New problems in upgrading Huiyuan Villa Hejing Light assets Export Guangzhou Project

SMM Network News: after the recruitment and auction, the old reform and mergers and acquisitions, Hejing opened a new way of project acquisition in the stronghold of Guangzhou.

On October 15, Hejing Pacific Group and Seaview Investment Group held a strategic cooperation signing ceremony for the comprehensive optimization and upgrading of the Huiyuan Villa project at the Eastington Hotel in Guangzhou.

According to the information released by Hejing, the Group and Seaview Investment Group formally signed a strategic cooperation agreement on the comprehensive optimization and upgrading of the Huiyuan Villa project. Hejing Pacific will provide Huiyuan Villa with positioning design, product optimization and upgrading, planning, promotion and marketing services, to create new value for the project and customers, and to create a residential benchmark that exceeds customer expectations.

Huiyuan Villa is not well-known to many people in Guangzhou. in fact, the project has been on sale since January last year.

Huiyuan Villa, which has been sold for a year.

According to the publicity message at that time, "the project is located on the south side of Huohuoshan, Cencun Road, and the building is adjacent to the Wisdom City Square of about 120000 square meters. Backed by 9000 mu of Huohuoshan National Forest Park and 40, 000 square meters of leisure landscape reservoir, we also enjoy 20 minutes of life in the city center. Although there is no "sea view", it is indeed a rare Tianhe real estate project leaning against mountains and water. "

It is reported that at that time, the first phase of the launch is 52-128square meters of one-to three-bedroom units, the average price after discount is about 53800 yuan / square meter.

The follow-up of the results of the opening sale has not been made public, but now it seems that it should be unsatisfactory.

In fact, the outside world is not surprised by such a sales result.

On the Seaview Investment Group's website, the positioning of the project is clearly written as "Landscape Mansion, a rare low-density high-end residential district in central Guangzhou."

However, at the buyers' forum, many people think that Huiyuan Villa is difficult to fit the name of "luxury house". First, the project covers an area of 70,000 square meters, but 25 houses are planned to be built, and the density is too high; second, the layout of the buildings around the community is chaotic, the environment is dirty and messy, the roads are narrow, the transportation is inconvenient, and the educational and commercial resources are also relatively general.

In fact, Huiyuan Villa previously the biggest selling point is "located in Guangzhou Tianhe District third axis passenger road, can enjoy the future economic value development dividend."

The central axis of the third city of Guangzhou was proposed in 2012, that is, from Huohuangshan and Fenghuangshan to the university city through Keyun Road and Haizhu Ecological City, but over the years, the most valuable axis of Guangzhou is still the line from Guangzhou Tower to Huacheng Square and CITIC Tower.

Huang Tao, general manager of Guangzhou Central Plains Real Estate Project Department, told the new real estate media that the average price of 53000 yuan per square meter in this area is not high.

But for Huiyuan Villa's luxury positioning, it said, "now luxury houses are also divided into high, middle and low grades." As for more information about the project, it seems to be reluctant to say more, saying only that the developer has changed several sets before, and the background of the boss is more mysterious.

Point of view real estate new media inquiry public information, only in Seaview Group website, the group was founded in 1992, and claimed that after more than 20 years of development, from commercial housing development to the development of commercial real estate, from single-building development to large-scale development of residential areas, from based on the development of Guangzhou to the development of second-tier cities in Guangdong, and gradually pushed to cities outside the province according to the plan, waiting for the opportunity to enter the international market. It also said that in the next three to five years, Seaview Investment Group plans to invest more than 20 billion yuan in the real estate industry and pay taxes of about 1.5 billion yuan.

The projects listed include nine projects, such as Seaview Agriculture, Forestry, Washington, Seaview Garden Mansion, Seaview Kang Lake Xinzhuang, Seaview Baishuizhai Health Valley, and so on.

And this is the first time that Seaview Group's real estate project has been cooperated with.

Difficulties and challenges in managing output

For Hejing, Huiyuan Villa will face a lot of challenges in how to reposition the project, how to upgrade and even promote marketing in the future.

In addition to still having to face problems such as high density, chaotic surrounding environment, and inconvenient transportation, as far as Hejing itself is concerned, it used to be better at building modern urban luxury houses located in the city's CBD. This kind of "landscape luxury houses" which is mainly based on natural landscape assets does not seem to have a masterpiece.

On the other hand, this may also be the first time that Hejing has acquired a new project in the mode of management output, and the new real estate media have checked the previous reports and did not find that Hejing has ever had a similar cooperation.

This kind of expansion similar to "light assets" has been seen more often in the hotel business of Hejing before.

At the beginning of this year, in a campus recruitment profile of Hejing Light Asset sector, it clearly wrote, "Hop King Pacific Light Asset sector mainly has three major forms of business: self-owned hotels, long-rented apartments, and joint offices." The brands of the self-owned hotel are Mulian Zhuang Hotel, Fantasy Hotel and Pastoral Travel Hotel; the brands of long-rent apartment are Yushe, Xinshe and Lu she; the brand of joint office is Mulin Cohesion, and has the supporting coffee brand C22. "

Now, Hejing has pushed the light asset input sector to the main development business, which may have something to do with its goal of "reducing liabilities and adjusting leverage".

As we all know, Hejing has adopted a more aggressive land purchase strategy in the past few years, continuously increasing land investment. In addition, the large scale of inventory and investment property has a direct impact on a number of financial indicators of the company.

According to the data disclosed by the China Daily, although the total borrowing scale, financing costs and net debt ratio of Hexing decreased during the performance period. The total borrowing amount was 81.32 billion yuan, down 4.3 billion yuan from 85.6 billion yuan at the end of 2019, and the net debt ratio was about 59.2%, down 16.2 percentage points from 77.13% in the same period last year; financing costs decreased by 0.2 percentage points to 6.2%.

However, of the loan of 81.3 billion yuan, 41% of the debt matured within 1 year accounts for 19% of the debt due within 1-2 years, and the pressure on short-term debt repayment is still great.

As a result, Hejing had to slow down the pace of land acquisition in the first half of the year, winning only 10 projects with a land amount of 9.3 billion yuan.

However, at the interim results meeting, Kong Jianmin, chairman of the board of directors of Hejing, said publicly that "reducing the debt ratio is the most important thing to do", as well as "increasing the intensity of land acquisition in the second half of the year".

However, according to the statistics of the new media of real estate, in the second half of the year, Hejing won only two cases of land in the open market, involving a capital of 2.2 billion yuan.

In this case, Hejing tries to acquire the project in the light asset mode with less cost, which may also be a way to reduce the debt and expand the project at the same time.