Wangfujing Is Holding Hengda To Set Up Two Joint Venture To Integrate Retail And Real Estate.

In October 31st, the Wangfujing announced that the company intends to carry out strategic cooperation with the Evergrande Real Estate Group Ltd. Through the establishment of a joint venture company, it will give full play to the professional advantages of both sides and integrate the resources of commercial real estate and retail industry to achieve the company's strategic development goals.

Wangfujing will jointly invest in two joint ventures with Hengda Group, one of which is a joint venture of commercial property. The name is tentatively set up by Wangfujing department store Hengda Commercial Co., Ltd., the main business is the development of urban complex or commercial real estate; the other is the business management joint venture company, which is tentatively named "Wangfujing Hengda department store business management Co., Ltd.", the main business is to manage and manage the commercial property within the agreed scope of the two parties.

The registered capital of commercial property company is RMB 1 billion yuan, of which Hengda Group invested 510 million yuan, holding 51%, and Wangfujing invested 490 million yuan, holding 49%.

The board of directors of a commercial property company consists of 7 directors.

Among them, Evergrande group nominated 4 directors, Wangfujing nominated 3 directors, of which the chairman was appointed by Hengda Group, and the general manager and chief financial officer were appointed by Wangfujing.

The registered capital of commercial management companies is RMB 50 million yuan, of which Wangfujing invested 25 million 500 thousand yuan, holding 51%, and Hengda Group invested 24 million 500 thousand yuan, holding 49%.

The board of directors of a business management company consists of 7 directors.

Among them, Wangfujing nominated 4 directors, and Evergrande group nominated 3 directors, of whom the chairman was appointed by Wangfujing, and the general manager and chief financial officer were appointed by Hengda Group.

Wangfujing said that through the strategic cooperation with Hengda Group, the company will give full play to Hengda's commercial property development and construction advantages and the business management advantages of Wangfujing, bringing sustained commercial real estate resources to the company and reasonably enhancing the proportion of the company's own property.

Obtaining high cost, unstable source, unreasonable property structure and other risk factors can also ensure the stability of our company and the sustainability of its future development, in line with the company's development strategy.

Analysts believe that

Main business is comprehensive.

The operation and management are now fully promoting the strategic pformation and landing, and vigorously layout 2 or 3 line cities. Most of the stores are located in the golden section of the core business district of the city, and the profitability will be improved with the environmental warming.

Through the strategic cooperation with Hengda Group, Wangfujing will give full play to the advantages of Hengda Group's commercial property development and construction and the business management advantages of Wangfujing, bringing sustained commercial real estate resources, while avoiding the risk factors such as high cost of obtaining property, unstable sources, unreasonable property structure and so on, while ensuring the stability of operation.