Wednesday, October 21, 2009

Evergrande is a Good Deal


by Ka Lee Angel Lee

Evergrande, rising from its IPO failures, topped the Chinese real estate developer list in less than 18 months’ time. Experts said Evergrande’s risk management contributed to most of its success.
Evergrande’s strategy went from “winning on scale development” to “scale plus model”. It first targeted in mid to low end markets and started to invest on properties satisfying these sectors. Then by reserving talents, land and capital, it enlarged its workforce and succeeded in thousands of land projects. This brought Evergrande prominent investors to purchase its shares. Thus more capital was gained. Most recently, Evergrande partnered with other promising real estate giants in China and worked on over 40 projects in more than 20 cities. This has earned its place as the largest land holder in the Chinese property market. Its land reserves approximates to 51 million square meters.
Evergrande’s achievement is largely related to its standardized quality management on its staff as well as its products. Also, it has a strong marketing team to sell its brand. Its initial public offering was more than 3 times oversubscribed most recently and the spokesperson was optimistic about the future of the company.

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