Why did Vanke start to do commercial real estate and hold property?

The reason why Vanke started to do commercial real estate and hold property is very simple. Now the real estate development has gone through the era of profiteering, especially residential development projects. The state has adopted a series of suppression policies and purchase restriction policies. Residential buildings not only have low profits, but also slow capital turnover, which affects the cash flow of enterprises. Commercial real estate is not regulated by many policies, and the mortgage of house purchase is not restricted by residence, including providing permanent residence, tax payment certificate and so on. Wanda Real Estate is mainly engaged in commercial real estate operations. Holding property means that in the core area of the city, there is a large room for property appreciation and good operating income. Wanda is an example.

What is a holding property? The properties used by real estate developers for rental (non-sale) are a long-term investment model, with slow capital withdrawal but high returns, such as hotels and office buildings.

What is the significance of holding real estate? From the perspective of real estate developers, there are two profit models for developing and building properties. One is to build first and then sell, and withdraw funds at one time. This kind of property can be called sales property;

The other is to hold it after completion and benefit from long-term rent collection. This kind of property can be called holding property.

If we make a more comprehensive analysis, holding property can not only generate rental income continuously, but also generate asset appreciation for a long time. Because of the good location of holding property, the value-added space from land is much larger than that of ordinary property.

Theoretically, almost all properties can be held, but the properties suitable for holding mainly include five categories: commercial buildings, office buildings, hotels, residential buildings and industrial buildings. From the perspective of grading, holding properties generally belong to middle and high grade. Large and medium-sized commercial buildings, such as shopping malls, department stores, large supermarkets, commercial blocks, etc. ; Most office buildings are Grade A; Most hotels are middle and high-end, and there are even super five-star hotels; Houses are mainly high-grade, including serviced apartments, high-grade apartments and villas; Industrial buildings include factories, warehouses, etc.

From the perspective of real estate developers, there are two profit models for developing and building properties. One is to build first and then sell, and withdraw funds at one time, which can be called sales-oriented property;

The other is to hold it after completion and benefit from long-term rent collection. This kind of property can be called holding property.

Commercial real estate industry generally has two attitudes when evaluating Vanke. One is to recognize Vanke's leading position in China's real estate industry, especially after its business scale exceeded 20 billion in 2006. But at the same time, it will be regretted to mention that Vanke only does residential development, does not do commercial real estate, does not do holding property, does not conform to the international trend, and its future development is worrying. There are many people who hold this theory. Vanke has its own way to deal with the internationalization of commercial real estate.

First, Vanke has its own reasons to stay away from commercial real estate.

1. Some residential developers blindly enter commercial real estate.

Although listed companies have no smooth financing channels and means, many unlisted real estate enterprises with small scale and strength still confidently enter commercial real estate on the basis of relatively smooth residential development, which is called the "two-wheel drive model" for residential and commercial real estate development. A real estate group in a municipality directly under the central government adopted this model two years ago, expecting to gain faster accumulation and development. The facts are not satisfactory. After all, commercial real estate means a professional team of traders, a large number of high-quality business management resources and strong fund-raising ability. As far as these three elements are concerned, it is impossible for most residential developers to obtain them in a short time. As a result, commercial real estate has not been done, and the land reserve and development scale of residential real estate have also been affected. The reason is actually very simple, that is, residential developers are still doing commercial real estate according to the idea of residential development. In 2006, the enterprise finally adjusted its strategy after thinking, put energy and material resources into the most familiar residential development field, and regained its original high position through a new hot-selling project.

