According to the Financial Alliance on December 17 (reporter Wang Haichun), Vanke has once again taken action in the Guangzhou land auction market after four years.

On December 17, Guangzhou auctioned four residential land plots in Panyu District, covering a total construction area of 87,888 square meters, with a starting bid total of 3.378 billion yuan. Ultimately, all four plots were successfully sold, with a total Fill Price of 3.388 billion yuan.

It is worth mentioning that Vanke acquired three plots in the South Station Business District for 2.88 billion yuan. The last time Vanke entered the Guangzhou land auction market was in 2020.

On December 21, 2020, after battling through 84 rounds of bidding for nearly three hours against China Resources, Jinmao, YUEXIU PROPERTY, COUNTRY GARDEN, and Evergrande, Vanke won a plot of land on the east side of Dongjiang Avenue in Xintang Town, Zengcheng District, Guangzhou for 6.307 billion yuan. The Fill Price for this land was 12,932 yuan per square meter, with a premium rate of 15.36%.

Regarding why Vanke did not acquire land in Guangzhou for four years, industry insiders believe this is partly related to Vanke's own arrangements, and on the other hand, it may relate to the need to gradually "digest" a large project in Guangzhou.

In fact, Guangzhou is a key city for Vanke, which once acquired a colossal project known as an "epic-level" venture.

In June 2017, Vanke defeated enterprises like China Overseas, China Resources, Poly, YUEXIU PROPERTY, COUNTRY GARDEN, and Evergrande, winning the Guangxin asset package for a staggering 55.1 billion yuan, which was over 10 billion higher than the starting price of 44.7 billion yuan. The core assets of this package included 16 plots of developable land in downtown Guangzhou.

Public information indicates that these assets were originally obtained by Guangdong Guotou's Guangxin Property at the end of the 20th century. However, due to the debt crisis faced by Guangdong Guotou, it ultimately went bankrupt, and the land under Guangxin Property was left idle for a time. Subsequently, all the creditors' rights and investment rights of Guangdong Guotou's subsidiaries were auctioned through the Southern United Property Rights Exchange Center. The operator that won the Guangxin asset package is Guangzhou Wanxi Enterprise Management Co., Ltd.

Due to the enormous scale of the project and the complexity involved in development, Vanke subsequently deconstructed the massive asset package to accelerate the 'digestion' speed.

On June 29, 2020, Vanke disclosed plans to transfer 50% of its subsidiary Guangzhou Wanxi's equity to the 'CITIC Trust • Guangzhou Wanxi Private Equity Investment Collective Fund Trust Plan', introducing seven strategic investors led by Cinda to the Guangxin asset package, while Vanke continued to serve as the project operator.

It is understood that Vanke transferred the 50% stake in Guangzhou Wanxi for a price of 7.04 billion yuan, obtaining a prepayment premium of 3.04 billion yuan. Through the 'Equity + Debt' trading method, Vanke recuperated 39.04 billion yuan in total funds.

In this regard, Vanke's executives at that time stated that by building this asset package together, not only could the asset be revitalized, but it would also be beneficial for Vanke's improvement in various aspects.

As for why Vanke took action again in Guangzhou after a gap of four years, some analysts believe that this largely stems from the 'replenishment' needs of real estate companies.

'Real estate companies need to operate and require timely replenishment of supply. Although every real estate company has land reserves, the issue is that not all projects can achieve sales performance in a timely manner after development under the current market conditions. Moreover, some land parcels that real estate companies secured during market peaks had relatively high land prices. Due to continuous market adjustments, the ratios of housing prices to land prices for these projects acquired during peak periods may be imbalanced, potentially facing various pressures when developed. Many cities currently see a decline in land prices, and some relatively well-priced land parcels have emerged in the market. Therefore, real estate companies need to replenish with projects that have lower costs and may bring certain sales performance and profits to enhance their liquidity,' stated the aforementioned analyst.

Before winning the bid for the land parcel in Panyu District, Guangzhou, Vanke had already added several new development projects.

In the land auction held today, September 20 this year in Hangzhou, Vanke and the Hangzhou Metro consortium won the plot in the Shangqiao unit of Xihu District with a base price of 1.45 billion yuan, with a floor price of 9,659 yuan per square meter.

Since Vanke disclosed its sales brief in October this year, it has added 2 new development projects.

It is understood that both projects are located in Chengdu. One is a 78-acre plot north of Southwest Jiaotong University, located in the Pidu District, with Vanke holding a 51% equity stake, requiring payment of an equity land price of 0.399 billion yuan; the other is a 41-acre plot in the Beibu Business City located in the Xindu District, with a 100% equity stake, requiring payment of an equity land price of 0.339 billion yuan. Therefore, Vanke needs to pay a total of 0.738 billion yuan for these two projects.

Regarding sales performance, according to data released by Vanke, in November this year, the company achieved a sales area of 1.633 million square meters and sales amounting to 20.13 billion yuan; from January to November 2024, the company achieved a cumulative sales amount of 222.68 billion yuan.