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SCPG’s CIO attends 2016 Guandian Commercial Annual Meeting: opportunities expectable, use capital as leverage

news of the group Publisher:  Date :2016-11-24

The 2016 Guandian Commercial Annual Meeting was formally held on the afternoon of November 23rd in Hong Kong Island, Hong Kong. Against the historical backdrop of innovation and reform, the annual meeting mainly discussed how the commercial real estate can break through the conventional business model and seize the new opportunities for its development amid the business trend in the middle-class age. At the meeting, SCPG’s chief investment officer Zhu Haiqun delivered a keynote speech titled "Investment Prospects of China’s Commercial Real Estate and Countermeasures.

Looking from the factors such as China’s economic growth rate and consumer demand, the commercial real estate industry in China is still in the 15-year “Golden Period” instead of the “Silver Period”, Mr. Zhu said in his speech. There is still huge space in the future for the development of the shopping centers supported by China's consumer economy.


w   SCPG’s CIO Zhu Haiqun gives a speech.

As a commercial property retailer that focuses on the operation of the only-for-shopping centers, SCPG deals in malls that are exactly orientated to the middle-class and family consumer groups, and it has formed 4 major product lines of Incity, Inreach, Inalley and SCPG Center. In the current era of Internet, our shopping centers have actively integrated with Internet technology and gradually transformed from the commodity-oriented sales model to the community-oriented business model. For example, in the last "November 11 Shopping Festival", SCPG's 14 shopping centers held an event called "Paper, Scissors, Stone 520", in which the tenant participants increased an average sales rate of more than 50%.


Mr. Zhu believes that China’s commercial real estate has developed from the germination stage to the current rational stage and the former model of investment cannot wait to be changed. Take SCPG for instance, the company has undergone three times of change in the investment model since its establishment in 2003. SCPG has transformed from the initial model of contracted construction at its founding into the endowment model, and has been gradually creating a capital platform suitable for the development of retail commercial real estate.

In addition to capital connection, SCPG lays more emphasis on asset management’s core role in the whole course of commercial real estate development and focuses on the operation of its shopping centers in order to form diversified competitiveness, to increase the effectiveness of the market supply and to give full play to the commercial real estate’s role as the community’s supporting enterprise, Mr. Zhu noted at last.