2. Doing commercial real estate is only suitable.

Vanke, which has smooth financing channels, abundant self-owned funds and abundant human resources, is unwilling to face the commercial real estate field. A curious person asked Wang Shi, chairman of Vanke, and Wang Shi's answer was this: "There is no right or wrong in doing commercial real estate, only the difference between suitable and unsuitable. Vanke's nearly 20-year history of real estate development has accumulated experience in residential development and formed relevant models and systems. This system is skilled in operating residential development, but unfamiliar with commercial real estate. The potential of China residential market is enough for Vanke's existing team to continue to operate. " In this line of thinking, Vanke even voluntarily gave up a very good cooperation opportunity with Wal-Mart, the world's largest retailer, in the field of commercial real estate two years ago.

3. Vanke refers to the operation mode of Paldi Company.

Perhaps this strategic choice is also related to the strategy of Paldi Company, the benchmark enterprise selected by Vanke in early 2004. Paldi was founded in 1956. In the early days, it also made a small amount of commercial real estate, but it soon took residential development as the professional development direction of the enterprise. In 1990s, Paldi Company entered the stage of rapid expansion. The company's business has expanded to 25 States and 40 markets in the United States.

Related Links: Paldi Company believes that there are two factors that can basically explain most house purchasing behaviors: one is the customer's life cycle, and the other is the customer's ability to pay. Based on these two factors, a "life cycle and ability to pay matrix" is established. Using this matrix, Paldi company established two categories, * * * with 1 1 customer base. According to this classification, the age group of customers in each sub-category is gradually rising. Paldi has caught all kinds of customers, and basically achieved lifelong lock-in from cradle to grave. Everyone or family can find their own position from these customer segments.

Vanke's current customer classification method is deeply rooted in Paldi's practice, and Paldi's enlightenment can be faintly seen in Vanke's current market expansion and product series methods. In this sense, it is a happy thing to find a benchmark enterprise suitable for your own study at different stages.

4. We must be cautious in managing commercial real estate.

For developers who yearn for commercial real estate, the first thing to examine is whether they have the ability of resource integration and capital operation to develop commercial real estate. If we only stay in the theoretical profit expectation of commercial real estate and simply amplify the business operation ideas of residential quarters, there will be no future. For most enterprises that started with residential development, they must be cautious in choosing commercial real estate.

Second, Vanke uses the idea of professional outsourcing to solve the problem of commercial property.

Many things are really beyond imagination. Vanke's recent announcement made many people begin to imagine: Is Vanke going to be a commercial real estate? On July 10, 2007, Vanke announced that it had formed a strategic partnership with Guardian Land, one of the largest real estate listed companies in Asia and a commercial real estate leader.

Related links: Guardian Land Group is currently one of the largest listed real estate companies in Asia, headquartered in Singapore. Its core business includes real estate, service apartments and real estate finance, which are distributed in major cities in Asia, Australia, Europe and the Gulf region. Its real estate and service apartment network covers more than 70 cities in 8 countries around the world. The listed subsidiaries and joint ventures of Guardian Land include Raffles Holdings, Ascott Group, Jiamao Trust, Konka Trust and Australian Land listed in Australia and Singapore.

1. Sign the strategic cooperation outline with Guardian Land.

Through CapitaLand's wholly-owned subsidiary, CapitaLand Commercial Industry Co., Ltd., the two sides signed a strategic cooperation outline. According to the outline, the two sides will cooperate in the commercial part of Vanke development project in the future. Kaide Commercial is responsible for providing development funds for the commercial part of the project, as well as the planning, design, investment promotion, operation and management of related parts. Vanke is responsible for project development, construction and daily operation management. For the commercial part of Vanke's developed or partially developed projects, Kaide also has the intention to buy. The main business of Kaide commercial enterprises includes commercial property investment and management. In China, they mainly buy some completed properties for management. Well-managed assets are packaged and listed, rarely involving development and construction, and basically belong to mixed financial and commercial operations.

2. The cooperation between CapitaLand and Vanke will promote the development and construction of shopping centers.

Under the goal of 654.38+000 billion, the development of Vanke is no longer a simple rolling development. Merger and acquisition has become an important means of Vanke's large-scale expansion. Since 2006, after a series of acquisitions, Vanke has successively acquired commercial projects such as Wanxuan International Office Building in Fuchun Oriental, and these commercial projects are also in urgent need of professional operators to operate. This cooperation with Kaide Commercial can be regarded as a solution to Vanke's problems to some extent through professional outsourcing.

