The mainland’s leading developer, Evergrande (03333), has been actively attacking the city in Hong Kong in recent years
Following the purchase of the Tuen Mun residential site and the acquisition of the Cheung Sha Wan Industrial Building project last year, the relevant parties have recently established a property agency company. The push is about to be deployed. The newspaper has asked the Evergrande side whether it plans to develop a property agency business in Hong Kong. There was no response before the deadline.
A review of the Companies Registry revealed that Evergrande Property Agency (Hong Kong) was established earlier this month and most of the company’s directors have an Evergrande background
Including the senior executives of Evergrande Chen Fen and Wang Rong, who were responsible for the acquisition of the Welfare Development of Henderson Land (00012), which owns the residential land of Tuen Mun Road, and then served as a director of Welfare Development, but Wang Rong has left. Chen Fen is still a director of Fucai.
Director of Marketing as Director
As for the other two directors of Evergrande Property Agency (Hong Kong), they are Zou Yizhen and Wang Yugui, and Zou Yizhen is the marketing director of Evergrande. The shareholders of the property agency are controlled by BVI companies and therefore cannot check the ultimate holder behind them.
It is not uncommon for property developers to have their own estate agents to assist in the launch. According to the first-hand residential property sales information network, large developers such as Henderson Land and Xindi (00016) have appointed their own agencies to assist in sales. For example, Hengdi entrusted Henderson Property Agency Co., Ltd., and Xindi entrusted Kaishang Property Agency Co., Ltd. Wait, but the two developers will still entrust other agencies to help sell the new disk.
The real estate industry pointed out that as the sale of real estate requires a lot of manpower and material resources, even if a small number of developers will set up an estate agency company, the promotion of real estate work will still be mainly undertaken by other correspondent banks. The main role of the developer’s agency is to target agents, coordinate sales deployments, and related financial matters (such as commissions).
Coordinate sales deployment
In recent years, Evergrande has entered the residential market in Hong Kong. The first gun was a large-scale residential project at No. 8 Guan Cui Road, Tuen Mun. It was approved by the Lands Department in February this year. The land was originally acquired by Hengdi in 2015, which was close to 3.63 billion yuan. Last year, it was discovered that it was undertaken by Evergrande in the form of equity transfer (commonly known as “selling shells”). The market was rumored to be worth about 6.6 billion yuan. The above-mentioned Guancui Road project was developed in two phases, with a total of 1982 partners, 754 in the first phase and 1,228 in the second phase. Both phases are expected to be completed in early 2021. The market is rumored to have the opportunity to debut this season.
In addition, Evergrande also purchased the redevelopment project of the former Huai De Industrial Building in Cheung Sha Wan from New World Development (00017) through equity transfer. The project is located at the junction of Furong Street, Tokyo Street and Yuanzhou Street. It provides 414 teams. It is expected to be completed in August 2021. Evergrande has applied for pre-sales of flats to the Lands Department in April this year.