Long Rental Apartments "Ice And Fire": Head Enterprises Busy Listing 25 Have "Killed"

Survival or death, the long rental apartment in 2019 is facing the ultimate choice.

Since 2018, there have been many problems in the long rental apartment industry. Up to now, 25 parents have rented apartments because of their broken capital chains and poor management.

But on the other side, some long rental apartment head enterprises are already seeking listing, such as green apartments, free and eggshells, including centralized and decentralized apartments.

Long rental apartments insiders pointed out that after several years of horse racing, long rental apartments entered a deep integration period, or bankruptcy is reorganized or listed. Capital requirements are realizable, and business needs more financial support. Capitalization of head enterprises is on the agenda.

But long rental apartments still need to solve the endogenous problems, and the core of the operation is the level of operation and profitability. At this level, developers with financing and operation capabilities are more prominent in their long rental apartments.

Long lease of ice and fire

After the Nanjing Le Jia apartment, another district long rental apartment accident.

In October 8th, the 1600 apartments in Henan were declared unable to maintain operation due to operational and financial pressure.

Prior to September, Yue had accepted the merger and reorganization of Zhengzhou's bin sun Mei Mei apartment. Business information shows that 100% of the company has a stake in Yuet's apartment, and the legal representative has changed.

Yueru apartment was founded in 2014. It once ranked eighth in the domestic long rental apartment brand index.

Yueju is not a case. Since 2018, the problem of long rental apartment industry has been constantly exposed, including apartments, rented apartments, apartment apartments and Hangzhou de Yu, which have been exposed to the problem of capital chain. According to incomplete statistics, up to 25 parents have gone bankrupt due to broken chain and poor management.

In February of this year, it was purchased by Mai Jia apartment after the break of the capital chain of the apartment. In March, the Suzhou Le stack apartment, which was broken by the capital chain, was purchased by the bee village network technology company. In August, the le gal apartment was declared bankrupt.

In twenty-first Century, the economic report found that the current capital chain broken and poorly managed apartments were mostly third party independent brand apartments. Most of them were founded four or five years ago, and expanded rapidly in a short time, and quickly disappeared.

Zhang Hongwei, chief consultant, said that the long rental apartments were "killed" and that most of them were problems in the capital chain, many of which were "rent loans". As the "rent loan" is banned, the survival of a large number of small and medium-sized operators has become the biggest problem. Coupled with the blocked financing of asset securitization, the "money" situation of long rental apartments is worrying.

According to statistics from the same Research Institute, only 5 housing rental ABS approved in the first half of 2019, compared with the first 5 billion to 10 billion in 2018.

One side is the sea, the other is the flame. This year or again will be the year of the listing of long rental apartments. In October 7th, the long rental apartment brand green apartments sent IPO documents to the SFC, which is scheduled to be listed on NASDAQ. It is estimated that financing will exceed $100 million and is expected to become the first stock of long rental apartments. Prospectus shows that by the end of 2018, the number of listings for Qing passenger apartments reached 91 thousand and 200, ranking third among the long rental apartment operators in China.

According to other sources, eggshell apartments are also planned to go to the US, raising funds amounting to 600 million -7 billion dollars.

In addition, the head enterprise has also released plans to list in the US, raising 500 million -10 billion US dollars. However, in October 14th, free CEO bear Lin said that the long rental apartment has entered the intensive farming period, and is not in a hurry to go public.

After several years of development, the long rental apartment has developed a polarization. And those who are able to get out of their predicament are backed by capital.

Public information shows that, including nysin venture capital, Sai Fu, Morgan Stanley and Kaixin capital, over the past few years, Qingdao apartment has accumulated more than $100 million in financing.

The head office of dispersed long rental apartments is more favored by capital. In March of this year, eggshell apartments received $500 million in C round of financing, with a post valuation of over US $2 billion, and in June this year, we received $500 million B round of financing, with a post valuation of US $5 billion.

Deep integration is coming.

In recent years, the mode of long rental apartments is natural or decentralized. Operators are highly dependent on real estate resources, and if they want to capture the market, they must continue to smash up the housing resources of the funds to become the two landlord and lease them to the tenants.

The long rental apartments that are still alive are still expanding. In October 14th, Kerri released the list of long rental apartments. The list shows that among the independent third party brands, the magic cube, music and nest management scale are among the top three, while the head enterprises are still in a more radical expansion.

In this mode, operators can hardly make profits. Take the Qing guest apartment as an example, the prospectus shows that the net income of the first 9 months ended in June 30, 2019 was 897 million 900 thousand yuan, but the net loss was 373 million yuan. In 2017 and 2018, the net loss of Qing passenger car reached 245 million yuan and 498 million yuan respectively.

Green guest apartment also concealed risks. According to the prospectus, the main source of income is rent loan funds. By the end of June 2019, 65.2% of the tenants of the green house were using rent loans, the principal amount of outstanding loans was 872 million 600 thousand yuan, and the total amount of prepaid rent was 790 million yuan.

In the mode of rent loan, once the capital chain breaks, the tenants and landlords will get into an awkward situation and avoid losses.

According to the research data, the average profit level of long rental apartments is only 2%~4%, and the cash flow back to the positive cycle will take at least 6 years.

Although the long rental apartment of the housing company has support from its parent company, it has undergone consolidation. In the first half of 2019, Vanke "Wancun plan" suspended the signing of the new housing supply.

Until now, the industry demands fine operation. Kuri said that under the current industry background, the focus of the development of Housing enterprises is to seek steady growth and increase quality through the pursuit of scale growth.

In the first three quarters of this year, the scale of Vanke Park and Longhu crown residence were 82000 and 60000 respectively, ranking two in the top two. The total volume increased by 10000.

As a leader in the long rental apartment of housing companies, Vanke and Longhu both put forward in 2019 China Daily to enhance the efficiency and quality of project opening.

CEO Shao Mingxiao of Longhu group said that Guan Yu had opened more than 53 thousand businesses last year. This year, nearly 100 thousand will be opened according to the plan, and the income will reach more than 2 billion yuan in 2020. Longhu Guan Yu disclosed that it is expected to make profits next year.

The foregoing companies believe that with the reshuffle of the industry, a series of resources, including capital, will be highly concentrated on the head enterprises. If the long rental apartment operators want to go further, they must solve the problem of profit pattern.

The same policy consultant pointed out that, from the rental yield rate, if only rent, long rental apartments are difficult to establish a long-term profit model; some capable enterprises can get rental cash flow, asset appreciation and future asset securitization expectations through long rental apartment business.

For housing companies, the proportion of heavy assets and self-sustaining residential land is greater. For example, Vanke has repeatedly acquired private residential land through public bidding and auction.

In addition to rental income, heavy assets operation also has the property of asset appreciation and value-added expectation. In terms of pol, Vanke has planned to exit in the future through the way of REITs.