Yuepai Real Estate: Play diversified and go global

On May 26th, Chen Zhuolin, who rarely appeared in public, appeared at the Guangzhou Grand Theatre and personally presented the platform for the new brand of Agile Group.

Twenty-five years ago, Chen Zhuolin, the owner of the furniture factory, led the brothers and established Zhongshan Agile Real Estate Development Co., Ltd., starting from Zhongshan and starting to get involved in the real estate industry. Today, 25 years later, Chen Zhuolin feels that from the deep cultivation of real estate to diversified development, the industrial layout of the Agile Group has undergone major changes, and the brand image needs to be comprehensively upgraded.

After nearly a year of preparation, after the announcement of “Agile Property changed its name to Agile Group” last year, Agile chose to release a brand new concept and a brand new logo on its 25th anniversary.

More emphasis on diversity and integration of Agile is actually a microcosm of Guangdong's real estate exploration of sustainable development. After more than 30 years of experience, Yuepai Real Estate has become an outstanding representative of market-oriented operation and a leader in the Chinese real estate market with its pragmatic, delicate and innovative style.

According to the statistics of the Times Weekly reporter, Guangdong accounted for six of the top 10 real estate companies in the past year. However, in the ever-changing Chinese real estate, the Guangdong-based real estate, which is the largest faction, obviously wants to go further.

Explore diversity

“Low-key” and “pragmatic” are the general evaluations of Guangdong-based real estate in the industry. In fact, being at the forefront of reform and opening up, the insight and agility of market changes is the foundation for its foothold. In recent years, the diversified regional layout and diversified industrial development have become the “new way out” that Yuepai Real Estate is trying hard to try.

Take Agile as an example. Since 2015, Agile has been focusing on real estate, and has been transformed into a business model of “real estate-based, multi-business parallel”. At present, Agile's diversified businesses cover five major business segments: real estate, elegant life, construction, environmental protection and education.

“Property services are built around Agile’s existing 700,000 owners and one of the most important competitiveness of future real estate sales; environmental protection and education are essential for urban production, transformation and development; we have great advantages in the construction sector. There is a huge space for development here.” In Chen Zhuolin's view, many business segments can not only enhance the brand's current competitiveness, but also achieve long-term development.

According to Chen Zhuolin, while doing good products and quality, Agile also has to pursue reasonable profits, and the contribution rate of new business to 50% after 3-5 years is one of the main goals of Agile.

"We don't want to run so fast, we have to do a hundred-year-old shop." Chen Zhuolin stressed.

2016 is the first year of Agile's drastic transformation. In this year, Evergrande and Country Garden, both of which are "South China Five Tigers", are all mad, and they are all worth 300 billion clubs.

In 2016, Evergrande, Vanke and Country Garden, three Guangdong-based housing companies, all became members of the Chinese real estate company's super camp with more than 300 billion yuan in sales. According to the analysis of the China Index Research Institute, the real estate market share of these three real estate enterprises in the mainland has reached nearly 10%.

Time to enter 2017, this top battle is continuing. In the “Top 100 sales volume of China's real estate enterprises in January-April 2017”, Country Garden continued to lead the sales list with 204.16 billion yuan, becoming the only real estate company in the list that sold 200 billion yuan in the previous April; Vanke had 192.17 billion yuan. It ranked second in sales, while Evergrande recorded sales of 144.78 billion yuan.

For Evergrande, growth is no longer the only goal it pursues.

As early as the beginning of this year, Xu Jiayin, chairman of the board of directors of Evergrande Group, said in an internal speech that Evergrande will change from “scale” to “scale + benefit” from 2017.

Xu Jiayin said that Evergrande's growth rate may drop to 20%. The data shows that Evergrande's sales have grown at a compound annual growth rate of 43.2% since its listing in 2009.

At present, Evergrande has completed the transformation from “real estate industry” to “real estate + service industry”. According to reports, Evergrande will focus on the development of four major sectors of real estate, finance, health and cultural tourism, and will no longer deploy new industries.

In 2014, Vanke, which was surpassed in scale, proposed a transition from a pure real estate developer to a city supporting service provider. The timetable given by Vanke President Yu Liang at that time was three years of trial and error, and the new business will occupy half of Vanke’s profit in the next decade.

Taking the "Octopus Strategy" as the transformation idea, according to Vanke's plan, the new business includes five new business areas of property, logistics, education camp, overseas real estate and rental apartment business. Behind the promotion of new business is Vanke’s intention of big data.

At the 2016 Vanke Guangzhou-Shenzhen regional media conference held in November last year, Wang Shi revealed for the first time that Vanke has transformed from a traditional real estate development company to a technology company and connected with the Internet. “The real growth of Vanke’s performance is only now, it’s not time. The problem is, Vanke has already determined."

Stylistics is another cross-border choice for Guangdong-based real estate in the process of diversification.

