The Place Holdings announced the acquisition of the 12-storey Realty Centre in a collective sale for $148 million in April 2019. The freehold residential (with commercial at first level) currently has a total site area of 11,000 sq ft and is zoned for commercial use with a plot ratio of 5.6. It can achieve a possible height of 35 stories.

 

MCC Land will take up a 30% equity stake in the project company that will develop the project. The Place Holdings will continue to hold a 51% equity stake and the remaining stake of 19% will be held by Sun Card Limited.

 

Under URA&rsquo s CBD Incentive, the project is entitled to a bonus plot ratio of between 25% and 30% if there is a change of use.

 

Ji Zenghe, executive chairman of The Place Holdings, says that the development provides an unique opportunity to conceptualise a differentiated mixed-use property in the CBD area with the combined experience and capabilities of MCC Land and The Place Holdings.

 

&ldquo We are strong believers in the long-term potential of the Singapore property market and continue to see strong fundamentals which are driven by political stability, a pro-business environment and robust legal system,&rdquo he adds.

 

 

 

 

 

Singapore, 5 May 2021 &ndash The Place Holdings Limited (&ldquo The Place Holdings&rdquo , the &ldquo Company&rdquo or &ldquo 天 阶 控 股 &rdquo and together with its subsidiaries, the &ldquo Group&rdquo ), a SGX mainboard-listed company with a primary focus on integrating traditional businesses and new growth opportunities in the digital economy, is pleased to announce that the land site, held by its subsidiary Tianjie Yuntai Wanrun (Xiuwu) Property Development Co., Ltd. (&ldquo Tianjie Yuntai Wanrun&rdquo ), has been assessed and revalued at RMB 481 million by one of China&rsquo s leading valuation companies, WorldUnion Property Assessment Co., Ltd (&ldquo 世 联 评 估 &rdquo ).

 

Compared to the valuation of the land site of RMB 112 million as at 30 September 2020, the revaluation of RMB 481 million after the change in zoning represents a substantial increment in value of RMB 369 million, which is an increase of 329% from RMB 112 million.

 

The size of the land site is approximately 270,500.64 square metres. It is strategically located within Mount Yuntai Tourist Township, where hospitality properties, wellness resorts, integrated retail and commercial developments and theme parks are been planned and some are currently under development.

 

The revaluation of RMB 481 million of the land site is primarily based on the change in zoning from commercial to residential and it also take into consideration the increase in land-use rights assigned to the land from its existing 40 years to 70 years, larger buyer group and as well as the current developments and completed infrastructure surrounding the area.

 

Mount Yuntai Tourist Township is located at the entrance of Mount Yuntai (云 台 山 ), which is approximately 70km from Zhengzhou City, the provincial capital of Henan Province in the PRC.

 

  Highly accessible and connected via various transportation networks, Mount Yuntai Tourist Township is just a 20 minutes ride from Jiaozuo high-speed rail station and a 45 minutes drive from Zhengzhou International Airport.

 

Mount Yuntai is a tourist site with the highest &ldquo AAAAA&rdquo rating under the Tourism Attraction Rating Categories of China. Mount Yuntai is also listed as one of the National Parks of China and as a geological park in the Global Geoparks by the United Nations Educational, Scientific and Cultural Organization. In 2019, approximately 6 million visitors visited Mount Yuntai.

 

Tourism has become an essential contributor to China' s domestic economy and it is a cornerstone of the government&rsquo s long-term goal to create a consumption-driven economy. The emergence of an affluent middle class and an easing of movement restrictions for locals and foreign visitors are both supporting this domestic travel boom.

 

According to China' s Ministry of Culture and Tourism, travelers made 102 million domestic trips during the annual 清 明 holiday (over an extended three-day weekend) in April 2021. The figure was 94.5% of the number of trips made during the holiday in 2019, the year before COVID-19 hit.

 

Under the leadership of Executive Chairman, Mr Ji Zenghe (吉 增 和 ) and Chief Executive Officer, Mr Fan Xianyong (樊 献 勇 ) and combined with their deep property development experience and long-standing business track record, The Place Holdings has established a business model that integrates omni-channel strategies and innovative business concepts (such as &ldquo new-retail&rdquo solutions, last mile logistics, immersive virtual reality technology, enterprise intelligent connectivity) within its 3 core business pillars that include property, cultural tourism and integrated media-related businesses to create new value propositions.

 

 

 

 

While property and media industry veteran Fan Xianyong devises big business plans, he remains firmly grounded in the principles of integrity and prudency.

 

The Chief Executive Officer of SGX-listed The Place Holdings Ltd attributes these touchstones to the decades-long influence of Ji Zenghe, his partner and the Group&rsquo s Executive Chairman.

