BEIJING, Aug. 12, 2021 /PRNewswire/ -- Ucommune
International Ltd. (NASDAQ: UK) ("Ucommune" or the "Company"), a
leading agile office space manager and provider in China, today announced that it has released a
report in partnership with CBRE Consulting China ("CBRE
Consulting") titled "Ucommune Rental Evaluation and Joint
Consultancy Services Report" (the "Report")[1]. The
Report assesses financial and operational metrics of Ucommune's
asset-light business model, including return on investment ("ROI"),
occupancy rates, and rental pricing. Based on the findings, the
Report concludes that Ucommune's asset-light model enhances its
value proposition for partner landlords, and that Ucommune's
excellent asset management capabilities will support the Company's
strategic plan to continue establishing real estate investment
trusts ("REITs") in the future. The full report is available on the
company's IR website:
https://ir.ucommune.com/Webcasts-and-Presentations
Report Highlights:
Ucommune's asset-light model delivers average ROI of over
15%
According to the Report, the majority of landlords generate a
high ROI through cooperation with Ucommune. The average ROI for
landlords cooperating with Ucommune is 15.4% in Tier-1 and new
Tier-1 cities, and 16.0% in Tier-2 cities in China. Overall, the average ROI for Ucommune's
offline agile office space services is 15.7%.
Ucommune's project occupancy rate remains over 83%
The pandemic outbreak in 2020 impacted enterprises significantly
and thus exacerbated vacancy issues for office buildings. As the
economy reopened and recovered from the epidemic, occupancy rates
rebounded from their recent lows. According to CBRE data, the
occupancy rate for office buildings during the first quarter of
2021 was 80.8% in Shanghai and
82.5% in Beijing. The average
occupancy rate for surveyed Ucommune's projects during the same
period was 83.6%. as of the end of 2020. Occupancy rates were
between 80%-95% for most of the Company's projects in the same
period, including its Tianyuan Logistics Building Project in
Shenzhen, Shenyang Tongfang
Building Project, and Changchun Water Cultural Park Project, all of
which achieved occupancy rates of nearly 100%.
Ucommune's unit rental prices are double the average rental
price or more
According to the Report, the unit rental price for the majority
of Ucommune's projects is double the average rental price or
more. For instance, Ucommune was able to achieve a rental
price of RMB6.97 per square meter per
day for its Shenzhen Design Innovation Workshop project, up from
the project's original rental price of just RMB2.00 per square meter per day.
By leveraging its strong brand influence, marketing expertise,
operational and design capabilities, and other value-added
services, Ucommune's agile office space management enhances the
value of office buildings. Ucommune generates additional revenue
for landlords and partners, improves occupancy rates, and generates
higher ROIs. Ucommune's partners benefit from more diverse building
formats, new renovations for existing properties, and improved risk
profiles for their investments. Ucommune's comprehensive services
and excellent project management skillset showcase its compelling
value proposition for landlords and partners and supports the
development of its REIT business.
Excellent asset management capabilities enhance the potential
of Ucommune's REITs
On June 21, 2021, China's first publicly offered REITs were
officially listed. Once listed, they were oversubscribed, with a
subscription size of nearly RMB50
billion. REIT products enable real estate developers to
invest with less personal funding and participate in the
asset-light business model. They also allow asset managers to
utilize standard operating procedures in their management process
and replicate the asset-light business model. In addition, REITs
diversify and expand investment portfolios, enabling asset owners
to increase the proportion of direct financing and better manage
risks.
According to the Report, the
ability to manage the underlying assets is an important factor in
the quality of REITs. Ucommune's track record showcases its
capacity to operate in an economy full of uncertainty. With the
Company's strong asset management capabilities, the issuance of
REITs will be central to its growth strategy going forward.
Ucommune is committed to creating an integrated and comprehensive
asset management business covering the major facets of the value
chain, including investment, financing, management, and exits. The
Company has the opportunity to utilize its asset management
advantages to extend its services into the real estate financing
business while scaling up its business through its asset-light
business model. As a result of the Company's strong operating
capabilities and its asset-light model, which features flexible and
cost-efficient office space solutions, landlords will now have more
options to counteract systemic financial risk.
[1] The selection criteria for the projects included
in the report are 1) being under an asset-light model, 2) being in
operation for more than six months and having already reached a
stabilized stage, and 3) being reasonably diversified in terms of
geographic distribution and the cities in which the projects are
located. All data are valid as of April 30, 2021.
|
About Ucommune International Ltd.
Ucommune is China's leading
agile office space manager and provider. Founded in 2015, Ucommune
has created a large-scale intelligent agile office ecosystem
covering economically vibrant regions throughout China to empower its members with flexible and
cost-efficient office space solutions. Ucommune's various offline
agile office space services include self-operated models, such as U
Space, U Studio, and U Design, as well as asset-light models, such
as U Brand and U Partner. By utilizing its expertise in the real
estate and retail industries, Ucommune operates its agile office
spaces with high efficiency and engages in the urban transformation
of older and under-utilized buildings to redefine commercial real
estate in China.
Safe Harbor Statements
This announcement contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements are made under the "safe
harbor" provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These statements can be identified by terminology such
as "will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "potential," "continue," "ongoing,"
"targets," "guidance" and similar statements. The Company may also
make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission (the "SEC"),
in its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Any statements that are
not historical facts, including statements about the Company's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: the
Company's growth strategies; its future business development,
results of operations and financial condition; its ability to
understand members' needs and provide products and services to
attract and retain members; its ability to maintain and enhance the
recognition and reputation of its brand; its ability to maintain
and improve quality control policies and measures; its ability to
establish and maintain relationships with members and business
partners; trends and competition in China's agile office space market; changes in
its revenues and certain cost or expense items; the expected growth
of China's agile office space
market; PRC governmental policies and regulations relating to the
Company's business and industry, and general economic and business
conditions in China and globally
and assumptions underlying or related to any of the foregoing.
Further information regarding these and other risks, uncertainties
or factors is included in the Company's filings with the SEC. All
information provided in this press release and in the attachments
is as of the date of this press release, and the Company undertakes
no obligation to update any forward-looking statement, except as
required under applicable law.
For investor and media inquiries, please contact:
Ucommune International Ltd.
ir@ucommune.com
ICR, LLC.
Robin Yang
ucommune@icrinc.com
+1 (212) 537-3847
View original
content:https://www.prnewswire.com/news-releases/ucommune-jointly-releases-report-on-roi-assessment-of-its-asset-light-model-with-cbre-consulting-china-301354143.html
SOURCE Ucommune International Ltd.