At The End Of This Year, Jinhui Plaza Will Be Reopened With The New Image Of "Tianjin Peace And Joy City".

Tianjin Nanjing Road, the bustling Binjiang Road business circle, the Yingkou Road subway cover, surrounded by fourth blocked old Tianjin shopping mall Jin Hui square.

By the end of this year, "

The new image is reopened.

The city of joy brings a series of independence to Tianjin.

Shops, Tianjin's first four level "flying ladder", social theme restaurants and other new Tianjin concept business.

In the past two years, commercial property has been dismal, and there are 90 major shopping centers.

More than half of the shopping centres lost profits or even lost money.

The great joy City, which took over the Jinhui square, which has been poured down, is the company that claims to be expanding against the trend.

The company opened two new joy cities last year, and the newly built Hangzhou Joy City and the pformed Tianjin Joy City were newly built, and the remaining 35% stake in Beijing Andingmen project was acquired.

If it can be successfully opened at the end of this year, the city of peace will become the eighth Shopping Center for the opening of Yuecheng real estate.

The chairman of the board of directors, Zhou Zheng, said that 20-30 pleasure cities will be opened in five years.

The expansion of joy city is a difficult time for commercial real estate operation.

A recent commercial real estate practitioner who has just switched to the real estate industry says many of his old colleagues are leaving or considering leaving commercial real estate.

Judging from the current business situation of the mall, the joy city is a small shopping center where rent and passenger flow are still growing.

Yuecheng real estate financial report shows that as of the end of fiscal year 2015, the Group operates 7 joy cities in Beijing, Shenyang, Shanghai, Tianjin, Yantai, Chengdu and other places, with property rents in Beijing, Shanghai, Hongkong and other places.

The rental income of Yueh city investment property last year was 2 billion 184 million yuan, of which 7 of the retail rental income of 7 Yuecheng city was 1 billion 731 million yuan, an increase of 14% over the same period last year.

Although revenue is still growing, the growth rate of passenger flow in Yueyue city is also falling.

In response, Wu Zheng, deputy general manager of Yuecheng real estate, admitted to the interface reporters that it was really not easy to do business in the past two years, and made a lot of innovations. But in the big environment, it is very difficult for the shopping center to maintain growth.

People's lifestyles are changing. The retail department stores have been greatly impacted and squeezed by the electricity providers. The shopping centres that emphasize the experience of formats seem to have increased the competitiveness of differentiation with the electricity providers, but they must also face competition from the rising new industries such as Zhou Bian, fitness centers and other new industries.

At the same time, the city of joy, which is betting on the domestic commercial real estate in the adjustment, is also under tremendous pressure from the economic and environmental changes.

According to the financial report, as of the end of fiscal year 2015, the net profit of Yueyue city was 959 million yuan, compared with the net profit of 1 billion 984 million yuan in 2014, which fell by more than 50%.

In such an environment, why should the joy city expand in an opposite direction? How can the company support their expansion plan?

In 2015, COFCO Land Holdings (00207.HK) was officially renamed "Joy City real estate".

This is a very important step in the re integration of the COFCO company, which will become a Hong Kong listed companies focusing on commercial real estate in COFCO.

That means at least three things:

First, the company must make the scale of the commercial complex of the joy city brand go up and become a company mainly based on rents and operation management fees.

Second, we must make light of assets so that we can achieve expansion. When opening several new projects, we have little influence on the overall financial well-being of the city.

Only by making assets lighter, do we not need to sell houses to make up for cash flow in the future.

Third, increase the rate of return.

Wu Zheng said that the speed of expansion, the shift from heavy assets to light assets and increased returns are the three requirements for investors in the capital market.

Whether these three points can be achieved will be related to whether the valuation of joy city can continue to rise in the asset market, and the key to achieving them is the improvement of profitability.

In other words, even if the market is not good, joy city must expand and find a low-cost and rapid expansion path.

Looking for opportunities in a potentially worse market, Zhou found what he called "activating shock fish".

The first practical case of this model is Tianjin peace and joy city.

According to the news obtained by Yuecheng real estate, since the end of last year, we formally took over Jinhui Plaza. So far, the new peace joy investment promotion business has completed nearly 30% of the contract signing, and the intention of the customers is more than 50% of the total demand.

The most important thing is to pform Jinhui square into the most prosperous old business district in Tianjin.

This is the first practice of light asset management output in Yuecheng real estate. The real estate does not own Jinhui square shares, but it will share the rental income and net income (NOI) with Singapore Government Investment Company (GIC). At the same time, it will also be rewarded with the goal of exceeding the target. The output of the product line, such as the joy city 5 garage and the good food bureau, will also receive operating income.

In addition, once Yuecheng production decides to withdraw from the project, it will also gain the share of assets appreciation gains.

Wu Zheng said that when he approached the project in August last year, Joy City real estate had considered acquisitions, but because of the difficulty of splitting up Jinhui square as a complex, Joy City finally chose the way of light asset management output.

"It takes 30 months to make a new joy city from land to business.

But if it is the pformation of the old project, from pformation to practice, it will take only 12 months.

The savings of 18 months are almost enough to run a newly opened great joy city to a slightly more popular level.

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In the context of the overstock of commercial real estate, with the further adjustment of the commercial real estate market, similar shopping centres such as Jin Hui square are operating away from the commercial real estate market.

As a "slow company", Joy City real estate has found a high speed way to expand it in such an environment: through mergers and acquisitions or light asset management export cooperation, it has become a predator of old commercial inventory, occupying a good lot that has not been able to win, and opening more big Yue City.

The practice of Tianjin peace and joy city has brought them more confidence.

They have even begun to set up an independent business management company.

Yuecheng real estate will hold 100% stake in the business management company, and help the company speed up the expansion of the city's mergers and acquisitions and light assets cooperation.

A business management team of nearly 30 people is looking for a commercial inventory project that is suitable to be pformed into joy city across the country.

"As long as we meet the volume (standard), we will actively participate in mergers and acquisitions."

At the 2016 investor performance conference, Wu Zheng even told investors.

So far, Joy City real estate has approached dozens of suitable projects, the main strategy is to use direct mergers and acquisitions, small stock trading or even stock free trading.

"Two new front-line cities and several key second tier cities will soon have our new projects."

According to Wu Zheng, three of them have been contracted for renovation projects.

One year, three projects have been finalized, and they have been promoted to start their business in the next year.

"In the future, the number of renovation projects will exceed the number of new projects."

Wu Zheng said that in the second tier cities and the key three provincial capital cities, 100 thousand -20 10000 square meters of "shock fish" project located in the core area of the city will become their target.