350 billion Yuexiu real estate, three times to stir up the Beijing circle

Source: Visual China

Reporter丨Li Huilin, Editor丨Tan Lu, Chen Xiaoping

Yuexiu Real Estate is stirring up the Beijing market.

On June 20, the first batch of centralized land supply in Beijing ended, with 23 parcels of land and a transaction of 71.2 billion yuan.

Among the high rollers who threw thousands of dollars, Yuexiu's new face is particularly violent.

In the past four months, it has won three popular land plots in Beijing, all of which have reached the peak, spending a total of 13.8 billion yuan, and even China Overseas and China Resources have fallen behind.

The long-established developer of a state-owned enterprise in Guangzhou has long been deeply engaged in the Greater Bay Area, and has rarely set foot north of the Yangtze River in the past.

At present, the prospects of the property market are murky, and after lurking in the capital for two years, Yuexiu has begun to attack with a high profile.

Tens of billions of margin calls

Yuexiu Real Estate is the real estate company that spends the most money in Beijing this year.

In mid-June, a residential land in Haidian District, 30 real estate companies "hunted", after several rounds of bidding and bidding, reached a ceiling price of 7.935 billion yuan. In the lottery stage, Yuexiu finally won.

It also aspires to win.

Dong Yi, vice president of Yuexiu North China and general manager of Beijing Company, wore a pink shirt and a red paper bag on the table, writing "Daji Dali".

Harvesting the desired land, Yuexiu certainly has the blessing of luck, and grasping the window period is also the key.

In order to expand the northern market, in February this year, it began recruitment.

Dong Yi was specially recruited by Yuexiu senior management, he served in Xuhui for 6 years, from the head of the strategic cooperation department, all the way to the president of North China. After joining, he now focuses on investment and Beijing companies.

Yuexiu also invited two generals from Jindi, Guo Weizhi and Zhao Feng, to serve as chairman and general manager of the northern region and assistant general manager of the Beijing company.

"Talent construction is ahead, and it will bear fruit immediately." Lin Zhaoyuan, chairman of Yuexiu Real Estate, said.

Sure enough, the harvest soon came.

In February's Beijing soil auction, this new face defeated a number of leading central enterprises, winning the Changping Zhuxinzhuang plot and the apple orchard plot with 2.599 billion yuan and 3.312 billion yuan respectively.

"When the market is hot, we can't get the land, and when it's cold, at some important nodes, we get the land."

Lin Zhaoyuan revealed in March that Beijing is a key city to develop and will continue to increase its holdings at every opportunity.

Since 2023, Yuexiu Real Estate has acquired a total of 8 land acquisitions, and Beijing has three cases, with a total cost of 13.846 billion yuan, accounting for 82.5% of the total land acquisitions.

Entered Beijing twice

Yuexiu Real Estate has long focused on the Guangdong-Hong Kong-Macao Greater Bay Area, especially Guangzhou and Foshan.

In 2022, its northern region accounted for only 4.6% of sales, and its revenue contribution was the second to last, second only to the western region.

Two years ago, Yuexiu once tried to enter Beijing, and cooperated with Beijing Tianheng Real Estate to win the land plot of Liu Gechang in Huairou District at a cost of 4.57 billion yuan.

Unfortunately, it is not good to be a teacher.

In November 2021, the project entered the market and was named "Yuexiu Tianheng Huaishan Mansion", with an average price of 38,000 yuan / square meter. More than a year after opening, it is still struggling to dematerialize.

According to the online signature data of the Beijing Housing and Construction Commission, as of June 21, the total number of pre-sale sets approved for the project was more than 1,000 sets, and the number of online signatures was only 41 sets, with a removal rate of less than 4%.

Referring to the average transaction price of 35,273 yuan / square meter, roughly calculated, the project was only sold for about 176 million yuan.

"It is difficult for buyers with improvement needs to flow in, and investors are afraid of uncertain prospects."

An intermediary familiar with the project told reporters that Yuexiu Tianheng Huaishan Fu belongs to the suburban plate of Beijing, far from the urban area, the surrounding supporting facilities are weak, and the travel depends on the subway, but there are no stops within several kilometers.

