Outstanding group sales scale first broken billion

Newspaper reporter Huang Tijian from Shenzhen

"2012, in a word to sum up what excellence did, that is, the threshold of the tens of billions." Yuan, executive director of Shenzhen Premier Estate group, said in an interview with The Times reporter that the first breakthrough in sales of tens of billions of dollars for excellence is a milestone event.

Data show that up to the end of 2012, the cumulative annual sales amount of 10.2 billion yuan, the cumulative sales area of 863,000 square meters, more than 7 billion yuan in 2012 sales target. Among them, the sales amount of the first three of the subsidiaries are Shenzhen company 3.9 billion, Qingdao company 2 billion and Shanghai company 1.7 billion.

According to Yuan, in the annual sales, the contribution from the residential business accounted for 60%, commercial office sales accounted for 40%.

Yuan points out that office sales are the highlight of the 2012-year performance. In the first half of 2012, excellence in the commercial real estate market in the case of a small supply, the introduction has always been only rented not sold in Shenzhen, the Center of Excellence in the 1th building part of the floor, for large customers the whole layer of sales. Subsequently, the outstanding two office building projects in Shanghai and Qingdao were sold throughout.

Sales surprised the industry, in addition to the market loosening up the factors, yuan that, more important in the early 2012, the company has made a series of reforms and adjustments, including organization price, authorization system and strategic target direction, etc., so that the overall operational efficiency of the company has been greatly improved, Specifically reflected in the project development and sales speed significantly accelerated.

According to Yuan, the five major city complex projects in Shenzhen, Shanghai and Qingdao, which were launched in 2011, are progressing well. 2013 is expected to start "small sell", will take the lead in the market to introduce 3 billion-4 billion yuan volume of products. Among them, Shenzhen Meilin City project will open at the end of January this year, located in Shenzhen, the project is scheduled to be launched in October, another project in Qingdao may also be on sale in October.

Yuan pointed out that the five major complex projects are expected to be fully launched next year in the overall market, excellence will be in 3721.html ">2014 year ushered in the outbreak." According to the five-year development plan, 2014 sales target will reach 20 billion yuan, I believe that the five major projects will be the main support for performance.

In the national layout and land planning, Yuan said that, in addition to deep into the currently entered the one or two-line city, 2013 will be excellent in the planned years of Beijing market.

For the market's most concerned IPO restart issue, Yuan still stressed that when the real value of excellence can be achieved in the capital market, it will naturally go public this way.

Dialogue Distinguished President Yuan: Excellence is a big fish that the capital market misses

Time Weekly Reporter: There is an unofficial data, the 2011 commercial real estate development investment total has reached a trillion yuan scale. After 2010 and 2011 years of large-scale investment development, 2013 should be commercial real estate completed and opened a concentrated year. Do you worry that you are facing intense market competition?

Yuan: The question of commercial real estate is actually my biggest concern. I often tell people that commercial real estate is risky and must be cautious in entering the market. I think there are two aspects of the need to attract the attention of the industry: first, the supply of commercial real estate, in fact, many of the local government is imagined, not the market demand and the results. Where the local government thinks the city is relatively central, all need to have commercial, office buildings, hotels, so that the developers can only choose to use the composite land, on the other hand, from the demand side, is the power of the traditional entity shop impact, at present, the relatively large low-end retail business shop now obviously feel the impact of the electric. In the future, however, the commercial value of the shopping malls that we build may be more of a showroom rather than a point of sale, so that its business values may face a revaluation problem.

Time Reporter: In other words, the commercial real estate market has begun to excess?

Yuan: Yes. In my view, these two aspects are generally the supply side has the risk of oversupply, it is not the supply of market formation. And demand side by the impact of the electricity business, the demand for shopping malls will have a sharp decline.

Times Weekly Reporter: The market surplus to commercial real estate profit space will cause how a squeeze?

Yuan: Excess will certainly be less lucrative. It can be said that the next ten years commercial real estate is the key to determine the success or failure of Chinese real estate enterprises. Whoever can do the commercial real estate can get ahead. Who is stuck in this area or is not well controlled, the likelihood that it will face failure is very big. To talk alarmist, this could be a pit.

Times Weekly Reporter: You just mentioned the impact of the dealer on the retailer, the function of the shopping mall is also changing some. So, the development of excellence on commercial real estate will now have a change, which is it in the design of positioning function, will be specific adjustments?

Yuan: I think this should be a developer, each property must be considered one thing. Traditional commercial patterns are sure to change, and traditional shopping malls or business models are changing. Well, as the carrier of it, I think we should make some corresponding adjustments, which depends on different projects. Several of the projects we are working on are originally designed, and some changes have been taken into account at the time, but there are many changes that are not necessarily taken into account. But on the whole, excellent products still keep up with the market changes, because we are walking in the front.

Times weekly Reporter: At present, outstanding besides already entered Shenzhen, Shanghai, Wuhan, Changsha these cities, the future will consider enters which city?

Yuan: The 2013 focus is mainly on the deep into the city, this is our strategic goal, positioning is very clear. But this year's remarkable will have a bigger action, that is to enter Beijing. We have been waiting for many years.

