SINGAPORE - Media OutReach - 29 August 2018 - APAC Realty Limited today
announced that it has entered into a joint venture agreement with Hainan Zhong
Zhi Sheng He Real Estate Investment Consulting Co., Ltd (海南中置盛和房地产投资顾问有限公司) and
Bei Guo Tou (Shanghai) Equity Investment and Fund Management Co., Ltd (北国投（上海）股权投资基金管理有限公司).
joint venture, ERA Hainan Real Estate Marketing Co., Ltd (海南易安居房地产营销有限公司), will conduct brokerage and resale brokerage businesses,
as well as establish training for and licensing of real estate agents in
Hainan. This agreement presents APAC Realty with an opportunity and key
milestone to penetrate the China market. This allows APAC Realty to have more
participation and control in the business with better profit margins through
its equity participation. The full range of real estate agency service is
similar to those offered in Singapore such as brokerage services covering new sales,
resales and leasing in the residential and commercial sectors.
Realty and Zhong Zhi Sheng He Real Estate Investment Consulting Co., Ltd will
each own 40 per cent shareholding in ERA Hainan Real Estate Marketing Co.,
Ltd., and Bei Guo Tou (Shanghai) Equity Investment and Fund Management Co., Ltd
will own the remaining 20 per cent. The registered share capital of the joint
venture is RMB 20 million, approximately SGD 4 million.
of the joint venture agreement, all existing project-sale businesses from Zhong
Zhi Sheng He Real Estate Investment will be transferred to the new joint
venture. Established since 2015, Zhong Zhi Sheng He Real Estate Investment has
been in the business of real estate consultancy and marketing services, with
about 50 employees currently. It has acted as a consultant for and/or successfully
marketed these projects:
forward, the company has also secured the rights to market upcoming project
富力湾 Phase 2 by R&F
2. 碧桂园珊瑚宫殿 by Country Garden
3. 雅居乐清水湾 by Agile Group
4. 国家海岸保利海棠湾 by Poly Real Estate
5. 万科湖畔度假公园 by Vanke
6. 万宁日月湾旅游度假区 by Sunac
Guo Tou Equity Investment and Fund Management Co., Ltd is a private company
incorporated in the People's Republic of China in 2013. It specialises in
equity investment and asset management; investment advisory; business
consultancy; and management services. Its registered share capital is RMB 40
million. Currently, the company is also the shareholder of Clear Water Bay
International Information Industrial Park, a high-tech industrial park approved
by the Hainan Provincial Government. With four industry positioning - cloud
computing platforms and next-generation Internet-based service outsourcing,
smart Internet, cloud services and digital content, the golden ecological
coastline industrial park is dedicated to building a world-leading,
domestically-initiated multi-urbanization technology city.
About Hainan's real estate market
China's Hawaii, Hainan's real estate market has been promising and robust in
the recent years. According to the Hainan Provincial Bureau of Statistics,
property prices have doubled in the past 10 years, and were USD$1,543 per sq
metre in 2016. The prices continue to rise and are now doubled.
to the latest measures, those who wish to buy units in Hainan must provide proof of at least one family
member paying taxes or social security for 60 months there. In the central mountainous region,
non-local buyers are unable to purchase any property. Non-Hainan residents aiming to buy homes
in any other part of the province must provide proof of at least one family
member paying taxes or social security for at least 24 months in Hainan.
transactions might be affected in the near term. However, we believe the recent
measures will help ensure a sustainable transaction volume and price appreciation
in light of the government's plan to establish a free trade zone in Hainan by
2020, which will see more international and regional investments in the
province's economy," Jack Chua, Chief Executive Officer of APAC Realty
Empowering sales agents
to become business owners
addition to the new joint venture set up in Hainan, APAC Realty has also announced
entrepreneurship opportunities for ERA's agents to further advance their careers
and be business owners in other cities of China. They can apply to open a
franchise office in any Chinese city, and run a company with the support and
guidance from ERA management.
Group Division Director Daniel Phua was the first to pilot test this concept.
He began a franchise office in Nanning, Guangxi, in May 2018 called 广西南宁德里房地产咨询有限公司 under the ERA brand. Despite this being a
new venture, clients engaged them as ERA is a well-established organisation
with over 2,200 offices globally. The company has been successful in providing
investors with a one-stop solution: brokerage and after sales services such as
introducing renovation contacts and property management. Hence, APAC Realty is excited
to extend this opportunity to all ERA agents.
property market in Nanning is currently booming, especially in the areas of
residential sales and rentals," says Daniel. "The home buyers purchase properties
as a form of investment with average rental yield of about six to seven per
cent. Currently, all the projects are sold out. The upcoming project launch is 大润花乡里 -- a 200-unit landed property project, and we
are very optimistic about it. Plans are also in the pipeline for us to move
into commercial sales."
has a population of over seven million people. Located near the Vietnamese
border, it used to be the poorest in the country, but since evolved into a
second-tier city that attracts investments. The presence of Zara Home,
BreadTalk, MixC Shopping Mall (which typically opens in first-tier cities)
signifies global interest in the city. There is an existing high-speed railway
linked to Guangzhou, and there are plans to build another one that links to
Pingxiang on the Vietnamese border. This railway aims to connect Pan-Pearl
River Delta and southeast China with members of the ASEAN, with Nanning being
the first stop.
DBS Bank Ltd. is the sole issue manager of the
initial public offering ("IPO") and listing of APAC Realty Limited. DBS Bank
Ltd. assumes no responsibility for the contents of this
About APAC Realty
APAC Realty Limited ("APAC Realty", the "Company" or
together with its subsidiaries, the "Group") is a leading real estate services
provider which operates a market-leading real estate brokerage in Singapore
under the ERA brand. APAC Realty operates three main business segments -- the
real estate brokerage services; franchise agreements; and training, valuation,
property management and other ancillary services.
APAC Realty's real estate brokerage services are operated
by its wholly-owned subsidiary ERA Realty Network Pte Ltd ("ERA Realty") under
the ERA brand. ERA Realty is one of Singapore's largest real estate agencies
with more than 6,000 agents registered, providing property brokerage services
for primary home sales, secondary home sales, and rental of residential,
commercial and industrial properties.
APAC Realty holds the exclusive ERA regional master
franchise rights for 17 countries in Asia Pacific, acquired from Realogy Group
LLC. The Group also holds the master franchise rights for Singapore for
Coldwell Banker, one of the oldest and most established real estate office and
franchising companies in the United States. As at 30 June 2018, there are 22
Coldwell Banker Member Brokers in Singapore which collectively have over 100
agents registered with them.
APAC Realty's wholly-owned subsidiary Realty International
Associates Pte Ltd ("RIA") operates training programmes and courses for real
estate agents in preparation for professional certification exams and as part
of continuing professional development regulations. RIA also undertakes
valuation work on behalf of clients such as financial institutions, government
agencies and property owners and provides property management services for real