Since the Spring Festival, many places across the country have issued “stabilizing the property market” policies to stimulate the demand for house purchase from many aspects, such as “house purchase subsidies”, “adjusting the proportion of down payment” and “reducing interest rates”.
At the same time, under the policy guidance of “implementing policies for the city”, recently, many commercial banks have timely adjusted the detailed rules, and the real estate credit environment has been relaxed. The shell Research Institute believes that with the promotion of policies, finance and marketing measures, most cities will see the momentum of new house sales warming back in March and April.
In fact, since 2022, real estate enterprises, as the protagonists of the real estate market, have taken action one after another. Especially since the Spring Festival, some real estate enterprises have arranged in advance by adjusting the organizational structure and senior management positions and increasing financing, in order to gain something in this year’s “gold, silver and four”.
“ask for bonus from management”
With the advent of the “black iron era” of real estate, the industry has entered the stage of shrinking and clearing, and more and more real estate enterprises begin to optimize the organizational structure and carry out fine management. Since the beginning of the year, Zhongliang, Shimao, rongchuang, Jianfa, Xiangsheng and other real estate enterprises have announced the adjustment of organizational structure and the streamlining of internal management.
“The recent adjustment of the organizational structure of real estate enterprises can be subdivided into two directions.” According to the analysis of China Index Research Institute, first, optimize the organizational structure characterized by light headquarters and regional adjustment to create an efficient organization; The second is to adjust the organizational structure with business optimization as the core, support the development of key businesses and improve management efficiency.
Take Jianye group as an example. Just after the Spring Festival, it announced that the five-level management mode of “group business group region city company project company” would be adjusted to “group city company / professional company project company” three-level management, and the headquarters of Jianye group and four listed companies, including Jianye real estate, Zhongyuan Jianye, Jianye new life and zhuyou Zhizao technology, Merge into a new group headquarters; At the same time, the company’s business lines will be reorganized, and the merged group headquarters will be set up with 9 business centers. Four listed companies can reduce costs in the form of shared centers.
This also means that China Construction Industry Group will abolish all regional levels and establish new urban companies and professional companies, which will be directly managed by the group, while the adjusted urban companies will directly manage the project company. Through the adjustment, China Construction Industry Group hopes to achieve the goal of streamlining headquarters personnel and strengthening the region.
According to Hu Baosen, chairman of China Construction Industry Group, there are more than 1000 people in the five headquarters, but more than one third of them may be doing the same job. Prior to the implementation of the five-level management structure, the phenomenon of overstaffing and low efficiency has become more and more serious. With the continuous reduction of real estate profit space, the above structure and personnel setting must change with the trend. “Jianye group has also reached the threshold of ‘blade inward’ and asking for dividends from management.”
Rongchuang China also adjusted its organizational structure from seven regions to nine regions at the beginning of this year. Xi’an, Taiyuan and other northwest cities with outstanding performance in 2021 have specially set up the northwest region, with Zhu Zuxing, the former general manager of Xi’an company, as the regional president; The southwest region, which has accumulated a large number of cultural and tourism assets and the largest soil reserves in the past, was divided into Chengdu Chongqing and Yunnan Guizhou regions. Shang Yu, the former president of the southwest region, was transferred back to the group to be responsible for the investment business, and Zheng Fu, vice president of Shanghai regional group and general manager of Shanghai City, took over the Chengdu Chongqing region.
In this regard, rongchuang China said that in order to comply with the changes of the industry and external market environment and better support the development goal of “focusing on deep cultivation of core cities, controlling scale and improving comprehensive operation competitiveness” in the next stage, the company arranged this structural adjustment. The adjusted organizational structure is more conducive to reducing the management span, reducing the management level, improving the management efficiency and improving the comprehensive operation and management ability.
In addition, Shimao Group adjusted the group’s functional departments and regional functional departments from 11 to 7; Xiangsheng holdings adjusted the original seven centers, three executive departments and several secondary departments to nine departments, such as board office, marketing and finance.