On the premise that Vanke fully understands the market and customer needs, Guardian Land's rich commercial operation experience will be of great use. In particular, there is no comprehensive business that is particularly suitable for communities in China, especially in second-and third-tier cities and some large and medium-sized communities, and there is a lack of commercial projects that can meet the daily consumption needs of residents. I believe that the cooperation between Kaide and Vanke will promote the development and construction of such shopping malls.

3. In the future, Vanke will gradually outsource a lot of outdoor business.

Wang Shi, who made Vanke the largest real estate company in China through subtraction, declared at the recent Shenzhen Vanke development strategy conference that "Vanke will gradually outsource a lot of outdoor business in the future". This includes Vanke Property, which has made great contributions to Vanke. In Wang Shi's words, according to the expansion speed of Vanke, Vanke Property will have more than one million employees one day. And this will be a heavy burden that Vanke cannot bear. It is said that Vanke's subtraction strategy has been upgraded from focusing on residential development to optimizing the internal business chain, and even preparing to outsource financial management. Wang Shi described this change as a change from Vanke in marketing to Vanke in technology and Vanke in service. Vanke's goal is to be a company like Nike, outsourcing everything except brand and design. Even in the chain of housing industry, Vanke is more inclined to cooperate with more professional companies and concentrate on being a resource integrator and brand shaper.

Faced with the new task of commercial real estate operation, Vanke did not adopt a self-organizing approach, but achieved the goal of doing it without doing it through professional outsourcing and integration. The trick is worth pondering.

See the news that "Vanke accelerates the hoarding of commercial land" on Sina commercial real estate website. Does Vanke want to transform commercial real estate? Not necessarily, commercial housing is not restricted by the purchase restriction order. After hoarding, you can build a shopping mall or a house, and there will be more choices.

Why should we transform to commercial real estate? The degree of resource ownership determines the speed of its expansion. Therefore, under the framework of traditional strategic planning, the classic strategic model of "relying on high turnover rate to achieve large-scale expansion mode" has been repeatedly copied by China real estate industry, especially residential real estate enterprises. The reason is probably because China's resource elements have not been fully marketized, and the industry is still in the early stage of growth. "There is no house that can't be sold, only the price that can't be sold." Therefore, when making strategic planning, enterprises can look at the stable economic growth based on the national macro, and implicitly assume that the real estate industry will continue to meet the adaptation conditions of the traditional strategic planning framework. However, in the process of strategic landing, most enterprises only focus on expanding the scale by increasing land reserves, while ignoring the strategic core of controlling short-term risk positions by increasing inventory turnover rate under this model. The reason why industry benchmark enterprises are always at the forefront of the industry is that they can constantly improve their own operation and management capabilities and improve their competitive advantage through innovation of business model and profit model, thus avoiding this simple wealth growth model, such as Vanke's standardized and segmented product line.

Thanks to the gradual marketization of policies and the steady growth of macro-economy, the real estate market in China maintained the three assumptions of the traditional strategic planning framework until 2008, when the global financial crisis led to the first overall downturn of the industry, and the strategic planning logic of "resources-goals" began to fall into contradiction due to changes in the industrial environment. Although it rebounded rapidly in 2009, and the sales volume and sales volume reached new highs, it still made the whole industry go through a difficult period of destocking. At the same time, due to changes in the global macroeconomic environment, China's fiscal and monetary policies are also in an "unstable state". The policy starts from "fast, accurate and heavy" to fight inflation, which is only 1 year. In addition, the wrong valuation method in the capital market and the imperfection of China's capital market system also make real estate enterprises only increase their land reserves, so as to increase their market value and raise funds. When the market environment is reversed, high-priced one-way multi-party positions (land reserves or products for sale) are completely exposed to risks, and the capital chain has become the biggest bottleneck restricting real estate enterprises to achieve strategic goals.

