Real estate discount withdrawal of funds to the King Heng Da Jie

Economic Observer reporter Chen Wenja Wei Liming Jiangsu Qidong, located in the estuary of the Yangtze River, a county-level city, and Shanghai Chongming Island across the river, from the Pudong line distance of more than 50 kilometers. Since Chongming Island became a popular area for the Shanghai Disney Project, the "Chong Kai Bridge" linking Qidong and Chongming Island has become the most High-profile project in the region.　　After the bridge was completed, the Qidong to Shanghai was shortened from 4 hours to 1 hours.　　A few years ago, Evergrande Real Estate owner Jiayin Fancy the Qidong coastline of the 6 square kilometers of wasteland, where the million Mu Wai Hai farmland, the construction of a total amount of about 17 million square meters, the investment amounted to 7.5 billion yuan "north Shanghai Venice Shuicheng", named "Golden World".　　It is reported that the Qidong Project site was listed at the end of May 2007, but did not successfully transfer, so the cost of land is still a mystery. In Evergrande's schedule, the project will be marketed when the bridge is connected in 2010. Finally, the Disney project did not settle in Chongming, but chose Pudong Chuan Sha town.　　Jiayin's idea of a Disney campaign has not been fully realized, but the psychological distance between the "Qidong" and the "Chong Kai Bridge" in the public mind has indeed been greatly shortened. If we can successfully get this land, the future of the plot will undoubtedly be one of Evergrande's key projects-Evergrande Real Estate's first IPO prospectus for Hong Kong, CB Richard Ellis has provided a valuation report showing that the total land area of the Qidong project is nearly 6 million square meters, with an area of 11.5 million square meters for sale, The total land value of 34.4 billion yuan, the average floor price of about 3000 yuan/square meters, accounting for the Evergrande total Land reserve value of about 30%, or even more than Qidong 2008 annual gross domestic product (GDP) of 32.7 billion yuan.　　At present, Qidong in the sales plate price is only 3000-4000 yuan/square meters. In the capital of Evergrande's most strained 2008, Jiayin to the Hong Kong tycoon Tung, as well as Merrill Lynch, Deutsche Bank and other investment banking institutions to carry out several private placement, and in 2009, the head of Merrill Lynch China Business, who is one of the sponsors of the IPO, said that in 2008, together with Jiayin, it became one of his tasks,　　When Jiayin to take the land, he is responsible for paying. Jiayin is quite proud of the average price of the constant is only 445 yuan/square meters, even if the average price of Evergrande's projects are only 5000 yuan up and down, far less than Vanke and other benchmarking room, but its low-cost land costs still make it in the price has a very prominent advantage. In July this year, Guangzhou Royal View Peninsula project of an opening ceremony, please come to Jackie Chan, Fan Bingbing and other stars. After the ceremony, Jiayin told reporters that the project price of 15,000 yuan, floor price of more than 600 yuan.　　Evergrande's projects in the country are about half as low as the cost. "Evergrande's model is similar to that of the country garden, with land reserve as its most prominent feature." However, after a large number of mainland property companies have been to Hong Kong for listing in recent years, Hong Kong people have adopted the net asset value method (The Nav valuation method, rather than the price/earnings ratio, measures the market capitalisation of real estate companies, with a fuller understanding of their advantages and disadvantages.　　"said Wanguo, an analyst. 郝炬, a partner and vice president of the strategy, said, "Evergrande's Land reserve is large, but there are three or four-line cities." Overall, the land reserve structure of the first-tier cities and core areas accounted for a high proportion of the relative appreciation of the space will be relatively large, the risk is relatively low. In recent years such land and three or four-line cities, Non-core regional plots of the housing price growth gap is growing. However, after the failure of the first round of IPOs, Jiayin did not end up in the embarrassing situation of Sunco under Hongbin leadership.　　One of the life-saving straw, in addition to open private financing, but also the persistent big "open must special, special price will appreciate" slogan. Special price is the rapid withdrawal of capital, to achieve large-scale development of an important magic weapon. In the most difficult period since the first round of IPOs was postponed in 2008, Evergrande's sales of only 3 projects supported the development of 33 projects nationwide. The so-called mansion of the Guangzhou Royal Peninsula to 70 percent promotions, and even nearly 20 of the country at the same time 80 percent opening.　　But this kind of dumping promotion let Evergrande withdraw more than 2 billion of cash, the year sales up to 10 billion yuan. To Evergrande in Hefei, a project Evergrande, for example, broke the unit price of 3850 yuan/square metre, and the floor price of the plate is 1881 yuan/square meters, the total cost in 4000 yuan/square meters. At that time, Hefei city average price of about 4100 yuan/square meters, Heng da Washington surrounding projects, the West Lake Flower Garden 5500 yuan/square meters, Landia 5200 yuan/square meters, financial department bougainvillea Kam-price 4600, hair can Costa Del Sol 4100 yuan/square meters ... Successive encounters constant big price butcher knife, even appeared the customer on other real estate sales office to buy a house, sales miss unexpectedly to its recommendation Evergrande Washington phenomenon. Under such a special sale strategy, the project opened on the first day of sales 180 million.　　And such scenes have appeared in Evergrande projects throughout the country, within a few months quickly returned 12.7 billion yuan sales funds. Even after the IPO, the short-term no longer lack of money Evergrande still insists on such sales strategy. On the second day of the listing, Evergrande Guangzhou's Golden World Project launched a "Villa 690,000 Yuan/Set up" special. Sales staff explained that, "from October to now has risen 10%, this is the company to celebrate the listing and let customers." ”