Yuexiu began to die and did not make a move in Beijing for two years.

This year, Dong Yi led the team, it re-entered Beijing, adjusted its investment strategy, pointed directly to the central area, and all of them are independent operators.

Lin Zhaoyuan said that Yuexiu actively acquired land this year, there is a warming of the policy side, and there are also structural opportunities.

"Good places are still difficult to find, prices are rising, bad places are still very bad, structural differentiation is becoming more and more serious."

The core area of the capital is naturally a "good place" in Lin Zhaoyuan's mouth.

A real estate source told the "21CBR" reporter that after a brief recovery in the Beijing area, it began to rise and fall in April, and there was also pressure on the sales side; Compared to other cities, the certainty is stronger after all.

The second attack, Yuexiu adheres to the fast development and high turnover route.

Yuexiu Xingyue entered the market in the first batch at the end of April, taking land to opening in only 77 days, with an average price of 62,000 yuan / square meter, 468 house sources, and more than 2,500 sets of intention registration.

Yuexiu Xingyue opening scene

The opening was sold out, which can be described as a "hit hit".

Yuexiu Tianyue, which opened in mid-May, has an average price of 74,800 yuan / square meter, and its record is not cheap. Officially disclosed that 1.8 billion yuan was sold on the first opening day.

This time, it seems that it has gained a firm foothold in the capital.

Scale ambitions

The explosive sale of Beijing projects has strengthened the confidence of Beijing and laid the foundation for this year's performance.

In 2022, Yuexiu's sales will be 125 billion yuan, a year-on-year increase of more than 8%, and it is the only one in the top 30 with positive growth.

In the sales ranking of Clarion, its seat rose 18 places in a row, sitting in the 16th place in the country. During the same period, it was also affected by the market downturn, and the gross profit margin fell to 20.45%.

In 2023, Lin Zhaoyuan's target is about 132 billion yuan, a year-on-year increase of 6%, and from January to May, its contract sales amount has reached 69.519 billion yuan.

At this moment, Yuexiu, to achieve the scale goal, as long as it is done step by step, it cares more about high-quality soil storage.

In June, the intention of selling 8 billion yuan and increasing the position in Beijing may be exactly this.

The premium rate of Yuexiu Xingyue and Yuexiu Tianyue is not high, about 15%, and the floor price is about 25,000 yuan / square meter and 49,000 yuan / square meter respectively, after all, the volume is large, and there is still a large profit space.

"We also have to look at the future market, the core is investor confidence." Lin Zhaoyuan said.

According to data from the China Index Research Institute, Yuexiu acquired 34.6 billion yuan of land last year, and this year it has prepared a budget of 40 billion yuan.

As for the money for taking land, Yuexiu raised a lot of debt to prospect shares.

Since the beginning of this year, it has issued two medium-term notes, raising about 2 billion yuan and 1.4 billion yuan respectively; As of June, its subsidiary Guangzhou Urban Construction has announced three tranches of bond plans, raising a total of 5.4 billion yuan, according to Tianyan.

In June this year, Yuexiu offered 929 million shares at a price of HK$9 per share, raising a net amount of HK$8.36 billion.

"The Company intends to use the net proceeds from the rights issue for further investment in the Greater Bay Area, core cities in East China and other key provincial capitals, and for working capital." It explained in the announcement.

These alone raise more than $16 billion.

The land is soaring, and the volume of Yuexiu is expanding.

By the end of 2022, its total assets were 346.35 billion yuan, a year-on-year increase of 10.4%, and its total land reserves exceeded 28.45 million square meters; Interest-bearing liabilities increased to MOP88.3 billion, of which short-term debt amounted to MOP15.74 billion.

The management plans to control the loan interest rate at 3.65%.

This time tens of billions into Beijing to take land, Yuexiu is continuing to "expand the table". Since the beginning of this year, it has also repeatedly launched in Hangzhou, Qingdao, Shanghai, Chengdu and other places.

The trough of the industry, out of the comfort zone, big expansion, ambition is really not ordinary.