Investment Promotion Project of Shoujin Business Center and Tianyue Chenxuan Business Center of Capital Group

Name

首创集团首金商务中心、天阅宸轩商业中心招商项目

Investment Promotion Project of Shoujin Business Center and Tianyue Chenxuan Business Center of Capital Group

Industry Involved

Commercial real estate economy

Site

This project is located in the center of Wujiaba area in Guandu District, west of Feihu Avenue, south of Weiba Road, east of planned green space, north of Weijiu Road and Weiba Branch Road.

Project Description

The Capital Group, a large state-owned enterprise group, plans to build a headquarters center and internationally renowned business center facing Southeast Asia in Wujiaba Area, Guandu District, Kunming City. This is the third project of Capital Group in Kunming after Chunxi Yuecheng and Kunming Outlets of Capital Group. In this project, Shoujin Business Center and Tianyue Chenxuan Business Center will be built. The project will be built into high-end commercial office building and commercial center and is seeking investment from enterprises and businesses inside and outside the province.

Content

(1) Shoujin Business Center

It covers a net land area of 21.47 mu with a total floor area of 108,000m². It is planned to integrate residential buildings, office buildings and apartments. The floor area ratio is 6, the building density is not greater than 50%, the greening rate is not less than 10%, the building is not higher than 150m, and the residential land is not greater than 20%. Supporting infrastructure will be provided according to applicable international regulations.

(2) Tianyue Chenxuan Commercial Center:

It covers a net land of 14.66 mu, with a total floor  area of 31,700m². It is planned to integrate commercial buildings, flat-level apartments and supporting buildings. The floor area ratio is 2.5, the building density is not greater than 60%, the green space rate is not less than 20%, and the building is not higher than 24m. Supporting infrastructure will be provided according to applicable international regulations.

Supporting Conditions

Transportation: To establish a safe, convenient, efficient, green and economical comprehensive transportation system, Wujiaba Area is provided with 4 urban expressways, 4 urban trunk roads, 13 urban secondary trunk roads and 31 urban branch roads. The total length of urban roads is 104.2 km, and the density of road network is 23%. Wujiaba Area is accessible under the planning concept of "small blocks and dense road network". There are 6 subway lines in the area, namely, subway lines 1, 4, 7 and 8, north-south express line and east-west express line.

Commerce: Supported by large commercial centers, characteristic commercial blocks, new mode of park shopping, diversified business models and equal public service facilities, this project is to create a colorful and diversified commercial center.

Residence: As planned, Wujiaba Area is to be developed into a cultural innovation residential area, a cultural and habitable area, an ecological low-carbon residential area, a cultural entertainment and leisure area, an international community, etc. with residential services. Capital Group, the project developer, and other well-known housing enterprises such as Vanke, China Overseas Land & Investment Ltd., China Communications Construction Company (CCCC), China Railway, Poly and Greenland will launch a series of high-end residences and apartments to meet the residential needs of employees in the area. At present, China Overseas Property La Cite, Vanke Emerald, CCCC Jindi, China Railway Xipai Tieyue, Poly Plus Linyi Plus, Greenland Center Tower, etc. are under sale in the area at an average price of 20,000 yuan/m².

Education: Wujiaba Area has complete educational facilities in reasonable distribution. Schools to be built as planned in the area include 4 senior high schools with a total of 156 classes, 5 junior high schools with a total of 186 classes, 11 primary schools with a total of 384 classes and 28 kindergartens.

Public services: It has a reasonable layout according to the area functions, forming a public service system of administrative and commercial services, culture, sports, medical care, education and scientific research at the city, district and community levels. Guandu District People's Hospital (Class A tertiary) has been commenced and a number of district-level hospitals, community hospitals and health service stations will be introduced in the future to fully serve the population of 210,000 in the area.

Investment Estimate and Fund Raising

The actual investment amount shall prevail.

Preferential Policies Applicable

National, provincial, municipal and district-level preferential policies for investment promotion available

Market Prediction (Analysis)

Analysis of office market: There is a large room for rent increase in Kunming.

(1) Economic development in Kunming provides opportunities for rent increase

The economy in Kunming has seen a steady growth and the tertiary industry and real estate industry have developed fast in Kunming. A large number of potential customers may come to Kunming with high-quality projects, paving the way to rent increase in Kunming's office market at macro-level.

(2) There is strong local demand in Kunming office market.

From the performance of Kunming office market, it can be seen that the supply of Kunming office market is directly proportional to the demand, reflecting the strong local demand in Kunming office market. Therefore, the owners have the opportunity to raise the rent of their property.

(3) Kunming office market is in the period of building replacement.

At present, there are not many high-quality office buildings in Kunming. A large number of high-quality office buildings such as Hang Lung Plaza and Spring Eye will be built in the future to drive building replacement in Kunming office market. During this period, corporate customers will objectively feel the value brought by high-quality properties to enterprises and be motivated to move to accelerate market competition. In addition, old properties will be abandoned by customers, and owners of high-quality properties will have the initiative to increase the rent.

(4) The demand of enterprise tenants can burst out under the stimulation of the market.

At present, the demand of Kunming enterprise customers for office property is only the basic office demand, and further demand needs to be stimulated by high-quality projects in the market and the development of enterprises themselves. At present, the "catalyst" in Kunming office market is mainly the visual display of high-quality projects and the internationalization concept and service brought by international real estate service providers entering Yunnan. After the demand of enterprise tenants is catalyzed, the market competition will be accelerated and the premium of high-quality projects will be increased.

Business analysis: The business part of this project can be a supplement to surrounding office buildings and residences to better meet the business needs of office workers and residents. In the future, the lot as a CBD will attract people flow and thus be full of business opportunities. It is promising to invest in business there.

Profit Model and Preliminary Benefit Analysis

After the investment and operation of this project, the profit will come from property rental and sale. With the development of Kunming, the market space will keep expanding and the profit will keep rising in the future.

Risk Analysis

Wujiaba Area focuses on headquarters economy and a large number of office buildings will be built in the future, embodying certain competitive risk.

Cooperation Pattern

Lease, property purchase

Contact Information

Contact unit: Kunming Kunlun Shouzhi Real Estate Co., Ltd.

Contact person: Tu Shuishui        Investment Promotion Director

Tel.: 18669082889