Haode plans to increase investment property day property
Hao Ting Holdings (08149), the corporate finance and property investor, said that its chairman and executive director, Ye Tianci, plans to invest more Japanese properties to increase rental income and ensure a more stable source of income.
Ye Tianci said that because Japan is a low-inflation country, the annual rent increase is limited, but the advantage is that it can provide extremely stable income. Therefore, the Group intends to invest more in the local area and directly increase the rental income of the Group. He mentioned that there is no clear target for acquisition and will continue to closely monitor opportunities in the local property market.
As of the end of March this year, Haode has a total of 22 investment properties in Japan. Except for one commercial project in Kagoshima, the rest are residential. Ye Tianci also said that in the past, the focus on residential properties was mainly due to the large and stable local residential market. In the future, it will also look for commercial projects and focus on retail properties. It is not intended to be involved in office buildings and hotels.
Said that the earthquake is against favorable local rentals
Executive Director Zeng Xianpei revealed that the current net rental income of its investment properties in Japan ranges from about 3% to 5%. The Group has recently partnered with non-profit-making organizations to lend properties to the agency to provide care services. Zeng Xianpei believes that the stability of leasing to a nursing service provider is higher than that of a university student or a working person. In Japan, where earthquakes occurred frequently, an earthquake occurred in Hokkaido earlier. The group also owned 13 properties in the area, but it was only slightly damaged. He said that the earthquake will make more people want to move to the city center and buildings with more solid structures, but it will benefit the group’s rental.
In addition to property investment, Haode’s other main business is corporate financing. Zeng Xianpei said that the current market value of the group has a large discount to its net asset value, which is estimated to be related to the market’s view of the group as a real estate property company.
Ye Tianci mentioned that with the increase in the number of newly listed companies and the change of the regulatory environment each year, it is believed that the financial advisory services in the corporate finance business will have more room for development and will further increase this business development in the future