The Whole Story Of The "Consigning" Of The Northern The Bund Block In Shanghai

On the afternoon of March 31st, just as a number of listed housing companies were busy releasing annual reports, a heavy news came from the Shanghai land market: the Jiaxing road HK271-01 block of Shanghai Hongkou District north the Bund plate (the "north the Bund block") was tender, and finally the first place in the middle Sea (00688.HK) was picked up at the base price of 3 billion 430 million yuan, which was equivalent to the floor price of 63 thousand yuan / square meter.

However, the result of "zero premium" has attracted much attention.

The north the Bund block, closely adjacent to the core area, is the Jiang Jingchun homestead adjacent to Helen Road subway station. This is the first time that Shanghai Hongkou District has launched a pure homestead in the past 3 years. It only needs to build 1500 square meters of vegetable market, and no 15% of the rental housing is self-contained. The plot transfer area is 21 thousand and 700 square meters, the height limit is 80 meters, and the floor area ratio is 2.5. The average price of second-hand housing around the plot is 100 thousand yuan / square meter, but at the base price of 63 thousand yuan / square meter.

Soon after the Ching Ming Festival in April 6th, the three legal representatives of China, Huarun and Vanke were involved in the bidding for the north the Bund land. According to the publicity information released by the public number of Shanghai land exchange market in March 31st, China real estate (Hangzhou) Co., Ltd., Kunshan Kai te Business Management Co., Ltd. and Jiaxing run Sheng Enterprise Management Co., Ltd. are the successful candidates, and the three companies offer the highest effective price of 3 billion 430 million yuan. The public notice period will expire in April 3rd.

Kai Xin Bao shows that the shareholders of Kunshan Kai te Business Management Co., Ltd. are Vanke enterprise Limited by Share Ltd (shareholding 51%) and Shanghai Vanke Cci Capital Ltd (holding 49%); Jiaxing run Sheng Enterprise Management Co., Ltd. owns 100% of China Resources Land Limited. The legal representatives of the three companies are Cui Shuai, Chen Gang and Mei Hong respectively.

By the time of press release, the current trading status of the Shanghai land market official website on the north the Bund block is: transactions.

The north the Bund block, closely adjacent to the core area, is the Jiang Jingchun homestead adjacent to Helen Road subway station. IC photo

Bidding and "bidding"

In early April, Cui Shuai, general manager of Shanghai, China, was investigated by police. Subsequently, Song Youyou, deputy general manager of Huarun in East China, and Mei Hong, chief investment officer of Vanke Shanghai company, spread the news. Rumors that "investigation" is not just a few housing enterprises executives. However, most executives ended the investigation in the next few days.

According to one industry analyst, the date of listing of the north the Bund block was February. At that time, most cities in the country were very anxious and confused about the future trend of the epidemic.

Shanghai has entered the "bidding bidding" land generally divided into 2 kinds of screening methods: effective bidding documents of up to 3-10 copies, ranking the order of the top 2 bidders shortlisted bidder; if more than 11 or more, the top 3 ranked bidder is the bidder.

In February 25th, the detailed rules issued in the north the Bund block had been adjusted to 3 kinds: the valid bidding documents amounted to 3-5 copies, and the top 2 bidders were listed in the ranking order. If the valid bidding documents reached 6-10 copies, the first 3 bidders were included in the order of bidding. If 11 or more of the bidding documents were reached, 4 top tenderers would be nominated for bidding. There has been a subtle change in the way of bidding, that is, the threshold for bidding has been reduced.

In accordance with the provisions of the land transfer at that time, the number of valid applicants for the qualification examination was 3 or more, and the plots were sold by bidding. Through the eligibility of the effective number of applicants less than 3, the land is directly sold by listing. Ranking order according to the comprehensive factors of Housing enterprises.

The land bulletin issued by the Shanghai land exchange market in March 20th showed that: "audited, the HK271-01 plot of Jiaxing road street, Hongkou District (land bulletin number: 202002701)" the number of valid applicants is three persons or more. According to the ninth principles of the local block transfer method and the regulation of sale, it is determined that the local block shall be Tendering with competitive bidding (that is, combining bidding with on-site bidding). Transferee. " The date of bid, opening bid and bid evaluation is March 31st.

At present, the land of Shanghai inviting and selling compound transfers is scored by "135 points system". Among them, the economic strength is 32 points, the technical qualification is 17 points, the project experience is 41 points, and the management of the transferee is 45 points.

In this bid, the participating companies are big business: Zhonghai, Vanke, Huarun land, merchants, Greentown, and Ping An. China Sea, Vanke and Huarun scored 130 points, 130 points and 120 points. According to the "priority principle", they ranked first, second and third respectively, and the three entered the subsequent auction.

