The land use right of the T208-0053 plot located at the Shenzhen Bay Super Headquarters Base recently initiated the listing transfer procedure, with a starting price of 2.235 billion yuan. This plot, covering an area of 19,227.53 square meters, is mainly planned for commercial and office space. The listing is part of Vanke’s strategy to reduce burdens, aiming to effectively lower the capital occupation brought by non-core assets and to focus and strengthen the company’s three main businesses.
Vanke Group had successfully bid for this plot as early as December 2017, then planning to use it for employee offices. However, due to various changes in the real estate market environment, the company decided not to proceed with the project construction and instead chose to transfer it as a whole. While the original plan has been adjusted, Vanke Group still maintains an optimistic attitude towards the development of the Shenzhen Bay Super Headquarters Base and continues to be one of the core construction enterprises in the area.
Detailed information about this plot is as follows: The land use right lasts for 30 years, from December 19, 2017, to December 18, 2047; the total prescribed construction area does not exceed 167,000 square meters, of which the above-ground construction area is 153,000 square meters, including office, commercial, hotel, dining hall, and cultural facilities space. The underground prescribed construction area is 14,000 square meters, designated for commercial use. Currently, this plot has no mortgage or seizure, and construction has been halted, with certain areas having completed specific construction stages, and the buyer will take over the current state for the transfer.
The buyer will also need to undertake the supervision agreement signed with the Nanshan District People’s Government of Shenzhen, which stipulates the supervisory responsibilities and requirements for the total investment, production scale, and local fiscal contribution. Moreover, after winning the bid, the buyer must comply with the execution clauses in the transfer contract and supplementary agreements.
Shenzhen Bay Super Headquarters Base, as a key development area of Shenzhen City, aims to attract global and technology enterprises, promoting resource concentration, and advancing the internationalization of the city. This year, Vanke Group actively carried out asset transactions to recoup funds, including the sale of its stakes in the Vanke Plaza in Qibao, Shanghai, and Shenzhen High-Tech Investment. On April 30, at the company’s annual shareholder meeting, Yu Liang, the Chairman of Vanke’s Board of Directors, shared the overall strategy for debt reduction and high-quality development, which through adjusting business structures and financing models, aims to reduce risks, focus on integrated residential district development, property services, and rental apartments, in order to maintain sustainable development of the company and to ensure healthy growth in the new stage of real estate industry development.
In a recent strategic adjustment, Yu Liang, Chairman of the Executive Committee of Vanke Enterprises Co., Ltd., disclosed that the company’s comprehensive plan mainly covers action plans for two important stages.
The core of the first stage is to decisively adopt a slim-down strategy, adjust the current financing model, and strive to lower the level of risks faced by the enterprise. This is evidenced in three aspects: First, the company will focus on its main business areas while actively withdrawing from other non-core business domains, including the cleaning-up and selling of financial investment projects that deviate from its main business. Secondly, the company will resolutely promote large-scale trading activities for commercial and office assets, expecting to achieve a yearly transaction volume of 20 billion yuan. Lastly, Vanke anticipates proactively completing the transformation of its financing model.
In the next phase, Vanke plans to focus on building its core business domains. By enhancing the quality of its operations, it aspires to become a benchmark for products and services in the industry. This comprehensive plan goes beyond merely reducing scale or cutting costs; it reflects the company’s ambition for growth and commitment to progress. The “slimming down” of the first phase is in fact laying the groundwork for resource integration and foundation building in the second phase. Vanke will dedicate its efforts and concentrate its resources and refined management practices towards the three major business domains it has already anchored in, to ensure it maintains ongoing leadership in these areas.
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