From Aug. 1 to Aug. 4, 2018, 2018 Boao Real Estate Forum sponsored by Guandian Real Estate New Media was launched in
On Aug. 2, Xu Yafeng, president of WINS Investment, attended “2018 Boao Real Estate Forum” upon invitation, and participated in the theme seminar of “Rebuilding the Insight of Real Estate”. At the seminar, President Xu expressed his important viewpoints on such topics as how the financial industry should make greater achievements by cooperating with the real estate industry, at what time the capital should participate in the market, and which business fields WINS would prefer next.
Returning to reason, accurate positioning, maintaining steady development
If we review the land prices in the past years under the current tightened macro-policy, we would find out that the prices had risen too rapidly. This also means that the profit margin would become narrower and narrower. The current development modes of real estate enterprises have already reached a quite extreme state, and may encounter a ceiling in such aspects as leverage, speed, team pressure and scale. WINS is a PE enterprise with a background of real estate developer and a history of nearly ten years. We have been also continuously exploring a way of survival which fits us. Firstly, we should adhere to our own professional judgment, make our judgment in such aspects as cities, projects and property types, and find out the projects which can yield a reasonable return. Secondly, just like the theme of this forum, we should learn how to return. First of all, we should learn how to return to reason, and should have a more distinct and reasonable judgment of the market and the growth. In the past years, it was very common for a real estate company to achieve a growth of 40% to 50%. However, as a matter of fact, this growth is too fast. Therefore, we should return to our normal reasonable judgment, and make a correct judgment of the market.
Realizing advantage complementation in connection with small and medium-sized developers
In current financing environment, small and medium-sized developers may face a high pressure. Therefore, it is a very good choice to cooperate with large enterprises in terms of capital or projects. As an advantageous enterprise with a background of large-scale developer, WINS can acquire comprehensive advantage in such aspects as capital cost, efficiency of development team, operation capability and brand influence by relying on the core competitiveness of Gemdale Corp. This is a relatively mature and traditional business model of WINS: realizing the complementation of advantageous resources with small and medium-sized developers, realizing the efficient utilization and value addition of resources.
Optimism toward urban regeneration, coexistence of challenges and opportunities
We are very optimistic about the huge stock opportunity of urban regeneration, but should also pay attention to the cycle. The asset prices on the current market are very high. Therefore, with regard to this, 1) We should tap golden investment opportunities; 2) We should have a quite strong operation capability. WINS has established a new urban regeneration fund this year. In connection with the model of the previously-invested Shanghai No. 8 Bridge Cultural Creativity Park, we will continue to make new investments in the fields of urban regeneration including cultural creativity park, even apartments for long rent and commerce. Of course, we also face a huge challenge, and have more difficulties in judgment than that of operating residence. Therein, we need to pay attention to the valuation and whether our operation capability can bring about the addition of asset value. Therefore, both the investment capability and the operation capability of future assets are very important.
