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Restarting land acquisition and iterating product.
Reporter丨Li Huilin Editor丨Tan Lu
Reporter丨Li Huilin
Editor丨Tan Lu
Over the debt mountain, Gemdale is active again. In early March, Gemdale held a media conference in Guangzhou, at the site of the Gemdale Royal Lake Song project in Zengcheng District. This is a masterpiece of our iterative upgrade of product power in recent years. Hu Xuewen, secretary of the board of directors of Jindi, said that in the debt servicing to ensure delivery at the same time, Jindi insisted on polishing the product power. The project is one of the most high-end projects in South China, focusing on Song-style villas, with a view of 1,700-acre Lai Lake in the south and 30,000-acre Nanxiangshan National Forest Park in the north. The person in charge of the project told 21CBR that the project has sold 273 units so far since it came on the market in 2023, with a depreciation rate of 83 percent. According to the estimate of 3.5 million sets, the return capital of more than 820 million yuan. Next, there are 498 sets of villas in the Royal Lake Song will be stocked one after another. After weathering the storm, the management headed by Chairman Xu Jiajun is leading Jindi back on track. The Shenzhen-based real estate company, which has total assets of 330 billion yuan, has cut its debt by 130 billion yuan in two years, and is slowly pulling its focus back to business itself.
Over the debt mountain, Jindi is active again.
In early March, Jindi held a media communication meeting in Guangzhou, the location is in the city of Zengcheng Jindi Royal Lake Song project site.
This is a masterpiece of our iterative upgrade of product power in recent years. Hu Xuewen, secretary of the board of directors of Jindi, said that while paying off debt to ensure delivery, Jindi insisted on polishing product power.
Royal Lake Song is one of the most high-end projects of Jindi in South China, mainly focusing on Song style villas, looking south at 1,700 acres of Lai Lake, north of 30,000 acres of Nanxiangshan National Forest Park.
The person in charge of the project told 21CBR that the project has sold 273 units so far since it came on the market in 2023, with a depreciation rate of 83 percent. According to the estimate of 3.5 million sets, the return capital is more than 820 million yuan.
Next, another 498 villas will be put on the market.
After weathering the storm, the management, led by Chairman Xu Jiajun, is leading Gemdale back on track.
The Shenzhen-based real estate company, which has total assets of 330 billion yuan, has cut its debt by 130 billion yuan in two years, and is slowly pulling its focus back to operating itself.
1
Replica Song System
The site of Royal Lake Song is Jindi’s first project in Guangzhou and the company’s largest project.
In 2004, Gemdale took the land covering 4,000 acres and planned to build it into a big city of mountains and lakes by taking advantage of its backdrop of mountains and water.
The project is divided into three districts A B C continuous development, after 20 years of construction, has been launched one after another Lihu City Park on the city Xiangshan Lake Mid-levels wind Hua and other residential clusters, and build up supporting commercial schools and so on.
Source Internet
In this area, Jindi has built a variety of high-rise houses, villas, villas, villas, cumulative service more than 100,000 owners.
Among them, villa products have been selling well. According to statistics, from 2017 to 2023, the plate sold more than 1,000 sets of courtyard products.
For example, the Platinum Pleasant Peninsula, which opened for sale in 2018, focuses on European-style house products and has won the top selling villa in Guangzhou for three consecutive years.The Mid-Levels Fenghua, which was launched in 2021, with 134 sets of new Chinese style yards, took less than 1 year from opening to liquidation.
And the Royal Lake Song occupies a better location of the whole plate, in the central location of Lushan, Jindi plans to launch 327 units of villas. It traces its Song-style architectural features to create semi-open Song-style courtyard villas, with an area between 145 191 square meters.
The total price of a single villa is between 3 million and 6 million dollars, with a total value of more than 1 billion dollars.
In terms of gardening, Royal Lake Song refers to Song Dynasty landscape paintings and ancient books, combining mountain scenery, green plants, streams, grasses and stones to create five landscape theme gardens.
In order to enhance the comfort, the plot ratio of Royal Lake Song is controlled at 0.37.
After the announcement of the villa ban, there are few residential lots with plot ratio less than 1 in the market. Our land was taken 20 years ago for this arrangement.
