In 2021, China's real estate enterprises, which had made rapid progress all the way, encountered the capital chain test on a large scale for the first time. In the face of this challenge, how will real estate enterprises seek solutions and how will they study and judge the new year?
Surging news exclusively interviewed a number of senior executives of China's leading real estate enterprises, trying to seek the future development of China's real estate market from their eyes.
Recently, surging news interviewed Lu Weibo, chief executive of Hang Lung Group Co., Ltd. (Hang Lung Group, 00010. HK) and Hang Lung Real Estate Co., Ltd. (Hang Lung real estate, 00101. HK).
Lu Weibo, 51, joined Hang Lung Group and Hang Lung real estate in 2018 and has 25 years of management experience. In Lu Weibai's view, in 2022, consumption upgrading is still the main theme of the Chinese market, which will boost the development of new consumer brands and new retail formats in China.
On January 27 this year, Hang Lung real estate released its annual performance in 2021. Although affected by the epidemic, Hang Lung's core business still recorded growth. According to the data, driven by the strong performance of high-end shopping malls in the mainland, the property rental income of Henglong group in the mainland in 2021 increased by 30% year-on-year; By the end of 2021, the rental rate of shopping malls in Shanghai Henglong Plaza and Shanghai ganghui Henglong Plaza had reached 100%.
Lu Weibai predicts that the overall Chinese consumer market will continue to maintain a steady and good recovery trend in 2022, and give play to the basic role of consumption in economic growth.
Lu Weibai said that in 2022, it will continue to increase investment in the mainland and mainly develop high-end shopping malls and properties. "The booming development trend and layout projects in the mainland market will help Henglong's investment property rent and operating profit rise steadily." Luweber pointed out. During the reporting period, Hang Lung has arranged 11 projects in 9 cities in the mainland. Lu Weibai said that with the extension of business format and brand renewal, Hang Lung's position as the country's leading high-end commercial real estate operator will become more and more stable.
The following is the dialogue between Wei peng6}
surging news: market outlook for 2022?
luweber: due to strong growth in 2021, on the basis of high base, we expect economic growth to slow down. However, the continued strong domestic sales, coupled with favorable policy support, will continue to promote GDP growth. Hang Lung also benefited from this. Our property portfolio, including high-end shopping malls, office buildings and other businesses, continued to give us advantages. In addition, we also maintained a good cooperative relationship with tenants, allowing us to continue to obtain strong rental income growth.
Consumption upgrading is still the main theme of the Chinese market, which will boost the development of new consumer brands and new retail formats in China. It is expected that in 2022, the overall Chinese consumer market will continue to maintain a stable, positive and sustained recovery trend, and give play to the basic role of consumption in economic growth.
surging news: what changes has the epidemic brought to the commercial real estate industry in the past two years?
luweber: two years ago, the sudden outbreak of covid-19 pneumonia caused unprecedented damage to the national business sector. However, the introduction of China's epidemic prevention and control system and measures has made important strategic achievements in the battle of epidemic prevention and control, which provides a basis for the gradual recovery of consumer demand and level in the mainland. At the same time, the continued obstruction of going abroad has also allowed the consumption of high-end luxury goods in the mainland to return to China from abroad, which has greatly boosted the luxury business of China's high-end commercial real estate.
At present, the epidemic situation in the world has repeatedly made a comeback, which will have a sustained impact on the global economic recovery. Under the influence of China's "double cycle" new development pattern, domestic demand will further expand. Therefore, we continue to be optimistic about China's high-end luxury market. The strong consumption vitality of the mainland market has also provided strong support for the steady recovery of commercial real estate.
surging news: what is the impact of merchant sublease on the company?
Lu Weibo: for the choice of brands settled in the business center of Hang Lung, we follow the principle of "only selecting the right ones and only doing the right ones". In the construction of business form of the business center, Hang Lung real estate has always introduced brands around local consumption demand and consumption habits. At the same time, keep proper and efficient communication with tenant partners and property management companies on a regular basis.
During the epidemic period, we continuously optimized our assets in the mainland and Hong Kong, created high-end living experience space for customers with rich brand portfolio and shopping mall formats, and ensured the sustainable development of us and merchants.
It can be said that danger must be organic. For example, in the early stage of the epidemic, Wuhan experienced a city closure. At that time, we timely reduced the rent of all merchants; After unsealing, not only has the business of the shopping mall improved compared with the previous ones, but also the relationship between us and tenants has become closer, successfully turning crisis into opportunity.
surging news: what is the development idea of the company in 2022? What new businesses are promising or want to get involved?
Lu Weber: in 2022, we hope to further actively explore the mainland market. In 2022, we will continue to increase our investment in the mainland and focus on the development of high-end commercial properties. The booming development trend and layout projects in the mainland market will help Henglong's investment property rent and operating profit rise steadily.
At present, we have developed 11 projects in 9 cities in the mainland. The main hope is to maintain the growth and upgrading of mainland business through the "first store economy" vigorously promoted in the target cities. For example, in Wuhan Henglong Plaza, which opened last year, 110 brands entered as Wuhan exclusive, first store or flagship store among about 300 tenants. Next, we will continue to upgrade the business format of existing projects and continue to promote the process of projects under construction (such as Hangzhou Henglong Plaza).
Last year, Hang Lung real estate officially launched the high-end service apartment brand "Hang Lung mansion" in the mainland. This year, we will open the pre-sale of Wuhan Hang Lung mansion. At the same time, it is expected to unveil the implementation of Wuxi Hang Lung mansion project, marking the entry of high-end apartment business of Hang Lung real estate into a new stage. The property model combined with Hang Lung Plaza also means that users living in Hang Lung mansion in the future can also enjoy the supporting office and retail services of Hang Lung Plaza.
On the other hand, Hang Lung real estate also actively cooperates with major five-star hotels to provide high-quality life experience for business and high-end consumers in different places. In the future, we also hope to reach long-term strategic cooperation with more leading hotel brands in the industry.
