Real Estate M&A Picks Up in China as Small Players Exit

iFeng: 多家中小房企卖地产项目转行,楼市并购整合提速
Recently, several other housing companies have announced their bid farewell to the real estate industry. On March 12, Zhujiang Holdings changed its name to Beijing Grain Holdings. The company has successively disposed of its property business. On March 9, Zhongtian Finance (formerly Zhongtian City Investment) sold its property business for 24.6 billion yuan, completely from real estate. Turn to the financial industry. The industry believes that the small and medium-sized housing enterprises bid farewell to the real estate industry is affected by the external environment and internal demand and other factors, with the continuous increase in the concentration of the real estate industry, mergers and acquisitions between housing companies frequently appear, in the future, more and more small and medium-sized housing prices will be forced Faced with the acquired situation.

...In Yan Yuejin's view, besides withdrawing, real estate mergers and acquisitions will continue to heat up, and small and medium-sized homeowners may also face the dilemma of being acquired or even shutting down. In this process, the concentration of the entire real estate industry will further increase, and the real estate industry presents a situation of large-scale accumulation and frequent mergers and acquisitions.

According to statistics, starting from last November, from the listing of major property rights exchanges, the number of real estate objects has increased significantly. Analysts inside the industry said that after a new round of regulation, there will inevitably be a wave of equity trading. Late last year, developers began to “clean up” their assets, and some sold off assets that did not meet their own development, and others simply withdrew from the industry. As a result, frequent and intensive real estate equity transactions began to take place in major property rights exchanges.

For small and medium-sized housing enterprises, the main reason for selling shares is to reduce profits and financial pressure, after all, selling some assets is easier than selling a house, and funds are quickly recovered.

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