MalltoWin Log
After opening the self-help mode, more and more real estate tycoons have lost their wealth. As the policy regulation of the real estate industry becomes more and more refined, the myth of real estate wealth has faded, and real estate tycoons will usher in a new normal.
2022-04-07
Source: Radar Finance
Author: Li Yihui
On April 6, Hurun Research Institute released the "2022 Hurun Global Real Estate Entrepreneur List". According to the list, Li Ka-shing, 94, the richest man in Hong Kong, became the world's richest real estate man with a wealth of 205 billion yuan; Lee Shau Kee, 94, of Henderson Land, ranked second with 170 billion yuan.
The change in the ranking of the rich list is not only the change in the wealth figure, but also the change in the rise and fall of the industry. The real estate industry has entered a cold winter, and the wealth of entrepreneurs behind housing enterprises has also been affected.
Although Li Ka-shing, who has made his fortune rich on real estate, has not expanded as fast as entrepreneurs in the fields of the Internet, consumer goods and manufacturing in recent years, the scale of wealth has remained stable. Recently, the "Li Chaoren", who has always had a keen sense of smell, began to sell British assets, which made the market can't help but pay attention to his prediction.
On the mainland, Country Garden's Yang Huiyan family, Longhu's Wu Yajun family and Wanda's Wang Jianlin family squeezed into the top 5 of the list, with wealth of more than 100 billion yuan.
It can be said that compared with other counterparts who are currently in a liquidity dilemma, the situation of the above-mentioned housing enterprises is more optimistic. Among them, Wang Jianlin, who has successfully walked out of the "darkest hour", is promoting the IPO of Zhuhai Wanda Commercial Management (hereinafter referred to as "Wanda Commercial Management"), which is a time-pressing time for Wanda to expire on April 21.
Xu Jiayin, who was the world's richest real estate man two years ago, has the most decline in wealth in this list, with a total decrease of 150 billion yuan. In the past year, China Evergrande's stock price has fallen by nearly 90%, and now Evergrande's tens of billions of deposits have been frozen, and 39 buildings of Evergrande Haihua Island have been confiscated.
Housing enterprises, including Shimao, Sunac, Longguang, etc., are actively optimizing their business strategies, but at the same time, the wealth of the big guys behind each company is inevitably damaged. Some commentators pointed out that more and more real estate billionaires have fallen off the list, which means that the era of real estate profiteering is really going to pass.
01 Li Ka-shing sells off UK assets
Born in July 1928, Li Ka-shing is now 94 years old. As early as 4 years ago, the 90-year-old Li Ka-shing announced his retirement, officially transferring the management of the 100 billion flagship empire "Changhe Department" to the eldest son Li Zeju, and he served as a senior consultant himself.
According to the 2022 Hurun Global Real Estate Entrepreneur List, Li Ka-shing and his family became the world's richest real estate richest man with a wealth of 205 billion yuan, 3% less than last year.
According to the data, the main source of wealth of the Li Ka Shing family is more than 20 listed companies such as Cheung Shing Group, Changhe, Changjiang Infrastructure and Electric Energy Industry.
Among them, cheung Kong Industrial Group recently released a financial report showing that the company currently holds a total investment property portfolio of about 17.6 million square feet, achieving revenue of HK$83.2 billion in 2021, an increase of 17% year-on-year, and net profit attributable to shareholders of HK$21.2 billion, an increase of 31% year-on-year.
In the past year, most of the stock prices of mainland real estate companies listed in Hong Kong have undergone deep adjustments, but the stock prices of Changshi Group, which is mainly based on real estate, aircraft leasing and infrastructure, have risen by 29.58%, and have risen by more than 12% this year.
According to the 2022 Hong Kong Rich List released by Forbes, Li Ka-shing's wealth has grown by US$600 million in the past year to continue to be the richest man in the past year in the face of the shrinking total wealth of Hong Kong's richest people.
It is worth noting that there is news that Li Ka-shing has recently launched a major asset transfer again, but this time it is British assets that are on the shelves.
On the evening of 11 March, Cheung Kong Industrial Group announced that its indirect wholly-owned subsidiary entered into a sale and purchase agreement with the buyer Broadgate Five Holdings (Jersey) Limited as a seller to sell the "5 Broadgate" office building held by the target company in London, Uk.
This transaction price has shrunk significantly compared with the quotation, and the media said that it shows that the seller has a strong willingness to sell.
As early as last December, foreign media reported that Li Ka-shing was going to sell "5 Broadgate". At the time, it was reported that Cheung Sil Group was trading the London headquarters building of UBS Group for 1.25 billion pounds, and the takeover was the South Korean National Pension Corporation and Lingsheng Investment Management.
According to the data, "5 Broadgate" is located in the Broadgate complex in the core area of the City of London, England, and was purchased by Changshi Group for 1 billion pounds (about HK$10.5 billion) in June 2018.
Therefore, from the perspective of the book amount of the sale, the sale of the property is not only significantly lower than the selling price of 3 months ago, but also less than the purchase cost of the year. However, Changshi Group said that the expected gain from the disposal was estimated to be about 108 million pounds, which was calculated based on the estimated net asset value of the target group at a higher cost than the closing date of the transaction.
