Wu Xiangdong's team switched to the man behind Pengrui's "Shenzhen Bay No. 1" and attacked again

All indications are that Wu Xiangdong, who has been happily in China for more than 1,000 days, seems to be really leaving.

According to the latest industrial and commercial information, Shenzhen Pengrui Real Estate Development Co., Ltd. has taken over 100% of the equity of Huaxia Happiness Shenzhen Urban Renewal Management Co., Ltd., which was renamed Pengrui (Shenzhen) Urban Development Co., Ltd.

At the same time, the company's management has also changed. Zhao Rong, who followed Wu Xiangdong to Join Huaxia Happiness, was changed from the general manager of Huaxia Urban Renewal to the chairman of Pengrui Urban Development, but no longer served as the company's legal representative. Rong Zhao was the Deputy General Manager of China Resources Land South China Region and the General Manager of Urban Renewal Business. The other three managers were all changed to members of the Perennial side, of which Guo Dongfeng was the vice chairman of the board of directors of the Perennial Group.

According to people familiar with the matter, Huaxia City Shenzhen Urban Renewal Company has only made changes in industrial and commercial information, and the subsequent asset transfer is still in the process.

A conjecture triggered by a photograph

On April 8 this year, Xu Hang, the actual controller of Shenzhen Pengrui Group, and Wu Xiangdong appeared together at the scene of the signing of the agreement between Shenzhen Pengrui Charity Foundation and Shanghai World Top Scientist Development Foundation, which triggered speculation that Wu Xiangdong was about to join Shenzhen Pengrui. Shenzhen Pengrui is the developer who developed Shenzhen Bay No. 1, a top luxury house in Shenzhen.

At that time, it was reported that Wu Xiangdong was leaving Huaxia Happiness for Shenzhen Pengrui, and would also take away more than 100 people who had previously followed him from China Resources Land to Huaxia Happiness's southern headquarters. But as of now, Huaxia Happiness has not officially released news about Wu Xiangdong's departure. At that time, there was also news that the southern headquarters of Huaxia Happiness would also be transferred to Pengrui.

Huaxia Happiness Urban Renewal Division was specially formed when Wu Xiangdong went to Huaxia Happiness, and the team led by him was mainly responsible for the bidding of old renovation projects, etc. At the same time, Huaxia Happiness also set up the company's southern headquarters, which was also controlled by Wu Xiangdong.

Wu Xiangdong once said that Huaxia Happiness wants to be the best commercial real estate project in China.

Different from Huaxia Happiness North Headquarters, which focuses on industrial new cities, the Southern Headquarters will focus on investing in the core areas of first- and second-tier cities to develop new businesses such as commercial real estate, high-end residences, health care, and long-term rental apartments. In the past two years, the Huaxia Happiness South Headquarters team led by Wu Xiangdong has become the main force in obtaining land, both through the public acquisition of large-scale commercial complex development and participation in the bidding of urban renewal projects. At present, there are 10 projects in Huaxia Happiness Urban Renewal, of which 6 are in Shenzhen and 4 are in Dongguan, with a total project area of more than 3.3 million square meters.

In addition, the urban renewal landing projects with Huaxia Happiness South Headquarters as the main body are mainly concentrated in Guangzhou, Wuhan, Nanjing, Harbin, Guilin and other places. According to media statistics, in Wuhan alone, from September 2019 to July 2020, the total amount of land acquired by the southern headquarters reached 13.575 billion yuan. What has attracted the attention of the industry is that Wu Xiangdong spent 11.625 billion yuan on September 10, 2019 to win the commercial real estate project of Wuhan Wuchang District Jumbo, which is the debut of Wu Xiangdong joining Huaxia Happiness.

In terms of commercial real estate, Huaxia Happiness's 2020 annual report shows that the company has newly acquired four commercial complex projects throughout the year: Nanjing University Campus Project, Wuhan Zhongbei Road Project, Harbin Shenzhen-Harbin Financial Technology City, and Guangzhou Baietan Project. In the same period, it won the bid for 1 project construction service, locked in the pre-service provider of 3 urban renewal projects, and has accumulated 11 projects selected as pre-service providers. The company has expanded projects covering Nanjing, Wuhan, Guangzhou, Harbin, Dongguan, Shenzhen and other cities.

Some analysts believe that the transfer of these old reform projects by Huaxia Happiness may alleviate some of the current debt crises.

According to the latest data disclosed by Huaxia Happiness, as of June 11, Huaxia Happiness had failed to repay the principal and interest of its debts on time totaling 63.572 billion yuan.

Shenzhen Pengrui attacked

Xu Hang, the actual controller of Shenzhen Pengrui, has obtained a bachelor's degree in computer science and a master's degree in biomedical engineering from Tsinghua University, and is also the head of Mindray Medical (300760. SZ) one of the founders.

According to the data, Pengrui Group is a comprehensive enterprise integrating health industry, commercial operation, real estate development, property management, PE investment, public welfare development and other diversified businesses.

Shenzhen Bay No. 1, a top luxury property in Shenzhen, is the most well-known star project of this real estate company to date. From 2008 to 2018, Xu Hang spent 10 years focusing on this project, and the design of the building was changed 38 times before and after, and the design fee alone cost 350 million yuan. At that time, Xu Hang declared, "I never cared about cost, only quality." ”

It is worth noting that after the development of Shenzhen Bay No. 1, Pengrui only has two old renovation projects in Shenzhen, namely Longhua Jianshang Village and Yantian Enshang Village. Although through cooperation, urban renewal or open land acquisition, Pengrui has frequently landed in other cities in the Greater Bay Area, creating projects such as Shunde No. 1 and Zhuhai Bay Center, in the real estate circle, Pengrui is still a small company.

Xu Hang has said that Pengrui will not develop systematically in the real estate field. However, the hot sales of Shenzhen Bay No. 1 for many years have made Xu Hang have already tasted the sweetness of the real estate industry. As early as the opening of the market in 2013, the minimum pricing of Shenzhen Bay No. 1 exceeded 60,000 yuan / square meter, and the highest reached 170,000 yuan / square meter, breaking through the ceiling of high-rise residential prices in Shenzhen at that time.

Judging from Pengrui's actions in the past few years, Xu Hang seems to want to get another share in the real estate field.

In 2018, Pengrui established Pengrui Urban Renewal Investment Co., Ltd., planning to expand the land area of new projects of about 3 million to 6 million square meters within three years, in addition, Pengrui has also hired more professional managers, including Li Wei, who was once the executive vice president of Yuzhou Real Estate, as the executive director and president of Pengrui Group. Moreover, Perennial has frequently landed projects in Shenzhen, Guangzhou, Zhuhai, Dongguan, Foshan, Zhongshan and Qingyuan.

Xu Hang mentioned in his speech at the 2020 Carnival Celebration that 2019 is an accelerated year for Perennial Group to enter the "regional deep ploughing and national development". As of the end of January 2020, Pengrui has nearly 20 projects in the Guangdong-Hong Kong-Macao Greater Bay Area, and more buildings similar to Shenzhen Bay No. 1 will be erected in the Greater Bay Area in the future.

From the current point of view, Wu Xiangdong's team and Xu Hang have begun to cooperate at the project level, and it seems that it is not so important whether Wu Xiangdong himself eventually joins Pengrui.