Core Viewpoint - The sale of mature assets in first-tier cities, particularly operational properties with clear ownership, has become a crucial strategy for real estate companies to alleviate existing debt amidst a gradually stabilizing real estate market in recent years [1][3]. Asset Sale - On January 16, 2025, 120 residential units and over 200 underground parking spaces at Sanquan Apartment in Beijing were put up for auction on Alibaba's asset platform but failed to attract any bids [2][3]. - The assets were entrusted for disposal by Beijing Jingxiu Commercial Management Center to Everbright Jinou Asset Management [2]. - The Sanquan Apartment project spans 10,000 square meters with a total construction area of 54,000 square meters, consisting of three high-rise residential buildings and one commercial podium [5]. Debt Situation - Jingrui Holdings, the parent company of the asset, is unable to repay approximately 720 million yuan in debt to Everbright Jinou, with the 120 residential units and associated assets serving as collateral [3][6]. - The total expected proceeds from the sale of the assets could exceed 900 million yuan, sufficient to cover the debt owed by Jingrui Holdings [7]. Rental and Market Performance - The 120 residential units have a total area of 13,824.7 square meters, with most units being two-bedroom apartments ranging from 110 to 130 square meters [5]. - The rental price for the apartments starts at around 20,000 yuan per month, with variations based on factors such as floor level and furnishings [5][11]. - The rental yield for the Sanquan Apartment is reported at 2%, while the commercial space yield is at 5.5% [9]. Strategic Shift - Jingrui Holdings has been transitioning from a traditional developer to an asset management service provider since 2017, establishing multiple business platforms including Jingrui Real Estate and Jingrui Property [13]. - The company has faced significant pressure on its financing and debt repayment due to a debt default in 2022, leading to a contraction in its asset management business [14]. Market Context - The recent trend shows that core assets in first-tier cities are still attractive to buyers, indicating a potential for successful sales in the future despite recent auction failures [15].

Core Viewpoint - The auction of 120 residential units and over 200 underground parking spaces at Sanquan Apartment in Beijing failed due to lack of bids, highlighting the financial struggles of Jingrui Holdings, which is attempting to resolve a debt of approximately 720 million yuan through asset liquidation [2][6][8]. Group 1: Asset Sale Details - The Sanquan Apartment project covers an area of 10,000 square meters with a total construction area of 54,000 square meters, consisting of three high-rise residential buildings and one commercial podium [4]. - The 120 residential units for sale have a total area of 13,824.7 square meters, with most units being two-bedroom apartments ranging from 110 to 130 square meters [4][5]. - The starting price for the residential units is approximately 58,000 yuan per square meter, while the commercial space was sold for 61.5 million yuan, equating to about 15,000 yuan per square meter [4][6]. Group 2: Financial Context - Jingrui Holdings is unable to repay its debt of 720 million yuan to Everbright Jinou, which has led to the auction of the Sanquan Apartment assets as collateral [2][5][8]. - The company had previously acquired the Sanquan Apartment assets for a total of 1.27 billion yuan, with the initial purchase price for the 120 units being 630 million yuan, indicating a potential appreciation in value despite current financial difficulties [7][10]. - The rental yield for the Sanquan Apartment is reported at 2% for residential units and 5.5% for commercial spaces, with rental prices for two-bedroom apartments ranging from 17,000 to 20,000 yuan per month [7][9]. Group 3: Industry Trends - The sale of mature assets in first-tier cities has become a strategy for real estate companies to alleviate debt amidst a gradually stabilizing real estate market [3]. - Jingrui Holdings has been transitioning from a traditional developer to an asset management service provider since 2017, focusing on rental business expansion [10][11]. - The company has faced significant pressure on financing and debt repayment due to a debt default in 2022, leading to a strategic plan aimed at reducing leverage and liabilities through asset sales [11].