“Developers have no money to decorate, the owners pay their own expenses”, talk about the recent project self rescue work, Dongguan, Guangdong Province Taihe Xintiandi (also known as Jinze Commercial Plaza) owner representative Chen Ying said.
Through the owners’ crowd financing and self help and coordination, the closure project of Taihe Xintiandi is being gradually revitalized. Some buildings are now being delivered and rented out. Other owners of the project have also considered joining the self rescue camp.
owner crowdfunding self rescue
Taihe Xintiandi is the star project of Taihe’s first entry into Dongguan, located in the core business district of Dongcheng District, Dongguan. It is reported that the construction area of Taihe Xintiandi project is over 180 thousand square meters, of which the commercial area is about 50 thousand square meters, locating the fashionable and fashionable blocks, and creating a fashionable lifestyle for 24 hours without closing. The project is divided into commercial and apartment buildings, including 1-5 apartments, with a total of about 1885 households; The commercial layout is from – 1 to 2 floors, and the total number of planned businesses is about 180.
As a key project of Taihe in South China, its publicity was almost the same frequency as the development of Taihe in 2017. In the new meeting of Taihe Xintiandi, the developers played the slogan “Dongguan’s Taihe, the new world of the world”. Those years were the era of Tahoe Group Co.Ltd(000732) massive expansion.
A real estate person familiar with Dongguan told the daily economic news that the opening price of the project is not low. The shops are 50-150 square meters. There are two duplex 36-78 square meters and three-5 flat 42-75 square meters, with an average price of 24000-28000 yuan / square meter.
According to the commercial housing sales contract presented by the buyer and the decoration agreement signed with the decoration company, the developer should have delivered the hardbound house by the end of 2019.
It coincided with the tightening of real estate financing in the trust industry in the second half of 2019, Tahoe Group Co.Ltd(000732) capital chain crisis began to appear, and the first debt was overdue in September of the same year. In July 2020, Taihe announced the debt restructuring, while many projects across the country were also affected and fell into shutdown.
Reporters entered the Taihe Xintiandi Park, seeing that most of the commercial and apartment buildings are still in blank condition. Decoration and construction materials are stacked in the public area inside the square, and the property and security teams are temporarily in the rough room where the floor is laid. On the outer square of the business, a large children’s amusement project is in operation, and there are also sporadic businesses settled at the bottom. However, KFC, which opened in the second half of last year, has closed for some reason.
In terms of apartments, owners cooperate with various departments to carry out self rescue.
Chen Ying told reporters that they contacted other owners and organized communication with developers to save themselves from the beginning of the year to the end of the year.
However, out of pocket is not an acceptable way for all owners to save themselves. Chen Ying told reporters that many owners take legal procedures to recover their buildings.
Another owner said that I only hope to solve the problem in a smart way. At the same time, they are also encouraging each other by receiving and communicating with key customers and beautifying public areas.
To some extent, the owners of Taihe Xintiandi are lucky compared with other unfinished projects. When the liquidity crisis happened, the main building blank of the apartment building No. 1-5 was completed and accepted for record, and the remaining works were not completed in the interior decoration and public area greening.
advance payment ranging from 20000 to 150000
Then, after reaching the self rescue consensus, how does the project realize the resumption and delivery step by step?
The reporter of the daily economic news learned from several owners that all self rescue owners need to advance funds for the unfinished interior decoration and public area construction of the project. According to the decoration progress of the developer’s previous projects, the owners of each building need to pay 20000-150000 yuan in advance.
During the period, Dongguan housing and Urban Rural Development Bureau also carried out special research and held a coordination meeting of all parties to the project to study the disposal countermeasures. Taihe expressed respect for the wishes of the owners and actively cooperated with the small owners to advance the decoration funds and pay taxes on behalf of the developers to handle the real estate property right certificate.
Since then, the owner has set up a self rescue team, and each owner will share the expenses equally, hire legal counsel, inspect and bid the decoration company, and set up a common fund supervision account.
