The arrival of Jinrongjie commercial real estate heating up

Yesterday, Jinrongjie (000402) announced in Hong Kong, a wholly-owned subsidiary of Jinrongjie Holdings Beijing Kim Yuhwei Real Estate Development Co., Ltd. and Paris Lafayette department Store (China) Limited officially signed a 20-year lease contract, according to the contract, the French century high-end department store brand "Lafayette"　　will open its first direct-marketing department store in China at Jinrongjie's commercial district in Xidan, Beijing. According to sources, the Paris Lafayette department Store (China) Limited is expected to invest a total of HK $300 million. Paris Lafayette Department Store (China) Co., Ltd. is a joint venture established by the I.T Group and Hong Kong, which accounts for 50% of the shares. Philippe Houze, chairman of the Lafayette department store group, said it would also open 10 to 15 direct-marketing stores in China in the coming years.　　As early as the 90 's, the group had been stationed in Beijing, but lasted only a year to fail. Jinrongjie Holding executive deputy general manager Gao did not disclose the project's future profit expectations, however, she said that the current Beijing department store leasing business model is based on the total sales of the rental business according to the proportion of Commission, Commission ratio between 3% to 30% is not fixed, and Jinrongjie percentage of the Commission is located on the high level.　　She introduced that the department store is currently in the construction, building area of 48,000 square meters, is expected to be completed by the end of 2011, the 2013 official opening. In addition, according to Gao, the Financial Street Shopping center in January 2010-October The first floor of the month average of 13600 yuan per square metre of sales.　　She said she was confident of the future turnover of the department store with the help of the brand effect. Jinrongjie in the first half of this year's property leasing business in the net profit of nearly 200 million yuan, gross margin of up to 91.32%, accounting for 10.93% of the main business.　　Gao said that Jinrongjie had identified the development strategy for commercial real estate projects since 2000, and that cooperation with the company is part of its real estate business strategy and will seek to collaborate with other famous department store brands in the future. Since this year, many real estate developers have begun to move to commercial real estate in the context of the country's frequent policies to regulate the housing market. In recent years, there have been few big moves in Beijing, Majuqiao, recently also spent 6.9 billion yuan in the acquisition of 38 commercial projects. On October 15, the real estate boss Vanke, who has been a residential project, bought the center at a price of 1.15 billion yuan in Beijing, and began buying commercial real estate projects throughout the country.