As early as 2012, Kaisa began to lay out the sports industry. Up to now, Kaisa has obtained the operation rights of Shenzhen Universiade Center, Shenzhen Nanshan Cultural and Sports Center, Shenzhen Yantian Sports Center, Shenzhen Guanlan Sports Park, Foshan Gaoming Sports Center and Huizhou Zhongkai Sports Park. The management area is over 850,000 square meters, and the total assets of the management venues exceed 10 billion yuan, making it the largest non-state-owned cultural and sports industry integrated operator in China.

The Jingji Group extends its reach to the cultural media sector. In addition to the layout animation industry, the Jingji Group also invested in big movies. Xiong Wei, executive vice president of Jingji Group and vice chairman of Jingji Animation Co., said that the first "electric shock" of Jingji Group is a major breakthrough in Jingji's cultural industry investment. The acquisition of Jingji Animation is its entry into the cultural industry and the realization of the industry. A key step in upgrading the transformation.

From "Northern Expedition" to "Going to the Sea"

In 1992, Vanke entered Shanghai from Shenzhen, and then approached Beijing, Tianjin, Shenyang and other places, which opened the prelude to the “Northern Expedition” of Guangdong Real Estate. This bold move across regional development is considered to be a innovation and breakthrough in strategic thinking.

However, the true collective “Northern Expedition” of Guangdong Real Estate was after 2000. In 2001, Hesheng Chuangzhan began construction of the first real estate in Zhujiang, Jingjing, in a factory storage area in Beijing's Xidawang Road. The following year, R&F took the land of Beijing Guangqumen with a land price of nearly 3.2 billion yuan and developed the Beijing CBD super market, R&F City.

In the days that followed, the Guangdong-based housing enterprises began the pace of the national strategic layout. Today, Country Garden, R&F, Evergrande, Agile, Gemdale, Vanke, China Shipping, Poly and other real estate giants have basically completed several of them in the Bohai Rim, Yangtze River Delta, Central China, Southwest, Northwest and other regions of the country. The overall strategic layout.

In addition to flowering in China, the Guangdong-based housing companies that are good at playing the role of “Pioneers” have turned their attention to overseas markets, including Vanke, Country Garden, Zhonghai, Poly, R&F, China Merchants Shekou and Jindi.

China's property market sees Guangdong, Guangdong's property market sees South China. The South China plate consisting of three super-markets, namely, Clifford New Village, Southland Aoyuan, Jinxiu Xiangjiang, South China Country Garden, Xinghewan, Guangdi Garden, South China New City and Agile, was once referred to as “Chinese property market model house”. With the “One Belt, One Road” initiative, Country Garden has brought this self-supporting “making city” concept overseas.

On December 18, 2015, Country Garden officially released the Malaysian Forest City Project, a “Jumbo Project” consisting of four reclamation islands next to Singapore, with a planned area of ​​nearly 20 square kilometers and a planned total investment of over 250 billion yuan. . This is not only the biggest strategic project since Country Garden invested in the sea, but also the largest overseas investment case of Chinese private enterprises.

In addition, countries such as India, the United Kingdom, the United States, Vietnam, Laos and Thailand have also appeared in the candidate list for the expansion of Country Garden's world map.

At the same time as the Country Garden in Johor Bahru, there is also R&F. At the end of 2013, R&F invested 8.5 billion yuan to enter the Malaysian market, and successively acquired 7 projects in Melbourne, Brisbane and other places in Australia. In early January this year, R&F Properties executives reached a preliminary investment intention with Cambodia. In the next 3-5 years, R&F will invest US$3 billion in Cambodia.

According to incomplete statistics, Vanke has at least 17 projects overseas, covering Hong Kong, Singapore, San Francisco, New York, Seattle, and London.

At the time of the reorganization of the company, Shekou, which was reorganized on December 31, 2015, was “out of the sea” in another way.

Clearing the three major business maps of park development and operation, community development and operation, and cruise industry construction and operation, China Merchants Shekou has created the “pre-port, central and post-city” urban operation mode. As an important exploration of China Merchants Shekou for the China Merchants Group in the “One Belt, One Road” node city, the “Former Harbor-Central District-Backtown” model is not limited to the implementation of the Shekou area in Shenzhen.

It is reported that China Merchants has invested in and operated more than 30 ports in 18 countries and regions on five continents. These port layouts are highly compatible with the national “Belt and Road” strategy. This means that the “former Hong Kong-Central District-Backtown” model will not only be promoted in different cities in Shenzhen, Qianhai, Chongqing, Qingdao, etc., but will also go abroad and drive industrial parks, logistics, offshore, finance, etc. The business “goes out to sea” provides support for Chinese companies to “go global”.

According to CB Richard Ellis data, in the first half of 2016, Asian investors' total real estate investment reached US$27 billion. China's capital is the main investment, accounting for 60% of the total. A total of US$16.1 billion in overseas real estate investment was recorded. It has more than doubled in the same period last year. At the same time, DTZ's research data shows that Chinese capital has become the world's second largest source of cross-border real estate investment, second only to the United States, beyond Canada, Hong Kong and Singapore.