COSCO'S "Moving To The South": The Old Renovation Project In Dawan District Has Entered The Release Period

With the genes of northern and central enterprises, Sino Ocean Group has entered the real estate market in South China for 15 years, and is one of the first foreign real estate enterprises to open up the Pearl River Delta.

Over the past 15 years, starting from Zhongshan, and relying on the three fulcrums of Shenzhen, Guangzhou and Zhongshan, COSCO has been fully deployed in Dawan District, obtaining about 40 projects, of which more than 50% are old ones.

In 2020, COSCO Group put forward the strategy of "moving southward and expanding westward", which put Guangdong, Hong Kong and Macao Bay Area in a more important position. The South China team's years of hard work also ushered in harvest. In Shenzhen, the company will have two major projects in the market, which are the most important sales resources in South China, and are expected to contribute a lot to the group.

As we all know, Guangdong, Hong Kong and Macao Dawan district has become a must for real estate enterprises. It is not only a "granary" for real estate enterprises to sell, but also a testing ground for their diversified operation. COSCO is no exception. In its acquisition of many old renovation projects, there are also many holding properties.

Zhao Jianjun, assistant to the president of COSCO Group and general manager of South China region, disclosed that the profit contribution of South China region in the group has reached 1 / 3, and the future sales share will reach or even exceed this proportion.

For the future real estate market, Zhao Jianjun believes that the recent regulatory policies will help to stabilize the market, and stable expectations are conducive to the healthy development of the market. The manufacturing property of the real estate market has already appeared. In the future, only those real estate enterprises with strong management ability can win.

"South China economy" of northern real estate enterprises

Zhongshan is the first place to set foot in South China. In 2005, Zhao Jianjun and his team left Beijing and came to Zhongshan, the second tier city. From the government's agent construction to the development of a 2 million square meter Ocean City, Zhao Jianjun and his team became the first northern developer to gain word-of-mouth in Zhongshan and even South China.

Five years later, COSCO began to enter Shenzhen, acquiring the old renovation project of Nanlian primary school in Longgang, and building a large urban complex, the ocean new trunk line, which became a hit. Since then, it has successively won projects such as ocean new world and ocean works.

Another five years later, COSCO entered Guangzhou. So far, with Zhongshan, Shenzhen and Guangzhou as the three major fulcrums, the bay area has entered Foshan, Dongguan, Zhuhai, Jiangmen, Huizhou and other cities.

Around 2017, COSCO also expanded the Fujian market and entered Zhangzhou, Xiamen, Fuzhou, Longyan and other major cities. Hainan entered as early as 2010. After 15 years of development, the layout of oceangoing in South China has revealed its embryonic form.

However, as the birthplace of China's real estate, Shenzhen and Dawan district are the headquarters of many leading real estate enterprises. It is very difficult for foreign real estate enterprises to have a place.

In this regard, Zhao Jianjun said that the bay area is the focus of all developers, the competition for bidding, auction and listing is very fierce, and COSCO has also participated in some of them, but still adheres to the investment standard and does not rashly advance. Ocean's resource acquisition in the bay area is mainly based on the old reform, supplemented by bidding, auction and listing.

He said that Shenzhen is now hard to find land, and a large number of land supply sources are the old reform. The market characteristics are shown in several aspects: first, the security is high, the market sales situation is generally stable, although there are changes in policy, it is still a national high-quality market; second, the profit is guaranteed to a certain extent. Judging from the profit performance of several regions within the group, South China has contributed better profits to the group Cash flow.

At present, there are four types of market entities in Shenzhen: one is the central enterprises with strong market competitiveness, such as China Resources, overseas Chinese city, COSCO and China Merchants; the second is local state-owned enterprises in Shenzhen, such as Metro Group and Shenzhen industry; the third is local private enterprises such as jiazhaoye, hongrongyuan, Xinghe, Zhuoyuan and Jingji; and the fourth is private enterprises from other places in the country.

Relying on the background of state-owned enterprises and the experience of the old reform started earlier, COSCO has obtained a number of old reform projects in South China through diversified cooperation ways, accounting for more than half.

