NEW YORK, Aug. 12, 2021 /PRNewswire/ -- According to
Ucommune's press release on Aug. 12, 2021, CBRE Consulting China
("CBRE Consulting") recently released a report titled
"Ucommune Rental Evaluation and Joint Consultancy
Services". This report conducted in-depth analyses on both
financial and operational performances of the
Company's asset-light business model, across metrics
including ROI, occupancy rate, and rental pricing.
This report encompasses (1) the overview of UK's
business development, (2) the analysis of the operation status of
UK's light asset projects, (3) case analyses on
UK's representative projects, (4) the value offered by
Ucommune, (5) REITs market research, and (6) Ucommune REITs
Property Screening Criteria. Based on the report findings,
CBRE Consulting has concluded that with Ucommune's
excellent asset management capabilities under the asset-light
business model, Ucommune is able to bring tremendous value to its
landlord partners, and further apply those capabilities to
establish real estate investment trusts ("REITs") as
an asset manager in the future.
Demonstrated Outperformance on 3 REIT KIPs
Through
the evaluations of UK's representative projects across
10 cities, CBRE's report validated the
Company's REITs asset management capability by the
following three KPIs:
Return on investment (ROI) maintained at over 15%
The
Company is able to generate a high ROI for majority of its landlord
clients, at an average return of 15.4% in Tier-1 and new Tier-1
cities, 16% in Tier-2 cities in China, and 15.7% for Ucommune's
offline agile office space services.
Occupancy rates stabilized at higher than
83%
Notwithstanding the disruption on enterprise workspace
brought about by the pandemic outbreak in 2020,
Ucommune's projects remained stable at an average
occupancy rate of above 83%. Following the economy reopening, the
overall occupancy rates for office buildings in China had rebounded from their recent lows, to
80.8% in Shanghai and 82.5% in
Beijing in the first quarter of
2021, compared to an average of 83.6% from surveyed
Ucommune's projects. Overall, occupancy rates for most
of the Company's projects ranged between 80%-95%
according to the Company's press release.
Unit rental price more than double the average
level
The report shows that for majority of
Ucommune's projects, the Company was able to double
unit rental price than the historical average rental rate, and in
some cases even more than double. Take Shenzhen Design Innovation
Workshop project for example, Ucommune was able to achieve a unit
rental price of RMB6.97 per square
meter per day, grew nearly four times from the
project's original price of merely RMB2.00.
In conclusion, Ucommune's agile office space
management has proved able to enhance the value of office
buildings, which in turn generates higher rents, higher occupancy
rates and higher ROI for the landlords. Empowered by its
comprehensive services and superior project and asset management
skills, UK can bring compelling value proposition to landlords and
partners, meanwhile laying the foundation for future development of
its own REIT business down the road.
REIT's Bright Spot in China
China's first public REIT was
oversubscribed when listed on the exchange back in June, 2021. REIT
products not only enable real estate developers to participate in
the asset-light business model, but also allow the asset managers
to utilize standard operating procedures in managing and
replicating asset-light business model.
The ability of REIT issuers to manage the underlying assets is
an essential qualifying factor. As stated in the CBRE Report,
Ucommune's strong track records in enhancing asset
value and effective management verified by the aforementioned KPIs
have qualified it as an asset manager for REITs in an uncertain
economy environment.
Roadmap to REIT Issuance Central to Business
Growth
With Ucommune's strong asset management
capabilities, the issuance of REITs is evidently becoming central
to the Company's growth strategy going forward.
Built on top of its proven asset management capability, Ucommune
is committed to creating an integrated asset management business
spanning the value chain including investment origination, project
financing, property management, and exits. The Company has the
opportunity to utilize its asset management advantages for extended
real estate services, especially into the real estate financing
business enabled by scaled asset-light business model. Combining
the Company's strong operating capabilities and
asset-light model featuring flexible and cost-efficient office
space solutions, landlords will then have more options to
counteract systemic financial risk.
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SOURCE Ucommune International Ltd.