text / Zeng Huijuan Edit / Fang Tao
During the Chinese New Year, due to the change of property owners, Xinpai Apartment Beijing Shunyi Xinguozhan Store was cut off from water and power. So far, it has been troubled by property management for 12 consecutive days. Xinpai Apartment Xinguozhan Store has 162 rooms and more than 8,000 square meters, and nearly 200 rooms in the hotel throughout the season have been completely closed, with the total of 16,000 square meters. At this time, the opening of Xinpai Apartment store was less than one year and the 12.5-year lease agreed in the lease contract has only passed one and a half years.
A legal spokesperson commissioned by Xinpai Apartment told the author of 36Kr that the new owner wanted to significantly increase the rent, but the negotiations between the two parties have not been successful so far.
However, industry insiders believe that long-term rental apartments operated with light assets often have such risks. There are a large number of properties in the market with unclear property rights and complex property rights relations. The format terms of the apartment operators as "second landlords" are not unified. Once the property rights change affects the lease, the interests of both parties can only wander in the gray area.
property rights have been changed, new owners have water and power outage
Regarding this incident, Wang Gehong, founder of Xinpai Apartment, posted a long article in WeChat Moments late at night on February 21, 2018, denying the store's forced power outage for no reason during the Spring Festival.
Regarding the latest progress of the incident, the legal spokesperson entrusted by Xinpai Apartment introduced that the latest communication with the new owner was on February 10, 2018. The negotiation situation was:
1. The new owner intends to double the rent to 4 yuan-4.5 yuan/square meter (the original rent was 2 yuan/square meter);
2. Before the signing of the new lease agreement, the new owner proposed to pay the occupancy fee, but Xinpai Apartment is a foreign-funded enterprise and is subject to foreign exchange control requirements. Only when the contract and invoice corresponds can be withdrawn or paid. Our company has negotiated with the new owners many times, hoping that the senior management of both sides will discuss related matters in detail after the Spring Festival, but the new owners and property owners ignored it. They directly used the name of maintenance and cut off power from 10:00 a.m. on February 11, 2018 to 10:00 a.m. on February 11, 2018, but no one has seen maintenance.
3. In order to ensure the basic living needs of residents, Xinpai Apartment rented an emergency power generator to supply power. On the afternoon of February 12, it received a notice of water shutdown and maintenance of the new owner's property from the 13th to the 15th. It was also found that the water shutdown was found and that it was not inspected. Xinpai Apartment can only restore water supply to the sluice itself, and no abnormalities are found.
4. On the afternoon of February 13, the new owner's property informed the distribution box that there was a fault alarm, but did not inform the power outage time in advance, and then the power supply of the entire No. 12 courtyard was stopped. There was also only power outages, no repairs. So far, the power outage has been for 12 days, and there has been no repair or power recovery information.
5. Due to an indefinite power outage, Quanji Hotel has been completely closed on February 13, 2018.
According to reports, the current tenants of the store are mainly flight attendants and flight attendants from major domestic and foreign airlines.
The "formal owner"
The author tried to contact Beijing Dijing Real Estate Co., Ltd., the new owner of Xinpai Apartment Beijing Xinguozhan Store, but there were few introductions to the company in industrial and commercial information and online reports. Qichacha shows that its legal person is Zhao Guifang, shareholders are Zhao Guifang and Zhao Tingting. The company registration date is November 6, 2017. The establishment time is very short.
The legal spokesperson commissioned by Xinpai Apartment said that "it has been unable to contact the new owner."
The original owner of the store is Beijing Jiuzhou Longhua Investment Management Co., Ltd. (hereinafter referred to as "Jiuzhou Longhua"). Qichacha data shows that Jiuzhou Longhua has two major shareholders. Beijing Tencent Technology Incubator Co., Ltd. (hereinafter referred to as "Tengxin Technology") holds 70% of the shares and Beijing Sitaihua Trading Company (hereinafter referred to as "Sitaihua Trading) 30%. The former's actual controller is Fan Xuebing, chairman of Baolan Property Service Co., Ltd. (hereinafter referred to as "Bolan Co., Ltd.").
According to the Economic Observer, Baolan Co., Ltd. once managed nearly one million square meters of commercial properties and was praised by investors as "China's largest private commercial service company". It went public twice in 2008 and 2012, but both ended in failure. Since then, its operations have fallen into trouble and creditors have forced debts.
As of December 2017, three properties and four cars under the name of Fan Xuebing and his wife Qiu Lin, as joint and several liability person for related series of debts, were seized.
At the end of November and early December 2017, Tianxi Plaza, a subsidiary of Baolan Co., Ltd., was located in the property building where Wang Gehong's Xinpai Apartment Xinguozhan Store was located, was forcibly auctioned to Beijing Dijing Real Estate Co., Ltd.
Auction information shows that it is located in 3 real estate buildings including Building 1, Building 1, Tianzhu Street, Shunyi District, Beijing (the land certificate is located at No. 5, Tianzhu Middle Street, Tianzhu District, Shunyi District). The building area is: 49932.51 square meters of house and 17428.60 square meters of state-owned land use rights, house uses: office buildings, commercial, car garages and equipment rooms, commercial, cinemas. This auction is the first auction, with an appraisal price: 627.66 million yuan, and a starting price: 451.9152 million yuan. The final minimum transaction is completed.
