Summary: market regulation continued tight trillion debt will come due under the dual pressure to reduce new starts to become the common choice of housing prices, which led to the developers a lot of land lying idle or slow start. Shimao Property release January 2012 sales announcement, sales of only 910 million yuan in January, year-on-year drop of about 71%; contract sales area of 50,383 square meters, up to drop 79%.
market regulation continued tight trillion debt will come due under the dual pressure to reduce new starts to become the common choice of housing prices, which led to developers a lot of land lying idle or slow start. Idle or slow start behind the developers, have their own difficulties, however, idle not a permanent solution – the end of last year, Ministry of Land and Resources issued the efforts to dispose of.
started or not started, becomes difficult choices in housing prices before.
per square meter house can sell $ 60,000 plots, but because of the long-term idle to become residents in the vicinity of the landfill? In June last year, friends broke the news that the Tianya forum, Pucheng Road, Pudong, Shanghai Shimao Riviera Garden open space became a garbage dump, sent bursts of odor on a hot day.
Although not confirm block to become a garbage dump, the guard block migrant workers have this land as a natural clothesline field. Within the plot, with half the height of Qinghuang weeds illustrate the idle time of the land has a number of years. Just at the periphery of this land, known as the
development of more than ten years there is still an open space?
written with paint on block wall above the Shimao Group, indicating that its attribution. Not begun, the reporter can not find the nameplate of the construction of the project in the field to confirm the identity of the project. .
To further confirm the name of the item of the land, reporters yesterday issued to the Shimao Group interview e-mail confirmation, but the other addition to confirming the above-mentioned block belong to the Shimao Property, does not return to the block belongs project, saying only that the Shimao Riviera Garden last a residential building in the sale of five-Building for the project, and with sales of existing homes condition.
above land near the Shimao Riviera Garden, the speculation that this land is most likely to belong to the undeveloped part of the estate, the Shimao Group’s reply did not deny that the land belongs to Shimao Riviera gardens. But a flood of the above project as early as 2000, has received land use rights, why is still not begun it? Estimated price has been reached in the case of more than 150,000 yuan / square meter in the surrounding Riverview project, and why the land is still in the sun site Shimao Group
Response, Shanghai Shimao Property Holdings Limited has been actively sought to promote the development and construction of the plot, to the Government to bid for the development of procedures for the coordination of the neighboring residents, the Government is still consideration. Group project development and construction in accordance with the law, there is no illegal the case of idle land.
years of sales or less than 1/10 of the Land Reserve
reporters refer to the company in 2011, and 2010 Annual Report found that, over the past few years, the land of the Shimao Group reserves far far more than the corporate development to start in the ability of the sales.
as early as the end of 2010, the Shimao Group to develop the land reserve as many as 34.8 million square meters. At that time, the company plans to start the project but only 5.55 million square meters, construction area of only 10.88 million square meters. Even in better sales in 2009, the Shimao Group to formulate the amount of the construction plan in the second year they only account for more than 30 million square meters of land reserve 1/3.
In fact, the new land bank of Shimao real estate in the past few years has been more than year of the completion of the area. In 2009, the completion of the new area of the Shimao Group is less than 2 million square meters new land reserve has reached 6.4 million square meters; 2011 added 10 million square meters of land reserves, but the completion of an area of only 2.72 million square meters.
Shimao Group weak sales ability, or the reasons for the Shimao Group’s land bank far more than the development needs. Shimao Group 2012 first quarter Quarterly, the company’s 2011 sales area of 2.39 million square meters, 2009, the sales area in 2010 were only 2.5 million square meters and 2.53 million square meters. the
Shimao Property release January 2012 sales announcement, sales of only 910 million yuan in January, year-on-year drop of about 71%; contract sales area of 50,383 square meters, up to drop 79 %.
poor sales in January, Shimao Property’s management explained, the lowest level. including the tremendous impact of the real estate regulation of Shimao Property. This can get a glimpse of the company’s 2011 sales.
Shimao Property sales in December 2011 published data show that in 2011 the company contracted sales of 30.7 billion yuan, an increase of 0.65%, only completed 85.3% of the annual sales target of 36 billion yuan.
is worth noting that, since September 2011, Shimao Property sales along with their peers into a quagmire. Before August, Shimao Property cumulative contract sales of 20.901 billion yuan, an increase of 30 percent, while sales in September grew only about 3% in October, November sales decreased month by month, December, although increased slightly, but still down about 35%.
