Suzhou informs Jindi, Yajule and other illegal local auction

category:Finance
 Suzhou informs Jindi, Yajule and other illegal local auction


These companies were named because they violated the stipulation that companies directly and absolutely controlled by the same natural person, legal person or other organizations shall not participate in the same commercial and residential land bidding when they participated in the bidding for the above Suzhou land in April and may.

In the notice, Suzhou Municipal Bureau of natural resources and planning defined these behaviors as illegal participation in bidding, and made a unified decision to deal with them. Eight enterprises involved were included in the list of dishonest perpetrators of state-owned construction land use right bidding. Within three years, they were not allowed to participate in the activity of state-owned construction land use right bidding in Suzhou City, and their illegal information was pushed to Suzhou city Credit information sharing platform.

According to the original provisions, Suzhou natural resources and Planning Bureau also has the right to cancel the qualification of the bidders who participate in the bidding in violation of regulations, and all the deposit paid by them will not be refunded, and it reserves the right to ask them to compensate all the expenses incurred by the online listing and transfer of the plot.

According to the results of land transfer, the eight enterprises exposed in this time did not finally pocket the land plots they participated in the bidding.

It is worth noting that Hangzhou Tianlin Investment Consulting Co., Ltd. and Shaoxing Jinhan Enterprise Management Consulting Co., Ltd. under Hangzhou Jindi Zicheng participated in the bidding of plot 2020-wg-18 of SUDI, but the final plot fell to Suzhou haozhenrui Enterprise Management Consulting Co., Ltd., whose ultimate major shareholder is also Shanghai company under Jindi.

The five plots involved in this time also adopt this one-time quotation rule. Only in the face of the one-time offer local auction rules, real estate enterprises will consider the use of multiple vest this approach. In my impression, most of the time, more than 10 shell companies registered under the same real estate enterprise encircle the plot. The person in charge of investment in the above-mentioned East China real estate enterprises.

However, the suspension of this handling is only the land acquisition qualification of Majia companies that actually participate in the bidding, which may not have an impact on the subsequent land acquisition actions of real estate enterprise groups such as Jindi and Yajule in Suzhou. Since it is required that shell companies with unified equity cannot be borrowed in the transfer of the same plot of land, then in the process of land acquisition, as long as the real estate enterprises are replaced by several shell companies controlled by different subsidiaries. Said the person familiar with the matter.

Behind the governments action against illegal land auction is the hot land market in Suzhou this year.

As of June 10, the bidding results of Suzhou land market have been announced to No.7. From March to June, Suzhou No.1-6 land announcement has no first-class auction. Most of the plots are sold at a premium rate between 3% and 14%; about half of the plots enter the one-time quotation range.

In the report, Kerui pointed out that real estate enterprises actively replenish their positions in Suzhou city against the background of loose financing environment, no existing housing and top sales requirements for most plots. At the beginning of April, 10 plots of land in the No. 2 listing and selling announcement of Suzhou urban area were sacrificed at the same time. Nearly 100 real estate enterprises went through seven hours of fierce fighting. In the case of the collapse of the local auction system, they finally collected 13.2 billion yuan. According to statistics of China Index Research Institute, from January to may, the total land transaction value of Suzhou has reached 48.2 billion yuan, ranking 10th in the list of land transaction cities in China. In this round, the average profit margin of the plots traded in Suzhou is about 5%, but the reason why the real estate enterprises are quite fond of it is mainly that the late trading is relatively stable. According to the former head of investment in East Chinas real estate enterprises, land profits in Suzhou are generally thin, but there is no worry about devolution. Source: Yang Qian, editor in charge of Economic Observer_ NF4425

In the report, Kerui pointed out that real estate enterprises actively replenish their positions in Suzhou city against the background of loose financing environment, no existing housing and top sales requirements for most plots. At the beginning of April, 10 plots of land in the No. 2 listing and selling announcement of Suzhou urban area were sacrificed at the same time. Nearly 100 real estate enterprises went through seven hours of fierce fighting. In the case of the collapse of the local auction system, they finally collected 13.2 billion yuan.

According to statistics of China Index Research Institute, from January to may, the total land transaction value of Suzhou has reached 48.2 billion yuan, ranking 10th in the list of land transaction cities in China. In this round, the average profit margin of the plots traded in Suzhou is about 5%, but the reason why the real estate enterprises are quite fond of it is mainly that the late trading is relatively stable. According to the former head of investment in East Chinas real estate enterprises, land profits in Suzhou are generally thin, but there is no worry about devolution.