3.3 Billion Acquisition Of Suning Plaza In Nanchang

Wuhan state-owned assets take over Nanchang Suning, or ease the current debt paying pressure of Suning.

On September 14, Wuhan Wushang Group Co., Ltd. (hereinafter referred to as "ewe merchants") issued three successive announcements on the acquisition of assets of Suning Plaza Project in Nanchang. According to the announcement, Hubei Wushang intends to acquire the commercial projects under construction of sf01-04 and sf01-05 blocks in the east of Guangchang North Road of Donghu District and the south of provincial government North 2nd Road held by Nanchang Suning Real Estate Co., Ltd. The total price of the acquisition project is 3.3 billion yuan, of which the asset consideration of Nanchang Suning Plaza project is 2.112 billion yuan, and the price paid by the company to the general contractor and other construction parties and suppliers in a certain period in the future is 1.188 billion yuan.

Ewe said that after the acquisition, the company will continue to promote the construction of the project, and hopes to build Nanchang benchmark commercial complex on this basis. The company will take advantage of this to lay out its business outside Hubei and expand its business map.

Nanchang Suning Plaza project changed owner to Hubei Wushang

In order to win over Suning in Nanchang, Hubei merchants made great efforts to arrange the overall purchase funds.

Hubei Wushang said that after the acquired assets are transferred to the company's name, the company will go through the mortgage procedures, provide mortgage to Xingye Wuhan branch with the land use right and construction in progress of 1-4 and 1-5 plots of Suning square in Nanchang, and timely transfer the house mortgage, and apply for a loan of no more than 1.98 billion yuan and a loan term of no more than 7 years.

According to the above announcement, Nanchang Suning project is located in the former provincial government compound plot of Bayi Square, Donghu District, Nanchang City, Jiangxi Province. It is the core area of Nanchang old urban area and the golden area of Nanchang City commerce. The project covers an area of 77.97 mu, with a total construction area of 312100 square meters.

In addition, the company will invest and establish a wholly-owned subsidiary, Wushang Nanchang Commercial Asset Management Co., Ltd., with a registered capital of 100 million yuan, which will be transferred to Nanchang Suning Plaza project.

It is understood that the project is positioned as a large-scale urban commercial complex integrating luxury retail, entertainment experience, lifestyle, culture and art, healthy life and catering. At present, the development and construction work has not been completed. After the acquisition, Hubei Wushang plans to position the project as a luxury commercial complex project, and introduce more than one second-line luxury brands from the world. Most of them landed in the Jiangxi market for the first time. According to the original plan, the project will enter the stage of project completion, completion and acceptance from 2022.

According to the public information, Hubei Wushang is the largest comprehensive commercial enterprise in Hubei Province. Its predecessor was the Sino Soviet Friendship Shopping Mall founded in 1959. In 1986, Wushang group took the lead in reforming the joint-stock system in China. In 1992, the "Hubei Wushang" was listed on the Shenzhen Stock Exchange, becoming the first commercial share in China. Wushang mall of Wuhan business group is composed of Wuhan International Plaza, Wushang square and World Trade Plaza and wushangli, which is the largest shopping center combination group in Central China.

At present, all commercial real estate in Hubei Province is concentrated in Hubei Province. According to its 2021 semi annual report, it has 10 shopping centers, including International Plaza, Wushang square and World Trade Plaza, which are located in the core business districts of Wuhan, Xiangyang, Shiyan, Xiantao, Huangshi and Laohekou. The supermarket business is located in Wuhan city and several secondary cities in Hubei Province. This extension of business to Nanchang also means that the business map of Hubei Wu merchants has gone out of Hubei for the first time.

Suning debt resolution in progress

In fact, since the end of last year, Suning's debt crisis has emerged in public view. Since then, Suning also tried to resolve the debt crisis in various ways.

At the end of 2020, Suning holding group shareholders Zhang Jindong and Zhang Kangyang pledged all the shares of the company to Taobao, with a total amount of pledged equity of RMB 1 billion. After this, the rumor about Suning capital chain fracture is endless.

On February 25 this year, Suning e-buy announced that it plans to plan for the change of control right of the company. The actual controller and the person acting in concert are expected to transfer 20% to 25%, and the equity transferee belongs to infrastructure and other industries; On February 28, Shenzhen International Holding (Shenzhen) Co., Ltd. and Shenzhen Kunpeng Equity Investment Management Co., Ltd. under the state-owned assets of Shenzhen, transferred 23% of the shares of Suning e-buy at a total price of 14.817 billion yuan.

But the sale of the transfer of control shares did not work out.

On July 5, Suning e-buy issued a number of announcements, introducing Jiangsu state-owned assets and industrial capital for war investment, while Shenzhen state-owned assets withdrew. According to the announcement, Zhang Jindong, Suning holding group and Suning Electric Appliance Group, the acting party in concert, intend to transfer 16.96% of the shares of the listed company to Jiangsu Xinxin retail innovation fund phase II (limited partnership), with the share transfer price of RMB 5.59/share.

The second phase of Jiangsu Xinxin retail innovation fund is a joint venture funded by Nanjing Xinxing retail development fund, Huatai asset management, Alibaba, Haier, Midea, TCL, Xiaomi and other industrial investors as limited partners. Among them, Ali is the largest investor of the fund.

Suning, whose debt crisis has not been lifted, is also facing the situation of high-level change of ownership. On July 12, Suning e-buy announced that the former chairman Zhang Jindong submitted his resignation to the board of directors. On July 29, the change of the head of Suning e-buy was settled. Huang mingduan, the founder of RT mart, became the chairman of the board. Ren Jun, the former senior executive of Suning e-buy, was the president. Zhang Jindong withdrew.

At present, Suning's main revenue comes from Suning e-buy, but Suning e-buy has lost money for seven consecutive years since 2014. According to the data of Suning e-buy's semi annual report in 2021, the company's operating revenue in the first half of the year was 93.606 billion yuan, a year-on-year decrease of 20.96%; The net loss was 3.452 billion yuan, and 167 million yuan in the same period of 2020, with a year-on-year increase of 1972.06%.

With the help of 3.3 billion yuan collected from the sale of Suning in Nanchang, it remains to be seen whether Suning can successfully walk out of the debt morass.

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