During the epidemic season, the cloud bidding was adopted in the afternoon of March 31st. After the opening of the block, I do not know if there are no three cards, or other reasons.

The tender price is 2 million. Insiders estimate that even if Vanke or Huarun purchase a price plus one price, no land price will be traded.

Vanke, China shipping and Huarun three invested the land in Shanghai in 2019. They also invested in 19 billion 60 million yuan, 10 billion 673 million yuan and 7 billion 10 million yuan respectively.

After the incident, the investment department of a number of well-known Housing enterprises did not want to have much comment on the event. They believed that the industry had a popular way of doing so: developers would have to communicate with each other if they want to get the land. If they want to get the land, they will discuss the matter well and win the cooperation from one company and then cooperate with the stock ownership.

In twenty-first Century, the economic news reporter interviewed a number of Housing enterprises related personages. They believe that before the auction, developers will inevitably communicate and cooperate with each other offline. At auction, there will be other competitors who are not partners. Naturally, there will be competition scenes. It is still a relatively fair competition bidding scenario. The real meaning of the "bid" is not without a bid, and it is not bad for a housing company to take the "bottom price" directly.

Therefore, the result of the transfer of the north the Bund block and the investigation of the relevant personnel all point to the conjecture of "surround the bid". The industry insiders said that the local government has introduced a comprehensive high score of housing development through land bidding, and the products made by the local government are also good for consumers. From the perspective of urban development, this is a win-win situation. However, when the qualified housing companies entering the final bidding stage want to use their advantages to collude with zero premium, things will deteriorate. This practice is also unfair to the industry peers.

In view of illegal activities such as bidding and collusion, the Shanghai Municipal Housing Construction Commission also issued 12 severe measures in June 2019. In the land transfer document of the north the Bund block, it is also pointed out that "if there is any violation, violation or breach of contract in the trading activities, all legal liabilities shall be borne and the losses arising therefrom shall be compensated."

"Surround" fermentation

In twenty-first Century, the economic report learned from the core source that at present, China has sent a vice president in charge of project cost, Liu Huiming as general manager of Huadong district and Shanghai company. Public information shows that Liu Huiming previously served as assistant general manager of China Sea real estate group and general manager of Beijing company. There are no new personnel changes in Huarun and Vanke, and related personnel say there will be no personnel changes before the matter has been identified. Reporters learned from multiple sources, Huarun and Vanke two are still being investigated in the senior management work is also handed over to other colleagues. But Vanke did not sign up for the tendering of Xu Jing homestead, which will be sold in April 27th. Two effective applicants in the plot are Jindi and investment promotion.

The wave of the "the Bund Shanghai block" is a landmark event for the land market in Hong Kong. Shanghai has also revised the land tendering rules to be sold. This is the revision of the rules of sale in April 2017 when Shanghai changed the rules of land leasing.

In April 2017, Shanghai amended the rules of land leasing for composite land leasing, adopted a comprehensive scoring system and increased the proportion of self employed land. Basically, the entire rented residential land accounted for about half of the market. Judging from the regulation of the property market in that year, the land market has entered a downturn stage. Therefore, the revision of the land transfer rules is reasonable in the industry.

In recent years, many housing companies moved their headquarters to Shanghai. Capital is still coveted by Shanghai. In April 21st, 6 billion of Shanghai life's largest shareholder won Jingan business office land. The current Shanghai land market has taken a corresponding attitude towards housing prices.

In April 10th, 2 sites of Songjiang District homestead were posted on the website of the Shanghai Bureau of land and resources. There are two major changes in the rules of the parcel plots in the two plots: the land is directly sold by the way of listing when the number of valid applicants is less than six; the effective applicant is the "bidder"; the number of valid applicants is six or more, and the local block is sold by bidding, and the effective applicant is the "bidder".

The "six people" became the key point for these two plots to be tendering or selling, and the 3 plots were previously launched. At present, the transfer process of these two sites is still the four stages of bidding, opening bid, bid evaluation and calibration. The freezing period of plots is also shortened. Housing companies only need to freeze funds one day before the shooting. Previously, there was a 20 day freezing period from submission of security to filming. In addition, shortening the freezing period and reducing the proportion of land holdings are all the solutions to short-term liquidity problems.

58 Zhang Bo, chief analyst of Anju Real Estate Research Institute, thinks that the rule changes, especially the number of people entering the market, is relaxed to 5. The biggest advantage is that more housing companies can take part in it. The scoring system in the past tends to be more conducive to large brand Housing enterprises, although it can provide more brand protection for the subsequent development of projects, but it is not conducive to fair competition in the market. Through regulation adjustment, small and medium-sized Housing enterprises can have more opportunities to take land in Shanghai.

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