KWG Living distinguishes itself through its expertise in commercial PM, marked by solid pipeline and premium fees (avg. RMB 19.7/sq m/month for commercial properties in 2019). The Company recorded managed/contracted GFA of 21.6/34.5mn sq m in 2019. With consistent support from parent developer (22 new commercial projects expected in the next five years) as well as strategic M&As (current pipeline 53mn sq m), the Company seeks to reach 87 mn sq m in managed GFA by 2021.
- Deeply rooted in key economic regions. KWG Living positions itself as a comprehensive PM service provider with a focus on premium properties. The parent group, KWG (1813 HK), is a leading property developer with deep roots in key economic regions such as YRD and GBA. Revenue contribution from GBA and YRD are 40% and 27% respectively, benefiting from KWG’s well-known brand.
- Solid pipeline and premium fees mark commercial edge. As of 30 Apr 2020, KWG Living managed 30 commercial projects with 3.3mn sq m of managed GFA, which includes both shopping malls and office buildings. Average management fee in 2019 was RMB 19.7/sq m/month, with avg mgmt. fee for malls reaching RMB 40-50/sq m/month. KWG set out 2.6mn sq m of land bank for commercial use, and expects to build 16 malls and six office buildings in the next five years. In addition, KWG Living also enters commercial operations contract with third-party developers to unlock further growth potential, and engages in M&As.
- Looking to greatly expand through M&As. KWG Living is currently in talks for five potential M&As located in core provinces, with a total managed GFA of 53mn sq m. Landing these projects within the next year would be essential to reaching the Company’s 87mn sq m managed GFA target in 2021. Ratio of residential to non-residential GFA for these projects is expected to be 8:2. Apart from residential and premium commercial properties, KWG Living is also looking into public properties with consistent profitability such as schools and hospitals.