These projects not only cooperate with central enterprises, such as China Merchants, poly and China Resources, but also cooperate with large private enterprises, such as Xuhui, Zhuoyue and Zhongnan, and also cooperate with local state-owned enterprises, such as Shenzhen Anju group and Zhongshan Urban Investment Co., Ltd.

Among them, ocean coast building and ocean sky are expected to appear in the second half of this year, which are important projects of South China business unit.

Zhao Jianjun said that investment is a combination of dynamic indicators and static indicators. The static indicators include gross profit and net profit, and the dynamic indicator is IRR.

At present, South China has become the main group of the group, with profits accounting for more than one third, and the absolute sales volume is increasing every year.

Fine management era

The importance of Guangdong, Hong Kong and Macao Bay area is highlighted by the strategy of "moving south to the west" of COSCO this year.

In 2020, COSCO readjusted its regional structure and added central China and West China business units based on the layout of three business sectors and four development divisions. The central China business division includes Wuhan, Changsha, Nanchang and Zhengzhou, while the West China division includes Chengdu, Chongqing, Xi'an, Guiyang, Nanning and Kunming.

"Moving to the South" refers to the expansion of the Yangtze River Delta and the Pearl River Delta, while the "westward expansion" takes Wuhan economic circle and Chengdu Chongqing economic circle as the development direction.

The person in charge of COSCO said: first, in order to stabilize and maintain the basic market, Beijing and Tianjin still have a large amount of land reserves in a short period of time, and they should continue to adhere to it. Second, they should do regional deep ploughing. Since we want to develop, we still need to give everyone opportunities and space, and we should dismantle the organization smaller.

On this basis, the overall strategic direction of COSCO is a comprehensive industrial company with investment and development as its main business and development related business.

Among them, sales oriented housing and commerce are the main force of future business, which is based on the judgment of domestic and international markets. There are still opportunities for the future 15 trillion real estate market.

Real estate development and operation mainly refers to commercial and office buildings, including Ocean Tower and complex like Yidi port. The others include industrial cooperation and customer service business, covering property management, pension, ocean capital and other industries.

For the development orientation of non development business, one is to hope to develop independently and have the opportunity to become another main business. Second, we hope that it can develop, assist in the acquisition of resources and enhance the ability; third, it can achieve considerable financial returns.

Zhao Jianjun added that at present, the projects operated by COSCO in South China are still relatively small, and they mainly focus on sales. In the future, they also hope to hold some projects for operation as soon as possible, which requires the selection of suitable plots.

As a matter of fact, the whole real estate industry is turning to the track of comprehensive development and operation. Vanke won the asset package of Guangxin, and CNOOC took over the 59 billion yuan old to giant MAC project. They all hope to gain operational capacity and new profit engine in addition to the residential sales revenue.

The board of directors of Wanke should pay attention to the dividend of the real estate industry in 2019 and pay attention to the dividend of the real estate industry.

This coincides with Zhao Jianjun. In his opinion, real estate has two characteristics. On the one hand, it is a financial attribute. The market still needs to focus on the factors of leverage, risk, income and investment. On the other hand, the attribute of manufacturing industry has gradually emerged, and more and more attention has been paid to the refinement and specialization of management. Only if these two aspects are well combined can enterprises really survive.

Zhao Jianjun said that in the future, those who are willing to put more effort into management will have a high probability of success. On the contrary, if they do something radical or rashly, or when internal management fails to meet certain conditions, the probability of failure will increase.

Similar to most developers with the background of state-owned enterprises and state-owned enterprises, COSCO is also a sound operation concept. Zhao Jianjun believes that in the current market, some enterprises are very difficult to survive. The past agitation and rash advance will bring huge sequelae. The success is to pursue sustainable development on a sound basis.

Looking forward to the property market in the second half of the year, Zhao Jianjun believes that the policy of the whole country must focus on stability and form a stable expectation, which is good for everyone. However, there is differentiation between cities. Ocean going firm in investing in major cities, the more major cities are, the safer they are, and the more energy-saving cities are, the more risky they are.

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