On September 18, 2020, the "2020 BRIC Forum and the Ninth BRIC Value List Awards Ceremony" administered by the Ministry of Housing and Urban-Rural Development and hosted by China Real Estate Finance (a magazine) was successfully held in Shanghai. The BRICS Forum is the most professional and influential forum in the field of China's real estate finance. Since its inception, more than 1,000 organizations and more than 50,000 people have participated in the conference. With the theme of "Leapfrogging, Rebirth", this conference has brought together influential people in real estate, finance, industry, funds, leasing and other fields to discuss new developments and new trends in real estate finance from a global perspective.

Mr. Xu Yafeng, President of WINS Investment, was invited to attend this forum and participated in a roundtable dialogue entitled "Difficulties, Pain Points, and Core Points of Real Estate Asset Management in the New Era" and shared his view on such topics as the pain points and countermeasures of real estate asset management in the stock era.

First of all, General Manager Xu stated that WINS Investment is an alternative investment institution under Gemdale Group focusing on investment and management of domestic and foreign real estate markets. It develops a diversified integrated business system around key business models such as equity investment in residential development projects, urban renewal funds, core value-added funds, and old city renovation funds in first- and second-tier cities and strong third-tier cities. Development-oriented equity investment projects and the model of "investment + agent construction" in synergy with Gemdale Group will remain an important investment direction for WINS Investment in the future. The urban renewal fund will be used to invest in offices, industrial parks, community businesses and long-term rental apartments in first-tier cities and new first-tier cities where the new economy is relatively developed. The core value-added fund, after asset acquisition, will empower assets through the operation and transformation of assets, so that the value of the assets can be increased. The old city renovation fund focuses on investment opportunities in urban economic clusters such as the Greater Bay Area, Beijing-Tianjin-Hebei, and the Yangtze River Delta, as well as potential second-tier provincial capital cities.

China's real estate industry has entered the era of stock, and real estate asset management has also gradually entered a new era. General Manager Xu believes that real estate asset management should adapt to market changes and select high-quality underlying assets that can meet the needs of the times. All categories of real estate industry can be defined as space business. In the past 20 years, China's residential space business has experienced rapid development, and the current market demand is shifting to office, living, consumption, entertainment and other types of space. For example, the selection of office space by enterprises in recent years can be called suburbanization or industrial-park orientation. Coupled with the impact of the epidemic this year, the demand for office space, air quality, environmental quality and other factors, and the demand for office space in industrial parks are also increasing. The project of Shanghai No. 8 Bridge Industrial Park and the project of Hangzhou 58 Industrial Park that WINS Investment is involved in can well meet the needs of users for new office space. Therefore, industrial parks will also be an investment category that WINS will continue to pay attention to in the near future.

For another example, the demand for life, entertainment and consumption generated around the radius of life can be said to be rigid demand. WINS led the acquisition of Shanghai Kangjian Plaza in 2019, which is a community-based business. This project is located in Xuhui District, the CBD of Shanghai. It enjoys a high-quality base of regional consumption and educational resources, surrounded by schools, and has great demand potential and value enhancement space in education and entertainment. We hope to build Kangjian Plaza into a community-based shopping mall with the service theme of children's education, leisure and entertainment through renovation and upgrading and resource integration. Such a community-based business with demand potential and value enhancement space is also a business format that WINS focuses on. In the future, WINS will make it into an asset package and create greater value through capital operation and asset management.

Based on due analysis, General Manager Xu believes that asset-heavy investment opportunities will favor institutional investors in the future. Whether it is equity investment in the traditional residential business, or the operation and management of more different business formats involved in the field of urban renewal, there will be higher and higher requirements for the specialization of operating institutions. The high requirements for specialization mean that this stage is more suitable for institutional investors' investment. In the process of project acquisition, transformation and operation, various changes and risks will be encountered. Institutional investors have more professional judgment and anti-risk ability. Therefore, professional institutional investment will be the general trend.

The release of the public offering REITs policy this year will more effectively promote the sound development of investment in real estate stock assets. In the future, the development of real estate finance products will provide professional managers with a better stage to show their abilities, and also put forward higher requirements for professional investment operation and management. With the gradual maturity of public offering REITs, the underlying assets will cover a very wide range of fields in the future. WINS Investment will also make more explorations and attempts to open up traditional real estate private equity funds and asset securitization product models to form the complementary and collaborative effects of operating platforms of real estate finance capital.

With regard to the situation that the return on domestic stock assets is generally low, General Manager Xu shared the solution strategy of WINS. First, we can increase the rate of capitalization through the asset-light model. For example, in the way of long-term leases, project renovation and upgrading and long-term, professional, and refined asset management are carried out within a sufficiently long lease period to enhance the value of assets and obtain long-term returns. Second, we can intervene at an earlier stage. For example, we can intervene and get involved in the process of development and even land acquisition, and rely on the active management capabilities of WINS accumulated over the past ten years to effectively control the construction cost, thereby increasing the rate of return of the project.