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    Sun Hung Kai'S Entry Into The Market Or Changes In The Business Circle

    2015/3/8 21:05:00 17

    Sun Hung Kai ProjectBusiness Circle PatternShanghai

    Guo Binglian, chairman and managing director of Sun Hung Kai, revealed that the Shanghai Xujiahui center project, which was purchased in 2013, will enter the market next year in Hongkong at the mid term results of the 2014/15 fiscal year.

    This is what will be the impact of Shanghai's landmark Xujiahui area, which is the focus of the market.

    Moreover, because of the huge volume of the project, it is more likely to bring about changes in the urban business pattern.

    Besides, what kind of attitude will be adopted in the original business circle to meet this large project? Song Huiyong, director of the Central Plains property consultant research and consulting department, pointed out that the region is in a state of rapid adjustment.

    He also believes that with the entry of the market to the urban level, there will be some diversion, but it will be difficult to change or even subvert the urban business circle. The influence will not reach the urban level.

    The Xujiahui central project was purchased by new Hongji. After being interviewed by the new media, Deng Weicong, Sun Hung Kai director, said that the group attached great importance to the project and Shanghai was the key area of Sun Hung Kai's mainland layout.

    On the morning of September 5, 2013, the Shanghai Xujiahui central block was closed to the spot auction. In the competition with the Kowloon warehouse Henderson consortium, Sun Hung Kai finally won the land at a total price of 21 billion 770 million.

    The floor price is 37264.4 yuan / m2 and the premium is 24.21%.

    The plot broke the record of the most expensive land in Shanghai with a total price of 17 billion 526 million yuan, and the paction price also became the national king in 2013.

    After winning the plot, Dong Zihao, executive director of Sun Hung Kai estate agency, responsible for Xujiahui central project, introduced that the whole Xujiahui center project was divided into 4 plots, of which 1, 2 and 3 were used for sale, and 3 office buildings will be built on block 4, of which 1 were planned to be a high-rise building by Pu Xidi.

    "We will sell towers 2 and 3, and we will expect more than HK $20 billion after the completion of 40% area sales.

    Our own collection of rents is mainly in block 4, shopping malls, pedestrian streets and hotels, covering an area of 420 thousand square meters.

    At the Hongkong performance conference, Guo Binglian said that at present (Xujiahui Center) the first block has completed the floor before the new year, and now the building is being built. It is expected that the structure of the building will be completed by the end of this year and will be imported by the end of next year.

    He further pointed out that the first phase is the junction of Huashan Road, with 300 thousand square feet of Commerce and 160 thousand square feet of office buildings.

    "No. second plots are also being built after the new year.

    The remaining third and fourth plots have been completed.

    In the middle of this year, storage and storage projects began.

    along with

    Xujiahui

    The center gradually started construction and ushered in a clear opening node. A bright picture is already in sight.

    And before the sale of the land, the Xuhui Binjiang block associated with it is also ushering in new changes.

    As early as 1995, South Korea Daewoo and Xuhui mall jointly invested $100 million to establish Daewoo, Shanghai.

    Subsequently, after the Asian financial crisis and repeated pfers, the control right of the Xujiahui center belonged to Shang Shi holdings.

    Until May 2013, the city of Shanghai, under the banner of Shanghai holdings, announced the abandonment of the massif and replaced the land of the Xujiahui center into four plots of Binjiang, Xuhui, with a total area of about 83 thousand and 200 square meters.

    According to the latest news, the Binjiang block will be built as the center of Binjiang City, and a large city complex with an overall volume of about 500 thousand square meters covering office, business, culture, leisure and other industries will be built.

    The opening ceremony of the Binjiang City Center opened in December 2014.

    However, the latest view of the real estate company revealed that the project has not yet entered the construction stage, and there is no definite starting time.

    With the approaching of the Xujiahui center project, Shanghai's Xujiahui business circle is facing the project in a unique state.

    Public information shows that the total construction area of the Xujiahui center project is 584 thousand square meters, including 400 thousand square meters of office and 184 thousand square meters of commercial and hotel.

    In addition, there are 120 thousand square meters of business underground.

    Its capacity has been equivalent to the total commercial office area of the Xujiahui commercial circle.

    In the face of such a huge volume project, the impact on the region can not be underestimated, and the commercial bodies in the region have also begun to adjust.

    Song Huiyong, director of research and consulting department of Zhongyuan Property Consultant, pointed out that the Xujiahui business circle has already made some adjustments, including clearing the computer city part and increasing more food and entertainment content.

    Although the Xujiahui center will be able to develop into what kind of commercial projects it is aware of, the original format of the region is quite responsive to the "wolf coming".

    Whether or not it will develop into a "wolf coming" end, we still need to wait until the project is completed.

    "If the Xujiahui center comes out and the pace will be more open, it will bring a lot of pressure to the original format."

    Song Huiyong believes that the existing regional

    adjustment

    In the first round, if the pace of Xujiahui's center is big enough, it will also push the old format to adjust in the second round.

    "Moreover, the original commercial sector could not wait for the opening of Sun Hung Kai's project, which made the region in a state of rapid adjustment."

    Song Huiyong added.

    At present, the more representative business in the commercial circle is the traditional department store format built in the 90s of the last century, such as the eastern commercial building, the Pacific department store, the Zhongxing Department store, etc.

    As for the Xujiahui center's entry into the region under the establishment of Sun Hung Kai, the market is generally optimistic.

    Some market participants pointed out that "the consumption power in the business circle is enough to support them, and there is also a certain space gap with neighboring Lujiazui, Nanjing road and Huaihailu Road business circle. There is no direct confrontation."

    In fact

    Song Hui Yong

    It also indicated that the challenges faced by the project are not many, and that there are some mismatches with other business circles, all of which are competition at the urban level.

    As for the impact of the market entry on the urban commercial pattern, Song Huiyong believes that there are certain diverts to the urban level, such as the reversing of some customers in the neighboring business circles, but it is difficult to change or even subvert the urban business circle, and the influence will not reach the urban level.

    "If we can go up to the urban level, it will be a project like Disney, and the rest is regional."

    Song Huiyong pointed out that the vast majority of consumption power comes from the region and no one can overturn anyone.


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