In addition to the sale of London properties, According to Bloomberg, Li Ka-shing has also put Uk power distribution company UK Power Networks and telecom operator Three UK on the shelves. Among them, the valuation of power distribution companies is as high as 15 billion pounds (about 126 billion yuan).
Australian investment bank Macquarie Group and private equity giant KKR are reportedly interested in the deal and are in talks with the Li Ka-shing family that, if it goes ahead, would be the industry's biggest acquisition in recent years.
In October 2010, li ka-shing's companies acquired an interest in uk power grid assets held by EDF Energy, then a French power energy company, for £5.8 billion to form a new company, UK Power Networks. Based on this calculation, the potential direct proceeds from the sale are more than £9 billion.
However, at the performance meeting of Changjiang Industrial Group on March 17, Li Zeju responded, "The quotation of others does not mean that we will sell." ”
But the sale of British assets by Li Ka-shing's companies did not do so. In December last year, Changshi sold its aircraft leasing business for US$4.28 billion (about 27.4 billion yuan). On March 3, the last of six transactions for the sale of The European Telecom Tower for The Sale by Changhe in 2020 was approved, with a total cash-out of about 10 billion euros (about 70 billion yuan).
In addition, on January 22 this year, it was reported that Li Ka-shing was also preparing to sell Terree UK, a British telecom operator owned by ChangHe, to the multinational telecom giant Vodafone Group, and the acquisition plan is currently under negotiation.
Analysts believe that Europe is facing an energy supply crisis, and most of the Li Ka-shing family's holdings in the UK are utility assets, and such companies face strong policy intervention or the risk of failure, or become one of the reasons for the Li family's withdrawal from the UK.
02 Wang Jianlin is waiting for an IP
Wang Jianlin, 68, and his family tied for fifth place with Longhu Wu Yajun in the 2022 Hurun Global Real Estate Entrepreneur List with a wealth of 105 billion yuan.
On October 21 last year, Wanda Commercial Management, a commercial operation management platform under Dalian Wanda Group, filed a prospectus on the Hong Kong Stock Exchange.
According to the prospectus, in 2018, 2019, 2020 and the first half of 2021, Zhuhai Wanda's commercial management revenue was 11.023 billion yuan, 13.437 billion yuan, 17.196 billion yuan and 10.636 billion yuan, and the core net profit was 1.751 billion yuan, 1.270 billion yuan, 1.176 billion yuan and 2.065 billion yuan, respectively.
However, Wanda Commercial's US$3 billion Hong Kong IPO has been slow to make substantial progress, leading to rumors that the company may postpone its listing.
According to people familiar with the matter, Wanda Commercial Management has suspended its listing for two reasons:
- First, the capital market fluctuates violently, many investors suffer heavy losses, and the wait-and-see atmosphere is strong;
- Second, the grim situation in China's real estate industry has also affected Wanda Commercial's IPO prospects.
For the above rumors, Dalian Wanda Group said that the news was untrue, and the listing work was advancing in a normal and orderly manner. However, according to the HKEx hearing process, the prospectus is expected to expire on 21 April 2022, leaving wanda with little time indeed.
According to the data, since 2015, Wanda has begun to manage independent third-party projects in an asset-light mode on the basis of operating Wanda Plaza. In September 2015, Dalian Wanda Commercial Management Group Co., Ltd. (hereinafter referred to as "Wanda Commercial") submitted a prospectus to the CSRC.
At that time, wanda commercial's assets to be listed were mainly shopping malls (including shopping mall management and operation), hotels (including hotel management and operation) and cultural tourism projects, and the real estate attributes were strong. Since then, Wanda Commercial has continuously adjusted its business, announced that it will no longer carry out real estate development, and completed the divestiture of real estate business at the end of 2019, becoming a pure commercial management operation enterprise.
Around 2017, with the tightening of loans and the tightening of overseas asset supervision, Wanda and Wang Jianlin ushered in the "darkest moment", and Wanda suffered an unprecedented "double killing of equity and debt". In this regard, Wang Jianlin chose to "break the wrist of a hero" and sold hundreds of billions of cultural tourism, hotels and overseas assets to cope.
Fortunately, these measures helped Wanda out of the debt quagmire, but failed to achieve its goal of going public. After nearly six years of queuing for A-shares, on March 24, 2021, Wanda Commercial announced its withdrawal from the A-share IPO team.
On March 29 of the same year, Wanda officially released the news that Wanda Commercial Management signed an agreement with the Zhuhai Municipal Government to settle the restructured Wanda Asset Light Commercial Management Company in Hengqin, Zhuhai, while the Zhuhai State-owned Assets Supervision and Administration Commission invested 3 billion yuan to invest in the Wanda Light Asset Light Commercial Management Company.
According to Wanda, wanda asset-light commercial management company settled in Zhuhai Hengqin New Area is an asset-light operation and management company after the reorganization of Wanda commercial management.
After the "slimming", Wanda Commercial Management does not hold properties, but is responsible for the operation and management of more than 300 wanda plazas that have been opened, as well as all wanda plazas under construction and in the future. In terms of revenue sources, in addition to charging management and service fees to different Wanda Plaza owners, the profit model of offline traffic monetization will also be studied.
