Changchun Wuzhou International Plaza Block C Office Building. Zhang Zhiqiang/Photo
The government has found an investor, and in the future, the C Tower may be turned into an industrial park, and the investor will acquire the house in the hands of the buyer.
Zhang Zhiqiang, reporter of Zhongfang Daily, Guo Jiahao, reported from Changchun
On October 19, the website of Changchun Jingyue High-tech Industrial Development Zone released the investment risk warning tip of the office building block C of Changchun Wuzhou International Plaza: Due to the investment and construction unit's own reasons, the project has been stopped in November 2018, and the investment and construction unit has not delivered the house to the owner according to the time limit agreed in the purchase contract, resulting in the continuous petitioning of the home buyer. Jingyue High-tech Zone is actively coordinating with investment units to start follow-up construction and delivery as soon as possible, and has not yet reached a solution on the relevant work. The project "Commercial Housing Pre-sale Permit" has been frozen by the relevant government departments, and the unsold houses cannot handle the procedures related to the sale and purchase of real estate for the time being.
On the morning of October 26, a reporter from China Real Estate News came to Changchun Wuzhou International Plaza for an on-the-spot interview and found that the huge Wuzhou International Fur City has ceased to be brilliant, most of the stalls in the mall have been closed, only a few chain stores are barely maintained, and the commercial street owners are facing the embarrassing situation of being stopped by the property.
Risk warning tips
Changchun Wuzhou International Plaza Block C Office Building is located at the intersection of Ecological Avenue and Tianhe Road in Changchun Jingyue Development Zone, and is invested and constructed by Changchun Zhongnan Real Estate Development Co., Ltd., a wholly-owned subsidiary of Hong Kong Wuzhou International Group Co., Ltd.
The total construction area of the project is 72,245 square meters, which is composed of three parts: Block C, The Bottom Merchant and the 2# Pavilion, with a total of 328 houses; of which, a total of 278 houses in the C Tower have all been sold; 33 houses have been sold, 31 sets have been sold, 2 sets have not been sold; 17 houses have been sold in the 2# Pavilion, 5 units have been sold, and 12 sets have not been sold.
In order to fully protect the interests of home buyers, Changchun Jingyue High-tech Industrial Development Zone hereby issues the following investment risk warning tips:
1. The sale and purchase of houses in Changchun Wuzhou International Plaza is a civil transaction between the buyer and the investment and construction unit, developer and other enterprises or other individuals, so any consequences arising therefrom shall be borne by both parties to the civil transaction.
2. The general public is requested to earnestly improve their risk awareness, and rationally and prudently invest in the unsold houses in the office building of Block C of Changchun Wuzhou International Plaza before the petition and related problems of Changchun Wuzhou International Plaza are resolved, so as to avoid economic losses caused to themselves due to problems such as housing construction and delivery.
On the morning of October 26, a reporter from China Real Estate News came to Changchun Wuzhou International Plaza. There are three office buildings in the project, two office buildings A and B have been delivered for use, and the main body of the office building in Block C has been completed, but it is in a state of suspension. The risk warning revealed that the project was halted in November 2018.
According to local media in Changchun, the project promised to deliver the house on June 30, 2019, but it was still not delivered in November 2019, and some buyers began to seek government help. At that time, a person in charge of the project said that the developer owed the construction party about 80 million yuan for the project, and the developer wanted to use the housing to offset the project payment, but the construction party did not agree. The developer said that the project is expected to resume work in May 2020 and plans to deliver the house in October 2020. However, until May 2020, the project has not resumed work, and under the coordination of the Jingyue District Management Committee, Zhongnan Real Estate Development Co., Ltd. signed a commitment agreement with the owners, promising to resume work before December 30, 2020, but the project has been suspended so far.
Splendor is no longer mall depression
Deserted Changchun Wuzhou International Plaza. Zhang Zhiqiang/Photo
Changchun Wuzhou International Plaza Block A and B downstairs is Wuzhou International Fur City, September 30, 2016, Wuzhou International Fur City opened, positioned as an international fur commercial Moore, covering leather, fur, leather derivatives, etc., bringing together domestic and foreign first-class leather clothing, fur clothing, fur clothing, boutique leather goods brand merchants settled in operation, is the first set of product wholesale, retail, e-commerce and other business functions as one of the leather fur trading platform. It will become the first comprehensive commercial center in Jilin Province with leather and fur as the theme, integrating shopping, tourism, leisure, entertainment, catering, office and business, and create a leading new experiential urban complex in China for Changchun.
Nowadays, the reporter saw in the mall that most of the commodity stalls on the first, second and third floors have been closed and closed, only a few chain stores are barely maintained, there are few customers, there are several waiters of merchants sitting at the door playing mobile phones, there are no merchants on the fourth floor, the escalator of the mall is only left on the side of the ecological street, and the rest of the escalators have been stopped.
