Salsa son-in-law Chen Zhenbang: This year’s 1 billion sweeping industrial and commercial buildings
Sha Sha International (00178) Chairman Guo Shaoming and daughter-in-law Chen Zhenbang has entered the real estate industry in recent years, established THE BLOCK GROUP, and dismantled the studio project THE BLOCK SEA. So far, more than 80% of the units have been sold, and the book has gained nearly 43 million yuan. Chen Zhenbang threatened that this year, he is still optimistic about the industrial and commercial shop market, and will use 800 million to 1 billion yuan to enter the market, targeting full-scale or full-scale industrial and commercial properties, and even Minsheng District shopping malls.
Chen Zhenbang, founder and chief executive officer of THE BLOCK GROUP, said that the Group’s first unspreaded property was THE BLOCK SEA, F & G studio project, 16th Floor, Golden Bear Industrial Centre, 66-82 Chai Wan Kok Street, Tsuen Wan, in June 2018. The sale started, at the time the property market was hot, so the sales were good, and it injected a strong shot into the investment in industrial and commercial properties. After accumulating this valuable experience, this year will increase the investment, the budget has been used 800 million to 1 billion yuan to enter the market, and even join the partners to expand investment.
Priority is given to the target full-floor unit in Tsuen Wan, Kwai Chung.
He pointed out that although the property market began to deteriorate in the second half of last year, the recent performance of industrial and commercial properties remained stable, indicating that such properties are defensive, but the trading volume is reduced. At the same time, he believes that the Sino-US trade war is expected to be resolved. At that time, the market will recover. It is expected that the property price of industrial and commercial shops will increase by about 5% to 10% this year. Its personal investment target is to concentrate on the full-scale industrial and office units, as it can add creative elements to enhance the value and rental value. As the family business, Weiwei Washing Powder, has been rooted in Kwai Chung and Tsuen Wan and is familiar with the environment in the district. Therefore, the two districts will give priority to the two districts. In addition to the industrial and commercial buildings, based on the stable consumption of people’s livelihood, he intends to invest in small-scale shopping malls, and next step to study the purchase of whole buildings for reconstruction.
Has spurred 43 million purchases of Kwun Tong Industrial Building and even Tiantai
Chen Zhenbang revealed that this year, he has taken the lead in entering the market and spent 43 million yuan to purchase the top floor of the 11th floor of Jinkai Industrial Building, No. 58 Hongtu Road, Kwun Tong. It has a total floor area of 8,500 square meters, and another rooftop is about 600 square meters, with a price of 5059 yuan. He hopes to incorporate his favorite designs into the unit, and the rooftop will add more uses to increase flexibility.
Chen Zhenbang’s first investment property was purchased in 2015 and is a unit of Huarong Industrial Building in Kwai Chung, with a price of 7.76 million yuan. The property was later converted into 11 studio projects THE BLOCK to collect rent, and the rent was upgraded from 9 yuan before the modification to the current 24 yuan.
Until the end of 2017, the Golden Bear Industrial Center unit was purchased for approximately 25.29 million yuan, and THE BLOCK SEA was sold off. The project has provided a total of 68 units. Since the sale, 56 units have been sold, accounting for over 82% of the total. The units sold have sold for 570,000 to 2.7 million yuan, with an average price of 8,148 yuan, and a total of about 68 million yuan.
THE BLOCK SEA was renovated in December and is now delivered to buyers. Chen Zhenbang pointed out that half of the buyers are users, many of them are entering the market for entrepreneurs, or the second generation is given by the elders. Although the current cash amount is about 42.71 million yuan higher than the purchase price, it has cost about 15 million yuan. The renovation of the yuan, together with the promotion costs, “the (actual) has not earned more than doubled." The project currently has a total of 12 surplus goods, the price is from 850,000 to 3 million yuan, and the price is from 7300 to 11,000 yuan. It is sold at the original price and the current building. Buyers can enjoy a 1.5 to 3% discount on the printing fee or a 4% rental return, as well as a one-year management and maintenance fee and attorney fees.