43 billion, for the acquisition.
Obviously, this is the Li family, the Li family in business.
Source: Viewpoint Real Estate Network Responsible Editor: Wang Xiaowu_NF