After breaking up with my “520”, my real estate finally took the shell.
After breaking up with my family “520”, Central Real Estate finally took the shell. On August 19th, Shell Finding House and Central Real Estate announced that they have reached a business cooperation. The two sides will cooperate in housing, customer and operation.
Zhonghuan Internet was founded in 2001 by Liu Zhihai and Liu Binbin. It is one of the earliest real estate brokerage companies to implement the franchise model. So far, it has entered 17 cities and has nearly 3,000 stores.
Liu Zhihai, president of Central Real Estate Group, said that the cooperation between the two parties is based on the similar core values of Shell and Central. But a year ago, Central Internet was also regarded as a member of the “Anti-Shell Alliance”. The “love” between Central Real Estate and my love of my family was also seen as a powerful weapon to block shells.
New romance, new starting point
The “gossip” of Central Real Estate and Shell to find a house was rumored in July.
On July 10, the number of shareholders of Central Internet changed, and 13 investors and institutions simultaneously withdrew. Tianjin Yunju Real Estate Agency Co., Ltd. and SmartLinkage (HK) Co. Limited (Ruilian Enterprise) held shares, holding 33.571% and 28.4956% respectively. Liu Jianhai and Liu Zhibin, founders of Central Real Estate, reduced their shareholding ratio to 18.13% and 18.71%.
Tianjin Yunju was established on May 28, 2019, and the actual controller behind it was Liu Xiaojun. From the perspective of equity relationship, Tianjin Yunju has no direct contact with shells and chain homes, but Liu Xiaojun has inextricably linked with the chain.
At present, Liu Xiaojun is the legal representative of 23 companies, including Beijing Shell Real Estate Consulting Co., Ltd. At the same time, Liu Xiaojun also indirectly controls Beijing Fangjianghu Information Technology Co., Ltd. and Tianjin Fangjianghu Information Technology Co., Ltd. through Beijing Haowei Management Consulting Co., Ltd.
After the shareholder changes, there is an analysis that the shell will cooperate with Central Real Estate. Then, according to Leju Finance and Economics, “On July 23, Liu Chihai will make a special trip to Beijing to discuss with Peng Yongdong and others about the shell shares in Central.” The contact between Liu Zhihai and Peng Yongdong also means that the Central Linked Chain Family has become a reality. .
But six months ago, I loved the acquisition negotiations between my home and Central Real Estate, and it was also seen as a powerful means of blocking shells. At the end of 2018, I loved my family to announce that it would acquire 100% equity of Zhonghuan Connect and purchase it by issuing shares and paying cash.
Central Real Estate is one of the first real estate brokerage companies to implement the franchise model. The main profit model of the franchise store is to charge the brand fee., deposit, and proportional purchase of store commissions. Compared with the direct mode, the franchise brand does not need a large amount of upfront capital investment, and the investment return period is short and the capital pressure is small. The franchise model itself is also an effective way for brands to break through the scale boundary and expand rapidly.
In the shell system, such a role is played by Deyou Real Estate. In January 2018, the chain house restarted Deyou Real Estate, which was acquired three years ago, and turned the Deyou brand into a franchise model. By July of this year, Deyou had more than 10,000 franchise stores.
Although I love my family, I have about 2,700 direct chain stores in 16 large and medium-sized cities in China, but there are only more than 500 affiliated stores. If I successfully acquire Central Real Estate, I will extend my direct store and franchise stores to around 6,000.
This also made me love my family once highly valued the acquisition negotiations. In the 2018 annual board of directors management review, I loved my family to put forward the words: “If the two projects of Central Internet and Blue Ocean Purchase successfully complete the merger and acquisition, I love my family’s national market share and the number of stores nearly doubled, 3 years will surpass the company The total amount of development in the first 20 years.”
But the reality has poured a cold water on my family. After the high-profile announcement of the reorganization, the two sides immediately entered the “cold period” and ended up failing. On May 19th, I Love My Home Holding Group Co., Ltd. announced that it would terminate the acquisition of major assets such as Zhonghuan Internet by issuing shares and paying cash.
After three months, Central Real Estate switched to shells.