Times Weekly Reporter: The current discussion on urbanization is very enthusiastic, in recent years the housing enterprises are competing to enter some three or four-line cities. But recently saw the relevant reports, some housing enterprises to enter and exit, because there is no money to earn low profits, this is why, and the future of excellence will consider entering the three or four-line city?

Yuan: Because urbanization is a trend of social development, real estate is a market concept, and finally according to the market to decide. The central government has a big set of policies for the development of urbanization. These policies themselves are related to the people's livelihood, housing is only part of the people's livelihood, more likely the people want to let it into the city, although the house is the most basic but there are other things, the government will give these things out, it can enter, you do not give it is not into.

The main positioning of excellence or CBD development, currently not too concerned about the three or four-line city. We did not go in the last round, whether the future will enter the opportunity to see the project. The real estate market is very large, but the actual classification is very fine. Enterprises should be based on their own positioning, each play their own advantages. Outstanding development for so many years, precipitated some of their own experience, it does not necessarily have to go to the three or four line.

Prudent possession of commercial property

Times Weekly Reporter: The industry has such a word called "North Soho, South excellence." Soho in the former commercial real estate is mainly for sale, but it is now gradually increase the proportion of property holdings, to the "holding mode." And most of the commercial real estate projects in the past to be self-sustaining, the two years to come up with some to start selling. Is it a more mainstream model of commercial property development, such as the "live-by-business" combination?

Yuan: In a nutshell, that is the result of market choice. The initial strategy of an enterprise may actually be imagined, but the result of the final market choice may be more suitable for domestic housing companies to make a choice. Because, (commercial real estate project) rents the benefit, simultaneously also exists the rent the pressure, the sale has the advantage also to sell the pressure. Some projects may be sold immediately regret, but all the cash flow of the company will have problems. So I think this is the result of a market choice.

Time Weekly Reporter: That excellence in commercial real estate is how to consider, the future will continue to increase the proportion of holding?

Yuan: Yes, the proportion of commercial real estate will gradually rise to 20%. But I think the number of commercial real estate is still related to capital structure and debt structure. With the improvement of development ability and the increase of capital accumulation, the ability of enterprises to hold should increase.

Reporter: Is the process of the rise in the commercial real estate rate going to be slow? Like Hong Kong Sun Hung Kai Commercial real Estate's transformation, its 50%:50% this proportion's formation has spent nearly 20 years time.

Yuan: Including Hong Kong, the United States and other typical real estate companies, we have studied, the company has its own transition period, transition period, the long transition period of twenty or thirty years, a short five years and 10 years. I think the speed, or according to the development of specific companies, according to different projects to choose. First of all, I think the Hong Kong market has the basic conditions. Hong Kong is an international metropolis, finance and other services developed, so the demand for office space is more natural. Although many cities in China are in the international metropolis, there is no way that 100 cities can develop like Hong Kong in the future, and there may be only a few cities. Therefore, I think that the domestic commercial real estate holdings still have to be cautious.

Time Weekly Reporter: In addition, the real estate in the channel, Hong Kong capital is relatively more mature?

Yuan: Yes, in the commercial real estate This Hong Kong's capital docking is much better than the domestic. In my view, the first to have a market, the second to have capital, this is to talk about "holding" the basic assumption of two words, leaving these two hypotheses to talk about holding, I think it is fun to amuse themselves.

The big fish that the capital market is missing

Times weekly Reporter: At present, the most outstanding source of funds or mainly rely on bank loans. Excellence to do to scale up, improve the overall development speed, can not simply rely on the bank loans this financing channel. That excellence in the Fund channel How is this piece considered?

Yuan: Scale does not necessarily have to multiply the scale, excellence is now the goal is to compound annual growth of 40%, which should be said to be more cautious.

In addition, excellence in the funding of this piece has been very cautious. At present we have made some attempts in the domestic real Estate Trust, the fund and so on, like the Trust has done several examples, but most of our trusts are in advance repayment. In addition, it is to consider docking capital market. The IPO in Hong Kong was still three days away, but eventually we opted out. As I said before, when companies get capital from capital markets more than they can get from other funds, why should I go into the capital market. Of course, the capital market is very important for real estate enterprises, there is capital market docking, can certainly promote greater development. To become a listed company, from the corporate governance in all aspects will be strengthened, our customers, partners in the confidence of excellence will also be enhanced. Excellence has never given up the opportunity to go public. In addition, but generally speaking, the current thinking has not been opened, cautious point is still good.

Time Reporter: At present, does excellence consider restarting Hong Kong IPO?

Yuan: I just said that when we realize that value can be realized in the capital market, excellence is ready to go public. In fact, the capital market has always been a view of excellence, said that the mainland housing enterprises in the industry missing the only big fish is excellence. Because of the capital market operators also want to make money, but we think that the price is not cost-effective to sell, because I could have sold 10 yuan, why do I want to sell five dollars? At present, the main still depends on the opportunity of the capital market, when our value can be achieved, excellence will still go on the market this way.