On January 13, 2019, “2019 (The 10th) China Annual Conference of Real Estate Leaders”, hosted by Huaben Entrepreneur Club, was held at China World Hotel in Beijing. This year is the tenth year of the annual conference of China Annual Conference of Real Estate Leaders. The past ten years have witnessed the development and transformation of China’s real estate industry. The theme of the annual conference of this year is “Future-revering, Far-reaching and Wonderful”. It is hoped that in the era of treacherous international situation, entrepreneurs can be grateful for the past, revere the future, have an in-depth mastery of the laws of the industry, seek new investment opportunities and new breakthroughs, and promote the healthy development and long-term prosperity of the real estate industry. The conference gathered more than 400 entrepreneurs, economists and other guests in the whole real estate industry chain to jointly discuss new ideas for the development of the real estate industry in the new era.
Mr. Xu Yafeng, President of WINS Investment, was invited to attend this conference, and participated in the guest talk entitled “The Joint Talk of the Industry, Finance and Real Estate about the Transformation and Leapfrogging of the Real Estate Industry in its Winter”. The talk was presided over by Tian Han, Chairman of Kinghand Co., Ltd. The guests invited for the talk include Zhang Yong, Chairman of Xinyuan Group, Gan Lianfang, Chairman of Xingpai Group, Lu Xuewei, Chairman of WGHT Group, Zhang Dongdong, founder partner and CEO of Yufeng Capital, and Yang Lei, Executive Director of Dream East Group. These business leaders came together to discuss the way of layout and breakthrough and explore new directions when the industry is in its winter.
As a private equity management company focused on real estate investment, how does WINS judge the criteria for investment and the future trend of the industry? General Manager Xu put forward his own point of view.
The development of the industry will be more rational and steady
First of all, General Manager Xu believes that the real estate industry has been growing rapidly over the past two decades. Although many people in the industry believe that the real estate industry has entered its cold winter, the fact is that its development has just been slowing down. According to the sales area of over 1.6 billion square meters in the whole industry in 2018, and the growth of 20%-30% still maintained by Top 100 real estate enterprises, the real estate is still in a good state of development compared with many other industries. In the future, the development of the industry will tend to be more rational and steady under the circumstance of policy regulation and slower growth.
The scale will be more concentrated, and the strong will remain strong
On such a premise, the industry will have a higher scale concentration, and large real estate enterprises will have relatively obvious advantages in brand capacity, financing capacity and operating capacity. General Manager Xu said that as a member of the real estate developer Gemdale Group, WINS will still focus on the field of real estate development as a link of capital. By making equity investment in cooperation with small and medium-sized developers, WINS will give full play to its core advantages in financing capacity, brand premium and active management. When the industry concentration is higher and small and medium-sized enterprises face the dilemma of survival, cooperation with excellent real estate enterprises rich in resources will also be the development trend in the future.
The stock market ushers in a new opportunity
When the incremental market faces its bottleneck, along with the change of population structure and population flow, and the demand of urban development, the stock market will be a new growth point. Compared with incremental assets, stock assets have a long cycle and relatively low returns in a short term. General Manager Xu said that, first of all, it is necessary to adapt to the transformation from the logic of sales-oriented investment recovery to the logic of gradual recovery relying on operating cash flow. At the same time, WINS has formed a relatively complete investment system. On the one hand, when acquiring an asset, we can invest a certain scale of money in a project by means of private equity fund, and then develop, transform and operate the project. On the other hand, when the asset enters the period of stable operation, we can match the way of asset securitization and withdraw from the capital market, which is also the most ideal way of investment in stock assets. General Manager Xu believes that the investment range of stock assets is more extensive than that of incremental assets, and in each subdivision, professional operators are needed to carry out operation and management, and an opener ecosphere of win-win cooperation will come into being in the future.
