Chapter 1066 Lao Lu’s Attack
Xu Liang shook his head.
“Our previous strategy was very good, there was no need to run the convenience store ourselves.
If you want everything, you often can’t catch anything.
At this stage, The main target of Taihua Supermarket's business is hypermarkets and supermarkets. As for the convenience stores, all convenience stores are named. For the convenience stores acquired from China Resources Vanguard, ask the employees within the group who wants to contract and sell to them according to the conditions. ”
Hearing this, Lu Jue couldn't help but feel a little disappointed.
However, he had been prepared for it and would not be too disappointed.
“I agree with the strategy of membership stores and boutique supermarkets, but we can’t make it too big at once. We should first open two in Beijing and Shanghai to accumulate experience and optimize the supply chain.
Then we will slowly advance it nationwide.
Also, different brands will be used for different businesses.
Please re-register two sub-brands directly under Kelong. "
"Mr. Xu, we have already thought of two names. The membership store will be called 'Suguo', and the boutique supermarket will be called 'Jiashijia'. ”
“They are all old brands that were previously acquired by Kelong. ”
From the beginning of Suguo to now, there have been nearly 20 large and small supermarket chain companies that have been annexed by Kelong.
Jiashijie is also one of them.
"Old brand, new vitality."
Xu Liang nodded.
"Let's call it that. ...How do you plan to integrate the remaining business formats of China Resources Vanguard?"
In addition to the majority of convenience stores, Huarun also owns large comprehensive supermarkets, There are three types of businesses: comprehensive supermarket and lifestyle supermarket.
The average area of large comprehensive supermarket stores is about 15,000 square meters, which is also a traditional hypermarket. It has a complete range of products and meets consumers' one-stop shopping needs to the greatest extent.
Comprehensive supermarkets cover an area of 2,000 to 8,000 square meters and mainly deal in fast-moving consumer goods.
The living supermarket covers an area of less than 2,000 square meters and relies on community residents, emphasizing convenience functions.
The number of hypermarkets owned by China Resources Vanguard is at least 117.
Comprehensive supermarkets followed, with 382 stores.
The largest number of consumer supermarkets, 619.
In contrast, the division of Kelong Supermarket is not so detailed.
Things above 8,000 square meters are hypermarkets, and those below 8,000 square meters are lifestyle supermarkets.
Through the years of mergers and acquisitions and company expansion of new stores, Kelong has 506 hypermarkets and 1,124 lifestyle supermarkets.
Different divisions have brought certain obstacles to integration.
“Mr. Xu, we plan to adopt the division method of China Resources Vanguard and establish three brands of Kelong Department Store, Kelong Supermarket and Kelong Lifestyle Supermarket, refine the operation format, and formulate more detailed operation strategies for Laying the foundation for the future.”
"Department store?"
"It's called a department store, but it's actually a smaller version of a shopping mall. Hypermarkets are still maintained on the first and second floors.
The third floor has dining and children's entertainment, and the fourth floor cinema and leisure and fitness, focusing on affordable prices and discounts, not mid-to-high-end stores.”
Xu Liang has also seen this type of hypermarket.
Because of its small area, coupled with the poor circulation design and outdated layout when it was first built, it is difficult to attract more passengers.
The supermarkets on the ground floor are often crowded with people, while the leisure and entertainment facilities on the upper floors are empty.
“Unless you can maintain your own property, it will be difficult for your ‘Kelon Department Store’ to operate.”
There are two main reasons why so many companies in the department store industry have gone bankrupt.
Online retail squeezes customer flow, and rising rents drive up costs.
If you can own your own property, you can effectively reduce costs and maintain operations.
"Mr. Xu, we plan to own properties in first- and second-tier cities, select some with better qualifications for direct operation in third-tier cities, and give up the rest if we can't maintain them."
Xu Liang nodded, the rent in the industry It is definitely the highest in the first, second and third tier cities. If the first, second and third tier cities are directly operated, then the revenue obtained from here can balance the rental costs in the fourth and fifth tier cities.
“I agree with your strategy, but the name needs to be changed.
Don’t call it ‘Kelon Department Store’, just change it to ‘Kelon Shopping Center’.”
The small shopping mall is also a shopping mall.
Lu Jue agreed.
I did some calculations in my mind.
If integrated in this way.
Under Taihua Retail, excluding the haberdashery business, there are a total of 213 Kelong shopping malls, 725 Kelong supermarkets, 1,201 Kelong lifestyle supermarkets, and 8,019 Kelong convenience stores.
“Mr. Xu, after integrating China Resources Vanguard and Mixc, Taihua’s total debt has exceeded US$35 billion.”
"I remember that it was just over 28 billion at the end of last year. How could it reach 350 so quickly?"
"The acquisition of China Resources Vanguard and Mixc has added almost 3 billion US dollars of debt to us, plus this year's Taihua Commercial has acquired 21 plots of land in China and Southeast Asia, and Fuhua Real Estate has acquired 29 plots of land, plus the expansion of Fuhua Apartment Group and retail business
Not counting the acquisitions of China Resources Vanguard and Vientiane. In the case of the city, in the eight months since 2006, we have spent almost US$8 billion
If the income had not been getting higher and Fuhua Real Estate could still sell off-the-plan properties, ours would have been. The debt will be higher
And the annual interest repayment of the US$35 billion loan will be as high as US$2.8 billion.
