The price of the building is expected to be adjusted
New World Development (017) entered its 50th anniversary. Executive Vice President Zheng Zhigang revealed that it is expected to gradually divest 20 billion yuan of non-core assets in the next few years to enhance financial capabilities. Currently, he advocates “cash is king”, depending on the situation. funds. He also expects that there will be a high single-digit decline in property prices in the future. As New World launches first-hand real estate next year, it will be less affected in the next few months.
Zheng Zhigang said yesterday that the new world has entered the 50th annual development
There are many assets and development, construction, leasing and other core business development directions and strategies may not be unified, so there is a need to divest, and the sale of these projects can provide the Group A lot of cash flow, I believe that it can release the value of the new world. He revealed that these non-core assets amounted to 20 billion yuan, or will gradually be sold in the next few years, providing certain benefits. The sale of assets can enhance the financial capabilities of the New World. However, based on the current claim that “cash is king”, it is not necessary to make an immediate investment, and will obtain more cash flow for deployment and use it at the right time.
In recent months, a political crisis broke out in Hong Kong and the property market showed signs of falling. Zheng Zhigang estimated that the future price of the property will record a high single-digit decline. However, as the group has not launched new properties in the next few months, it is expected to have little impact. He also said that the next first-hand project is the fastest launch of the Tai Wai project next year. It can provide 3,000 units, but there is no timetable. At present, it mainly sells the spot and has recently launched new measures to promote sales. Now it has achieved results. . He also said that the launch of the “New Generation First Plan” in 2017 was overwhelming and will be re-launched in the future, but no details were given.
The occupancy rate of Hong Kong Island East New Commercial Building is about 57%
He continued to point out that the New World’s shopping malls have few new projects and newer periods, and the leases are starting short, so it is difficult to assess the pressure of rent reduction. He pointed out that the rent and sales ratio of the merchants will be measured. If there are operational pressures, relief measures will be introduced, but there is not much demand for rent reduction. As for commercial buildings and hotels, there is no obvious impact. He said that the new commercial building K11 Atelier King’s Road in Hong Kong Island had already negotiated rental services. The current occupancy rate is about 57%, and the hotel does not intend to require employees to take unpaid leave. Will continue to observe the situation.
As of the end of June, New World holds a total land area of approximately 6.5 million square meters in the Mainland for immediate development, of which approximately 3.9 million square meters are for residential use. Currently, it is being deployed in Shenzhen Taizi Bay in batches and will be actively developed in the future. Dawan District Project. Zheng Zhi, although faced with a variety of uncertainties, will use flexible and innovative thinking to develop and be cautiously optimistic about the performance of Greater China.
In addition, New World President Zheng Jiachun was absent from the performance conference yesterday. The eldest son Zheng Zhigang did not explain the reasons. He only said with a smile: “You can ask for a meeting. You can ask for a return.” Zheng Jiachun said at the same occasion last year that he would still participate in behind-the-scenes work. And support the son to perform on the front line. New World Development closed at 10 yuan yesterday, down 0.2%.