On march 10th, at 1. 12 p. M., soho china weibo public issued a publication entitled " leak out! According to an article by soho, china sold 32,000 square metres of high-quality housing at 70% discount, in order to optimize the asset structure and ease financial pressure, soho launched 32,000 square metres of housing at a 70% discount price, covering nine projects such as soho in galaxy, soho east china square, soho middle mountain square in soho, all of which are located at the centre of the city in beijing and shanghai, covering the business of offices, businesses and apartments。
Soho, president of china, pan suk-hyun, stated that the proceeds from this sale would be fully used to reduce liabilities and would not be used as dividends。
As a result, on 10 march, soho chinese stock prices in hong kong were raised in a straight line, with a maximum increase of over 20 per cent. As at the time of closing, the company's share price was stated at hk$1. 58, an increase of 8. 97 per cent。
The company says it wants to go ahead
On the same day, soho china organized the first rental recognition and quality housing promotion conference in 2022, which was attended by a number of real estate brokers from both places. Soho china noted that the above-mentioned project has not been short of leases and markets for scarce whole floors, with stable rent returns and higher investment value. At present, all the houses are ready for sale. Soho china also claims that the company increased the commission bonus to 4 per cent of the turnover。
According to the company, at present soho china has a net asset debt ratio of about 44 per cent. Through this adjustment, soho china hopes to move forward with a more flexible response to market changes in search of long-term healthy development。
Soho china noted that factors such as the epidemic had had a negative impact on the rental market for office and commercial buildings. The average rent rate in china at the end of 2021 was 83. 4 per cent, of which soho in guangbei in shanghai was fully leased, and litzer soho in beijing exceeded 80 per cent。
Zhang dawei, the chief analyst of china's real estate, said to the chinese securities paper, chinese-sanctioned golden bull reporter, that soho, which is dominated by commercial assets, was more difficult to realize than the home, and therefore the discount was higher. Real estate companies entered the era of “cash being the king”。
A well-known property analyst has made a drastic leap forward to the chinese securities journalist, chinese-sanctioned golden bull reporter, saying that selling assets is a consistent practice in soho. This discount on the sale of assets, which is significant, is partly indicative of the urgency of the initiative and motivation to sell the assets. For the reasons given by soho china, enterprises are more concerned about liabilities, which, if too high, may put pressure on subsequent operations and reduce them in favour of subsequent financing and development。
Blackstone's offer failed
In 2021, blackstone attempted to contract for soho。
According to the announcement, on 16 june 2021 the blackstone group officially issued a comprehensive acquisition offer to acquire soho ownership in china, planning to acquire 91 per cent of its shares at a purchase price of hk$23,658 million, or about hk$19. 62 billion. In september 2021, soho china announced that the blackstone group had terminated its acquisition of soho china。
The company's biannual reports show that in the first half of 2021, soho realized a total of approximately 805 million yuan in rental income in china, an increase of about 3 per cent over the same period. As at 30 june 2021, the average rental rate for the stable investment property operated by the group had been restored to about 90 per cent, and the rent rate for the most recently completed liezer soho had reached about 74 per cent。
In the first half of 2021, soho china's corporate equity shareholders should account for about rmb 340 million in net profits, an increase of approximately 67 per cent over the same period. Net profits from rental operations have increased significantly compared to the same period in 2020. The realization of mĀori was approximately $659 million, a decrease of about 18 per cent over the same period, mainly due to the recognition of revenue from parking sales during the same period in 2020。
Following its mid-2021 performance, soho china noted that during the epidemic, it demonstrated good risk resistance and preservation features in its high-quality assets at the core of the kyoto territories。