Although there is no further action to return to Hong Kong stocks at present, Wanda has more initiative after light loading, and at the moment when many housing enterprises are trapped in operational difficulties.
On March 28, Wanda Group signed a strategic cooperation agreement with Xinyuan Group, and industry insiders believe that the cooperation may be related to the transfer of some of Xinyuan's commercial operation rights.
On April 1, "Henan Wang" Jianye Group signed a strategic cooperation agreement with Wanda Group, in which Jianye Real Estate handed over all its commercial projects to Zhuhai Wanda Commercial Management in an overall operation and management mode, which was fully responsible for the investment, external leasing, operation and property management of related commercial projects.
Market participants believe that the current real estate cycle is a good time for Wang Jianlin's Wanda Commercial Management to expand its asset-light layout.
03 Xu Jiayin becomes the biggest "loser"
According to the 2022 Hurun Global Real Estate Entrepreneur List, 36 real estate entrepreneurs have lost their wealth in the past year compared with last year, of which China accounts for two-thirds (24th). The biggest drop in wealth was Evergrande's 64-year-old Xu Jiayin, who lost 150 billion yuan.
Despite this, the Hui family still ranks 27th on the list with a wealth of 48 billion yuan, ranking slightly higher than Sun Hung Kai's Kwok Ping Lian family.
However, compared with the operational crisis of Evergrande Group, Xu Jiayin may not have the heart to pay attention to his wealth ranking.
On April 3, according to a report by Hainan Daily, this reporter learned from the relevant departments of Danzhou City, Hainan Province, that recently, the reconsideration organ made a decision to change the original demolition to confiscation on the administrative reconsideration of 39 buildings on Haihua Island. Previously, the relevant departments have held 8 responsible personnel accountable.
At the beginning of 2022, an administrative penalty letter issued by the Danzhou Municipal Comprehensive Administrative Law Enforcement Bureau in Hainan Province showed that 39 buildings built on 2-14-1 plots of land on No. 2 Island, HaihuaDao, Danzhou City, had been revoked due to the planning permits illegally obtained by the project, and the relevant developers were ordered to demolish them within 10 days.
The enterprise that received the penalty decision was Danzhou Xinheng Tourism Development Co., Ltd., a subsidiary of Evergrande Children's World Group Co., Ltd.
Evergrande Tong World Group issued a "Letter to the Owners of Haihua Island" on January 3 in response, saying that the decision only involved 39 buildings and did not involve other plots of land on Haihua Island, and did not involve the plots and buildings of the owners of the acquired buildings and the owners of the uncollected buildings, and said that it would actively communicate and properly handle it in accordance with the guidelines of the decision letter.
The above response said that after more than six years of construction, the Haihuadao project has invested a total of 81 billion yuan in more than six years, involving more than 60,000 owners and 21 formats.
According to the data, the confiscated HaihuaDao No. 2 Island Phase III (VI) project has built a total of 39 buildings, with a total construction area of 430,000 square meters, which will involve about 6,100 owners. Some people calculate that the current house price of HaihuaDao is about 19,000 / square meter, and it is estimated that these 430,000 square meters can sell for at least 8 billion yuan.
According to Deep Blue Finance, the project area was originally planned to be built into a high-rise lanhai, but because Evergrande did not approve the first construction, it was judged by the Danzhou Municipal People's Government to be an illegal building, and it was issued an administrative letter for demolition within a time limit.
Evergrande's "setback" in Hainan is not so, in December last year, Evergrande Real Estate Group Hainan Co., Ltd. in Haikou City 8 plots were also recovered by the Haikou Municipal People's Government free of charge. It is reported that in December 2015, Evergrande Group purchased the land plot for 8.6 billion yuan from New World Development.
In addition, also in December last year, evergrande group Chengdu two land parcels because more than two years of construction has not started, the government recovered without compensation.
Recently, Evergrande has accelerated the pace of asset disposal. On March 29, China Evergrande announced that it intends to transfer the interests of the Hangzhou Crystal City project held by its subsidiaries to the transferee for a total consideration of 3.66 billion yuan.
On March 30, the "Chengdu Evergrande Tianfu Peninsula" WeChat public account was updated, and it was announced that the online registration of 1124 sets of commercial housing for the Evergrande Tianfu Peninsula Tianji Community Project was launched. It is reported that the average opening price of the project is 12,500 yuan / square meter, while the average opening price of another hardcover real estate less than 5 kilometers around the project is about 30,000 yuan / square meter.
An industry insider said that the reason why the opening price of Evergrande Tianfu Peninsula has such a big scissors difference with the surrounding real estate is mainly to clear the inventory as soon as possible and return the funds.
In addition to Xu Jiayin, Shimao's Xu Rongmao family, Country Garden's Yang Huiyan family, Sunac's Sun Hongbin family and Longguang's Ji Haipeng family, all with their wealth falling above $3 billion.
Some people believe that as the policy regulation of the real estate industry becomes more and more refined, the myth of real estate wealth creation fades, and the real estate tycoon will usher in a new normal.
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