18/1/2018-8

Yuzhou Real Estate 3.8 billion yuan to buy Coastal Group 7 projects

Yu Chau Real Estate (1628) was suspended and announced yesterday pending the publication of the company’s proposal to acquire certain land properties in several cities in the Mainland, including Beijing, Tianjin, Wuhan, Foshan and Shenyang. Yuzhou Real Estate Subsidiaries entered into a sale and purchase agreement with Coastal Greenland (1124) to acquire a target company comprising 7 projects of Coastal Group with a total turnover of approximately RMB3.8 billion and a salable area of ​​over 3.13 million square meters of equity interest. 400 billion yuan (RMB, the same below), mainly located in first and second tier cities.

The acquisition also includes a number of investment properties located in the core area, including office buildings, hotels, shopping malls and so on, including three commercial centers located in prime locations in Beijing, Wuhan and Shenyang respectively. The company said the acquisition allows Yuzhou Real Estate to enter Beijing, Foshan and Shenyang for the first time and acquire quality plots and projects in Tianjin, Wuhan and Shenyang to speed up the nationwide layout.

For the first time to enter Beijing, Shenyang

Lin Longan, chairman of Yuzhou Real Estate Board, said: “The acquisition represents a major milestone for the development of Yuzhou. It not only complements the Company’s high-quality land bank, but also successfully expands its business territory to the first and second tier in Beijing, Shenyang and Foshan City and expand Yuzhou’s national layout to 22 cities. ”

Yuzhou real estate executives proposed to achieve 100 billion sales goal in 2020. From 2016, contract sales of about 23.2 billion yuan to contract sales by 2020 100 billion yuan, the compound annual growth rate of 44%. Haitong International released a research report, covering the first time that Yuzhou Real Estate has a “Buy” rating with a target price of HK $ 6.61. Haitong International pointed out that a compound annual growth rate of 44% should match the P / E of 2018 over 4.7 times. Therefore, the current market has not really tapped the intrinsic value of Yuzhou.