The Turning Point Of Wanda'S Model: Is Wang Jianlin The Richest Man Or The First?

The lifeblood of Real Estate Company is nothing more than two: Land roots (land reserves) and money roots.

1. Land reserve

All say Xu Jiayin is radical, but Wang Jianlin is not inferior to him.

As of June 30, 2014, Wanda

The total area of the property is 93 million 500 thousand square meters (building area).

Among them: the completed investment property is 14 million 700 thousand square meters, the hotel is 2 million 100 thousand square meters, 2 million 600 thousand square meters are completed for sale, and 56 million 500 thousand square meters are under construction (at the end of 2013, Hengda construction area is 39 million 480 thousand square meters); 17 million 600 thousand square meters are not developed.

theory

Large area and low cost, Wanda Commercial real estate is less than Hengda.

By the end of 2013, Hengda land was distributed in 291 cities in 147 cities. The land reserve amounted to 151 million square meters, of which 45.4% were located in the first and second tier cities, with an average cost of 949 yuan.

However, the market value of Hengda Real estate is only HK $42 billion 200 million, which is less than 1/10 of Wanda Commercial real estate market value.

More land reserves mean large demand for capital.

As of June 30, 2014, 96 projects under construction have been put into 71 billion 100 million, and the market value is estimated to be 555 billion 600 million yuan after completion, but 238 billion 900 million yuan will be invested before July 2017.

In June 30, 2014, Wanda Commercial Real Estate payable amounted to 144 billion 900 million, and the total amount of nearly 180 billion of bank loans and outstanding bonds (6 billion 210 million interest payments in the first half).

So, do not see that there is 74 billion 800 million cash on the account, so I thought I saw "cash cow".

Wanda Commercial Real Estate owes 324 billion 900 million, and 238 billion 900 million to spend, and the demand for funds reaches 563 billion 800 million.

Although there are 74 billion 800 million cash in the account and IPO is expected to melt 37 billion, 131 billion 900 million of the stock can be realized in theory, but the gap still has 320 billion. Wang Sicong is the most short of money in China.

3, the mode of "selling rent for rent" has been pformed into "financing rent".

The premise of "selling rent" mode is that the real estate development and sales business generate huge cash flow.

For example, in 2011, the cash flow generated by Wanda Commercial real estate business amounted to 35 billion 900 million (mainly from property sales).

The problem is: the cash flow generated by business activities in 2012 dropped sharply to 11 billion 500 million, further reduced to 6 billion 800 million in 2013 and 8 billion 950 million in the first half of 2014.

Cash flow has been shrinking, but investment has not been reduced, which has been maintained at 20 billion per year. The huge gap can only be solved by financing activities.

In 2013, the net inflow of financing activities was 37 billion 900 million, up to 35 billion 100 million in the first half of 2014.

If IPO financing is 37 billion (US $6 billion), the annual financing will exceed 72 billion.

To this day, the mode of "selling rent" has been completely pformed into "raising rent".

Fortunately, Wanda has reached the point of "too big to fail": the government can not tolerate hundreds of Wanda Square over the country, and can not let 180 billion loans and bonds become bad loans.

The latter belongs to external financing (external financing), and is debt financing.

As more and more Wanda Plaza is completed and put into operation, the cash flow of Wanda Commercial real estate is expected to turn negative.

According to optimism, financial difficulties can quickly become the past.

From "selling rent to rent" to "renting and raising rent", the only way to rent is not to sell, which determines that the richest person is bound to be "the first to bear", and the debt capacity has become one of the core competencies of Wanda Commercial real estate.