Financing environment tightened, equity transfer of real estate enterprises increased significantly

category:Finance
 Financing environment tightened, equity transfer of real estate enterprises increased significantly


Intensive transfer of central enterprises

Equity in real estate projects

The investors of these projects are almost all state-owned enterprises, including China Merchants Group, overseas Chinese city group, Sinochem Group, Everbright Group, AVIC, China power construction, Xinxing Jihua Group, etc.

Among the 18 real estate industry property rights transfer projects, China Merchants Group, OCT Group, AVIC and CITIC Group each have two, and Sinochem Group has three. Most of these projects are in the state of loss, and some are insolvent. Among them, the transfer projects of the central enterprises whose main business is real estate are frequent.

For example, China Merchants Shekou, a subsidiary of China Merchants Group, successively transferred two real estate projects on November 2 and November 3, respectively 100% equity and 238 million yuan creditors rights of Shenzhen Taiziwan commercial savings Real Estate Co., Ltd. and 49% equity of Shenzhen Shangqi Real Estate Co., Ltd., with the transfer reserve price of 1098.1645 million yuan and 260.164 million yuan respectively, both of which are in deficit.

OCT, a subsidiary of OCT Group, transferred two real estate projects successively on November 3 and November 6, respectively 30% equity and related creditors rights of Wuhan Tianchuang Real Estate Co., Ltd. and 51% equity of Wenzhou OCT Investment Development Co., Ltd., with the transfer base price of 1977331699 yuan and 270540000 yuan respectively. The two target companies also suffered losses and were insolvent.

China Jinmao, a subsidiary of Sinochem Group, has transferred the equity of its subsidiarys real estate projects for three times. On November 4, it listed and transferred 100% equity and 5 million yuan of creditors rights of Qingdao Fangjing Real Estate Co., Ltd., with a base price of RMB 40.0772 million yuan; on November 11, it transferred 45% equity of Changzhou longmao Real Estate Development Co., Ltd., with a base price of 866.0997 million yuan; on November 13, it listed and transferred Fuzhou binmao Real Estate Co., Ltd 51% of the companys equity, the transfer price of 525.56 million yuan. The three target companies are also in a loss state.

It is worth noting that, compared with the base price of tens of millions or even billions of dollars, some of the transfer projects in November were less than 500000 yuan, or even only 10000 yuan. The 51% equity of Hebei Jihua Runze Property Service Co., Ltd. was transferred on November 9 with the transfer price of only 10000 yuan. According to the latest financial statements, although the target company is still profitable, it is insolvent. On November 11, the 49% equity of Beijing Junxing Real Estate Development Co., Ltd. was transferred, and the base price of transfer was only 490000 yuan. The latest financial statements show that the target company has a loss and is insolvent.

Under the new regulation of financing supervision

Equity transfer or continued increase

Securities Times reporter learned that the three red lines all trodden on the line Fuli recently also transferred equity. On November 9, R & F announced that it had formally signed a merger agreement with the fund subsidiary company affiliated to Blackstone, and planned to price the property in Guangzhou Fuli International Airport comprehensive logistics park at RMB 6.3 billion, of which 70% of the equity was transferred to Blackstone at the price of RMB 4.41 billion. R & F real estate said that the merger is conducive to optimizing the allocation of resources, focusing on the development of core business, increasing capital reserves and reducing the debt ratio, which is conducive to improving the anti risk ability of the group and achieving long-term stable and healthy development.

In addition, the reporter of Securities Times learned from the transfer information of Beijing Equity Exchange that most of the transfer projects of China Merchants, OCT and Jinmao are not 100% equity transfer. For example, 51% equity of Fuzhou binmao and 45% equity of Changzhou longmao that Jinmao plans to transfer involve real estate development projects, which are part of the equity transfer.

In this regard, Zhu Yiming believes that real estate enterprises can introduce powerful partners for the development of real estate projects through partial equity transfer, reduce the net debt ratio index through joint venture and joint venture, and obtain income by continuing to hold part of the equity. The overall sale of 100% equity is mainly due to the consideration of revitalizing stock assets and business adjustment.

In Zhu Yimings view, the emergence of equity transfer tide is the embodiment of the industrys capital pressure. Large scale real estate enterprises still need equity realization to meet regulatory requirements, and small and medium-sized real estate enterprises with weaker ability to resist risks are facing greater pressure. Through partial equity transfer, real estate enterprises introduce powerful partners to withdraw funds in advance, and through the overall equity sale, divest assets that are difficult to make profits or even lose, and reduce the debt ratio. It is expected that the reshuffle of the industry will continue, the contraction and withdrawal of the real estate business of small and medium-sized real estate enterprises may accelerate, and the industry concentration will further increase. At the same time, the real estate enterprises will also give up the diversification strategy of the former wide net mode and abandon the business with poor progress, and the phenomenon of equity transfer of real estate enterprises will continue to increase in the future. In an interview with the Securities Times reporter, a real estate industry analyst who did not want to be named also believed that after the new regulation of three red lines financing supervision came out, the equity transfer or equity cooperation of real estate enterprises will definitely increase in the future. Source: Securities Times editor in charge: Chen Hequn_ NB12679

In Zhu Yimings view, the emergence of equity transfer tide is the embodiment of the industrys capital pressure. Large scale real estate enterprises still need equity realization to meet regulatory requirements, and small and medium-sized real estate enterprises with weaker ability to resist risks are facing greater pressure. Through partial equity transfer, real estate enterprises introduce powerful partners to withdraw funds in advance, and through the overall equity sale, divest assets that are difficult to make profits or even lose, and reduce the debt ratio. It is expected that the reshuffle of the industry will continue, the contraction and withdrawal of the real estate business of small and medium-sized real estate enterprises may accelerate, and the industry concentration will further increase. At the same time, the real estate enterprises will also give up the diversification strategy of the former wide net mode and abandon the business with poor progress, and the phenomenon of equity transfer of real estate enterprises will continue to increase in the future.