Then the reporter came to the Wuzhou International Plaza commercial street on the side of Tianmai Road, the owner of the commercial street Mr. Zhou told reporters, because of the good location here, he bought the Wuzhou International Plaza commercial street store in 2015, when the price per square meter was about 17,000 yuan, not only that, he also purchased a 60-square-meter office building in Wuzhou International Plaza, and now Wuzhou International Plaza Block C is rotten, Wuzhou International Fur City is still so depressed, the commercial street is also affected, and the operating conditions are very bad. Not only that, they are facing the embarrassing situation of stopping heating here, "The heating of Wuzhou International Plaza was burned by the property company itself, there was no heating last winter, and this year the property company has notified us to stop heating!" Mr. Zhou said that there was no way, he had installed three electric boilers in his shop, and also bought some alcohol, ready to be added to the geothermal pipe to prevent the geothermal pipe from being frozen. The reporter noticed that some shops in the shopping street have installed stoves and chimneys and are ready to burn their own coal for heating.
The curse of the "sale and leaseback" model
Deserted Wuzhou International Fur City. Zhang Zhiqiang/Photo
However, Mr. Zhou, a citizen of Changchun, was glad that he did not buy shops in Wuzhou International Fur City. "At the beginning, the developer promised to buy the shops in the fur city to enjoy after-sales leaseback, and the return on investment was very high, but now it is not OK, the shopping malls are almost yellow, and the leaseback is even more impossible."
According to the 2017 annual report disclosed to the public, Wuzhou International's revenue in 2017 was 3.546 billion yuan, down 6.4% year-on-year; the net loss was 518 million yuan, down 615.5% year-on-year. In addition, Wuzhou International's total liabilities are 21.059 billion yuan, its total assets are 24.845 billion yuan, and the asset-liability ratio is more than 80%. It is also reported that the debt scale of Wuzhou International reached 9 billion yuan in June 2020, and it embarked on the path of selling assets to save itself.
According to the information on the official website, as of the end of 2017, Wuzhou International has entered East China, North China, Northeast China, Southwest China, Central China and Central Plains, and has developed and operated 42 projects in 27 cities across the country, with a total construction area of more than 12 million square meters.
Although Wuzhou International has focused its business on third- and fourth-tier cities such as Wuxi, Yancheng, Huai'an, Nantong, Dali, Baoshan and Xiangyang in order to achieve differentiated competition, it is still difficult to achieve satisfactory management
In addition, the operating model of Wuzhou International's "sale and leaseback" has been questioned. In its prospectus disclosed in 2013, Wuzhou International said that in order to enhance the purchase confidence of potential buyers of its first project, Wuxi Wuzhou International Decoration City (Phase I), the company provided a resale right in 2007 and guaranteed that buyers had an investment return equivalent to 60% of the purchase price.
Since then, Wuzhou International has adopted a similar "sale and leaseback" business model in a number of projects. Some investors pointed out that Wuxi Liulongcheng Commercial Management Co., Ltd., a subsidiary of Wuzhou International, had induced customers in Jiangsu and Zhejiang to buy shops in the form of a 10-year charter, but it has not been able to fulfill its promises, leaving more than 600 owners of the entire mall with no return for their investment.
According to Article 11 of the Measures for the Administration of the Sales of Commercial Housing of the Ministry of Housing and Urban-Rural Development, "real estate development enterprises shall not sell commercial housing by way of returning the capital or disguised returning the capital sales." Real estate development enterprises shall not sell uncompleted commercial housing by means of after-sale charter or covert after-sale charter. ”
Delisted Wuzhou International
On March 26, 2020, China Real Estate News reported that Wuzhou International (01369. HK) may not be able to escape the eclipse of the exit from the Hong Kong Stock Exchange.
On 22 March 2020, Wuzhou International Holdings Limited ("Wuzhou International") announced that the Company had received a letter from the Exchange on 13 March stating that the Listing Committee of the Exchange had decided to cancel the listing status of the Company as the Company's securities had been suspended from trading on the Stock Exchange with effect from 3 September 2018 and the Company was unable to comply with the Resumption of Trading Guidelines by 2 March 2020.
But Continental International still tries to preserve the last glimmer of hope. On 24 March 2020, Wuzhou International stated that it submitted a request to the Listing (Review) Committee pursuant to Rule 2B.06(2) of the Listing Rules to review the delisting decision.
"The application for review and delisting decision will not change the final result, Wuzhou International will definitely delist, and due to the poor restructuring, it will eventually enter the bankruptcy liquidation link." A person who served as a strategic consultant for Wuzhou International's restructuring told China Real Estate News. At that time, the assets of its overseas shareholders and creditors will be cleared, and as for the domestic joint venture shareholders and creditors, only a very small number of them can get a small amount of returns.
It is reported that on December 8, 2020, Wuzhou International, which has been suspended since September 3, 2018, was officially delisted from the Hong Kong Stock Exchange.
During the interview, the reporter saw a sign posted in Wuzhou International Fur City that read "C Tower Check Out", and the reporter came to the office on the first floor according to the sign, at this time there was no one in the office, but there was a real estate consultant's phone posted on the wall. After the reporter dialed the past, the property consultant said that now the relevant departments of the Jingyue District Government have intervened in this matter, and buyers who have purchased the C Tower of Wuzhou International Plaza can come here to register. "It is said that the government department has found an investor, and in the future, the C Tower may be turned into an industrial park, and the investor will buy the house in the hands of the buyer."