In the first half of the year, the amount of M&A received by material enterprises exceeded last year's "Big Fish eat small fish", resulting in indigestion?

In the first half of this year, property companies were busy collecting mergers and acquisitions while listing. There are both "whale swallowing" between listed property companies and "big fish eat small fish". In the first half of this year, the total amount of mergers and acquisitions in the real estate industry has exceeded that of last year.

At present, expanding the scale is still the core strategy of the development of property service enterprises. Relying on mergers and acquisitions to enhance the scale in a short time is conducive to quickly cutting into new tracks and expanding new formats. However, the insiders believe that the merger and acquisition of property enterprises is also facing blind expansion, and it is easy to fall into the development trap of increasing scale but not increasing efficiency. High-quality growth should become an important proposition in the current real estate industry.

In the first half of the year, there were more than 40 cases of entity mergers and acquisitions.

The biggest acquisition in the property industry is Country Garden Services' acquisition of part of the equity of Blu-ray Garbo, involving 4.964 billion yuan. At present, the process of "whale swallowing" between listed companies is not smooth and is still in progress.

On July 2, the two sides announced the adoption of the delisting resolution, but failed to meet the delisting acceptance conditions. So the offer was postponed to July 16. After meeting the delisting acceptance conditions, Blu-ray Garbo, which has been listed for more than one year, will be delisted from the Stock Exchange.

Prior to this, Country Garden Services launched a cash tender offer for Blu-ray Garbo, and revoked the listing status of Blu-ray Garbo Services. Upon completion of the acquisition, Blu-ray Garbo will become a subsidiary of Country Garden Services and consolidate its financial statements.

Supported by continuous scale expansion, in late May, the proceeds from Country Garden's service placement exceeded HK$/kloc-0.00 billion, breaking the single financing record of the real estate industry.

In fact, at the same time of large-scale mergers and acquisitions of large-scale housing enterprises, mergers and acquisitions between small and medium-sized housing enterprises have also continued.

On July 5th, Greenland Holdings intends to transfer 0/00% equity of Lv Min Property, a wholly-owned subsidiary, to Fantasia at a consideration of 0/26 billion yuan. On July 2nd, Hellenborg Property acquired 100% equity of Yileju Property, while more than a month ago (17 May), Hellenborg Property acquired 100% equity of Zhejiang Shang Lu Property.

/kloc-in July, COFCO Property acquired 80% equity of Jiangxi Huaxia Property. On June 29th, Hejing Youhuo announced that it agreed to acquire 80% equity of Shanghai Qinshen Property by an indirect wholly-owned subsidiary for 498 million yuan. 19 In June, Jinke Service spent RMB 759 10/0,000 to acquire Chongqing Meilishan Property. ...

For the acquisition and merger of the property industry in the first half of the year, the research institute concluded that expanding the scale is still the core strategy for the development of property service enterprises. Many enterprises, especially large enterprises, have begun to formulate and announce the growth targets of management scale. For example, at the beginning of 20021,Evergrande Real Estate set a monthly expansion area of not less than 30 million square meters; Hejing Youhuo said that the scale will reach 200 million square meters in 20021year, and the management area is expected to increase by 10 times in the next three years.

It is worth noting that most mergers and acquisitions in the property industry are related to listed property companies. In the first half of 200212002, although some listed companies reduced the proportion of listed funds used for M&A, M&A is still a popular choice for most listed properties.

On the whole, according to the incomplete statistics of the Central Reference Institute, in the first half of this year, there were more than 40 cases of mergers and acquisitions of real estate companies.

According to Kerry's incomplete statistics, in less than half a year in 2002/kloc-0, the total amount of mergers and acquisitions in the property management industry has approached13.3 billion yuan, exceeding the total amount of10 billion yuan in 2020. Moreover, judging from the average transaction amount of major mergers and acquisitions, the average transaction amount of M&A events in 20021year reached 698 million yuan. Even excluding the transaction amount of Country Garden's acquisition of Blu-ray Garbo service, the average transaction amount still reached 467 million yuan, significantly higher than 285 million yuan in 2020.

