24 Billion Build Chongqing New Landmark Singapore Kade 25 Years Heavy Warehouse China'S Killer.

In October 15th, it invested 24 billion yuan to build the official lighting of Chongqing Raffles in the past 8 years. This is the largest single item of Singapore's investment in China.

24 billion is also the largest investment by the Cade group. As a foreign-funded housing company, Cade has worked hard in the past 25 years to focus on the Chinese market, focusing on the five major urban agglomerations. The Chinese market has contributed more than 40% of the profits to the group.

As a professional real estate development, operation and fund management company, Cade's operation and capital platform is different from Chinese developers. Li Zhiqin, CEO of Cade group, is expected to achieve the same level as Blackstone.

Cade's investment path

Choosing Chongqing is the potential of China's second tier cities.

Li Zhiqin said, "Chongqing is a key city both in the development of the central and western regions, or in the" one belt road ".

Kade layout China around five city groups, "Southwest focus on Chongqing, Chengdu and Xi'an", Luo Zhenyu, President of the Cade group responsible for China's business, said that next will find opportunities for investment in Chengdu and Xi'an.

Cade continues to optimize China's layout. In January 2018, Cade sold 20 shopping centers in China to Vanke India for 8 billion 365 million yuan, mostly in three or four tier cities.

And then Kade bought a big second tier city asset. First, he bought the International Center project of Shanghai the Bund north port with 12 billion 800 million yuan, and then bought the PUFA building of Lujiazui for 2 billion 800 million yuan.

As an international company, Kade is also in the US, Europe and Japan in addition to Singapore and China. Compared with other markets, Li Zhiqin believes that China still has many opportunities.

Cade group revealed that from November 2017 to the end of 2018, the amount of investment and acquisition of Cade in China totaled more than 32 billion yuan.

At the beginning of this year, Cade expanded the business line with the acquisition of Star Bridge by 11 billion new currency. It also had industrial parks, industrial and logistics real estate and data centers.

"After merging with star bridge, the current shareholders' capital is about 22 billion new coins. If we have to achieve a net return on assets of 10% per year, and at least 100 million of the profits should be earned, we should allocate investment accordingly. Li Zhiqin said.

At present, Kade manages assets to reach about 130 billion new currencies, becoming Asia's largest and the world's top ten real estate asset investment management company.

Two "killer"

Cade is a real estate enterprise mainly engaged in commercial real estate. The investment and capital accumulation of commercial real estate is huge and long-term. It is difficult to achieve without financial support.

Commercial real estate can not rely solely on its own capital. Kade's "killer" is to have a complete capital platform.

Cade will invest in the development or acquisition of projects, packaged into private equity funds or trust funds, holding some of the fund's equity stake, and the other part of the shares by such as pension funds, insurance funds and other overseas institutional investors held. After the operation of the project is stable and asset appreciation is realized, REITs will be withdrawn and circular investment will be carried out.

"Our private equity funds come from the United States, Canada, Japan, Australia and other countries. They are very interested in the Chinese market, but they do not understand it. They hope to enter the Chinese market through such partners as Cade." Li Zhiqin said.

This mode, "when assets have a steady income, they can be injected into the listing fund, and the funds can be reopened and reinvested." Li Zhiqin said.

At present, Cade has 8 listed real estate trust funds, 7 are listed in Singapore, and 1 are listed in Malaysia. There are also Cade commercial China Trust and Ascott Guangzhou trust.

Luo Zhenyu said, "more than 10 years ago, many colleagues did not do commercial real estate, even if they were sold in bulk. But now more and more local developers are also doing commercial real estate, which is an inevitable trend.

Among Chinese developers, there are more commercial real estate operations, such as Wanda business, Huarun land, Vanke and India business, Longhu, COFCO and joy city.

Cade is not worried, "we have a complete industrial chain, from residential, office buildings, shopping centers, business complexes, service apartments to industrial parks, etc., can cooperate with the government, can bring leading businesses, foreign investment, can operate from a larger scale." Li Zhiqin said that the integrity of the operation platform and management team is another unique advantage of Cade.

Luo Zhenyu believes that the holders of commercial real estate assets will be more professional and capital platform more yuan, they are not necessarily developers, such as ping an real estate, China Life and other life insurance companies acquired many buildings, long-term holding rent, as a long-term, stable investment in return.