Green Landscape Pond Commercial Building rent return 3%

Lujing China (00095) acquired the Kwun Tong office project last year. Greenview NEO has been renting since September. Vice President Ye Xing’an said that the project will be rented by layer. At present, more than ten potential tenants have expressed strong will, among which Chuangke, financial technology and real estate enterprises, this year’s goal is to implement half of the project lease; it is expected that there will be tenants in the second half of next year, and the occupancy rate is expected to reach 80% to 90%. He also pointed out that Kwun Tong has great development potential. The rents of commercial buildings in the district have risen rapidly. The rent has risen to 35 to 40 yuan. The rental rate of the project is expected to reach 3%.

As for Hong Kong’s residential business, Ye Xing’an said that the Liufushan project is undergoing planning and design. The road and water distribution issues still need to be discussed with the government. The project is about to start next year and will be launched from 2020 to 2021. The value of the project is about 100. 100 million yuan.

Greenview China Chief Executive Tang Shouchun mentioned that the company’s main business is property development, but in the long run, it also hopes to increase the proportion of commercial property income to 40% to 50%. At present, the proportion of commercial property income is still less than 20%. He said that the company’s land bank is abundant and there is no urgent need for mergers and acquisitions; because the company’s strengths are the transformation of the old city, the land cost is lower than that of “buying and auctioning”, and the pressure for returning funds is also low. The company has not caused much impact.

Focus on property development in Dawan District

Tang Shouchun said that it will focus on property development in Dawan District. Currently, the assets are mainly located in Shenzhen. The port accounts for about one quarter. In the future, there will be good M&A opportunities in the Greater Bay Area, and the target internal rate of return will be at least 10%.