Jiazhaoye (01638. HK), which fell into a liquidity crisis last November and announced debt restructuring earlier, has now ushered in a glimmer of dawn.
On April 5, jiazhaoye and China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) ( China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) . SZ) both announced that recently, the two sides and Great Wall assets jointly signed the strategic cooperation agreement, and each party intends to establish a strategic cooperation relationship to carry out cooperation in urban renewal, real estate development, commercial complex management and other fields.
It is disclosed that the cooperation content includes three levels. First, it will build a development platform to promote cooperation in urban renewal, China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) make use of the comprehensive development advantages of its community, business and industrial parks, give full play to the advantages of asset management and combination of industry and finance of Great Wall assets, and jiazhaoye will give full play to the advantages of urban renewal, jointly create appropriate cooperation modes and mechanisms, and discuss the establishment of joint ventures and other cooperation carriers in due time; Based on jiazhaoye’s urban renewal reserve resources in Shenzhen, Guangzhou, Dongguan, Foshan and other core cities in Guangdong, Hong Kong and Macao Bay area, the three parties will conduct comprehensive combing and research, and continue to put mature projects into the tripartite cooperation platform based on the principle of “one mature and one cooperative”.
Second, promote the cooperation between commercial and residential development and commercial operation. For the projects such as stock commercial and residential development and commercial complex operation, the three parties jointly discuss the development and revitalization through equity cooperation, asset transfer and joint operation. For incremental projects, combined with the advantages of all parties, jointly obtain and develop. Third, the three parties will also jointly explore and strengthen cooperation in cultural tourism, ferry and other businesses in Dawan district.
Jiazhaoye said that the cooperation will include but not limited to joint venture arrangements and asset acquisition, and the parties to the agreement should choose each other as the preferred project partners. “The conclusion of the agreement will help to realize the core value of the group in Dawan District, promote the transformation of urban renewal projects, activate commercial and residential project assets and alleviate the difficulty of short-term liquidity.” Jiazhaoye said in the announcement.
By the middle of 2021, jiazhaoye has accumulated 213 urban renewal projects that are not included in the soil storage, covering an area of more than 53.7 million square meters. It is expected that it can eventually convert a construction area of about 110 million square meters. At the same time, the layout of its Chenggeng project is mainly Dawan District, with the proportion of saleable construction area as high as 99%, which is mainly concentrated in Shenzhen and Guangzhou, accounting for 41% and 29% respectively.
China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) said that the signing of the strategic cooperation agreement is conducive to its deep cultivation in Guangdong Hong Kong Macao Bay area and its surrounding areas, and supplement high-quality land resources.
Insiders familiar with jiazhaoye’s urban renewal business said that for China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) the development of its urban renewal business is relatively slow, and this cooperation is conducive to its development in this field; The latter has also provided financing support for several mature projects in the western city of Shenzhen ZHAOLEI.
However, the final direction of the cooperation remains to be seen. Some insiders believe that there is no substantive equity transaction at present. Previously, many enterprises, including Vanke and Taihe, have had similar “shouts”, but there are also many cases that ended without illness. Another person in the real estate industry told China first finance and economics that “strategic cooperation is generally intentional, and there are many problems at the project level. It is the king to directly receive M & A projects and take out real gold and silver.”
For China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) , although it is the real estate enterprise that issued the first M & a loan, it still maintains a cautious attitude towards M & A.
Asked about the acquisition plan at the recent performance meeting, China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) management said, “The M & a project will be much more complicated. Compare the M & a project with our high-quality projects in high-quality cities. If the value of the M & a project is greater and the income is higher, we will actively communicate, perhaps mainly to understand the quality of their assets, whether the risk is controllable and the corresponding price verification. Some outsiders of the project look very good. In fact, you will find a lot of problems after adjustment, so we are more cautious It’s advancing. The company will always promote mergers and acquisitions with a positive attitude. Our overall strategy is to actively seek, make prudent decisions and make prudent moves. “
