Li Jiachengs family retreats in Chengdu! Selling 7.1 billion Nancheng Duhui employees to protect their rights

 Li Jiachengs family retreats in Chengdu! Selling 7.1 billion Nancheng Duhui employees to protect their rights

Changshi group disclosed that it sold a project company located in Chengdu to rz3262019limited, an overseas company jointly established by Yuzhou group and Chengdu Ruizhuo Real Estate Co., Ltd. (hereinafter referred to as Ruizhuo real estate), for a consideration of USD 1.012 billion, equivalent to RMB 7.1 billion.

What is sold this time is Nancheng Duhui, a benchmark project of Changshi group in Chengdu. After the transaction is completed, Changshi group will no longer own any shares or equity of the project company. However, Changshi group will retain a director in the project company to assist in the subsequent operation of the project.

In addition, time finance learned from Yuzhou that Yuzhou would not participate in the trading of Nancheng Duhui project in the future. This means that the future of Nancheng Duhui will be mainly operated by Chengdu local real estate enterprise Ruizhuo real estate. However, the sale of Changshi group has caused a great disturbance of employee rights protection.

Native Chengdu people are familiar with Nancheng city Huidu. 16 years ago, Changshi group won the commercial and residential land in Chengnan New District of Chengdu with a total price of 2.135 billion yuan, with a floor price of 1030 yuan / m2, which became the total price king of the land in Chengdu and even the whole western region at that time, which caused a stir. Later, the project was operated and developed by Hutchison Whampoa Co., Ltd. of Changshi group.

Unlike the mainland real estate enterprises, Hong Kong funded real estate enterprises pursue high turnover, and the development speed is generally slow. Because of the long development cycle, Hutchison Whampoa has been questioned for many times. According to the previous planning of Hutchison Whampoa, this super market with an area of 1036 Mu is planned to be constructed in eight phases. So far, Nancheng Duhui has only launched six products.

In 2017, it was reported that Nancheng Duhui would launch phase 7, but an unexpected fire on the construction site pushed the pause button. In the next few years, no matter how loud the market is, Hutchison Whampoa has not launched its surplus products to the market, so that the 7th and 8th issue has been in the state of ready to be sold.

According to the transaction information disclosed in the announcement, the assets of Yuzhou group and Ruizhuo real estate include residential, commercial units and parking lots of Nancheng Duhui phase 1 to 8. Among them, the highest value is naturally the 7th and 8th residential houses that have not yet been launched. Changshi group disclosed that the remaining houses available for sale in this project are as high as 6750 sets.

Some people in the industry in Chengdu believe that Yuzhou group and Ruizhuo real estate are given a good opportunity. They can enter the sales period quickly after receiving the offer. Moreover, the new market in the central area where the project is located is scarce. In the past, the opening sales results are among the best. Now, if you push the offer again, as long as the price is reasonable, there is no need to worry about the sales volume. According to market sources, phase 7 of the project will be launched in September this year.

Of course, for Changshi group, the deal is also full of money. According to the acquisition agreement, in addition to the premium obtained from the sale of assets, Changshi group will provide a loan of about US $343 million (about HK $2.6 billion) to the purchaser, with interest at the current LIBOR plus 5.5% per annum, with a repayment period of 2 years.

At the current interest rate, Changshi group can obtain about 270 million yuan of interest income from this loan. Changshi estimated that the sale could record a gain of HK $3.811 billion. According to the DMC report, HK $3.8 billion is equivalent to about 13% of last years core profit, and the average selling price of the project is twice as high as the banks estimated Changshi land in China. It is expected that the net asset value of the project will increase by about 1% or 0.5 yuan per share, and the Changshi groups debt ratio is expected to drop from 16% to 14%.

This years property sales in the mainland are not only guaranteed, but also reliable. Changshi group said that in the past 10 years, its property sales revenue in the mainland (including individual unit sales and bulk sales) averaged about HK $28 billion per year. After taking into account the revenue from the sale of Chengdu Nancheng Duhui project units, the pace of property sales this year is expected to be similar to that of the past decade.

Being packaged and transferred, employees jointly protect their rights

As early as last year, Chengdu media revealed that Li Jiachengs family was negotiating with buyers to sell Nancheng Duhui. In the transaction announcement, Changshi group also mentioned that the seller and the buyer entered into a share purchase agreement on the sale of target shares and transfer of related shareholder loans as early as May 9, 2019, and the transaction was finally finalized after four amendments and supplements.

However, in fact, not only Nancheng Duhui, but also the employees of Huangcheng Chengdu Company were packaged and transferred to Yuzhou group and Ruizhuo real estate. Moreover, these employees did not know the news of the change of owners until July 23, which made them feel very surprised.

On July 24, a suspected employee and huangpuji released information on the network platform, saying that all employees of Hehuang Chengdu company had been told a shocking news orally: Hehuang Chengdu company has been packaged and sold as a whole, and all employees will receive n plus 1-2 compensation from huangpuji according to the three levels of manager, director and general.

Subsequently, a joint letter with the employees of Huang Chengdu company was sent out again. The letter disclosed that he huangpuji asked them to sign an agreement on advance of economic compensation within 10 days. Among them, the 1-2 part given according to the level will be paid to the employees by hehuangpuji in August, and the n part of the advance employee compensation will be paid by the receiving company, but the implementation standard and expenditure of this part of compensation will be paid Employees were not informed of the payment time.

Photo source: visual China

All the joint employees clearly stated that they would not accept the content of the oral notice with Huang Chengdu company in the meeting, and asked Changshi group to send senior management to communicate about employee compensation, and clarify all details of the implementation standard of compensation.

Changshi group soon sent out a farewell letter to all employees of Hewei Huang Chengdu company. In the letter, it said that it had reached an agreement with Yuzhou group and Ruizhuo real estate on the work arrangement of employees. According to the agreement, all employees labor contracts would not be affected to continue to perform. In other words, the labor relationship between the former and Huang Chengdu company employees will be transferred to the new company.

Photo source: Internet

As for the specific implementation of the compensation agreed by Yuzhou group and Ruizhuo real estate, Changshi group did not mention in the letter. Time finance and economics asked Yuzhou group, but no reply was received as of the time of publication. Source: time weekly editor: Guo Chenqi_ NBJ9931

As for the specific implementation of the compensation agreed by Yuzhou group and Ruizhuo real estate, Changshi group did not mention in the letter. Time finance and economics asked Yuzhou group, but no reply was received as of the time of publication.