Real Estate Predators Spend 600 Million To Buy Leather City

Facing the new round of commercial real estate development climax, many real estate predators who have been silent for a long time can not sit still. Zhongsheng is one of them.

This reporter learned from Zhongsheng group recently that the company has spent 600 million yuan to buy a large commercial property in Tongxiang, Zhejiang, and stepped out of the new round of investment in commercial real estate.

Shao Lianxiang, general manager of the Group sales center, said Zhongsheng has experienced a long silence. The acquisition is just a new start. In the future, the group will focus on commercial real estate.

For the Zhongsheng group, which is concerned about the market, through the holding company Tianchen shares (600620) to achieve the overall listing, Zhongsheng group said that there is no specific arrangement and timetable for this time.

To expand the commercial real estate, to mention Zhongsheng group, a senior Shanghai real estate insider is no stranger to it, but it is also very mysterious.

Xie Lipei, the founder of Zhongsheng group, has always been low-key. He first appeared on the list in 2002 and was named the "Shanghai real estate magnate" in the Hurun China rich list sixth.

Xie Lipei, a math teacher, immigrated to Australia in 1979 and won the first pot of gold through trade there.

In 1989, the land price hit the bottom and leaves the capital invested in the real estate market in Shenzhen.

Subsequently, the Shanghai market entered a long-term focus on high-end residential investment. Shanghai's famous "capital city" and other high-end properties are from Zhong Sheng's hands.

In 2003, Zhongsheng group went to Hong Kong to go public and ran aground. In the following years, the company had not invested in the new investment so much that the real estate predator was almost forgotten.

This project is located in Tongxiang, Zhejiang, Tongxiang. The total construction area is 170 thousand square meters. It has been built in three districts, A, B and C, with a total area of about 96 thousand square meters.

Including late development, the total investment of the whole project is about 600 million yuan.

The project is located in the professional market of luggage, fur clothing, fur and shoes.

It is understood that Tongxiang is the main production base of leather raw materials, many domestic leather garments, shoes and bags. It is one of the famous leather distributing centers in the country, and the leather processed for export accounts for over 75% of the whole country.

In addition to the above reasons, the future appreciation potential of the property is another key factor to attract Zhongsheng.

"Compared with the real estate prices of the same rank counties and cities around the world, the price of the Tongxiang market is relatively low, and it is in the value depression area of Jiaxing, Zhejiang. What the foreign investors are looking for is the potential appreciation of the property in the future."

An insider in Tongxiang told us this reporter.

The acquisition of leather city is only the first step in Zhongsheng group's layout. Zhongsheng is considering continuing to buy part of the land around the leather city so as to achieve comprehensive development.

At present, the entire leather city has around 1000 mu of land to be developed, and its land price is 700 thousand yuan / mu, which is much lower than the land price in the mature area.

Shao Lianxiang revealed that Zhongsheng group has identified a new round of real estate investment focused on commercial real estate, looking for opportunities in the two or three tier cities.

Tang Xiaodan, general manager of Zhongsheng home sales department, admitted that Zhongsheng group will increase the scale of quality property in a large scale in the future, and "Tongxiang fashion skin city" is one of the important holdings of Zhongsheng banner.

In the past, Zhong Sheng's investment focus was mainly in Shanghai.

In 2006, Zhongsheng group announced three major development projects in Shanghai and its surrounding areas, including residential, office buildings and shopping malls. The total investment amount is expected to reach 8 billion 800 million yuan.

Do you want to compete on the whole?

"In fact, Zhongsheng group has no large-scale action in recent years, and it has a certain relationship with the competition among its listed companies Tianchen share.

And this Zhongsheng will start a new round of commercial real estate investment, and solve the problem of competition between the parent company and the listed companies is the key.

A securities analyst told reporters.

Zhong Sheng Sheng group holds a 25.08% stake in Tianchen shares through its Shanghai Zhongsheng Hongqiao Real Estate Development Co., Ltd., holding a relatively controlling position.

The main business of parent company and listed company includes real estate.

The three quarter report of Tianchen shares in 2007 showed that the cash inflow of the company's business activities increased significantly to 430 million yuan in the first three quarters of this year, compared with only 219 million yuan in the same period last year.

In contrast, the cash outflow of investment activities was only 8 million 640 thousand yuan in the first three quarters, which did not increase or decrease compared with the 13 million 160 thousand yuan in the same period last year.

The cash flow statement of the parent company disclosed in the three quarterly report shows that the cash inflow of business activities in the first three quarters was 149 million yuan, a doubling of the same period last year, while the cash outflow of investment activities was 100 million yuan, a substantial increase over the same period last year of 1 million 20 thousand yuan.

According to the data from the first three quarters of this year, to some extent, the capital outflow of Tianchen stock company's investment activities has increased significantly, while the listed companies have not increased or dropped.

In addition, Zhongsheng group has invested hundreds of millions of yuan in its new investment. The investment division between the parent company and the listed company has appeared on the surface.

"The best way to solve the competition in the same industry is Zhongsheng's listing on the platform of Tianchen shares."

The analysts said frankly.

Public information shows that Tianchen shares large shareholder Zhongsheng Hongqiao real estate, in Shanghai has a large number of land reserves and real estate, including the Shanghai Pudong International Airport South Gate 400 acres and the ShangHai Railway Station North Square 16 acres of land is a convenient industrial gold area, due to the recent shortage of land in Shanghai and the rapid rise in prices, this asset appreciation potential is quite large.

The early development of real estate projects has gradually entered the harvest period. In 2007, the China Daily reported that its pre paid commercial housing revenue had reached 423 million. The three quarterly bulletin company announced that the first phase of the rose Plaza Project in North Sichuan Road, Shanghai will enter the settlement at the end of the year, and the performance in 2007 will increase by 100% over the same period.

At the same time, the company's general building project in Beijing has been sealed down and is being processed for pre-sale. The project is expected to become a new profit growth point for the company in the future.

In February 2007, Tianchen shares issued a notice on the listing of major shareholders. "So far, Zhongsheng group has not planned to go on the market as a whole in the A share market."

Recently, Shao Lianxiang also told reporters that there is no specific arrangement and timetable for the overall listing.