China's real estate, retail, and cultural giants all took commercial real estate, and the peak supply of shopping malls came as scheduled in 2013. According to CB Richard Ellis's survey data, the number of shopping centers under construction in the world is currently 32 million square meters, the highest level in history. Among them, the number of shopping centers under construction in China is 16.8 million square meters, accounting for more than half of the world.

"But it is worried about the 'excess surplus' crisis. In fact, it is an underestimation of China's urbanization process and per capita GDP growth. The commercial energy consumption of the people released has also overestimated the investment and determination of real estate developers to do commercial real estate." Yesterday, Red Star In an exclusive interview with Southern Reporter, Real Estate President Yan Junyu revealed that the “Aegean Sea” shopping center that Hongxing Commercial is starting to build has reached 27, and the opening of the Beijing Aegean Shopping Center will open in August and September this year.

The opening list will be longer and longer: Wuxi, Shanghai, Tianjin, Chongqing... According to the chess game of Red Star Macalline Chairman Che Jianxin, in the next 8 years, Red Star Real Estate will open 100 “Aegean Sea” cities in 60 cities across the country. The investment amount will reach 100 billion yuan. Behind this, the red land of commercial real estate is looming.

The secret of making a MALL

On the morning of June 12th, the Aegean Sea Shopping Center in the northeast of Beijing's northeast is in full swing. It is a pure commercial project transformed from the original Red Star Macalline home store, which will open in August and September this year.

In recent years, Red Star Macalline has added about 10 home stores per year, ranking first in the domestic home store retail share. With the brand advantage, Red Star's land acquisition cost is quite low. According to public information, in September 2011, Red Star Macalline easily won a commercial land of nearly 100 acres in the eastern New City of Fuzhou as “the only bidder” for a price of 512 million yuan.

Qi Junyu, the president of Red Star Real Estate, defined “land price” as a “variable” that could change the Chinese business landscape. “The gains from the appreciation of some commercial land have already balanced the construction cost of the shopping center.” Yan Junyu told the Southern Reporter, Red Star The real batch land acquisition was against the market in 2009. “The average cost of land acquisition was between 2000 and 2500 yuan per square meter. And these plots are located in the core area of ​​the city, and the location is very good. Now our land reserve has reached More than 10 million square meters, this is a large and medium-sized real estate reserve."

On the land model, Red Star Macalline is actually similar to IKEA. “Self-built properties can reduce 'building bruises', thereby driving store sales, and the increase in sales in turn will increase the brand value of the mall, driving local business prosperity, which will help the company to take the land at a lower price.” IKEA (China) internal management staff Shen Qin told the Southern Reporter that there are three main points: First, the land price is not high; second, follow the development planning of the local government, develop the land with the potential for the rise of the market; third, the transportation is convenient.

"Dual MA LL" mode of danger

For this seemingly perfect investment chain, the outside world has questioned that Red Star Macalline may be making assets, making financial achievements and paving the way for Red Star Home Sprint IPO.

In response, Qi Junyu responded, “As early as November 2011, Red Star Macalline has split home and real estate into two independently operated companies. Not only financial statements, but even shopping centers, we are completely separate operations. The disk, such as the home MA LL plot is taken by Red Star Home, and the commercial MA LL is taken by Red Star Real Estate."

The “Double MA LL” mode is a unique innovation of Red Star Macalline. “The most direct benefit of grafting home MA LL and commercial MA LL is that the parking lot can be doubled.” Jun Junyu told the Southern Reporter, every day. After four o'clock in the afternoon, the garages of the home MA LL were all vacated, and thousands of parking spaces were provided to the commercial MA LL. The advantage of the parking space was a huge influx of passengers.

The doubts then floated. Dalian Wanda has been immersed in commercial real estate for many years, and it is still unable to break through the limitations of the “symbiosis model”. It is difficult for Wanda Department Store and Wanda Plaza to avoid the contradiction of “investment overlap”. How can Red Star Macalline's home MA LL and commercial MA LL be misplaced to achieve a benign operation of the internal business ecosystem?

Yan Junyu said bluntly, "There is an overlap between the two, but the overlapping is the customer base. The quality customers of Red Star Home purchase 500,000 sets of furniture. Our commercial MA LL is to innovate and combine the business around these target customers. For example, the Beijing Aegean Sea Shopping Center has to build more than 20,000 square meters of dining, as well as its own brand of Yunshang tribe (golf club), Tianhe wedding ceremony wedding theme square, small park (child experience center) and so on."

This is the business picture of Red Star. At present, Red Star Real Estate has developed 27 complex projects in 21 cities including Beijing, Tianjin, Chongqing, Shanghai, Fuzhou and Kunming. In the next 8 years, Red Star Real Estate plans to use Beijing-Tianjin-Tang, Yangtze River Delta, Southwest and Northeast as four strategic regions, and 100 Aegean shopping centers will be built in first- and second-tier cities.

Industry perspective

Red Star Real Estate Chairman Che Jianxin

50%-80% of the cost of the Aegean Shopping Center is subsidized by real estate development, shops, apartments, SOHO and other sales. With its cost advantage, Aegean Mall will use more than 20% of its rental income to subsidize consumers and reduce its gross margin to gain a competitive advantage.

Song Yanqing, President of RAND Consulting

Wanda, Red Star Macalline, Longhu, etc. do business in BSH (B, building, self-built; S, seling, sales; H, Hloding, holding) mode, the core of this model is on the land price. If the cost of land is low, the way of rolling development can continue, leaving room for adjustment of development speed according to market conditions.

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