Creating Quality Experiences
Vanke and SCPG Join Hands to Build China's Leading Enterprise in Retail Commercial Real Estate
news of the group Publisher: Date :2016-11-01
Recently, China Vanke Co., Ltd. (“Vanke”) and SCPG Commercial Property Co., Ltd. (“SCPG”) jointly announced that the transactions related to Vanke and several partners that form the joint acquisition platform to purchase the shares of SCPG had passed the inspection by the Ministry of Commerce of the People’s Republic of China, with the transactions delivered. So far, the joint acquisition platform holds up to 96.55% of the equity of SCPG. Blackstone will still retain a small portion of the equity of SCPG after it has transferred most portion of the equity from its Real Estate Fund.
After the completion of the transaction, SCPG will officially become the member enterprise of the Vanke Group. Vanke and SCPG will produce huge resource synergy effect, which is, through resource exchange and sharing, the parties will expand the space of business collaboration in enhancing the bargaining power towards merchants, enriching the big data of target customers, accelerating the management output, optimizing the financial cost and other aspects. Vanke will continue to promote its transformation of positioning itself as a “city supporting service provider”. Meanwhile, SCPG will continue to strive to become China's leading enterprise in the field of retail commercial real estate.
As early as 2014, Vanke officially put forward the ten year strategic plan of transition to a “city supporting service provider”. In addition to the traditional residential business, Vanke enhanced the exploration and development in consumption-oriented experience property, industrial property and other new business realms.
Vanke pointed out that “With more than 13 years of development in the field of retail commercial real estate, SCPG has nurtured an experienced management team and accumulated high-quality business resources, and has attracted a number of domestic and overseas business partners to further future collaborations. Becoming a shareholder of SCPG will accelerate Vanke’s transition to a ‘city supporting service provider’, promote the upgrade of products and services as well as creating more long-term and stable investment value for its shareholders.”
Since its establishment in April 2003, SCPG (formerly known as SCP Group) has been focusing on the realm of retail commercial real estate and achieved in-depth cooperation with WAL-MART, CapitaLand, Morgan Stanley, Carlyle and other business partners.
Leo Ding, chairman and CEO of SCPG underlined that “SCPG and Vanke’s cooperation this time is d on mutual recognition between the parties in the aspect of platform resources, team synergy and strategic ives. With Vanke’s proactive participation, SCPG's own business resources, sound business platform and promising retail property development and management capabilities will be further enhanced. We have more confidence in our prospect towards the future.. In the coming years, we will strive to create synergy effect with new shareholders, realize asset optimization and resource integration, further enhance the Company's ability to create value while providing quality shopping experience for our consumers, and build SCPG into China's leading enterprise in the field of retail commercial real estate.”
In 2013, the Real Estate Fund under the Blackstone Group chose to purchase the shares of SCPG, which enabled SCPG as its domestic platform of the retail commercial real estate business d on the judgment over the robust development of the domestic commercial real estate market. During the cooperation with Blackstone in the recent three years, SCPG, by virtue of independent development and asset acquisition, continued to promote the strategy of in-depth regional expansion and refine the operational management of shopping malls. In this regard, Mr. Wang Tianbing, the managing director of Real Estate Department of the Blackstone Group in China pointed out that “SCPG is now widely acknowledged as a prominent shopping mall operator. We are very delighted to become a partner of SCPG. After the completion of the transaction, the Blackstone Real Estate Fund will still hold part of SCPG's equity. We remain optimistic about the Company's future development. ”
About China Vanke Co., Ltd.
Vanke was established in 1984 and entered into the real estate industry in 1988. Through more than thirty years of development, Vanke has become a leading domestic real estate company and its current main business includes real estate development and property services. Vanke has been focusing on the development strategy of city-cluster radiation. By the end of 2015, the Company had tapped into 66 cities in Mainland China mainly located respectively in the Pearl River Delta where the city of Guangzhou and Shenzhen upholds the commercial hub of the area, the Yangtze River Delta where Shanghai and the Bohai Rim Region consist of the Peking-centered business hub of Central China and the Chengdu Region which covers major cities in central and western China. Since 2013, Vanke has been endeavoring on its attempts to invest overseas. It has now been involved in more than 10 real-estate development projects in Hong Kong, Singapore, San Francisco, New York and London. In 2015, Vanke achieved a total sales area of 20.671 million square meters and a sales revenue of RMB 261.47 billion,which is respectively an increase of 14.3% and 20.7% of that of the previous year. The market share of the company in the property sector has risen to 3% on the national scale.
About SCPG Commercial Property Co., Ltd.
SCPG is an investor, developer and operator focusing on domestic retail commercial real estate. Its business covers the entire value chain of the domestic commercial real estate designed mainly for middle-income consumer groups of China. The Company is dedicated to customized shopping mall products and services for consumers in different regions, and is targeted at creating a long-term, higher-than-market-average return for its shareholders. SCPG has invested in more than 60 commercial real estate projects, with the total assets amounting to more than RMB 30 billion. In the current state of affairs, the Company boasts and manages more than 30 shopping malls all under the Spontaneous brand as “Impression Series”, which are scattered in the Pearl River Delta, the Yangtze River Delta and the Bohai Economic Rim with a GFA of more than 4.3 million square meters.
For more information, please visit SCPG’s website at：http://www.scpgroup.com/