SouFun shares of the World Bank and Hopewell brilliant

SouFun into shares of the World Bank and Hopewell brilliant, this is the real estate agency and traditional intermediary business cooperation a landmark event.

For many traditional intermediaries, may be spontaneously "wolf" feeling, but for the real estate industry has gone through the golden age of the real estate agency industry, this change may be irreversible trend, and its block, Better to join them. Of course, this kind of electricity supplier and the traditional intermediary industry will inevitably encounter various problems in the integration, pending continuous exploration by practitioners. From this point of view, Soufun, together with the World Bank, and Hopefluent, have certain sample meanings.

"In the real estate market in China, service will take the place of product development. This time, we (SouFun) cooperate with SouFun precisely to enhance our ability to serve our customers." World Bank Chairman Chen Jinsong told Daily Economic News reporter .

Recently, SFUN (NYSE), the largest online media platform for real estate in China, reached an agreement with World Bank Group (002285, SZ) and Hopefluent (00733, HK), a large domestic real estate agent, Nearly 1 billion yuan stake in two agency companies, becoming the second largest shareholder of these two companies.

Industry comments, SouFun shares of the World Bank, Hopewell brilliant is to close the entire transaction, from the release of new housing sources, to the final transaction transfer of the entire process. However, since the Soufun did not control the two companies, the implementation effect may not be optimistic. And yesterday (July 15), the two sides repeatedly stressed that cooperation is open, whether SouFun, or the World Bank, can choose other partners, which in turn makes the ultimate result of the acquisition there is a big and not Certainty.

Closed-loop transaction needs

July 10 evening, the World Bank announced that the company intends to Beijing Huaru Network Technology Co., Ltd. and other 9 specific non-public offering of 139 million shares, the issue price of 8.23 ​​yuan / share, 1.143 billion yuan to raise funds (Before deduction of issuance costs) will be used to build and supplement liquidity based on big data O2M platform in order to enhance the operating ability of the Company's main business. Among them, Beijing Huaruo Network Technology Co., Ltd. subscribed for 743 million yuan to 90,264,300 shares, after the issue of the World Bank stake of 10%, becoming the second largest shareholder of the World Bank. It is understood that Huafu world Soufun Holdings Limited is mainly responsible for second-hand housing business platform company, that is responsible for operating the domestic second-hand housing and rental market network information platform.

On the same day, Hopefluent also announced that it signed a strategic cooperation agreement with Soufun Holdings Co., Ltd. The company intends to issue 91 million new shares, accounting for approximately 17.38% and 14.80% of the issued share capital of the Company before and after the issue of new shares respectively. SouFun by the issue price of 3.00 Hong Kong dollars per share subscription, SouFun become Hopefluent brilliant second largest shareholder.

"At present, real estate e-commerce still has many deficiencies. The cooperation with the World Bank and other agencies helps to perfect the functions of its e-commerce and further expand its market share," said Mo Tianquan, chairman of SouFun.

According to SouFun's 2013 earnings, online advertising services revenue was $ 278.3 million, an increase of 11.4% over the same period of previous year. Revenue from new-home e-commerce services was $ 188.1 million, up 84.1% from the previous year. This shows that, compared with the traditional advertising model, new home e-commerce has become the main driving force for revenue growth.

"With real estate ads from the show to the effect of transformation, real estate e-commerce over the past few years is very hot, but also caused a lot of questions, mainly due to Soufun online media such as this is only played for the first time to tap the role of customers, and not The closed-loop transactions, soufun to some extent, only the online users to the sales office diversion, the transaction still depends on the traditional agents, so called pseudo-electricity business. "Zhongyuan Real Estate Project General Manager Huang Tao Told reporters.

Xue Jianxiong, director of research in the room, told reporters that as E-home integrates E-sales agents and Sina Lyrics media resources, so for the new disk from the advertising, e-commerce, agency planning and other industry chain services This is the soufun does not have the ability. If Soufun want to move closer to the deal even aiming at the cake after the completion of the real estate transaction, we must further the service, joint professional intermediaries is clearly a better choice.

This reporter learned that the amount of sales agents, in 2013, the World Bank achieved sales of 317.5 billion yuan agency, is the first large-scale real estate intermediary service providers together brilliant last year, sales of more than 260 billion yuan, contributed to second-hand transactions 50,000, the fourth largest domestic real estate service providers.

