Central China Real Estate aims to boost profit next year
The inventory of unsold housing in China’s third- and fourth- tier cities needs an average of five years to clear, company’s chairman said
Hu Baosen’s first trip to Hong Kong was in the 1980s as an employee of the Henan Provincial Foreign Trade Department. Hu, who speaks English and Cantonese fluently, worked in Hong Kong before returning to Henan in 1992 to set up Central China Real Estate. The 60-year old, who has been based in Henan since that date, has helped CCRE become the biggest Henan-based real estate developer.
Hu is currently on a mission to transform CCRE into a company that can offer construction and management services for real estate projects without necessarily investing in them.
Does Central China prefer to invest or not invest its own capital in a light-asset business?
We don’t have a preference. It depends on the project.
Branding and management outsourcing is a must. Capital is flexible.
For high quality projects, we would like to inject capital or even take the control rights. The capital can be provided by us, via a merger or acquisition fund or through other banking facilities. In this case, we will gain a royalty fee, performance fee, plus a return on equity.