September Shimao Property sales have fallen sharply, SW [2.54 4.53%], a research report gave away the mystery: the majority of land reserves in the policy of the hardest hit of the Yangtze River Delta and Central Bohai Sea, affected more than their peers.
Shimao earnings data also support these views.
2011 report shows that the holding of 38.1 million square meters of land reserves as of June 30, 2011, Shimao Property, including the Yangtze River Delta accounted for 34.3% and accounted for 24.2% in the Bohai Sea, the two large area accounted for 58.5%.
2011 Shimao reported contribution district of the company’s sales in the first half of 2011, almost two regions of the restriction zone, such as to occupy 27.9 percent of Beijing, accounting for 14.3 percent of Hangzhou, accounting for 11.7% of Ningbo, accounting for 4.2% in Shanghai, in addition, the purchase of two regions in Shenyang, Yantai, Suzhou, Nanjing, Xuzhou city.
financial gap impede start the process?
sales slow down indeed lead to the Shimao land reserves to digest weak reason, but more importantly, the company’s own funds and can finance capital is not enough to support the rapid consumption of the hands of land reserves.
according to the 2010 Annual Report of the Shimao Group, Shimao’s properties under development, construction costs and the proportion of capital spending and land use rights, close to 2:5, which means that one square meter of each development The land reserve, the cost of an average expenditure of about 44% of the cost of land.
the surface, Shimao Property net assets of $ 300 billion, but the debt ratio has been on the upswing, Shimao Property is difficult to start a large scale. Shimao Property’s cash and cash equivalents as of June 30 last year, but 11.4 billion yuan, to be paid within one year of trade payables and other payables up to 12.2 billion yuan, in addition to $ 5.9 billion Due to taxes and more than 80 billion yuan of bank loans will expire.
Orient Securities in a research report, 2011, 114 Housing prices listed in the newsletter, Housing prices listed in the 110 to the average net debt was 67.5 percent, a record high. In contrast, Shimao Property’s net liabilities were higher than the industry average by nearly eight percentage points.
In fact, in order to cope with financial pressure on the Shimao Group is not only no increase started, but reduce the amount of start. Prior to the operation planning of the Shimao Property will be 2011 in the area from the original plan of construction in progress of approximately 10 million square meters to 7.7 million square meters, while reducing to get to. The company said, p>
In fact, the land bank far more than the development, sales demand more than Shimao one. Prior to the statistics of the number of agencies, the nation’s leading real estate developers, land reserves can be developed, exceeding the annual sales of housing prices, the development needs of five to six times. This means that housing prices to get to five or six years, it still has enough land to be used as a development.
news
Shimao Property-liability ratio may continue to rise
2012 sales outlook for Shimao Property, BNP Paribas Bank published in early February a research report pointed out that the company focus on the development of the Yangtze River Delta and the Bohai Sea region, the regional property market last year underperformed other cities, it is estimated that this year is likely to continue to face the challenge, or even in the same industry. real estate Mao’s rating to
in early December last year, SW in a research report, expressed a similar view. The study indicated that, in view of the Shimao Property sales slump and liabilities rate is high to maintain the rating of the company stock holdings, and the company’s future six month price target of HK $ 6.09. 2012
, Shimao Property sales may further disruption of the corporate debt ratio is likely to continue rising channel line. In view of this, January 6, Moody’s will Shimao Property the Ba3 Company family rating and B1 senior unsecured debt rating outlook from
Moody’s assistant vice president and analyst Zeng Yin explained that the In 2012 the company’s liquidity position may settle the obligation and the payment of land payments due weakened. Moody’s expects that the maturing debt in 2012 Shimao Property and land payments will reach 16 billion yuan, the same year a new project sales and bank financing environment will remain tight.
reporter noted, high debt ratios run Shimao Property chain of funding crisis has been looming since last year. For example, on March 2 last year, the company took place the scene of the debt to repay the debt. The same day the Company issued an aggregate principal amount of $ 350 million guaranteed senior notes, the annual interest rate of 11%. The main purpose of this financing is the outstanding principal amount of the redemption of floating rate notes in 2006 to fund and repayment of other existing debt. Two months later, on May 3, Shimao Property to the amount of financing most of redemption issued in 2006, $ 250,000,000 aggregate principal amount of floating rate notes.
extension to read Shimao Property sales in January fell 70% to 910 million Shimao Real Estate rose 2.98% United States to confirm the rating complete the buy Shimao 2011 sales goal of 85 percent to 30.7 billion Xiamen extension of the landmarks in the stock market Shimao 2012 Commercial difficult road Shimao days of the city’s current internal sale of ultra-low from 3688 (Figure)