Project merger and acquisition in SOHO China

20 12, the prospect of the real estate industry is not optimistic, and the company will change its strategy. 20 1 1 Company * * * invested 154 billion yuan to acquire commercial real estate projects. In 20 12, the company will carefully shrink its front line, and the target of merger and acquisition is only for land, and "unfinished buildings" and projects under construction will no longer be considered.

Pan Shiyi believes that the rapid growth period of the real estate industry from 1998 to 20 10 is the "first half" of the industry development. Due to the soaring housing prices and land prices, real estate developers have no energy and motivation to study and consider the product strength of enterprises, and their attention is basically focused on "enclosure", "financing" and "research policy". If 20 1 1 is a "halftime break", the development of the real estate industry will enter the "second half" from 20 12. According to Pan Shiyi, after entering the second half of the year, the previous real estate development model of land premium income such as enclosure and hoarding will no longer work, and the real estate industry will return to the average profit rate. By then, real estate developers will focus on improving product design standards and project quality. Therefore, SOHO China will no longer acquire "uncompleted residential flats" and projects under construction from 20 12, and only acquire land. Therefore, the company can plan, design and build according to its own positioning and needs.

SOHO China 2065 438+04 02No. 17 announced that it had signed an agreement with Greentown Real Estate Group Co., Ltd. to acquire the 100% equity of Shanghai Greentown Plaza Real Estate Co., Ltd. for about 265438+38 million yuan, and then acquired the plot of 98 block in Tianshan Road Street, Changning District, Shanghai.

This is the 1 1 project acquired by SOHO China since it entered the Shanghai market in August 2009, and it is also the second acquisition of SOHO 20 12. So far, the accumulated acquisition amount of SOHO China in Shanghai has reached about 25.5 billion yuan.

Pan Shiyi, Chairman of the Board of Directors, said that the tight money supply is a good opportunity for SOHO China, which has abundant funds. After the above acquisition, SOHO China still holds 654.38+0.25 billion yuan in cash, and will continue to pay attention to high-quality commercial properties in prime locations in first-tier cities such as Beijing and Shanghai, and achieve the annual acquisition target of 654.38+0 billion yuan.