YOUNGOR Put 2 Billion Into Property Circle Again

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Famous

The group has stepped up its own real estate business again.

On the evening of July 6th, the YOUNGOR group announced that it would invest 1 billion yuan in a wholly owned subsidiary, YOUNGOR real estate holdings, and separately subscribe 50% of the registered capital, and jointly set up Shanghai YOUNGOR Real Estate Development Co., Ltd.

YOUNGOR said that the establishment of Shanghai YOUNGOR Real Estate Development Co., Ltd., aimed at utilizing Shanghai's location, information, talents and other advantages, integrates and optimizes resources in the original Suzhou and Shanghai areas, searches for quality projects and plots through mergers and acquisitions, and makes the company's real estate business bigger and stronger, and fostering new profit growth points.

According to the world clothing shoes and hats net, Shanghai YOUNGOR real estate investment and Development Co., Ltd. has not yet launched any project activities.

In response, YOUNGOR mentioned that it was subject to macroeconomic regulation and control policies.

Environment, cyclical fluctuations and other factors affect the uncertainty of project operation and profitability.

In fact, from 1992 to cooperate with Macao Nan Guang to develop real estate, YOUNGOR has been involved in housing for 22 years.

According to the 2016 annual report of YOUNGOR, the income of its real estate sector is 10 billion 270 million, and the clothing sector revenue is 4 billion 460 million.

Real estate sector revenue and profits are significantly higher than the clothing sector, which is why YOUNGOR has been reluctant to give up real estate.

However, YOUNGOR has not been so popular in the field of clothing in the field of real estate.

In 2010, YOUNGOR estate won the right to develop the east block of Changfeng 8 with a price of 3 billion 393 million yuan.

Statistics show that the final bid price of the plot is 73% higher than the auction price, and the floor price is nearly 26 thousand yuan per square meter, which has set the floor price of 22409 yuan / square metre which was set up by Zhonghai real estate in the long wind 6B and 7C plots a year ago.

But in 2011, all the projects in YOUNGOR, Ningbo, Suzhou and Hangzhou suffered a decline in sales performance. The total annual revenue was only 3 billion 373 million yuan, or even 440 million yuan less than that of clothing business.

Subsequently, YOUNGOR's Changfeng 8 project in Shanghai began construction in October 2011 and was officially opened at the end of January 2013.

Compared with other developers, YOUNGOR has less experience in real estate projects, which led to a lack of accuracy in the timing of land acquisition in Shanghai and lack of nodes in the market.

The re establishment of the Shanghai company is seen by the outside world as YOUNGOR's determination to return to the Shanghai market.

In the current real estate market, it is usually a manifestation of its industry status to take projects and set up headquarters in the first tier cities.

For example, Zhongliang real estate does not have a project in Shanghai, but its headquarters still chooses Shanghai.

China and Shanghai have moved their headquarters to the city, hoping to attract more talents to join.

In fact, after the real estate entered the silver age, the adsorption capacity of the first tier cities began to increase.

Foreign players began to target their headquarters in the first tier cities. On the one hand, the competition for these foreign players led to further competition in the market, and on the other hand, it also increased the scarcity of talent in the industry.

More interesting reports, please pay attention to the world clothing shoes and hats net.