The turbulence of the industry environment, especially the financial environment, caused by the financial crisis not only aggravated the complexity of the future development trend of the industry, but also increased the cost of real estate enterprises to obtain the resources needed for development. Under the influence of land finance, the sustained and steady growth of high housing prices has become the most important hypothetical basis for residential housing enterprises to repeat the "scale expansion" strategy. No matter the analysis of urbanization process or demographic dividend, it is only to demonstrate the reliability of this foundation. But in fact, the real estate industry is a cyclical industry, and enterprises often ignore that the sustainable development of the real estate industry and whether it can maintain the current high housing prices are two completely different concepts in strategic planning.

The market turmoil has made many real estate enterprises focusing on the residential real estate market begin to adjust their strategies, pay attention to and gradually intervene in another area of the real estate industry-commercial real estate, trying to replicate the "scale" expansion strategy in the commercial real estate field.

Because developers or investors usually manage property assets directly in the form of holding or "selling and leaseback", compared with residential real estate, an obvious difference is that commercial real estate can bring sustained rental income to holders, especially in the case of tightening macroeconomic policies and shrinking bank credit, sustained and stable rental income will effectively improve the cash flow pressure of real estate companies and smooth performance fluctuations. At the same time, holding residential real estate only increases inventory, while holding commercial real estate is similar to a call option, which can not only share the huge benefits of future land appreciation, but also choose to sell or continue to hold it according to market cycle fluctuations-this is probably one of the main reasons for the transformation from residential real estate to commercial real estate. In addition, commercial real estate, as an asset that can continuously generate cash flow, naturally has the conditions for asset securitization. Both ABS and REITs enable commercial real estate developers not only to continue to hold and operate commercial real estate, but also to continuously obtain the funds needed for sustainable development or acquisition of new commercial real estate, so they have more financing channels than residential real estate companies. Especially at the beginning of 20 10, the General Office of the People's Bank of China issued the Notice for Soliciting Opinions on the Administrative Measures for Issuing Beneficial Certificates of Real Estate Trust in the Inter-bank Bond Market, which indicated that the overall framework of the initial pilot of Real Estate Investment Trust Fund had been formed.

But in fact, whether it is continuous cash inflow, property option or the financing advantage of securitization, it is only the final result of commercial real estate. The fundamental reason for its countercyclicality lies in the control of three key links in the commercial real estate industry chain: forward-looking site selection, commercial satisfaction of design and professionalism of operation. Site selection depends on the study of urbanization process and urban changes of population migration, positioning and design depend on the understanding of business and the requirements of major merchants, and the later operation must rely on compound talents who know both real estate development and business rules. The so-called "lot decides people, people decide products, and products decide models". On the above premise, commercial real estate can show three countercyclical industrial characteristics that residential real estate does not have: diversified and continuous cash inflow, expectation of asset appreciation due to operating ability, and improved asset liquidity due to reasonable leasing arrangements (mortgage, sale, "leaseback after sale", etc.). ).

(The writer is a senior consultant of Sepp management.)

Does the property management of self-sustaining commercial real estate need qualification? Self-sustaining and self-use are two different things. If it's for personal use, it's for our own company, and we don't need property management qualification!

Vanke real estate and Vanke real estate are the most rubbish real estate in the world! Feel the same way

The nature of land is commercial. Can it be commercial real estate? Not all serviced apartments are commercial.

Hotel-style apartments, the room type is not very good, the room rate is low, and gas cannot be used. If it is commercial land, water and electricity are more expensive, because it is collected according to business.

However, it is not affected by restrictions on purchases and loans, and the total price is low, and serviced apartments are generally delivered by developers in a unified hardcover.