Although under the impact of the financial crisis, the share price of real estate investment trusts in the United States fell by 50% on average, but Li Xinzhong Investment Group Corporation has created an average annual return of 7.8%. The study of American cases shows that the key to the success of Li Xinzhong Investment Group is a stable return on investment, which should be 2-4 percentage points higher than the yield of long-term national debt at that time.
The secret of creating value for Li Xinzhong Investment Group is to combine a good business model with a good financial model to create a sustainable growth path and create a premium through scale effect. Among them, the same core is to improve the rate of return of commercial real estate through business model, create scale effect through financial model and amplify commercial advantages.
Characteristic business model+sound financial strategy
Li Xinzhong Investment Group Co., Ltd. creates value-added benefits by rearranging the acquired properties and re-inviting investment, selecting characteristic businesses and building a characteristic business circle composed of business cores, and then magnifies this value-added advantage by using scale effect. At the same time, in order to maintain the stability of dividends and a certain degree of growth, Li Xinzhong Investment Group Company raised funds through various financing means such as stock and preferred stock financing and debt financing under a relatively conservative financial strategy, and acquired new transformation targets every year, keeping a record of dividend growth per share.
In the 1960s, residential and retail properties in the suburbs dominated. 1970, residential properties were sold at high prices and turned to retail real estate. In the 1980s and 1990s, when other real estate developers were keen to buy new properties, Li Xinzhong Investment Group Company took aim at the old buildings in mature communities around the city. Such areas have high population density, high income level, less idle land, high entry threshold, low competitive pressure on existing commercial real estate and low risk of redevelopment. Of course, the properties in these areas are usually not cheap, so Li Xinzhong Investment Group Company focuses on those old properties (many properties of FRT are old buildings in 1950s and 1960s), and revitalizes them through Remer chandise, reinvestment and relocation, which is the company's "3R" strategy.
Large-scale operation+stable financial model
Li Xinzhong Investment Group Company acquired the commercial real estate with poor performance at a low price, and then introduced the large chain stores by virtue of its scale advantage, raising the rent level to the industry average level, thus creating an average annual return on investment of 1 1- 12%. At the same time, the standardized expansion mode is emphasized, and the debt ratio is kept at a low level with the help of investment management fund expansion, so as to maintain long-term sustainable financing ability. Wang Chaoyong, male, 1965, from Qichun, Hubei. 65438-0990 Joined Standard & Poor's Rating Company as Deputy Director of Structured Financing Bonds Department of new york. Became the first senior staff of Standard & Poor's from Chinese mainland. 1999 in may, Li Xinzhong investment consulting co., ltd. and American rongxin investment holding company were established. Mr. Wang Chaoyong is the chairman and CEO of ChinaEquity Group Inc China equity Group Inc was established in May, 20 10, 1999. Li Xinzhong is a leading private commercial bank in China and is committed to providing professional and international investment and financing services for high-growth enterprises in China. Its main business includes venture capital, investment banking and investment management. As an investor, Mr. Wang serves as the director of Beijing Rising Computer Technology Company, Langxin Information Technology Company, China Data Broadcasting Technology Company and Dapeng Holding Company. At the same time, Mr. Wang is also a project consultant of State Economic and Trade Commission/World Bank, an investment consultant of China Development Bank, and the founding director and secretary general of China Venture Capital Association.
Before returning to China to start a business, Mr. Wang worked in an internationally renowned financial institution for over 10 years, and was one of the earliest investment bankers for China students to enter Wall Street. 1987- 1990, Mr. Wang once worked in the new york headquarters of Chase Bank, engaged in real estate financing and securitization of financial assets. 1990- 1993, Mr. Wang Chaoyong once worked in standard & poor's securities rating company, served as the deputy director of the structured finance department of new york, and engaged in asset securitization rating business. 1993- 1998, Mr. Wang once worked as the vice president of American investment bank Asia and the chief representative of Beijing representative office. As one of the founders of the investment banking business in China, Mr. Wang directly participated in and took charge of the overseas financing business of China government and enterprises, such as the Ministry of Finance, Bank of China, China Eastern Airlines, Shanghai Industry, Beijing Datang Power Generation Company and Beijing Holding Co., Ltd., with the total amount of overseas financing reaching billions of dollars.
Since 1999, Mr. Wang has been fully responsible for investment and investment banking business, and has invested in more than 10 companies in the fields of science and technology, media and financial services, raising hundreds of millions of dollars for more than 10 companies in China. In 2000 and 20001year, Mr. Wang was selected as one of the 20 most active venture capitalists in China and one of the "Top Ten Local Venture Capital Companies in China".
Related personnel-Wang Chaoyong
Mr. Wang Chaoyong obtained a bachelor's degree in management engineering from Huazhong University of Science and Technology on 1984- 1985, studied in Tsinghua University School of Management in, and studied in the United States on 1985, and obtained an MBA degree from Rutgers University in the United States.
From 65438 to 0999, Mr. Wang Chaoyong established Li Xinzhong to provide investment banking and direct investment services for high-tech enterprises in Greater China. Mr. Wang has invested in a number of high-tech enterprises in Silicon Valley and served as a director among them.
From 1998 to 1999, Mr. Wang served as a senior consultant of China Development Bank and participated in the preparatory work for the investment banking business of China Development Bank. The first senior staff member of Standard & Poor's.
During the period of 1993- 1998, Mr. Wang worked for American investment bank as the vice president of Asia Limited and the chief representative of Beijing Representative Office. As one of the founders of the investment banking business in China, Mr. Wang directly participated in and took charge of the overseas financing business of China government and enterprises such as the Ministry of Finance, Bank of China, China Eastern Airlines, Shanghai Industry, Beijing Datang Power Generation Company and Beijing Holding Co., Ltd., and completed overseas financing of 6 billion US dollars.
1990- 1993, Mr. Wang Chaoyong once worked for standard & poor's securities rating company and served as the deputy director of the financing bond department of new york company, and participated in the rating of more than 30 billion US dollars of asset-backed bonds for three years.
1987- 1990, Mr. Wang works in Datong. New york headquarters of Manhattan Bank is engaged in real estate financing and securitization of financial assets.