12.4 billion, China Resources took over the assets of China Fortune Land Development Southern Headquarters

Let us turn back the time to two years ago. In December 2020, there was a rumor that China Fortune Land Development, which was in crisis, was seeking support from China Ping An and China Resources Group. According to the statement at the time, China Fortune Land Development may use Ping An as a cornerstone investor and introduce China Resources as a shareholder, so as to provide support in terms of capital and bond market financing. It’s a pity that Huaxia did not welcome China Resources, and Ping An didn’t care about him, and finally had no choice but to storm.

Back to the present, two days ago, on December 28, China Resources Land announced that it would acquire 4 projects under China Fortune Land Development for 12.4 billion. That is to say, through this transaction, China Fortune Land Development got rid of the development burden of the four projects, and was able to recover part of the funds invested, and China Resources obtained the ownership of these four projects. Moreover, it is said that the asset quality of several projects acquired by China Resources is good. Therefore, China Resources can be said to have obtained high-quality assets at a big discount.

So if we put together the events that happened in the past few years, there will be an interesting business story between China Fortune Land Development, Ping An, and China Resources. Huaxia’s high-leverage business was in danger, and Ping An took the opportunity to take over. Then, in order to strengthen its control, it brought in China Resources expert Wu Xiangdong to join in, and also helped Huaxia build a commercial real estate platform. Unexpectedly, after Wu Xiangdong joined, Huaxia did not stop the pace of high-leverage expansion. Instead, it took a lot of commercial assets with a lot of money, and finally fell to the ground in the midst of regulation.

With the mantis catching the cicada and the oriole following, China Resources became the final winner, but Wu Xiangdong, who seemed to defect to China Resources, became the one who went through the needle and finally helped China Resources.