Vanke Business Office Building Project

Name

万科商务写字楼项目

Vanke Business Office Building Project

Industry Involved

Commercial real estate economy

Site

Vanke Emerald, Vanke Glamour City and Vanke Park

Project Description

Vanke is a leading urban and rural builder and life service provider in China. Its business covers residential development, property services, commerce, long-term rental apartments, logistics and warehousing, ice and snow resorts, education and other fields. Since it entered Kunming in 2009, Vanke has implemented 20 projects.  Vanke is optimistic about the development prospect of Kunming as a regional international center city facing South Asia and Southeast Asia, and combines the development of key areas and the establishment of free trade zones to build a high-end commercial office building in Wujiaba Area and Luosiwan International Trade City Area.

Content

Vanke Emerald: By using the building standards of Vanke buildings, the project is planned to construct a courtyard of 900m² and 31 storeys of an office building with a total area of 33,000m². Floors 1 to 5 are functional rooms with a storey height of 4.5m, Floors 6 to 31 are standard office buildings with a storey height of 3.9m, and the area of the standard floor is about 1,086.8m². It is provided with two refuge storeys and two underground parking storeys, high-end reception club, public conference area, canteen, etc. The project has been planned and can be optimized and customized according to the actual requirements of the Owner, and the specific delivery time can be negotiated.

Vanke Nanjunhui Square: The project is planned to construct 6 office buildings with a total area of 57,000m². It is expected to be delivered on June 30, 2024. The construction standard is subject to the customer's needs.

Vanke Charming Plaza: Based on the business benchmark, the project is planned to construct 41 storeys of an office building with a total area of 71,800m². The conceptual design of the project has been completed, the go gauge has been completed, and the construction has not been carried out. The estimated delivery time is December 2025.

Supporting Conditions

Vanke Emerald:

Residence: Wujiaba Area is the largest developable area in the main urban zone of Kunming at present, with many real estate projects.

Industry: The industries in Wujiaba Area are mainly modern service industries such as headquarters economy, business, finance, media, and cultural tourism, covering a wide range of people.

Public service facilities: Wujiaba Area has a reasonable layout of public service facilities, forming a public service system of administrative business services, culture, sports, medical care, education and scientific research at the city, district and community levels.

Vanke Nanjunhui Square:

Residence: There are residential projects around the project, such as Vanke Park Alley, Junfa Guanyunhai, and Cloud City. Meanwhile, apartments will be built in this parcel project to meet the residential needs of office building users.

Industry: As the largest wholesale trading market of commodities in Southwest China, the new Luosiwan International Trade City (Phases I, II and III markets) covers 1.7 million kinds of small commodities in 50 categories, such as fashion clothes, daily necessities and home furnishings, with more than 100,000 shop fronts, 16 commercial buildings, more than 20,000 enterprises and individuals, creating more than 150,000 jobs. The commodities spread to 19 countries and regions such as Laos, Vietnam and Myanmar.

Vanke Charming Plaza:

Residence: There are Charming City, Xinhe Garden, Ju'an Garden and other residential communities around the project to meet the living needs of office building users.

Industry: Exhibition tourism, commercial circulation, modern manufacturing and flower industries are distributed around the project.

Business: There are a large number of people living around the project, mainly in community business. This parcel project contains 9.2m² of self-sustaining business to build a regional business center and supplement the lack of regional business.

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 buildings in South Area, Kunming: There is 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.

Profit Model and Preliminary Benefit Analysis

The benefits of the project will be obtained from office building rental and sales and business operation. According to the location of each project and the supporting facilities of surrounding industries, different types of enterprises are introduced to settle in.

Risk Analysis

At present, the office building market in Kunming is mainly destocking, and there is a phenomenon of "price for quantity".

Cooperation Pattern

Lease and property purchase.

Contact Information

Contact Unit: Yunnan Vanke Co., Ltd.

Contact Person: An Mengjia        18520999855        Lin Riwen      18508867676