According to the project, a low plot ratio means higher building spacing as well as larger gardens. Each villa of Royal Lake Song has a detached garden, and the whole is L-shaped with light from three sides and garden design on three sides.
2
Restart land acquisition
Royal Lake Song attracts the improvement type crowd, benefiting from the early low-cost land acquisition, its boarding threshold is not high, the average price of 23,000 square meters.
Jindi has also made value for money a major selling point.
Similar products around the project, more than 45,000 square meters, 10 kilometers away from the project villa, the total price of 8 million yuan. The project said.
Royal Lake Song is located in the plate, the supply of large, surrounding high-rise residential average price of 10,000 yuan at the beginning of a large number of properties have been reduced in recent years, grabbing customers signal obvious.
In order to attract customers, the Royal Lake Song also make concessions. Last September launched a number of special offers, price reductions of more than 400,000 yuan.
Source: Anjuke
Overlaying the favorable policies, the project was quickly depolymerized, and in August 2024 January 2025, it was the top selling villa in Guangzhou for 6 consecutive months.
The person in charge of the project said that more than 90% of the owners of the purchase is self-occupation, many customers from Huangpu District of Guangzhou, Tianhe District, and even some of the executives of listed companies in Shenzhen.
The product sells well, Jindi catch up with the victory, step up replenishment.
In February this year, the project of the south slope of the pre-approval of the public notice, the total land area of 388,000 square meters, 211,000 square meters of planned construction land area, all for residential, the number of planned households 498.
Project department responsible person revealed that the South Slope plot will be the last Song Feng villa plot in the plate, may carry out some technical product innovation, subsequent land bank planning for house products.
In the past, Gemdale’s play in Guangzhou was to take a heavy position in the Zengcheng Panyu area, and it also restocked several land parcels around 2021. In the past two years, multiple projects have fallen significantly in price.
In the second half of last year, Gemdale made a round of organizational adjustments in Guangzhou.
Guangzhou Real Estate Company was renamed as Guangzhou-Foshan Real Estate Company, managing Guangzhou Foshan Qingyuan and Jiangmen areas, with Su Honglei, Deputy General Manager of South China Regional Real Estate Company, acting as General Manager.
The reporter learned that at present, Jindi’s Guangzhou-Foshan region plans to restart land acquisition, is recruiting investment and development team, do not rule out entering the central city.
Killing back to the Guangzhou land auction market, means that Jindi gradually return to the center of gravity.
3
Cautious Bidding
Over the past two years, management has suspended land acquisition and asset sales in order to address its debt woes. Fortunately, the company is on schedule to pay off 11 maturing debts in 2024, totaling about $20 billion.
As of the end of September last year, Gemdale’s total liabilities amounted to 223.666 billion yuan, and its gearing ratio remained at 67 61, shrinking by 130 billion yuan from two years ago.
At present, Gemdale has eight surviving bonds with a current balance of about 4.4 billion yuan, which will mature in 2025 2026, with little pressure to pay.
Break through the debt barrier and start afresh.
In the first two months of this year, Xu Jiajun team in Hangzhou Shanghai each captured a piece of land, the cumulative cost of about 1 billion yuan. Both sites are planned for low-density residential, with plot ratios of 1 05 and 1 2, respectively, to create townhouses or townhouses.
Xu Jiajun Source Internet
Now, Xu Jiajun team’s investment is more cautious, preferring a small volume of land, easy to get in and out quickly. The reporter learned that the company’s investment targets in Guangzhou, will aim at 100,000 square meters of land.
Before the full rebound, Jindi short-term pain.
In 2024, Gemdale signed an amount of 68.5 billion yuan, down more than 50% year-on-year, and is expected to lose at least 5.6 billion yuan for the year. In the first half of last year alone, the company made asset impairment provisions of 2.925 billion yuan.
This year, the pressure is still there. 1 February, Gemdale accumulated signing 5.05 billion yuan, down 52 35 year-on-year.
The good thing is, the market is warming up, and Gemdale, which has caught its breath, has a chance to catch up.
Source: Gemdale Group, except where noted.
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