Just now, Vanke has launched its most profitable commercial project.
1. Transaction details.
On 20 February 2024, Link Real Estate Investment Trust** announced that it has completed the acquisition of the remaining 50% interest in Qibao Vanke Plaza. Together with the 50% equity originally held, Linghui holds 100% of the equity of Qibao Vanke Plaza.
Pursuant to the share purchase agreement, Link REIT will pay an amount equivalent to the final base price, which is expected to be RMB23$8.4 billion. Together with April 2021, Link won by 277.2 billion yuan to acquire 50% of the equity of Qibao Vanke Plaza held by GIC. Link finally won Qibao Vanke Plaza with a total of 5.2 billion **.
Compare Qibao Vanke Plaza 70The latest valuation of 600 million yuan, the discount of the first party of the transaction reached 263%, that is to say, Link successfully discounted Qibao Vanke Plaza by nearly 7%.
Shanghai Qibao Vanke Plaza icon is Vanke's first mall in Shanghai, which opened on October 30, 2016. The project is located at the intersection of Caobao Road, Icon Qixin Road, Minhang District, Shanghai, at the core location of Qibao in Minhang District, adjacent to Qibao Ancient Town. The project is a five-storey shopping mall with three basement floors, including retail, leisure, dining and entertainment with approximately 14 retail areas890,000 with 1,477 parking spaces. According to Vanke AICON's financial report, from 2020 to 2023, Shanghai Qibao Vanke Plaza will contribute 36.8 billion, 44.2 billion, 40.8 billion, 50.3 billion, both of which rank first in Vanke's commercial projects, can be said to be Vanke's cash cow.
Second, market speculation.
In addition to this core business asset, Vanke also transferred its holdings of Shenzhen High-tech Investment Group on January 3016% of the equity ** to Shenzhen Investment Holdings*** Shenzhen Investment Holdings, Shenzhen Investment Holdings, and Shenzhen High-tech Investment, with a direct shareholding ratio of 3965% rose to 4581%。Shenzhen Investment Holdings is 100% controlled by Shenzhen State-owned Assets Supervision and Administration Commission.
In addition, Vanke has invested 1.1 billion yuan** in Ryder Court, an office building in Mayfair, central London.
The succession of core assets has made the outside world speculate about Vanke's financial situation.
According to Vanke's latest business briefing, Vanke's cumulative contracted sales area in 2023 will be 2,46600,000, the contract sales amount is 3761200 million yuan, down year-on-year8%。In January 2024, Vanke achieved a contracted sales area of 12540,000, contract sales amount 194500 million yuan, a year-on-year decrease respectively1%。
Vanke's monetary funds continued to decline, and net financing cash flows continued to net outflow, indicating that its external financing environment was poor. Perhaps this explains the reason why Vanke has successively ** assets.
Although there have been no bond defaults in the domestic and overseas open markets, in the face of the poor sales and financing environment, it is necessary for Vanke, as a market vane and state-owned enterprise, to take precautions and dispose of non-core related assets to alleviate liquidity pressure.
As a benchmark real estate enterprise in the real estate industry, Vanke is the vane of the entire market, and it shouted the slogan of "Survive" as early as 2018, which can be described as very prescient. I hope this excellent company will continue to go on.