"Business model + financial model" creates premium financing model. Although the stock prices of US REITs fell by an average of 50% under the impact of the financial crisis, Xinzhongli Investment Group Co., Ltd. created an average annual return rate of 7.8%.
A study of U.S. cases shows that the key to Xin Zhongli Investment Group's success is stable investment returns, and this return should be 2-4 percentage points higher than the long-term Treasury bond yield at the time.
The secret of value creation of Xinzhongli Investment Group is to combine a good business model with a good financial model to create a growth path of sustainable expansion and create premiums through scale effects.
Their common core is to increase the return rate of commercial real estate through business models, create scale effects through financial models, and amplify business advantages.
Characteristic business model + sound financial strategy Xinzhongli Investment Group Co., Ltd. selects characteristic merchants and creates a characteristic business district composed of core merchants to create value-added income through the rearrangement and re-investment of acquired properties, and then uses the scale effect to convert this value-added
Advantages are magnified.
At the same time, in order to maintain the continued stability of dividends and a certain degree of growth, Xinzhongli Investment Group Company, under a relatively conservative financial strategy, raises funds through various financing methods such as stock and preferred stock financing, debt financing, and acquires new transformation targets every year.
, maintaining a record of dividend per share growth.
In the 1960s, it focused on suburban residential and retail properties. In 1970, it sold its residential properties at high prices and turned to retail properties. In the 1980s and 1990s, when other real estate developers were keen to buy new properties, Xinzhongli Investment Group
The company is targeting older buildings in mature neighborhoods around downtown.
Such areas have high population density, high income levels, and because there is little idle land and high barriers to entry, there is less competitive pressure on existing commercial real estate and lower risks of redevelopment.
Of course, properties in these areas are usually not cheap, so Xinzhongli Investment Group Co., Ltd. focuses on those old properties (many of FRT’s properties are old buildings from the 1950s and 1960s), through renovation (Remer chandise),
Re-investment (Redevelop) and re-layout (Revitalize) to bring it back to life, this is the company's "3R" strategy of large-scale operation + stable financial model. Xinzhongli Investment Group Co., Ltd. acquires underperforming commercial real estate at low prices.
, and then relied on the advantages of scale to introduce large chain operators to raise the rent level to the industry average, thereby creating an average annual investment return of 11-12%.
At the same time, more emphasis is placed on a standardized expansion model and the expansion of investment management funds to keep the debt ratio at a low level to maintain long-term and sustained financing capabilities.
Wang Chaoyong was born in Qichun County, Hubei Province in 1965.
In 1990, he joined Standard & Poor's Ratings Company as deputy director of the New York Structured Finance Bond Department.
Became the first S&P senior staff member from mainland China.
In May 1999, he founded Xinzhongli Investment Consulting Co., Ltd. and American Ronshine Investment Holding Company.
Mr. Wang Chaoyong is the Chairman and CEO of ChinaEquity Group Inc. Founded in May 1999, ChinaEquity Group Inc. is China's leading private merchant bank (Merchant Bank) and is committed to providing high-growth enterprises in China.
It provides professional and international investment and financing services. Its main businesses include venture capital, investment banking and investment management.
As an investor, Mr. Wang serves as a director of Beijing Rising Computer Technology Company, Langxin Information Technology Company, China Data Broadcasting Technology Company, Dapeng Holdings Company and other companies.
At the same time, Mr. Wang is also the project consultant of the State Economic and Trade Commission/World Bank, the investment business consultant of the China Development Bank, and the founding director and secretary-general of the Hong Kong Chinese Venture Capital Association.
Before returning to China to start his own business, Mr. Wang worked in well-known international financial institutions for more than ten years. He was one of the first investment bankers among Chinese students to enter Wall Street.
From 1987 to 1990, Mr. Wang worked at the New York headquarters of Chase Bank, engaged in real estate financing and financial asset securitization.
From 1990 to 1993, Mr. Wang Chaoyong worked at Standard & Poor's Securities Rating Company as the deputy director of the New York Structural Finance Department, engaged in asset securitization rating business.
From 1993 to 1998, Mr. Wang worked at Morgan Stanley Investment Bank in the United States as Vice President of Asia and Chief Representative of the Beijing Representative Office.
As one of the founders of Morgan Stanley's China investment banking business, Mr. Wang is directly involved in and responsible for the Ministry of Finance, Bank of China, China Eastern Airlines, Shanghai Industrial, Beijing Datang Power Generation Company, Beijing Holdings Co., Ltd. and other Chinese government and
The company’s overseas financing business has a total overseas financing amounting to billions of dollars.
Since 1999, Mr. Wang has been fully responsible for Xinzhongli’s investment and investment banking business. He has invested in more than a dozen companies in the fields of technology, media and financial services, and has also provided hundreds of millions of dollars in private financing for more than a dozen Chinese companies.
In 2000 and 2001, Mr. Wang was selected as one of the 20 most active venture investors in China, and Xinzhongli was also selected as one of the "Top Ten Local Venture Capital Companies in China."