Source丨Non-performing assets, headlines, comprehensive Youke real estate, etc
Editor丨Zhang Yuan
At the end of 2023, OCT issued an announcement: OCT Shanghai Land and Jinfeng Cement entered into a transaction agreement for the property in Jing'an District, Shanghai, which was listed recently, with a transaction price of 2.43 billion. At this point, Bulgari Shanghai, known as the most expensive hotel, changed hands to a private enterprise in Jiangsu.
The price of 2.43 billion yuan also broke the transaction price of the Tianjin Ritz-Carlton Hotel transferred by China Cinda a few days ago, setting a record for the highest transaction of high-star hotels in recent years.
Refresh the highest price for hotel asset transfers
It is reported that Jinfeng Cement has transferred the money to OCT Shanghai Land. Previously, OCT caused an uproar in the market when it listed its assets for sale in October, one of the reasons was that the scope of the subject matter was the main body of the Bulgari Hotel, as well as the garage and supporting rooms located on Shanbei Road, Jing'an District, Shanghai.
The most expensive suite in this hotel is 260,000 yuan/night, and the lowest price is 5,800 yuan/night, with a total of 82 rooms, among which, the superior city view room can enjoy a panoramic view from the city garden, Suzhou Creek to the city center of Shanghai, and the deluxe Bund view suite can directly enjoy the style of the historical buildings of the Bund and the Oriental Pearl TV Tower, a landmark building in Shanghai.
Built in 2012, the Bulgari Hotel Shanghai is a 48-storey tower and the renovated site of the Shanghai General Chamber of Commerce. Opened in 2018, it has been an Internet celebrity luxury hotel in Suhewan in Jing'an District and even in Shanghai.
Although it was a transaction at the reserve price, it also set a new record for the transaction of hotel assets. Generally speaking, the price of domestic five-star hotels rarely crosses the 2 billion mark in judicial auctions, and the Shenzhen Kaisa Jinshawan Hotel, which will be auctioned in December 2023, has an appraisal price of 2.3 billion yuan and a starting price of 1.67 billion, but it was withdrawn before the auction.
On December 14, China Cinda transferred three hotels, including the Ritz-Carlton Hotel in Tianjin, for 2 billion yuan, which became the highest price in the history of judicial auction of hotel assets.
Private enterprises take over
The buyer, Jinfeng Cement, is the largest cement production enterprise in Jiangsu Province and the largest single cement production base in China. It is 97% owned by Jinfeng Holding Group Co., Ltd., and the remaining shareholders are Xu Guisheng, Gao Jianfang and Xu Yunfei. It is reported that the boss Xu Guisheng has a high reputation in the business circles of Jiangsu and Zhejiang, and has a very important industry position in the field of building materials industry. For many large real estate enterprises, including OCT, Jinfeng Cement is no stranger, and it is a role that must not be ignored on the supplier list.
Founded in 1980 and headquartered in Liyang City, Changzhou City, after more than 30 years of development, it has transformed from a small cement factory on the verge of bankruptcy to a large-scale diversified group with 70 subsidiaries and nearly 3,500 employees, covering cement manufacturing, financial services, steel cord new materials, etc.
Why take over the Bulgari Hotel? Because Jinfeng Group also has its own real estate business, not only for development, but also for property services, there are more than 4,800 acres of land reserves in Nanjing, Liyang, Jurong, Anhui Guangde and other places, and the land reserve is not large.
The company's real estate sector was established in 2010 under the brand of "Jinfeng Real Estate". It has successively developed more than ten real estate projects in Liyang, Jurong, Jiangsu, Guangde, Anhui and other places, such as Jinfeng Chongwen Mansion, Jinfeng Ruiyuan, Jinfeng New Town, Jinfeng Fenglin Mansion, Jinfeng Another City, Jinfeng Vientiane Plaza, Jinfeng Xiangxi Bay, etc.
OCT accounts
Another important reason or an important signal revealed by the industry's attention to this asset sale is that OCT is facing a dilemma, not only in OCT, but also in the development of many central state-owned enterprises.
In 2022, OCT will suffer its first loss since its listing 15 years ago, and it will be a huge loss of 10.9 billion. In that year's annual report, its senior management described the current situation of OCT as follows: it is in the period of the greatest operating pressure and the most risks and challenges since its establishment. At the performance meeting, he also said that 2022 is the heaviest and most difficult year for the company's operation since its listing.
In the first three quarters of 2023, OCT's net profit attributable to the parent company will lose another 3.3 billion yuan, and it will lose 2 billion yuan in the third quarter alone. At present, the decline in the sales of real estate enterprises is not only a one-sided problem of private real estate enterprises, but also the sales of state-owned developers.
In this context, a small number of state-owned real estate enterprises began to clean up some of their assets in order to enrich the current cash flow. For example, China Jinmao sold the Westin Hotel in Beijing's East Third Ring Road, while Joy City Holdings disposed of COFCO Seaview One in the heart of Shanghai and commercial projects along Beijing's Second Ring Road.
According to the announcement at the time of the listing and transfer of OCT, this sale will enable the group to revitalize its assets and accelerate asset turnover.
Therefore, the sale of Bulgari in OCT is very thorough, including 88 parking spaces, which are worth a lot of money in Shanghai. How much does it cost? OCT calculated and posted the account by itself, and the transaction was made at a price of 2.43 billion yuan, which could generate about 57 million yuan in income.
Not much, really.