Pan Shiyi wants to empty all core assets in China? SOHO China response

 Pan Shiyi wants to empty all core assets in China? SOHO China response

SOHO China (00410. HK) continues to sell core assets to the outside world.

On October 30, various sources said that SOHO China was considering selling its office building rights and interests in China for us $8 billion, and SOHO China said it had no comment.

According to Caixin, SOHO China will sell core properties in batches this time. The first transaction is in progress and approaching the final stage. Blackstone Group, together with GIC, a state-owned company in Singapore, intends to acquire Soho on Guanghua Road in Beijing, SOHO Tower 3 in Wangjing and SOHO Renaissance square in Shanghai.

In addition to these three projects, SOHO China will also sell five projects in Shanghai, including Gubei SOHO, SOHO Tianshan square, Bund SOHO, Qianmen project in Beijing and Lize SOHO. Caixin reported that the total value of the eight projects is between 50 billion and 60 billion.

If the above information is confirmed, SOHO Chinas core assets at home will be almost empty.

According to SOHO China 2019 half year report, at present, it has four completed projects in Beijing and Shanghai respectively, namely, Qianmen Street project, Wangjing SOHO, Guanghua Road sohoii, Yinhe / Chaoyang Gate SOHO in Beijing, SOHO Fuxing square, Waitan SOHO, SOHO Tianshan square and Gubei SOHO in Shanghai.

These eight projects brought about 744 million yuan of rental income to SOHO China in the first half of the year, including the rental income of soho3q, which was 848 million yuan in the same period last year. In addition, Beijing lizer SOHO is expected to be completed and opened in the third quarter of this year.

It is worth noting that Pan Shiyi also attended a 5g laboratory press conference in SOHO of lizer this month.

For the sale of property, Pan Shiyi once said: the rule that business will never change is to purchase at low time and ship at high time. SOHO China always follows such a principle. Always judge when the price is low and when it is high.

In June of this year, SOHO China reopened its property sales plan. This year, it will launch some properties under its control for sales, involving 13 projects in Shanghai and Beijing, with a total asset value of about 7.8 billion yuan.

For the remaining core projects after the sale, Pan Shiyi said: these eight projects are the eight King Kong of SOHO China and the core assets to support SOHO China. We will continue to hold these high-quality assets, and we are optimistic about the office building market in Beijing and Shanghai for a long time. Monetary easing will continue in the next few years, so we can get cheaper money in the market. The money may not be valuable. Our house will be very valuable.

On September 30, SOHO China announced that it would sell the asset package consisting of 9 commercial projects and 2583 underground parking spaces in Beijing for 761 million yuan.

On October 22, it was reported that soho3q had sold 11 of its projects to dream building star in packages, and now it has begun to enter into the contract approval process. In this regard, the internal staff of dream building star said that it was indeed the case, while SOHO China said it would not reply for the time being.

For the funds recovered after the sale of the property, Pan Shiyi once said that he would pay attention to the opportunities of the land market in the core area of the first tier cities. If there is no suitable land, the funds will be used to repay the loan.

In the first half of the year, SOHO China achieved a turnover of about 889 million yuan, an increase of about 11.8% year-on-year; the companys equity shareholders should account for about 565 million yuan of net profit; the average rental rate of mature investment property reached about 94%; if the impact of sales property is not excluded, the turnover of the same period last year was 848 million yuan, almost the same as that of the same period this year.

SOHO China achieved a net profit of about 567 million yuan in the first half of the year, up from about 1111 million yuan in the same period last year, down 48.9% year on year.

On October 30, SOHO China shares rose 17.9% to close at HK $2.7 per share, with a market value of about HK $14.039 billion. SOHO China ended October 31 at HK $2.68, down 0.74%.

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