Who is responsible
A legal spokesperson entrusted by Xinpai Apartment issued a "Records on the entire process of unfair treatment and forced water and power outage in Xinpai Apartment" to 36Kr, which shows that it first contacted the original owner, Jiuzhou Longhua, in early 2016:
From this description, it can be seen that Xinpai Apartment has been approved by the original owner and obtained a red-headed document from the Tianzhu Town Government to prove that the property can be rented and operated normally, and then the two parties signed a relevant leasing agreement. Xinpai Apartment invested 50 to 60 million yuan to decorate the overall property, part of which was finely decorated into high-end apartments, and the other part was jointly renovated with Huazhu Group to open a full-season hotel, which was fully opened in the spring of 2017. The turning point of the
incident occurred at the end of November 2016 after the renovation was completed. At this time, we received a verbal notice from the Third Intermediate People's Court of Beijing and learned that the property had been seized.
In addition, according to the instructions, on May 6, 2017, Wang Gehong received another notice of assistance to the People's Court of Haidian District, Beijing, and the ruling clearly required Wang Gehong to hand over all the contract payments to Beijing Tencent Technology to the designated account designated by the Haidian District People's Court of Beijing as scheduled, and was also sued that the contract shall not be terminated without the court's permission. At the same time, Building 2, Building 12, Tianzhu Street, Shunyi District, Beijing, was seized by several courts.
The legal spokesperson commissioned by Xinpai Apartment questioned, "Why can the original owner issue a letter that proves that the property is healthy and can be rented?"
But some industry insiders believe that the premise of "buying and selling without breaking the lease" is to see if the subject matter has been sealed or mortgaged before signing the lease. If it is sealed or mortgaged before signing the lease, there is no saying that "buying and selling without breaking the lease". The responsibility lies with the operator not with the new owner, which only means that the operator has not done due diligence. If Xinpai Apartment wants to continue to rent, it must attach the corresponding letter of commitment and lease terms when signing the original lease contract.
As of now, neither the original owner nor the new owner of the property has made any statements to the outside world. Even according to existing information, legal support is more inclined to new owners to raise rents or stop renting them to Xinpai Apartments. The legal spokesperson commissioned by Xinpai Apartment said that he is also contacting the senior management of Beijing Dijing Real Estate Co., Ltd., hoping to conduct face-to-face communication.
Industry chaos
Xinpai Apartment issued the first housing rental REITs product in the country at the end of 2017 and the first long-term rental apartment equity REITs successfully issued in the country, which has received a lot of attention in the market. Its brand was established at the end of 2012 and opened its Beijing Palace Museum store in early 2013. It is currently in Nanjing, Chengdu, Shenzhen, Hangzhou, Wuhan and other places.
If the "Xinpai Apartment Mining Strikes" is regarded as an industry phenomenon, it reflects a "collective" risk in the light asset operation model of long-term rental apartments. The potential risk of whether the lease or rent can be sustained and stable after the property owner transfers the property. The average profit of long-term rental apartments is not high, and it is very sensitive to the cost of rent and decoration costs. The change of lease is related to the profitability of the operator and even the valuation of the enterprise.
Currently, the properties used to convert long-term rental apartments on the market were originally mostly office and commercial attributes, and the mortgages of such properties were relatively frequent. Some projects also had multiple property owners, such as large owners and small owners.In the early stages of the long-term rental apartment industry, the operator's lack of experience and eagerness to grow bigger will also affect the assessment of property risks. If you are not careful, you may encounter "pay tuition fees".
is not just a new apartment. The CEO of a long-term rental apartment told 36Kr that during the process of expanding his project, he also encountered "the owner's breach of contract, water and power cuts, and how to verify the documents."
"In the contract, the owner stated that no matter what happens, it will not affect the lease. However, after just one year of renting, the owner breached the contract because the owner's house was mortgaged. The new owner asked the old owner to vacate the existing tenant before the transaction could be traded. The owner also adopted the method of water and electricity cut off, and we had no choice. The owner was insolvent and had no money to pay the debt. Even if we asked for compensation, the other party had no money to compensate. The final result of the negotiation was that the owner compensated very little, but compared with the ten-year lease, the cost of decoration, labor and other investments were calculated to be a loss." The CEO said.
He believes that the way to cut off water and electricity in Xinpai Apartment is obviously undesirable. No matter any dispute occurs, it should be negotiated by multiple parties rather than harming the interests of tenants.
"Long-term rental apartments are an emerging industry, and many laws and regulations are not perfect." Industry insiders said that some existing and inefficient resources that meet the requirements for business development (including old factories in old urban areas, village collective land, etc.) have problems with the unclear property rights and nature of land use; the standards for construction and fire protection acceptance are unclear; the business licenses and licensing units such as industrial and commercial enterprises are unclear; the processing procedures for water and electricity are unclear. The management requirements and reference standards in various places are not detailed and different, making it difficult to deliver items during fire inspections, business certificate processing, entry and start of construction, etc., and there is no rules to follow, which affects the overall progress of the project.
Some other brand apartment operators told the author that they can only work hard on due diligence at the moment. "We once encountered a case of providing fake real estate certificates at Daxing Tiangongyuan, but it was not found out when signing the lease. After entering the site, we needed to go through various procedures and found that the other party could not provide fire acceptance/engineering planning certificates. We continued to investigate and found out that it was the second landlord."
In addition, the operator said that according to industry practice, he would definitely make every effort to investigate the project due diligence, but when encountering both government documents endorsement and the original owners who stated terms to protect the lease in the contract, who can support and protect the interests of long-term rental apartment operators?
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I am Zeng Huijuan, I am concerned about the dynamics and innovations of the industrial chains of the upper and lower real estate. Welcome to add WeChat zhj_huihai for communication. Please note the company + name + reason, thank you