According to Chen Ying, after repeated discussions and discussions, the owners selected by the owners, as the authorized representatives of the self rescue committee, signed a capital contribution agreement with the developers and decoration companies. The three parties agreed to complete the unfinished decoration and public part construction of Taihe Xintiandi commercial and apartment buildings by all the self rescue owners.
For the supervision of self raised funds, the owner implements the joint supervision of funds by multiple people, and finds a bank supervision method in which funds can be allocated only after multiple people sign together, so as to ensure the special use of funds.
The daily economic news reporter was informed that the owner of the self rescue could voluntarily entrust the third party construction, but the third party’s selection method and the selected result must be approved by the developer. The ownership of the decoration materials placed in Taihe Xintiandi square belongs to all the self-help owners, and the expenses generated by the owners will be paid by the owners who are involved in the self rescue.
For the return of the advance money, the three parties agreed that the amount of the advance capital of all the self rescue owners shall be reviewed and agreed by the developer, and shall be subject to the amount actually paid by all the self rescue owners to the third party. The interest on the advance money shall be based on the advance capital of Party A and calculated according to the deposit interest rate of the people’s Bank of China for the same period, and shall be calculated from the date of advance money by the owner to the date of repayment by the developer.
Chen Ying said that according to the agreement, the developer should pay the principal and interest of the advance payment to the owner within 30 working days after the decoration and delivery of all buildings and commercial supporting facilities of the project. At the same time, it is agreed that before the developer makes payment, the owner shall provide the payment records and relevant basis of the advance payment to the developer, and coordinate with the third party to jointly provide financial cooperation documents according to its requirements.
There are too many variables for the owners to complete the decoration and coordination. It seems that there are too many uncertainties for the owners to complete all the supporting buildings.
some buildings have been delivered and rented
For the compensation for delayed delivery of decoration, an owner involved in self rescue and decoration told reporters that the developer promised to pay the owner the compensation for delayed delivery according to the standard of 80 yuan / day. The calculation of the compensation for delayed delivery is from January 1, 2020 to December 30, 2021.
The compensation is based on the premise that both parties shall not require to increase or reduce the amount of compensation for delayed delivery. It is agreed that the compensation payable by the developer for delayed delivery will not be changed whether the actual completion time of the third party entrusted by the owner is earlier or later than December 30, 2021. At the same time, the owner shall not require the developer to bear the liability for overdue delivery of the developer according to the commercial housing sales contract.
The owner said that the payment term is also that after the decoration and delivery of all buildings of the project are completed, the developer guarantees to give priority to the owner when funds are available.
In an interview, the reporter learned that the work of resuming work and self rescue of Taihe Xintiandi project was carried out in units of apartment buildings. With the active self-help of the owners, building 5 has been renovated and rented out, other building owners have joined the self-help camp, and apartments 3 and 4 are also being renovated one after another.
During the visit, the reporter saw that the ground of the lobby of 4 buildings has been treated with crystal surface, and the glass at the door of 3 buildings still has the banner of “good start” pasted at the commencement ceremony years ago. In Taihe Xintiandi square and inside the park, we can see a large number of advertisements for investment promotion.
Around the outside of the square is the entrance of No. 5 apartment. The apartments that have been delivered for rent continue to be accessed. The early self rescue owner representative is also responsible for the external rental of the apartment. He said that at present, more than 130 households have been occupied, 39-52 square meters of single rooms and one room and one living room, with a rent of 1800-2600 yuan / month.
“thank the owner for understanding and support”
What is the experience of Dongguan in the partial delivery of Taihe Xintiandi project? Is it possible to form a replicable redelivery mode?
Taihe responded to the reporter of the daily economic news that based on the purpose of pragmatic and solving the house delivery problem as soon as possible, Taihe welcomes the beneficial exploration under the joint efforts of various parties. Taihe thanks the owner for his understanding and support. At present, the first mock exam is only using some of the buildings. This is not a comprehensive model. Whether we can form a model to promote the development of the buildings need to see the specific circumstances of different projects and what consensus can be reached by all parties.
