SOHO China's 32,000m2 core property is sold at a 30% discount. Can you pay off the company's current debts?

SOHO China sells 32,000 square meters of core property this time, which can greatly reduce the company's net asset-liability ratio. But it is impossible to pay off the debt completely.

Because of Pan Shiyi's stable personality, his SOHO China adopts the property rental mode. The advantage of this model is that it can maintain a steady stream of water and maintain the positive profit rate of real estate to a great extent. But the disadvantage is that with the continuous contraction and supervision of real estate policy today. Many office buildings need maintenance funds, which can't make up for the income gains and losses brought by leasing funds.

One: The sale of SOHO China can greatly reduce the company's net assets expenditure and debt ratio.

Because the land price in different lots is different. So in general, this 32,000 square meter core office building can greatly reduce the property expenses and personnel expenses of SOHO company, and also play a great role in reducing the company's net asset-liability ratio. However, we should know that SOHO needs a lot of funds and income sources to maintain other office buildings, so it is unrealistic to completely pay off debts.

Second, the current situation of SOHO China is entirely due to the misjudgment of the market by Pan Shiyi, the chairman, and the consequences caused by the failure of transformation. ?

From 20 12, Pan Shiyi announced the transformation of SOHO in China, from the sales model of bulk sales to self-sustaining rental. This is a correct business strategy. However, due to the poor asset management and property operation of SOHO China, the price of this project in the leasing market is high and its competitiveness is weak. The net profit rate of SOHO China has been declining due to the holding lease model. Even though Pan Shiyi tried various network projects to enhance the popularity and rental rate of SOHO China in his later period, the relevant output results have been ineffective.

Three: Personally think that with the continuous supervision and contraction of real estate policy in the future. If SOHO China wants to continue to develop, it must reform and change its revenue model and real estate rental accordingly.

At present, the domestic real estate policy has been in a state of continuous supervision and contraction. Many real estate funds are bankrupt because of high debt ratio, and even have to sell related assets to withdraw funds. If SOHO China wants to continue to develop, it must carry out corresponding reforms and changes in its own business model and rent building methods.