After one year of reorganization SRE received gradual effects on post-investment management
December 21, 2016, in the Shanghai International Conference Center held an industry forum, should be invited by the organizers, the relevant leaders of the group introduced the reorganization of the year after the post management work, as well as the next step of the investment layout focus.
Clarify the strategy and build “international Real Estate Financing platform”
December 2015, the group reorganization dust settled. Domestic private enterprise Giant-Ching investment through its China and the people's fine industry completed to set up the group, become a controlling shareholder.
After the reorganization is completed, the place in the Chinese people to vote on this aircraft carrier will go to where, attracting attention. The answer will soon be announced, January 7, 2016, China and the People's Company and the joint press conference held in Hong Kong, announced the group "around the real estate core business, focus on the core of the city, actively explore overseas markets" strategic direction, to become the Chinese people to invest in financial real estate layout of the important platform. Subsequently, after a year of exploration, the group has further established the establishment of the international financial real estate platform positioning, and will focus on the market in the "core cities in developed countries, areas along the high growth area, the domestic first-line city" three directions.
Improve operations management and enterprise operation situation
With the support of China Minsheng Investment, the group adopts various ways to improve the operation and management level of enterprises. Looking back, the operation of the management, the main is six words, namely “management, people, money, specialization, investment and partner”
Management -standard management. According to people familiar with the situation, the reorganization, one months after the issuance of more than 30 management system, the reconstruction of the Group control system, improve corporate governance, especially the internal control system, quickly reversed the early management of the situation is out of control.
People-Team remodeling. "Internal excavation, mechanism-driven", on the one hand, combing the basic situation of internal personnel, excavation of internal talent potential, on the other hand, the introduction of a number of backbone, further enhance the professional level of the team. At the same time, the company also issued a number of staff incentive measures. July 2016, the group has issued an external announcement of the implementation of equity incentive plan.
Money-reduce capital costs and improve cash flow. At the August 15 Interim Results Conference, the previous said it was pushing for high cost capital substitution, with high cost financing rates falling from an average of 14.56% to 8.17% per cent, and that the cost would be further reduced as a result of a 4 billion-dollar high cost capital replacement expected to be completed throughout the year. At the same time, the group also through the project exit, equity cooperation, financing and other means to accelerate the return of funds.
Specialization- enhancing professional competence. As a veteran real estate company, it has advantages in moving demolition, engineering, design, cost, marketing and so on. After the reorganization, the group has further strengthened these advantages. 2016, the project of Daxing Street in Huangpu District after 12 years of twists and turns, through employing, mechanism and other aspects of adjustment, one year successively through a round, two rounds of consultation, become the highlight of the old Shanghai project.
Investment-project development. Since 2016, the group has significantly accelerated the pace of project expansion. April 21, the group issued an external announcement, the 1.315 billion yuan to the purchase of the Meilan Lake Asset Package Project, September 2, the group issued a notice to 84.5 million pounds for the acquisition of London's British France-Hing Bank headquarters building project. According to the public report statistics, the group in the past year in Shanghai, London, Sydney and other key cities have invested no less than 5 projects, the core city layout ideas gradually clear.
Partners. SRE group in a number of public occasions to emphasize the concept of corporate development. Behind this, the top is promoting the identity of the resource integration platform for market development. After all, the Chinese people cast a large number of plates, owns the construction of industrialization, photovoltaic power generation, general aviation, financial and other plate resources; At the same time, there are 59 shareholder resources behind the investment and the group as a traditional high-end real estate developers, behind itself also has legal affairs, finance, consulting, design, construction, sales and other professional team resources. The integration and interaction of these resource forces will be a powerful driving force for the transition.
Timely project exit and realizing value fulfillment
Over the past whole year of 2016, SRE transferred and disposed some projects. Maybe it can be seen that SRE had a slice of exit ideas on some projects.
Get rid of some projects unqualified with SRE’s overall strategic development. For some of the value is not high, the risk of a larger project rapid disposal, such as after the reorganization, its rapid closure of the business-trading Company (supermarkets), the transfer of the Internet finance Company. For a certain value of the non main business, according to the market situation timely exit. As of March 25, 2016, the company announced the external transfer of the hotel project, the project has been a loss for years, high liabilities. Seize the first half of the favorable market conditions, the group through a number of negotiations, the end of the 643 million-dollar debt-type transfer to the project, the transaction both for the return of funds, reduce liabilities, but also conducive to the focus on the development of the main industry. According to people familiar with the matter, the transaction also has a benefit, successfully lifted the above due to the project's external guarantee can not be discharged on time due to the loss of liquidated damages.
For equity cooperation projects, the top is to improve value. If an equity transfer item is placed, earlier this project has been to a well-known domestic real estate developers transfer 60% equity, on the new team in place to seize the opportunity, through contract negotiations, change the original unequal distribution mechanism, return to share the same rights, in 2016, the first-line city market, a sharp rise in the situation, SRE group will get a bigger return than expected.
It is reported that the next step, the group, in accordance with the international financial real estate platform positioning, will accelerate the development of projects in three major market —— core cities in developed countries, the Belt and Road high growth region and the domestic first-line City. The group will obtain investment returns from post-investment management.