AI Zhenqiang, chief researcher of Mingyuan Real Estate Research Institute, believes that the reproducibility is not strong. Taihe’s customer base is relatively high-end, not bad for money, and the waiting time cost for rights protection is relatively high. They will prefer to solve problems quickly. If the customer base just needs to be changed and has emptied six wallets to buy a house, it will be difficult to pay again. When local governments guarantee the delivery of the building, the delivery of the building is not a big problem, but a little late. In addition, there are too many stakeholders involved, so it is very difficult to reach an agreement.
Taihe Xintiandi self rescue owners are more concerned about the problem of Taihe crisis and when they have funds to pay for their pads. Owners who protect their rights and interests through other ways are more concerned that Taihe can resume work and production normally.
Taihe responded that at present, various regions of Taihe have held many meetings, and the projects that have resumed work are communicating with the construction unit, starting as planned and advancing according to the construction period. Some projects in some cities such as Jinan have started. The projects that have not resumed work in some key cities are also actively communicated and promoted, and preparations are made. Similar to the projects of large cities and small courtyards in Shanghai, financial institutions, governments and enterprises have reached an agreement before the Spring Festival, and will officially resume work after the year.
However, many investors and property buyers have questioned the “false resumption of work” and “cloud resumption of work”. Last year, Taihe Shenzhen yard, a benchmark project of Taihe in Shenzhen, also heard the news of opening and selling for many times.
However, the reporter recently visited Taihe Shenzhen yard and found that the door of the on-site sales office was half closed, and only two or three staff in civilian clothes stayed on duty. The doors of the two construction sites of the project were closed, and there were no signs of construction. Through the gap, we could see that there were weeds on the site, and the foundation pit operation of one of the plots had not been completed.
With regard to Taihe Shenzhen yard, people close to Taihe said that at present, Taihe is actively communicating with financial institutions and other aspects, and it is progressing smoothly. There should be further news in the near future, and they are also striving to realize the opening of Taihe Shenzhen yard and Pingshan Taihe square as soon as possible.
turning losses into profits, when will the crisis be lifted?
In addition to the owner’s self rescue, delivery and resumption of work, what surprised the market was the profit performance forecast of Tahoe Group Co.Ltd(000732) .
In 2021, Taihe estimated that the net profit attributable to the shareholders of the listed company was about 101-132 million yuan, and the net profit after deducting non recurring profits and losses was also positive, about 372-483 million yuan.
In the previous two years, Taihe’s performance continued to suffer losses. In 2020, the net profit loss of Taihe attributable to shareholders of listed companies was 4.999 billion yuan; In 2019, the net profit was 827 million yuan, but after deducting non recurring profits and losses, the net profit loss attributable to shareholders of listed companies was 236 million yuan.
For the reasons for performance changes, Tahoe Group Co.Ltd(000732) said that due to the significant increase of identifiable sales revenue, various expenses and fixed costs were strictly controlled, and the expenses decreased significantly during the period; In the same period of 2020, more inventory impairment reserves were accrued; Income from changes in the fair value of investment real estate and the net impact on the legal litigation cases in the implementation stage after the loss is accrued.
Although the performance turned from loss to profit, the crisis did not dissipate.
At the end of January, China Merchants Bank Co.Ltd(600036) also issued a disposal progress announcement on the non payment of the principal and interest of Tahoe Group Co.Ltd(000732) “17 Taihe mtn001” and “17 Taihe mtn002” on schedule. The issuer’s non payment of principal and interest has constituted an event of default, and the amount of unpaid principal and interest has reached 3.76 billion yuan.
For the business objectives in 2022, Taihe said that it was necessary to achieve the full resumption of work and production of the whole group this year and continue to promote the work of ensuring delivery and quality. In 2021, it was mainly the resumption of work and production in Beijing, Fuzhou and Xiamen, and there were also positive progress in Shanghai and Guangzhou and Shenzhen; In 2022, we should consolidate the achievements of 2021 and make more obvious progress in promoting the resumption of key projects in Shanghai and Guangzhou Shenzhen. At the same time, we should accelerate the promotion of sales, alleviate the pressure of cash flow and repay part of the debts of financial institutions.
(Chen Ying and others in the text are pseudonyms)