Cautious negotiations
For the reason of terminating the acquisition of Central Internet, I love my family that it is the transaction parties that have reassessed various factors and finally failed to purchase the shares and pay the cash for the target. The core trading terms of the asset matters were agreed. The two sides eventually broke up because they couldn’t talk.
According to Leju Finance, the reason for the failure of M&A is that during the process of back-adjustment and auditing, the actual situation and the original expectations have a large discrepancy, and the management problems and norms within Central are not enough; In the middle, there are some clauses that have not been settled, and the assessment of profits in Central is impossible to complete.
A few insiders pointed out: “Is there a lot of operational problems in the Central Internet, which has led to the failure to implement the restructuring?” The Shenzhen Stock Exchange has the same doubts. On December 24 last year, I loved my family to receive a letter from the Shenzhen Stock Exchange, highlighting the administrative penalties before the Central Internet: Zhonghuan received administrative penalties for operating violations from 2016 to 2017. The penalty amount ranges from 200 yuan to 30,000 yuan.
At the same time, the Shenzhen Stock Exchange also found that there are two subordinate companies in Central Internet that have not obtained real estate brokerage filings, and they have been punished by relevant authorities or their business has beenThe risk of restrictions.
With regard to the performance compensation part of the transaction content, the Shenzhen Stock Exchange also issued an inquiry. The only one of the clients in the Central Connected Group, such as Ruirong Investment, is the performance compensation obligor, while the 12 counterparties such as Xiexing Investment do not Performance compensation, and the relevant content of the asset impairment test at the expiration of the compensation period was not agreed.
In the face of the question “Why did I negotiate a failure with my family?” Liu said that the announcement of my love of my family is subject to reluctance to disclose too much.
At the press conference, Zuo Donghua, vice president of Shell Finding House, admitted that the contact between Shell and Central Real Estate was after the “breakup” between Central Real Estate and I loved my family. At present, the specific cooperation reached between the two sides is that Central has entered the shell platform to realize the sharing of data and resources.
Before, there was news of shells entering Central Real Estate, but there are no traces of shells directly holding Central Real Estate. In this regard, Zuo Donghua said: “At present, there is no action to buy shares. If there is any, it will be made public.”
Compared with the high-profile acquisition of my family, the attitude of the shell to Central is more cautious than that of the defeat.
The further collapse of the anti-shell alliance
In fact, the reverse of Central Real Estate is not surprising.
In April 2018, the chain home who had already sat in the top spot in the real estate agency industry announced the on-line shells to find houses and do platform operations. In the eyes of many players in the industry, Zuo Hui’s approach is the same as that of SouFun many years ago. “It is both an athlete and a referee.” They don’t want to see Zuo Hui monopolize the line and the bottom line.
Therefore, led by 58 City, launched the whole industry real estate vows conference, I love my family, wheat real estate, Zhongyuan real estate, 21st century real estate China, Vanke property Park Neighborhood, Central Internet, new environment, Longhu Guanyu, etc. To cheer for its platform, this alliance has also been called the “anti-seashell alliance.”
But this alliance is not solid. On April 16 this year, the 21st century real estate announced its entry into the shell platform. It is reported that in the 21st century, real estate has nearly 6,000 franchise stores in 128 cities, and its own stores directly access shells. The franchise stores are not mandatory and can be selected according to their own wishes.
The reversal of real estate in the 21st century is also seen as a landmark event in the collapse of the “anti-seashell alliance”. Compared with this, the cooperation between Central Real Estate and Shell is not so bright. An industry insider said, “In the past, everyone thought that shells were just a collection of local small intermediaries. However, with 21st century real estate and real estate, the speed of joining large and medium-sized brands may accelerate.”
At present, the shell-seeking houses have been stationed in 97 cities across the country, and more than 160 new brokerage brands have been established, connecting more than 21,000 brokerage stores and over 20 service brokers.Million.
July 20, Shell completed up to $1.2 billion in Series D financing, of which Tencent led $800 million, Gaw Capital Partners, Gaochun Capital, Source Capital, Country Garden, New Tianyu Capital, Huaxing Capital, Straits Capital, etc. . After this round of financing, the latest valuation of shells may exceed 10 billion US dollars.