SouFun cooperation with the two intermediary service providers will greatly improve its e-commerce business functions, with the World Bank and Hefu brilliant offline sales resources, and SouFun e-commerce business to achieve seamless convergence directly involved Turnover, complete the integration of the industrial chain. "Xue Jianxiong think.

However, the biggest variable is that Soufun is currently only involved in shares, not holding the above two companies. This means that Soufun did not have the absolute confidence of using the two companies' brokers and agents planning resources to help SouFun compete for e-commerce business and to complete the entire transaction.

Ping Hao good room network CEO Zhuang Nuo pointed out that the entire housing e-commerce transaction process, the need for a wide range of financial services, in addition to mortgage loans, there is the supervision of transaction funds safety. And just rely on soufun shares of the above two companies, and can not provide a complete financial services, SouFun to improve the function of e-commerce, still need further acquisitions.

To expand Internet financial services

However, the reporter found that shares of the World Bank and Hopewell brilliant, soufun intended to make up for the lack of market in southern China.

SouFun close to a source close to the industry told reporters that despite the calculation of operating income, Soufun is undoubtedly the leading real estate media network, the company in Beijing and Shanghai have established a strong market advantage, but in South China market has always been tepid, Beijing market revenue has more than the sum of Guangzhou and Shenzhen. Therefore, this share will help to enhance Soufun's influence in southern China.

According to the 2013 annual report of two correspondent companies, Daily Economic News reporter found that 35.6% of the World Bank's operating income comes from southern China, and the company occupies 50% of the market in Shenzhen. About 36% of the joint venture's brilliant revenue comes from Guangzhou, and the company also occupies more than 50% of the share in Guangzhou.

Xue Jianxiong said that the spheres of business of World Bank Group and Heflux are all in the southern region, with the two accounting for more than 50% of the market share in Shenzhen and Guangzhou respectively, which can enhance the competitiveness of SouFun in South China. At the same time, soufun can also help the World Bank and Hopewell brilliant to better penetrate the northern market, achieve complementary advantages.

In addition, Internet finance has become the focus of this cooperation. Chen Jinsong revealed that the World Bank and Soufun will explore more cooperation in the financial business, the future or will test the water P2P net loans.

"World Bank is a light asset company, making financial needs of sources of funds, in addition to the traditional bank loans or raise funds, P2P network credit is a very promising direction.However, the World Bank also lacks a very heavy traffic Internet platform to do Support, based on these two considerations, search room is very suitable for the World Bank, the future both sides will actively carry out Internet finance cooperation. "Chen Jinsong said.

"1 + 2> 3" effect to be tested

Although the shareholding is regarded by the outside world as a "powerful alliance" in the field of real estate services, the effect of "1 + 2> 3" business will not be realized until the businesses of all parties get involved.

Shi Yongqing, founder of Centaline Property, admitted in an interview with Lyrics Home that from the data, SouFun only owns less than 20% shares of World Bank and Hefu Brilliant. A maximum of one person can be assigned to each other's board of directors to understand how their company works, but no conditions exist to require the other's business to work together.

"Co-prosperity and the World Bank line is a competitor, a good combination of competitors, may be just a wish. Even if the same company in the two departments do not want to work together .I think the acquisition They help the stock price, but the real help is limited. "Shi Yongqing think.

Huang Li Chong, director of Hong Kong-based Guangdong Investment Bank, believes that Soufun, after completing the listing, has ample cash and needs to find an investment route. Therefore, it is understandable that the real estate agency should seek diversified development. However, Soufun is not in an absolute controlling position. These real estate agencies also have their own Internet platform. In the future, it is inevitable that a profit-gambling game will inevitably occur on the business integration. Unless Soufun ultimately can make a full acquisition of it, there will be a lot of friction in the integration process.

In fact, both Mo Tianquan, or Chen Jinsong said Soufun and the World Bank cooperation is open, the future SouFun or the World Bank, can choose between two companies outside the company. If you encounter a better platform than SouFun, the World Bank will still be going to cooperate with him. Similarly, the search room can also choose to work together with other agencies.