Vanke has begun to implement the "slimming" plan.
According to the information publicized by the Shenzhen Public Resources Trading Center, the T208-0053 parcel of land use rights of the Shenzhen Bay Super Headquarters Base was listed for transfer, with a starting price of 2.235 billion yuan, and the listing time was from May 18 to May 27. This is a land parcel that currently belongs to Vanke, and it has been nearly seven years since the land was acquired.
2.2 billion yuan was listed for the transfer of a plot of land in Shenzhen
Today (May 8), the Shenzhen Public Resources Trading Center launched a new land transfer information, publicly transferring the use right of the T208-0053 parcel by way of listing, with a starting price of about 2.235 billion yuan.
It is reported that the land is located in Shenzhen Bay Super Headquarters Base, the first sale for Vanke in December 2017, the land area of 19,227.53 square meters, the nature of the land is mainly commercial offices, etc., the purchase price at that time was 3.137 billion yuan.
Source: Shenzhen Public Resources Trading Center
Vanke responded that the listing and transfer of the land is one of the company's measures to resolutely promote the implementation of the package of slimming and fitness. The plot is a commercial office project acquired by the company in the rapid development stage of the industry, and was originally planned to be mainly used for office use by employees in Shenzhen. In view of the major changes in the current industry situation, the company plans to no longer build the project, so it intends to transfer the project as a whole, reduce the occupation of funds by non-main business assets, and focus on resources to do a good job and strengthen the three main businesses. The company is firmly optimistic about the development of Shenzhen Super General Area, and is still one of the enterprises with the highest participation in the construction of the area. According to people familiar with the matter, Vanke's agency construction projects in the Shenzhen Super General Area have not been affected and no changes have occurred.
Promote the "Slimming and Fitness" program
At the recent Vanke shareholders' meeting, Yu Liang, chairman of the board of directors of Vanke, just explained in detail Vanke's slimming and fitness package, and it quickly landed in less than a week.
Yu Liang said that the package mainly includes two phases. The first stage is to firmly slim down, adjust the financing model, and degrade the risk. Specifically, in addition to the three main businesses of comprehensive residential development, property services, and rental apartments, it will withdraw from other businesses and clean up and transfer financial investments that are not its main businesses. Resolutely and vigorously promote the transaction of bulk assets such as commercial offices, and plan to complete 20 billion yuan per year. At the same time, it took the initiative to complete the transformation of the financing model. In the second stage, Vanke will focus on its main business, refine its business, and become a benchmark for products and services in the industry. The package is not just a shrinkage and pressure drop plan, but also an aggressive plan. The first stage of slimming is to gather resources and lay the foundation for the second stage.
Yu Liang also said at the shareholders' meeting, "At present, the industry has undergone profound adjustment to a new stage of development, which is bound to be a process of 'slimming and fitness', which is by no means easy, but the result is to a healthier and high-quality development." The current pressure is phased, and the next two years will bear initial results, and the company can only achieve sustainable development by coordinating debt reduction and high-quality development."
As early as the beginning of this year, Vanke's "slimming plan" has begun. In February this year, Vanke transferred the remaining 50% stake in Shanghai Qibao Vanke Plaza to Link REIT for a transaction consideration of RMB2.384 billion. Vanke said that since it acquired the land in 2008, it has achieved a shareholder IRR of 15.7% after development, construction, operation and management until exit. At the end of last year, Vanke also sold its stakes in three subsidiary Banyan Tree Services (China), Banyan Tree Hospitality Management (China) and Banyan Tree Hospitality Management (Tianjin) for 480 million yuan.
Liquidity is under pressure in the short term
In the face of liquidity pressure, revitalizing existing assets and recovering cash has become one of Vanke's important tasks.
According to the data released by Vanke, in April this year, Vanke achieved a contracted sales area of 1.643 million square meters and sales of 20.89 billion yuan, and from January to April this year, Vanke achieved a total contracted sales area of 5.554 million square meters and a contracted sales amount of 78.87 billion yuan. In terms of new projects, since March 2024, Vanke has not added any new development and logistics real estate projects.
In terms of financing, according to Zhu Jiusheng, President of Vanke, Vanke is currently facing three challenges in financing, one is the imbalance between revenue and expenditure of development business, the second is the financing model from the total to the total to the project system, and the third is that the rate of return on operating business does not cover the financing interest rate.
In response to this, Vanke is implementing three key tasks: first, the implementation of the real estate financing coordination mechanism (white list), as of the end of April, 59 projects have applied for inclusion in the white list; the second is to vigorously promote operating property loans; The third is syndicated loans, which Vanke has received from many banks, which can improve the efficiency of bank-enterprise cooperation, and is currently being actively promoted.
On May 8, as of the close, Vanke A reported 7.2 yuan per share, down 4.26%.
Editor-in-charge: Jiang Saisai
Inspector Zhang Xiaonan
Source: 21st Century Business Herald, Securities Times, China Fund News, Finance Associated Press, Jiemian News