China Merchants Real Estate: 6.5 billion additional "invisible king"

The news that the regulatory layer restarted the refinancing channels of listed real estate companies was only January, China Merchants Real Estate (000024. SZ) quickly throws out the largest single directional issuance program in listed real estate companies so far. At the same time, also carried out the new "King" in Shenzhen. September 17 China Merchants Real Estate announced that the company plans to issue shares to buy assets in the way to major shareholders merchants Shekou Industrial Zone Co., Ltd. (hereinafter referred to as "Shekou industrial zone") to buy land valued at 4.865 billion yuan, at the same time raise supporting capital of 1.622 billion yuan, the total amount of the two programmes reached 6.487 billion yuan Although the land to be purchased is topped with "out-of-print bulk plots", "only a few kilometers from the front sea" and many other rings, but the share price with other Shenzhen listed real estate companies "dip in the front of the sea on the rise" of the treatment compared to the difference, the September 17 on the day of the heavy volume fell off the reaction of investors to this program negative attitude. Industry insiders believe that the injection of land valuation premium is too high is the main reason for its share price collapse, 29000 yuan/square meters of floor prices and near the price of the nearby commercial housing, but also higher than the end of last year listed companies to large shareholders to buy the same land prices, but also made one months ago, Shenzhen, the new birth of the "king" quickly become history. "New Land King" was born to take over Shenzhen "new king" 29000 yuan/square meters of floor land price makes one months ago by the auction of the birth of Shenzhen new land King pales. 4.649 billion yuan in the purchase of three pieces of land, the most eye-catching is undoubtedly the world's first-term land tenure. This area is less than 500 meters south of Shenzhen Bay, and in its north west, the distance from the front of the sea is less than 6 kilometers. "The Sea world can be said to be a good block of Out-of-print in Shenzhen!" "Shenzhen Real estate industry is very familiar with this Eagle real estate marketing general manager Lin Xiaohua to the" China Business newspaper reporter introduced to, Shenzhen and other front-line cities are not the same. Lin Xiaohua said that Shenzhen can develop residential land to the present has no new amount, can be said to buy also can't buy, Sea World plots around the supporting facilities have been relatively complete, coupled with the former sea so close, the advantages of the lot is beyond doubt. And such a "out-of-print good lot" Shekou industrial zone has also opened a very expensive price. The notice shows that the Sea World residential area of 77,300 square meters, the planning volume ratio of 160,000 square meters, and the total value of the valuation reached 4.648 billion yuan, floor price of about 29054 yuan/square meters. "29000 yuan/square meters of floor land price is relatively high, the sea around the world of ordinary commercial housing prices on the 30000~40000 yuan per square metre, if in accordance with the current housing prices in the vicinity of the property price in 16000 yuan, the high land price greatly squeezed the project profit space." "said one of the real estate industry researchers. China Merchants Real Estate September 17, the day to close the closing, turnover enlarged to 1.3 billion yuan, completely did not enjoy the previous Shenzhen real estate stocks "touched the sea on the rise" treatment. Institutional investors are moreTo become the main force on the day, Shenzhen stock data show that 17th the largest five selling seats are all institutional seats, the cumulative sell-off of 360 million yuan, of which the agency's single selling the largest amount of 103 million yuan. It is noteworthy that, similarly, the purchase of land with the same lot of major shareholders, a related transaction price at the end of last year will be much lower. December 2012, China Merchants Real Estate wholly-owned subsidiary of Shenzhen Merchants Real estate to buy large shareholder Shekou Industrial zone holds three pieces of land in the world, the total area of 70,400 square meters, the transaction price of 2.958 billion yuan. The three pieces of land in the sea for the world of two projects, land area of 42,800 square meters, construction area of 120,000 square meters, the transaction price of 2.7 billion yuan, according to the calculation of the floor price of about 22500 yuan/square meters. After 9 months, Shekou Industrial area sold to investment land valuation rose 6500 yuan/square meters, up to 28%. The 29000-dollar floor premium dwarfs the Shenzhen new Land King, which was born one months ago by auction. August 16, Shenzhen before the sea for the Hong Kong stock Exchange listed companies launched a former sea plot by China Resources Land limited to 10.9 billion yuan, the floor price of 21670 yuan per square metre. This time, the average price of residential land purchased by the merchants ' real estate is higher than the average price of commercial land. The foregoing researcher believes that the directional issue is to take stock to buy land, the end of last year is to take cash to buy, Shekou industrial zone was issued a high price should be for three reasons, the first is from the end of last year to now Shenzhen land prices have risen, the second is reserved if the stock price decreases the value of space, The third is Shekou industrial area at present directly and indirectly in the listed companies accounted for 51.89% of the share, if the land is completely transferred according to market value, only half of the dividend can be divided, so in order to take more shares to gain more dividends and advance cash a part of the project proceeds, large shareholders issued 29000 yuan/square meters of high-rise floor land. Capital pressure to increase in the current Shenzhen hot area before the sea, China merchants also has 3.9 square kilometers of land, is the largest landlord of the former sea, and some of these high-quality plots may also be gradually injected into the investment estate. The reporter carefully comb investment real estate this year's announcement found that the company this year has won 13 land in the country, the total amount of more than 16.1 billion yuan. The first half of the 6 cases, the total amount of 5.8 billion yuan, into the July has concentrated on the purchase of signs, from July 18 to September 14 in less than two months time, the company spent 10.36 billion yuan won 7 land. "Virtually all the real estate companies are taking the land. The former researcher said that this round of the housing market rebound digest a lot of stock room, property developers on the one hand, the financial pressure is relatively small, on the other hand, need to replenish the land reserves, so in the country, the climax of the place, investment real estate is no exception, the company said at the beginning of this year, the land will spend more than 20 billion yuan, Follow-up should still have action. In addition to taking the land in the country, the large shareholder has always been an increase in land investmentTo source. The company said that if the targeted additional program can be successfully completed, through the issuance of shares to buy large shareholders of the land will increase the company 7.22% of the reserve to reach 2.9679 million square meters. More imaginative space is the injection of land in the former sea area of large shareholder. In the current Shenzhen hot area before the sea, China merchants also owns 3.9 square kilometers of land, is the largest landlord of the former sea, and some of these high-quality plots may also be gradually injected into the investment estate. Company Dong Liu has publicly said that, because the company and major shareholders have a competition agreement between the major shareholders, so the real estate business will be entrusted to China merchants Real estate operation. At present, China Merchants Group and Shenzhen municipal government to discuss the issue of the former Sea land, the group has determined to insist on its own development, which involves real estate projects in the land may be injected into the company, which will be beneficial to the future layout of the former sea. "Liu said. After the September 17 disc, in China Merchants Real estate held on the proposed plan on the Internet, China Merchants Real Estate general manager He Jianya said, the future merchants real estate will also consider such as Prince of the Bay, the former sea and other areas of high-quality assets, and will be based on the company's development strategy and the relevant policy and regulations to consider whether to inject and determine the reasonable injection price. However, the large-scale land also brought the company a great deal of financial pressure. Data show that 2012 and 2013 1 ~ June, the company's combined operating activities cash net flow is 509,877.780,000 yuan and -127,550.52 million, the company said the cash flow pressure mainly from the purchase of project development land, with the increase in the size of the company's operations, follow-up development needs to invest money, The company may face the risk of insufficient cash flow due to the slow turnover of funds.