“The industry has reached a consensus on the downward trend of the industry, and the growth of the real estate industry tends to stabilize gradually after slowing down. With this round of organizational structure adjustment, the personnel and pattern of the whole industry will also be shuffled. This process is irreversible.” The general manager of southwest regional investment and development of a leading real estate enterprise told the daily economic news that many companies will still reduce land acquisition investment this year. With the completion of the development and sales of existing projects in their city or region, the project team will naturally disperse.
central enterprises and state-owned enterprises actively acquire land
At the same time, some real estate enterprises also increased their value reserves and began to actively take land.
From February 16 to 17, Beijing took the lead in launching the “first shot” of centralized land supply in 2022. In this round of land supply, there were 18 plots and 17 transactions, including 8 at the base price, 3 at the highest quotation and 6 at the on-site bidding. Compared with the shooting rate of 17% in the third centralized land supply last year, there is only one batch of land for centralized land supply in Beijing.
In addition, up to now, many cities including Fuzhou, Hefei, Changsha, Xiamen and Shanghai have released the first batch of centralized land supply schemes in 2022.
For the gradual recovery of the land market after the year, Peng Lili, research director of the enterprise business department of the China Index Research Institute, said that the plots obtained at the beginning of the year are expected to become the sales reserve value of this year, so the result of this land transfer is better than the market expectation.
As the biggest winner of the first batch of centralized land supply in Beijing this year, Greentown China participated in seven plots of land competition and finally obtained three residential lands, with a total transaction amount of 9.84 billion yuan. According to Kerui’s statistics, from January to February this year, the cumulative new land value of Greentown China was 39.15 billion yuan, ranking first in the industry.
2022 January February real estate enterprises added land value TOP10 data source: Kerui
China Resources Land ranked second with a new land value of 23.22 billion yuan. In 2022, China Resources Land first won three plots in the centralized land supply in Ningbo, then won the Fengtai jijiamiao plot in the centralized land supply in Beijing with “5.712 billion yuan + 6% proportion of property rights held by the government”, and won the Shougang Park plot in Shijingshan, Beijing with 2.282 billion yuan.
Look at Hangzhou Binjiang Real Estate Group Co.Ltd(002244) , which is deeply rooted in Hangzhou. The record of investor relations activities disclosed recently shows that the company has added five projects through bidding, auction and listing since 2022. Among them, there are one in Ningbo and four in Hangzhou, with a total land area of 178500 square meters Hangzhou Binjiang Real Estate Group Co.Ltd(002244) also ranked fourth with a new land value of 15.02 billion yuan.
However, it should be noted that at present, central enterprises and state-owned enterprises still occupy the mainstream in the land market. According to the data of China Index Research Institute, the total land acquisition of 50 representative real estate enterprises decreased by 67% year-on-year in February. However, from the top 10 real estate enterprises with land acquisition amount in key cities, central enterprises and state-owned enterprises are still the main force, occupying an absolute advantage in quantity.
Central enterprises and state-owned enterprises such as China Resources, poly, construction and development industry are active in acquiring land, which is directly related to their relatively good capital situation. In contrast, private enterprises are still trapped in financial pressure. Since this year, only a few enterprises have participated in land acquisition.
For the land market in 2022, Kerui analysis believes that this year’s investment will still show a pattern of “the strong will always be strong”, the enthusiasm of enterprises to acquire land will continue to divide, the enterprises with stable finance and abundant funds will still be the new force in the land market, and the development advantages will be further expanded.
real estate M & A financing accelerated landing
In fact, in recent years, the reasonable and normal financing needs of medium and high credit real estate enterprises have been gradually met and responded,
On March 1, country garden announced that its wholly-owned subsidiary, Country Garden real estate, had approved the registration of medium-term notes with a principal amount of 5 billion yuan. This is the first time that country garden has registered medium-term notes with Bank Of China Limited(601988) inter market dealers association.