There are just too many. "
Xu Liang: "Since you can develop through debt, it means that Taihua's finances can withstand such high debt, and you can continue. "
Lu Jue took the initiative to bring this up, not just for these words. "Mr. Xu, the scale of Taihua's debt is still too high after all. Even after the acquisition of China Resources Vanguard by Leikelong Supermarket, its market value did not exceed HK$20 billion.
So do you think you can let Hanhua make an investment plan for Taihua? ”
Xu Liang turned his head.
“After talking for a long time, you, a guy with thick eyebrows and big eyes, have your eyes set on me.”
Lu Jue said quickly: “Mr. Xu, you are the world’s top investment expert. Punch Soros, step on Buffett, and be number one in the world.
We Taihua are your direct descendants, you can’t favor one over the other.”
Last year, Harvest Agriculture, Denong Agriculture, etc. All the company's liabilities were paid off by Hongyan and Hanhua, and they were able to travel lightly, which almost made him envious to death.
He didn't expect to be treated like this.
Unrealistic.
The big boss didn’t agree either.
But it’s okay for the big boss to use Taihua’s spare cash flow for investment and withdraw part of the funds from the capital market to repay debts, right?
“Lao Lu, I haven’t seen you for a while. You are good at flattering me.”
"Mr. Xu, I speak the truth."
Lu Jue slapped his chest, his face full of sincerity.
"Okay, be careful to expose your old boy's heart disease."
"Haha, how can you do that."
Although I said this, I still can't bear it. He rubbed his chest.
Just now, in order to express my determination, I worked hard.
“During this period, you asked Taihua Financial Department to open investment accounts at JP Morgan, Goldman Sachs, JPMorgan Chase, Royal Bank of Scotland, Deutsche Bank, UBS, etc.
etc. After you finish it, I will tell you how to do it."
Lu Jue was overjoyed.
"Mr. Xu, I knew you would not leave our Taihua alone."
"I'm so cheap, I'll tell you something."
Seeing the big boss' suddenly serious expression, Lu Jue also instantly became serious.
“From today on, you will keep one eye on China and the other on CapitaLand Group.”
“CapitaLand Group?”
Xu Liang Wei Wei nodded, "Although Taihua has also made real estate investments abroad in the past two years, the time is too short and the funds are limited. It is still much less than at home.
The acquisition of CapitaLand will not only make up for Taihua's lack of overseas business, but also strengthen its domestic real estate and retail businesses. ”
Lu Jue was happy.
CapitaLand Group is not a small company, but a majority-owned company owned by the Singapore government. It is involved in commercial complexes, shopping malls, industrial real estate, and logistics real estate. , commercial offices, apartments, residences, hotels and other real estate investment models.
Although its total assets are not as good as those of Taihua, its real estate business in Southeast Asian countries is several times that of Taihua. Because they entered early, they are generally good.
“Mr. Xu, do we really want to acquire CapitaLand? ”
"Why, you don't want to?"
"How is that possible? CapitaLand is one of the largest diversified real estate groups in Southeast Asia. If it can be merged and acquired, it can definitely improve Taihua's business structure in Southeast Asia.
However, in recent years, CapitaLand's mainstream business has shifted from traditional real estate business to real estate investment management companies such as Blackstone Group, Hans, and Prudential.
Ascott and Singapore have been successively established. Commercial and other four real estate investment funds.
CapitaLand’s main business is changing from a traditional real estate company to a real estate investment management company.
This business model is fundamentally different from ours at Taihua.
How to integrate the acquisition of CapitaLand? "
"Just buy the assets in the real estate investment fund. "Xu Liangdao.
Although the future trend of commercial real estate is asset-light, Taihua is not a complete real estate group.
Rather, commercial real estate is a platform that carries hotels, trendy clothing, A comprehensive commercial group with various businesses such as retail department stores and children's playgrounds.
As for apartments and residential real estate, there will always be markets for both. However, after the bonus period, residential real estate enters the stock market, and blind investment like now is impossible.
But this will be ten years later, so there is no need to worry about it in advance.
Facing the heroic big boss, Lu Jue was filled with admiration.
“Mr. Xu, don’t worry. I promise to keep one eye open and staring at CapitaLand when I sleep.”
“The most important thing is to understand the operation of all CapitaLand’s assets. What I want is not only information, but also on-site investigation.”
"Yes. ...If CapitaLand detects it, how do we explain it?"
"No need to explain, just express the intention to acquire."
The acquisition of CapitaLand Group, I mentioned this to Commander Li as early as 2005. Although the other party never responded, the management of CapitaLand must have known about it.
"In addition to investigation, do we need to make other preparations? For example, acquire some shares in advance and win over some shareholders?"
"No need to do anything, let alone acquire the equity of CapitaLand. ”
Are you kidding me? The subprime mortgage crisis that almost killed the U.S. real estate industry is about to come. Buying equity in real estate companies at this time will not be fun.
“Understood.”
(End of this chapter)