LONGFOR GROUP(HK:00960) 3 6 Ke·2025-11-12 03:55Core Viewpoint - The signing of the agreement between Beijing Aozhongxingye and Longfor Commercial for the Beijing World Trade Center project marks a significant transition for the CBD landmark, indicating Longfor's completion of its tenth commercial project in Beijing [1][4]. Group 1: Project Background - The Beijing World Trade Center, which opened in 2007, was once a vibrant commercial hub featuring Asia's largest sky screen, attracting significant foot traffic and hosting high-profile brands like ZARA and the upscale restaurant chain, Golden Jaguar [2]. - In recent years, the project has faced severe competition from nearby commercial areas, such as Taikoo Li Sanlitun and THE BOX, which have drawn away customers and contributed to the decline of the World Trade Center [2][3]. - The pandemic exacerbated the situation, leading to financial difficulties for tenants, resulting in many opting to vacate the premises after unsuccessful negotiations for rent reductions [2]. Group 2: Market Dynamics - The World Trade Center was previously put up for sale in 2015, with a reported valuation of approximately 4 billion yuan, but the sale fell through due to asset issues faced by the owner [3]. - According to a report by CBRE, over 1 million square meters of new commercial space is expected to be added in Beijing in 2024, intensifying competition in the core area and further squeezing the World Trade Center's market position [3]. Group 3: Longfor's Strategy - Following the acquisition, Longfor Commercial has established a network of commercial projects in Beijing, including nine "Tianjie" locations, enhancing its market presence across various districts [5]. - The successful transformation of the Beiyuan Tianjie project, which achieved a 99% leasing rate and generated over 33 million yuan in revenue within the first three days of opening, sets a positive precedent for the upcoming operations of the World Trade Center [5][6]. - Longfor's commercial operations reported a rental income of 7.01 billion yuan for the first half of 2025, reflecting a 2.5% year-on-year increase, with a high occupancy rate of 97% across its 89 shopping centers [6].