Mergers and acquisitions extend to various forms.

Property companies are keen on M&A, not only because they can expand the scale of property management in a short time, but also make up the gap between enterprises in geography and formats, enrich management formats, realize the coordinated development of property management portfolio and various formats, and then realize high-quality rapid growth.

Analysts of Central Academy of Sciences believe that M&A among property enterprises is no longer limited to the traditional residential and commercial property business, but presents more extension trends, especially the sanitation business and public service business, which has become a hot target for property enterprises to compete for mergers and acquisitions, so as to achieve the purpose of enriching management formats, supplementing regional competition shortcomings and optimizing strategic layout in multiple dimensions.

As early as 65438+1October 29th, Evergrande Real Estate announced that it had won 0/00% equity of Asia Pacific Hotel Property with a total consideration of1500 million yuan. At that time, Evergrande Real Estate said that through the acquisition, it could complement the existing business types and business layout of the Group, generate synergies, and accelerate the coverage of the company's full business format and the whole industrial chain layout.

Recently, such cases of mergers and acquisitions are not uncommon. On June 23rd, Color Life acquired a 49% stake in the property of Darwin International Hotel in Beijing. On June 23rd, Fahua Property acquired 0/00% equity of Guangdong Jian Yue Security Service.

On June 2 1 day, Financial Street Property plans to acquire 65% equity of Zhuzhou Property Management Company for RMB 65,438+32 million. Zhuzhou Hongda Property has rich operation and management experience and market competitiveness in the property management industry, especially in the fields of urban sanitation and urban municipal services.

In addition to mergers and acquisitions in various formats, cooperation between enterprises has also shown unprecedented enthusiasm. Among them, Financial Street Property and Wuyi Property jointly established a new property company, holding 40% of the shares. Highland City Service has reached a strategic cooperation with Taian Huaxin, which will open up more cooperation scenarios in the field of hospital property.

On July 5, Greenland Holdings announced that Greenland Holdings signed the Supplementary Agreement of Cooperation Framework Agreement with Ya Life and Agile, that is, from 2023 to 2025, Ya Life obtained 5 million square meters of property service area from Greenland Holdings every year.

Industry: Beware of blind expansion of M&A..

At present, M&A among property management enterprises is getting worse. "eat small fish the Big Fish" and "Big Fish Eat Big Fish" have become the norm.

In the view of analysts of the Central Reference Institute, the differentiation of the real estate sector is becoming more and more prominent, and the competition tends to be fierce, which requires a sense of crisis. The competition pattern of listed companies in the real estate sector is constantly evolving, which indicates that the industry is facing differentiation and the future integration will intensify.

In this regard, Kerry analysts also believe that many small and medium-sized property management companies are in an increasingly difficult situation. Many small and medium-sized property enterprises usually rely on the project delivery of the parent company, and their own development will be largely limited by the scale of related housing enterprises. In addition, because leading enterprises have accelerated the pace of third-party outreach in recent years, it is difficult for small and medium-sized enterprises to win in various tenders, further limiting the expansion of scale.

For property companies with strong financial strength, as an important part of scale expansion, merger and acquisition is undoubtedly the best means for enterprises to rapidly expand their scale, cut into new formats and new businesses, and its key is self-evident.

However, analysts of the Central Reference Institute also said that mergers and acquisitions are also facing blind expansion, and it is easy to fall into the development trap of increasing scale but not increasing efficiency. For example, the newly acquired management area has low customer loyalty, especially in the initial running-in stage, which requires more costs. Therefore, although the cost of market expansion and the formation of new teams has been saved, how to quickly integrate the business teams of newly acquired projects into the company management network and improve management efficiency has become a new topic for property enterprises to consider.

In fact, at present, the increase of high quality has not only become the motto of housing enterprises, but also the pursuit of many property companies. In this regard, Niu, deputy general manager of Zhongzhi Property Division, believes that with the continuous maturity of the market, property service enterprises can also expand projects through the whole Committee and bidding, and at the same time effectively reduce costs. Therefore, when the enterprise develops to a certain scale, the brand expansion will be strengthened and the development model will be more diversified.