Attack On Peng Rui Real Estate: Can Shenzhen Mansion IP Be Copied To Tai Wan District?

In 2017, Xu Jiayin moved Evergrande headquarters to Nanshan District, Shenzhen. He also secured his home nearby.

The man who sold the house to Xu Jiayin successfully was a 58 year old man who graduated from Tsinghua University, Xu Hang.

Xu Hang is the chairman of Shenzhen Peng Rui real estate. Xu Jiayin's house in Shenzhen is Shenzhen Bay 1, which is developed by Peng Rui real estate. For nearly 10 years, Xu hang made this project a representative of Shenzhen and even the top luxury houses in the country. Many stars and bosses bought property here.

But Xu Hang's most famous identity is not a real estate developer, but a co founder of MINDRAY medical. He is also a well-known figure in the medical profession.

No one can escape the "true fragrance law". After the success of Shenzhen Bay 1, Xuhang, once said that it is "the last item", should take a deep mind to deeply cultivate real estate.

Starting in 2018, Peng Rui real estate started its expansion journey. It has more than 20 projects in Shenzhen, Guangzhou, Zhuhai, Dongguan and Foshan.

In June 23rd, Peng Rui real estate released the strategy of the big bay area. The three core "Yue" projects in Shunde, Zhuhai and Dongguan will soon be unveiled. The company has also demonstrated its ambitions: to be the real estate king in the big bay area, not just Shenzhen.

Transboundary luxury developers

Xuhang entered the real estate sector seems to be an accident.

In 2008, the global financial crisis, the Gulf of Shenzhen was almost desolate. Few developers are developing them here.

From 2004-2008 years, Xuhang passed the agreement and other ways to gradually acquire the T107-0003 and T107-0002 parcel at the intersection of Keyuan Avenue and East Bin Road in Nanshan District. This is his first real estate project.

This is a large plot of office, residential, hotel and business, with a total construction area of 358 thousand square meters and a height of 70~338 meters. Xu Hang, who never had real estate experience, did not know where to start.

"I can't do it, I just want a building," he said to Chen Jian, chairman of the overseas Chinese town real estate board. Chen Jian told him, "this is an invaluable treasure. I'll do it for you." With the help of Chen Jian and others, Shenzhen Bay 1 is on the way.

However, Xu hang did not use the idea of a traditional developer to do this project. He likes art collection, and thinks that "China has no good house".

Shenzhen Bay 1 has a good location and apartment, as well as luxurious hotels, concert halls and helipads.

Shenzhen Bay 1 has become an alternative to Chinese developers. In 2013, Shenzhen Bay 1 was officially launched, including apartments and residential units. The unit price was 60 thousand -17 yuan / square meter, and the total residential price was 30 million. Prior to this, Shenzhen multi-storey residential unit price of not more than 100 thousand yuan / square meter, this project has become Shenzhen's most topic oriented luxury house benchmarking.

In the next few years, the highest number of Shenzhen Bay 1 was sold to nearly 300 thousand yuan / square meter, becoming the top luxury representative in Shenzhen and even China.

At first, Peng Rui real estate was only a business of Peng Rui group. When Shenzhen Bay 1 was successful, Peng Rui group has become a comprehensive enterprise which mainly focuses on real estate development, and integrates health industry, business operation, property management and PE investment.

To do this real estate project, Xu hang and his partners have made a lot of money. MINDRAY medical's IPO prospectus disclosed that Peng Hang's real estate assets in 2017 were 10 billion 400 million yuan and net profit 3 billion 808 million yuan, while his main business, MINDRAY medical net profit was only 2 billion 600 million yuan in 2017.

In 2020, the outbreak of the new crown pneumonia outbreak, pharmaceutical stocks rose. According to flush data, as of June 28th closing, MINDRAY medical shares rose from 180.33 yuan / share at the beginning of the year to 299.19 yuan / share, the single share rose nearly 65.9%, and the market value exceeded 363 billion yuan, far exceeding the 280 billion yuan of Vanke.

Left hand medical treatment, right handed real estate, Xu Hang's life, ushered in an important moment in 2020; Peng Rui real estate has also come to a new node.

Expansion Tour

According to Peng Rui real estate personage, after stepping out of Shenzhen, the first batch of Peng Rui will build three events, namely, Hao Yue Wan @ Shunde 1, which is the first city in Shunde. It is located in Dongguan's Tian Yue square, a global super complex, 360 thousand square meters, a comprehensive marking Shenzhen Bay 1, and Zhuhai's Zhuhai Bay Center will also re engrave Shenzhen Bay 1.

As soon as July this year, Shunde's products will be released.

General manager of Peng Rui Group R & D center, general manager, said that the location of the three cities is based on the economic strength and future development space of the three cities. They are among the best in the city group of the big bay area.

In fact, two years ago, Peng Rui real estate began to take a big hand and get out of Shenzhen. People close to Xuhang said he hesitated for a long time before deciding whether to make real estate or not.

In June 2018, Peng Rui real estate first entered Guangzhou, and seized the 180 thousand square meter homestead in Nansha.

In the year 2019, Peng Rui real estate started its layout in Guangdong, Hongkong and Macau by auction, stock subscription and urban renewal. In May 15, 2019, with the "2 billion 360 million yuan + self possession area 100%" capping conditions, the premium rate of Dongguan Nancheng Ya Yuan plot reached 59.46%.

In May 21st, Peng Rui attacked again in the big bay area. With a "price limit of 2 billion 435 million yuan +2.46 million square meters free construction", it won a commercial and residential land in Sugang village, Daliang, Foshan, with a premium rate of 17.11%.

In addition to actively participating in the auction, Peng Rui group has also been involved in urban renewal. In May, it won the 220 thousand square meters old renovation project of Huangcun, Humen, Dongguan.

Official website information shows that in the three years of the planning of Peng Rui real estate, the land area of the new project will be expanded to 3 million -600 square meters.

Although the trader's famous mansion IP, but Peng Rui real estate in the real estate industry, is still a "recruits", a year sales of less than ten billion, and in the past few years, the real estate industry is popular high turnover, high leverage, many developers have taken the opportunity to achieve hundreds of billions of goals, the big four "Bi Wan Heng Rong" is heading for trillions.

In addition, the real estate industry's external environment is no longer the same. In the same year, Peng Rui took the Shenzhen Bay 1 at a very low price. In the past 10 years, Shenzhen's housing prices have been rising, and on this basis, a high premium product has been made.

But today, there will be no cheap high-quality plots. In the land of Peng Rui real estate, many of them are located in the core area of the city. The land price is close to the surrounding second-hand housing. On the other hand, the price of housing has risen to a high level in the mainstream cities, and the space for large upward space has been smaller.

Yan Yuejin, director of the research center of the Yi Ju think tank, believes that Shenzhen Bay 1 is the top luxury house, but whether it can replicate in other cities, there is uncertainty. But in terms of price and profit, what Peng Rui can rely on is its high premium capability for products. It is another matter whether the market accepts or not.

He said that Shenzhen Bay 1 is a legendary project. Complete replication is unlikely, but its product ideas and ingenuity genes will continue in all subsequent projects.

Will Peng Rui continue to expand in the future and get out of the big bay area? Zhang Hui, general manager of the marketing management center of Great Bay District, Peng Rui group, said that the strategic focus of the company is still located in the big bay area. Guangdong, Hongkong and Macau is one of the four largest Bay areas in the world. The economic vitality and affluent population are among the best in the country. At present, the focus is to choose seven cities in the big bay area, but the project will be very cautious.

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