Wanda Will Be The Most Valuable Brand In The Future.

Up to now, there are 142 cities in China with a population of more than 1 million.

According to Wanda Plaza site selection criteria: the construction area is no less than 80 thousand square meters, and the radiation population is not less than 400 thousand people.

This means that Wanda needs to sink to more remote areas in order to achieve its goals.

However, the biggest problem in China's real estate market is the oversupply of cities under the second tier cities.

The speed of sales directly determines the turnover of capital, and Wanda will have difficulty replicating the development mode of low price and rapid development.

In the silver age of the property market, real estate has been unable to assume the growth engine of Wanda's carrier.

Wang Jianlin gave two prescriptions, Wanda Plaza, but I will not build money, and the real estate income in the future will continue to shrink to 1/3 of the total income of the group. The so-called light assets will be pferred to the new service industry, including finance, sports, culture, tourism, cinema and so on.

In the next 10 years, 1000 Wanda Plaza will be built, and no further development will be carried out. What should we do?

According to Wang Jianlin's thinking, Wanda's most valuable future should be brand.

Branding and operational services to support revenue and scale expansion is the way he pointed out for Wanda commerce.

Now, Wanda has designed two routes for its light asset model.

First, in the future Wanda Plaza construction, all investments involving land development and development will be handed over to outsiders. Wanda will only be responsible for brand export, investment, design and operation.

The rent of the project is 73 and Wanda accounts for 30%.

In 2015, Beijing, Dalian and other places have signed three cooperation projects adopting this model.

Second, Wanda will sell the built Wanda Plaza to investors at cost price.

After the recovery of development investment, it continued to participate in the operation, and the rent was equally divided into 73.

Of the 25 light asset Wanda Plaza opened this year, 20 have signed the agreement.

The two modes are actually interlinked. Wanda is doing everything possible to reduce its investment in the real estate market.

This will not only reduce costs, but also continue to realize its 1000 Wanda Plaza plans while maintaining revenue, and continue to master commercial resources and customer resources attached to Wanda Plaza.

But the reality is not so simple.

According to Wang Jianlin's 2015 work report,

Rental income of 14 billion 400 million yuan, completed 101.1% of the annual plan, an increase of 30.7% over the same period last year.

But the problem with Wanda Plaza is that nearly 1/3 of it has been rented to affiliated enterprises.

According to the data in 2014, Wanda Department Stores accounted for 24.95% and Wanda cinema accounted for 4.14% of the rental income. The latest data have not yet been released.

The issue of related party pactions is a problem that must be solved in the light asset era.

In the past, Wanda only had left hand handed down to the right hand, but now the introduction of external investors, how the rents of related enterprises are collected, and whether the investors have enough binding force on the rental and management of Wanda? Can investors obtain stable returns from commercial property investment, which will decide whether Wanda light asset model can have a continuous replication capability.

At the moment, we are pushing this pattern with confidence.

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The rental income of Wanda Plaza is more than two digits. Investors can only get about 7% return on the surface, but investors may not invest as much as 7% of Wanda's rent.

The three cooperation projects signed in Beijing, Dalian and other places in 2015 will become the touchstone of the light asset model.

In 2016, these light assets Wanda Plaza will be opened in succession. Whether they can achieve Wang Jianlin's promise on rental income will be recognized by investors in management and will test the vitality of this model.