This is another “potential dark horse” that transforms real estate from traditional real estate.
After investigating several parks in Dongguan, China Park left a deep impression on its “industry, finance and real estate” integration development model. This combination of self-interest and balance concept not only effectively solved the pre-investment problems that plagued most industrial parks, but also explored a new path in the park's profit model and asset realization.
This enterprise is Guangdong Zhongtian Group. Founded in 2001, Guangdong Zhongtian Group has developed into a diversified investment group covering the construction and operation of technology and cultural creation industrial parks, real estate and real estate investment, urban renewal and supporting investment, environmental protection and financial business. In 2010, he began to engage in industrial real estate development and operation. Currently, he has operated 12 industrial projects of different scales in the Pearl River Delta with a total construction area of over 5 million m2.
In 2016, Guangdong Zhongtian Group, which has been sneaking in the industrial park for six years, formally established its industrial group. Like the companies like Tianan Digital City, Xinghe Group and CIMC, the new round of industrial transformation is in full swing in South China. With a strong and thin market, with the characteristics of cooperation and keen market sense, it will be more active in the industrial real estate stage.
Park China recently had an in-depth exchange with Zhang Yukai, the president and co-founder of Guangdong Zhongtian Group. There are many dry goods that can be shared with you: the reasons for the transformation from residential developers to industrial real estate and the journey of the heart, the attempted path of light and heavy asset balance output, Thinking about landing capital market and park asset securitization, and different cooperation methods with Zhongguancun, Vanke, Country Garden and other partners... I believe that these dry goods can bring some reference and inspiration to industrial park managers and practitioners.
"Cooperate, make things happen." Concise and concise, summed up Zhang’s business philosophy, and also pointed out the embarrassment of doing business in the eyes of the industrial real estate veteran.
Park China: Guangdong Zhongtian Group was previously a traditional residential developer and an important partner of Vanke. What is the cooperation model between the two parties?
Zhang Yukai: We started to develop real estate projects in the early days and participated in the transformation of the old city. In 2004, the country began to implement the bidding and auction policy. By 2007, the traditional old city reconstruction and village-enterprise cooperation development model had been blocked, and the biggest problem encountered by private enterprise developers was that it was difficult to recruit. PK, the developer of the market and the state-owned assets background, took the land.
In this situation, we began to consider breaking the game in a cooperative way. An occasional opportunity allowed us and Vanke to come together. In 2007, the first cooperation was started. Through this first cooperation, the two sides established a relationship of mutual trust; and then further cooperation was carried out. So far, the two sides have more than 20 cooperative development projects across the country, and Guangdong Zhongtian Group has also become Vanke. One of the important partners in the real estate sector.
The reason for the development and transformation of Guangdong Zhongtian is that it is standing with excellent enterprises, especially with Vanke, and to a certain extent, it has learned a lot of Vanke's excellent quality. Of course, this kind of cooperation is also a win-win situation. Zhongtian and Vanke have cooperated for many years. Because of understanding the local situation, we also have a better match and combination of Vanke's local investment decisions.
Park China: Zhongtian began to enter the industrial real estate field in 2010. How was this strategic change formed?
Zhang Yukai: Through the cooperation with Vanke, we have turned from the relatively “enhanced mode” of “self-organizing land→loan→investment→development” to the “light mode” of financial investment, so that we have more energy. Consider the transformation of the group. Around 2010, we began to think, but the model of building a house alone will sooner or later be unsustainable. Relatively speaking, the industry will be more sustainable.
After the transformation of the “cage-for-bird” transformation, Dongguan’s economy has regained vitality with its strong manufacturing base. Although the number of enterprises is decreasing, the quality of enterprises has been improved, and the survival and innovation capabilities of enterprises have been strengthened. Dongguan processing and manufacturing industry has been upgraded to intelligent intelligence, management concept has been upgraded, industrial upgrading has accelerated, and many high-tech enterprises in Shenzhen have begun to move to neighboring Dongguan due to the increase in urban living costs. We feel that Dongguan's industrial transformation and upgrading will usher in a round. The opportunity for development, the Songshan Lake High-tech Zone at the junction of Dongguan and Shenzhen will be a flashpoint.
In the process of looking for opportunities, we met a Hong Kong company, Hong Kong Zhihong Technology, whose main business is to provide financial IT maintenance and back-office services for major banks. Since Zhihong Technology owns industrial and scientific research and design land, we happen to be good at development and construction with funds. The resources of the two sides are complementary and we have achieved cooperation smoothly. Later, when the joint financial services group of the Shenzhen People's Bank came to Songshan Lake, we successfully joined hands. Therefore, there is the current Songshan Lake International Financial Innovation Park.
After we stepped in, we discovered that although the land price of industrial land is much lower than that of residential buildings, the intensity of construction investment is large, reaching more than 10 times the floor price. Since there is no experience in developing industrial parks before, in addition to construction, resources and experience in industrial carding, product design, and investment promotion are insufficient. Every step is to “cross the river by feeling the stones” and take a lot of detours. . We have gathered more than 200 innovative companies with a "not convinced of the enthusiasm", and we have explored our own models and paths.
Through the practice in the International Financial Innovation Park, we also understand that industrial real estate developers and residential developers are completely two concepts. We decided to open an industrial real estate “runway” at the group level, with the goal of becoming an investment builder and operation service provider focused on the industrial park; the residential level is more determined to be an investor.
Park China: Industrial real estate and residential real estate are completely different ways of playing. Has your team been uncomfortable in the process of transformation?
Zhang Yukai: It is not easy to make this decision. There are also different opinions in our team. Compared with residential turnover and easy cash flow balance, the park needs a long incubation period, the cash return is much slower, and the investment in the park is faced with small and medium-sized enterprises. The residential sales are faced with individual consumers. Two different models, the team did not adapt at first.
In the process, we have targeted several goals. First, mobilize various group resources, first ensure that they survive in this industry, and second, quickly make large-scale, make the number of parks and the construction area of the industrial park, change the impression of the former single developer, and the third is to do Good demonstration park investment, do a few highlights.
Focusing on these several objectives, we have made many attempts to explore diversified financing methods, asset securitization, park enterprise value investment, building incubation and creating space through the Group's financial control platform.