Previously, Midea real estate successfully booked a 1.5 billion yuan 2022 phase I medium-term note on February 25, with an issue interest rate of 4.50% and a term of 4 years.
In addition, it is worth noting that with banks and financial institutions taking multiple ways to support the reasonable M & A financing needs of real estate enterprises, the enthusiasm of real estate enterprises to participate in M & A is also gradually increasing.
According to the report of the central index Institute, recently, including Industrial Bank Co.Ltd(601166) , Shanghai Pudong Development Bank Co.Ltd(600000) , Guangdong Development Bank, Ping An Bank Co.Ltd(000001) , Bank Of Shanghai Co.Ltd(601229) and others have announced financing lines for M & A of real estate enterprises, with a total amount of more than 60 billion yuan. At the same time, China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) , China Resources Land, China Construction Development real estate and other real estate enterprises have successively issued M & a themed bonds. By the end of February, real estate enterprises had raised 3.82 billion yuan by issuing M & A bonds, the bank provided 48 billion yuan of M & a loan financing, issued 5 billion yuan of M & A bonds, and planned to issue 10 billion yuan.
For example, according to the Industrial Bank Co.Ltd(601166) announcement on February 17, it is planned to issue real estate M & a theme bonds of no less than 10 billion yuan according to the market demand and business development needs. On February 24, Bank Of Shanghai Co.Ltd(601229) announced that it plans to launch the issuance of financial bonds in the near future and issue 3 billion yuan of Real Estate Project M & a theme bonds. The raised funds are specially used to support high-quality real estate enterprises to merge and acquire high-quality projects of large-scale real estate enterprises with risks and difficulties.
Under the background of continuous efforts of banks, many real estate enterprises have also successively tested the water of M & A bonds and issued M & a related bills, such as China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) , China Resources Land, China Resources Vientiane life, Grandjoy Holdings Group Co.Ltd(000031) , Minmetals real estate, etc. Among them, central enterprises and state-owned enterprises occupy an absolute advantage.
Specifically, on January 12, China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) 2022 completed the registration of the first phase of medium-term notes (M & A) of 3 billion yuan, and issued 2.58 billion yuan in the first phase, of which 1.29 billion yuan was used to repay a loan arising from the acquisition of old transformation projects, and the remaining 210 million yuan will be used for future projects that meet the M & A requirements, which is also the first successful M & a note in the industry in 2022.
Xiamen local state-owned enterprise Jianfa also announced on February 17 that it plans to issue the second phase of medium-term notes (M & A) in 2022, with a basic issuance amount of 800 million yuan and a ceiling of 1.53 billion yuan. Jianfa plans to arrange 460 million yuan for M & A of the equity of two target project companies and 1.07 billion yuan for project construction.
In addition, some real estate enterprises have chosen to cooperate directly with banks to start the financing support plan for M & A of real estate projects China Merchants Bank Co.Ltd(600036) in January, China Resources land was granted 20 billion yuan and China Resources Vientiane life 3 billion yuan of M & A financing quota respectively, which is dedicated to the M & a business of China Resources Land and China Resources Vientiane life; In February, China Merchants Bank Co.Ltd(600036) granted Grandjoy Holdings Group Co.Ltd(000031) holding 10 billion yuan of M & A financing line for M & a business; Similarly, in February, Ruian real estate also signed a memorandum of cooperation with Shanghai Pudong Development Bank on real estate M & A financing and ESG sustainable development financing of 10 billion yuan.
An insider who declined to be named admitted to the reporter of the daily economic news that high-quality real estate enterprises, especially those with state-owned assets, have natural advantages in M & A, “In the future, more high-quality real estate enterprises may issue merger and acquisition bills for the merger and acquisition of real estate projects, and the merger and acquisition of high-quality real estate enterprises will also have a positive impact on the steady and healthy development of the industry as a whole.”
Shengang securities also pointed out in the research report that with the encouragement of the policy, with the accelerated landing of real estate M & A financing, while it is expected to help real estate enterprises speed up risk clearing, the quality of bank assets will be improved.
