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Real Estate M&A Case: Longfor acquires a property management under Wharf

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Since the beginning of this year, Longfor Group (00960.HK) has significantly accelerated its acquisitions and acquisitions in properties.

Recently, Longfor Group has acquired some property management enterprises in Mainland China under the Wharf Group (00004.HK), involving nearly 9 million square meters of the contracted management area.

Regarding the acquisition, Longfor Group told reporter, "Acquisitions and acquisitions are one of the important ways for Longfor's smart service market to expand. This is the result of the two-way choice between Longfor Smart Services and Wharf Group." , Longfor Group did not disclose the price of the acquisition, so far it has not issued relevant announcements.

Nearly 9 million square meters in area



"(Property acquisition) projects are distributed in Shanghai, Suzhou, Wuxi, Changzhou, Hangzhou, Wuhan and other first-tier, new first-tier and second-tier cities, involving a total contracted management area of ​​nearly 9 million square meters, of which 90% of the projects are located in the most economically developed and The fast-growing Yangtze River Delta area is all mid-to-high-end residential projects."

Regarding this acquisition, Longfor Group stated, “M&A is one of the important ways for Longfor Smart Service Market to expand. This is the result of the two-way choice between Longfor Smart Service and Wharf Group. This time, the acquisition of its subsidiary China from Wharf Group Some property management companies in the Mainland have fully coordinated with the existing business layout of Longfor Smart Services, which will benefit each other and have expected revenue and scale increase."

Public information shows that the Wharf Group was established in Hong Kong in 1886. As one of the first 30 companies included in the Hang Seng Index, its business covers investment properties, hotels, development properties and many other industries in Hong Kong and Mainland China.

Longfor Intelligent Services will absorb a group of high-quality projects with both quality and volume, as well as high-level management talents, and further strengthen business collaboration in first- and second-tier cities, and Deepen brand influence.


The property sector of Longfor Group, internally called Smart Service, is one of the company's main channels. However, Wu Yajun, chairman of Longfor Group, has stated on many occasions that Longfor has no plans to spin off properties for listing.

Mergers and acquisitions have accelerated significantly

The interim report shows that in the first half of this year, Longfor Group achieved 4 billion yuan in property management and other business income, a year-on-year increase of 58%, and the actual management area was 205 million square meters.

As of the first half of the year, Longfor's smart services accounted for about 30% of non-residential businesses, covering residential, commercial, cultural tourism, office, hotel, hospital, school, medical care, industrial parks, rental housing, municipal facilities, and smart City and other formats.



Since the beginning of this year, Longfor's acquisitions and acquisitions in property have accelerated significantly.

In February, Longfor Jiayue Property Service Co., Ltd. (hereinafter referred to as Longfor Property), a wholly-owned subsidiary of Longfor Group, acquired 60% of the equity of Wonderful Fortune.

In March, according to Yida China's announcement on March 4, Longfor Property acquired 100% equity of Yida Services, a property sector under Yida China, at a consideration of RMB 1.273 billion.

In early August, Longfor Property acquired 100% equity of Kailin Commercial Service. Kailin Commercial Service is headquartered in Zhengzhou City, Henan Province. It is an office-related service provider and has served more than 4,000 customers.



At the end of August, according to the "Daily Business News" report, Longfor Property officially completed the acquisition of 100% equity of Meihao Happiness.

Longfor said: "In the future, Longfor Smart Services will continue to focus on market opportunities, including high-quality mergers and acquisitions opportunities."

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