Since 2014, soho china has sold at least one shanghai project every year, and has the transformation begun in 2012 been successful? Can the new growth point in pan-suk’s mouth, which has not been profitable for more than two years, support the future of soho china
In the morning, running by lake walden, listening to li's a. I. At colon graduate university, discussing the white deer plain with his best friend liu chun, and taking the test of "the most beautiful star in the day", tanning the manuscript of his new book, "under the great tree"..
On weibo, pan-suk-soo frequently presented his unchallenged and unchallenged harvard study life to 1. 838 million fans, forgetting that he was the chairman of soho china, whose market value was over $20 billion. It was not until he sold property assets successively in the market, and even once he said that “only soho and soho on the outer beach can never be sold”, that the outside world was surprised to discover that, in just four years, the smart realtor would have sold five and a half offices in the two fields, or cash in excess of $34 billion。
Li ka-sheng sells buildings and he borrows money to buy buildings for sun hongbin. Despite the logic of every business, the “slow-for-good, safe” is the common denominator. When these property masters sell heavy assets, will pan-suk, 53, leave the real estate company
On 7 july, it took more than 15 minutes for pan-sheng, standing in a conference room on the upcoming sale of soho2 beijing guanghua road, still in his suit, to tell his thoughts about the era of great change. Using facebook and treasure hunting examples, he confirmed that “the great companies are also responsive to the great trends of globalization” and said that soho china is also responsive to historical developments。
“the former soho china is a heavy asset company, a traditional real estate company, and the future soho china will become lighter and become an open, shared platform.” the “platform” in pan-suk refers to its project on shared office space soho 3q, which is the new economic growth point for the company in the next two to three years。
However, the media on the ground continue to focus on the sale of the assets themselves, why the buildings, the buyers, the use of the cash, and how the 3qs are profitable ... Questionfully, pan-suk has said so aforeword: “the constant pattern of doing business is to arrive at goods at a low time and to deliver at a high time.”
As to whether or not to say goodbye to the realtor, he said with consternation: “i am still a developer as long as these two projects (soho on the outer beach and soho in kyoto) are in place.”
I'll sell my assets
“shanghai and shenzhen house prices have risen very quickly, so we have made a temporary decision to make the money we can make, since the market offers such a good opportunity.” after the sale of $3. 297 billion to shanghai century square in full, and in the face of the bleak data of a sharp drop of 87 per cent in net gains in the fiscal year 2016, pan-sukshi was determined to include the shanghai tianshan square, soho-soon, and soho-sho-sho-sho projects in non-core properties on the sales list。
Under regulation, six months later, the market changed dramatically. In march 2017, at a press conference, pan-sukshi changed his idea of selling houses. Soho, who had sold iris, had already negotiated the terms of the agreement with a well-known company, ended up “fine, not sell, the other side is angry”, and he gave the argument that “i have better houses in china than in china in the event of a waste of assets”
The following day, however, soho china's official statement gave a different version, “the cancellation of the transaction was due to the buyer's belief that it would not be possible to complete its foreign investment approval within the agreed time frame”。
There will always be voices of truth and falsehood in the business world, but it is in the bag that it is。
Soho chinese assets have been sold in recent years。
Turning to 26 june, pan-suk-soo successfully sold soho, the iris, to a total of $3. 573 billion. Less than 10 days later, it announced the launching of a project to sell soho2 and soho in shanghai. The market expects the total sales of these two properties to be as high as $10. 5 billion - $11 billion. According to the 2016 financial paper, the rental income of soho2 and soho, which were sold at this time, was $212 million and $143 million, which together accounted for 22. 5 per cent of the company's rental income, with rent rates of 97. 4 per cent and 93. 6 per cent, respectively。
In 2016, the shanghai write building industry was the most active investment market in the country, and pan-suk is now well placed. However, it was doubtful that the sale of the soho2 project on beijing guanghua road was unexpected, and that the project had a non-core property scope, the first full sale of its assets in kyoto since its transformation。
Is it high market now? The answer was not given by pan sheng, but simply that there was only one measure of return on rent, that the united states would be able to return 5 per cent on a particularly good project, that china would be only half of the united states, and that chinese interest rates would be too high, and that the lower the return on rent, the higher the house would be sold。
Soho’s chinese president, sakaki, did not hide it, “it is still quite expensive, so we will dispose of some assets.”
According to the data, there are still a lot of stocks in pan-sukshi. According to the 2016 financial report, soho china still owns 21 office buildings after the sale of soho2 and soho in guanghua road, with the holding of properties falling to more than 1. 4 million square metres, while soho of shanghai tianshan square has entered the city this year to start the pre-lease and risai soho and soho of shanghai will be completed by the end of 2018。
However, no new projects have been purchased by pan-suk-soo to date since the project was handed over to liser in beijing in 2013。
How effective has the five-year transition been
"the media questions don't matter. Say what you like." in the face of the burgeoning public opinion, pan-shin seems to have no fear, but he is also frank about the moment when soho china decided to make a transition five years ago。
In august 2012, pan suk-hyun announced that soho china would move from a “development-sale” model to “development-ownership”, and that five years later it was expected that 1. 5 million square metres of property rental revenue would exceed $4 billion, “we will turn a “one-size-fits-all business” into a “root-for-all chicken”. On the other hand, the transition was not recognized by the market and corporate stock prices fell sharply for three consecutive days。
As of today, pan-suk lamented: “that was when everyone did not appreciate the transition, and now, looking back, it was because of this decision in 2012
The base of pan shihsi's performance for the 2016 fiscal year was a slight improvement — soho china's turnover was $1. 577 billion, an increase of 58 per cent over the same period, including $1. 511 billion in rental income, an increase of 44 per cent over the same period, a net profit of approximately 910 million yuan in property, an increase of 69 per cent over the same period, an average rental rate of 96 per cent and a debt ratio of 32 per cent。
Prior to this, soho china had experienced a continuous decline in its performance for the fourth consecutive year since its transformation, from $15. 3 billion in 2012 to $995 million in 2015, with net profits falling from $10. 6 billion to $538 million. However, its rental income and share of its turnover has risen each year since 2014, from $424 million (7 per cent) to $1. 511 billion (95. 8 per cent)。
Soho china's post-transition performance。
In 2014, during the low-performance period, pan-sukshiang began a model of selling a shanghai property project for almost a year, selling up to $23. 6 billion in total, after half of the shanghai soho silent square, soho helen square, the lengs soho project, century square, and soho at rainbow point。
Clearly, the real estate company that is known as china's best earner has become the past. Ten years ago, soho china port stock was sold at a value of hk$10 billion. Today, the market value of its stock is only $21. 5 billion, while the market value of the quail, which was listed in the same year, is close to $200 billion。
Soho china's share price trend over the last five years。
"our transition has been very successful." at the 2016 press conference, soho china ceo zhang xin replied positively。
It's been two years since the new industry started
Where is pan-suk's next business plan
“there is a substantial amount of funds available after the sale of the project, mainly for the development and enrichment of soho 3q.” on 7 july, pan suk-hyun gave his answer, adding that “the new economic growth point after two years is estimated to be mainly 3q”
Similar to mao's festivities, the o2o product soho 3q, which began in february 2015, is an attempt by this traditional commercial real estate provider to transform itself into an internet-based site. In the pan-sshik scenario, users can rent only one desk or an independent office, soho 3q provides free wifi, photocopying, conference rooms, coffee, etc., and users can work only with mobile phones and computers. According to the official network, the rent of 3q varies from $600 to $1,000 a week。
By the end of 2016, soho 3q had 17 centres in beijing and shanghai, and 2 were under construction, providing more than 16,000 places, with an average rental rate of 85 per cent. Currently, however, financial data for the 3q project are not available in soho china's financial statements。
In response, pan sheng explained that two centres of the 3q were estimated to be largely unprofitable, but that the overall situation was as yet “at least not in loss”. He also stated that, in the next two months, the three qs would have to carry out a round of financing, “not because we lack money, but because we need to reflect the value of the three qs to pave the way for further development”
Will the next step be to separate the market? Pan sheng merely called it “all possibilities exist”。
In pan-shin's vision, he wanted to rent vacant property resources on the existing market for renovation, not to build soho 3q, and not to buy an old property asset as a whole. “did i sell the c. B. D.'s house and buy it elsewhere?”
However, does the light asset 3q project really require billions of dollars? Pan suk-suk did not give the answer。