 

&ldquo Having worked closely with our Executive Chairman for more than 30 years, I&rsquo ve always been inspired by his core values, which have become the foundation for our Group&rsquo s reputation and growth,&rdquo Fan said.

 

&ldquo Being prudent compels me to consider different perspectives, and pursue continuous learning to adapt in an ever-changing environment. Integrity gives me the moral courage and ethical strength to keep promises and fulfil expectations. This in turn allows me to build and sustain trust, which is the cornerstone of any business.&rdquo

 

Fan, who holds a Bachelor of Engineering in Architecture from Zhengzhou University and an Executive MBA from Cheung Kong Graduate School of Business, was appointed Executive Director of the Group in October 2016, and subsequently promoted to CEO in 2018.

 

In October 2016, The Place Investment Group injected cash proceeds of S$93.7 million into SGX Mainboard-listed Eucon Holding Ltd via the subscription of new shares. In May 2017, after obtaining shareholder approval, the company changed its name to The Place Holdings.

 

&ldquo We actively pursue potential investment, collaboration and expansion projects, as well as opportunities to boost growth and enhance shareholder value,&rdquo Fan added.

 

Today, The Place Holdings is an investment holding company with a business model that integrates omni-channel strategies and innovative concepts - such as &ldquo new-retail&rdquo solutions - built upon three core business pillars: property development and management, cultural tourism and integrated media-related businesses.

 

The Place Holdings Ltd is backed by the key management team of The Place Investment Group, a multi-billion PRC conglomerate known for its extensive business portfolio in cultural tourism, integrated media, property development and management, biomedical technology investments and international trade.

 

One of its iconic property developments is The Place (世 贸 天 阶 ), a renowned landmark within Beijing&rsquo s CBD that comprises two top-tier office buildings, a high-end retail mall, and Asia&rsquo s largest skyscreen that creates a unique and innovative consumer experience by combining fashion, entertainment and culture.

 

Last December, The Place Holdings and MCC Land, the unit of MCC Group, China&rsquo s largest manufacturer of steel structures, formed a strategic partnership for the construction and development of residential and commercial property projects, as well as development and management of cultural tourism initiatives.

 

In January, The Place Holdings further boosted its relationship with MCC Land by acquiring a 20% stake in the latter&rsquo s new mixed development project, located next to Singapore&rsquo s Tanah Merah MRT station.

 

With its Singapore roots, The Place Holdings is well-positioned to combine its omni-channel strategies, &ldquo new-retail&rdquo digital capabilities, and property development experience to create brand new, experiential landmarks in the city-state that can spur more dynamic retail environments.

 

Solid Fundamentals

 

Over the next three to five years, the Group expects its core pillars to drive growth, with its property development and cultural tourism businesses seen performing strongly.

 

&ldquo There are significant opportunities for us to infuse our proven &ldquo new-retail&rdquo innovations and retail management concepts from China to create differentiated product and service offerings in Singapore within our property activities,&rdquo Fan pointed out.

 

The Group&rsquo s Chief Strategy Officer, Zhang Wei, also remains confident of the city-state&rsquo s long-term prospects. &ldquo Singapore&rsquo s political stability, pro-business environment, and excellent infrastructure remain solid despite the impact of the pandemic, and will continue to attract investors from around the world,&rdquo he said.

 

For the Group&rsquo s cultural tourism business in China, key macro factors continue to support long-term trends. &ldquo Tourism has become an essential contributor to China&rsquo s domestic economy, and is a cornerstone of the government&rsquo s long-term goal to create a consumption-driven economy,&rdquo Zhang said.

 

&ldquo The emergence of an affluent middle class, and easing of movement restrictions for local and foreign visitors, are supportive of this travel boom.&rdquo

 

According to the China Tourism Academy, the country' s tourist arrivals maintained rapid growth in 2019, with the number of domestic trips rising 8.4% year-on-year to over 6 billion. While COVID-19 has hit the industry hard, the Chinese government is stepping up efforts to reinvigorate domestic visitor arrivals.

 

Data from China' s Ministry of Culture and Tourism is also encouraging - a total of 637 million visits were made across the country during the National Day and Mid-Autumn Festival holidays last October, representing 79% of the visits made during the same period in 2019.

 

Against this backdrop, the Group is looking to tap growth opportunities with the development of the Mount Yuntai Tourist Township, where its cultural tourism operations are centred.

 

The Mount Yuntai Scenic Area is located 70km northwest of Zhengzhou City, the capital of Henan Province, which has a catchment zone of 40 million people within an hour&rsquo s drive.

 

It is one of the first areas in China to be inaugurated as a UNESCO Global Geopark, and boasts the highest &ldquo 5A&rdquo National Tourist Attraction rating by the Ministry of Culture & Tourism. It drew 5.89 million domestic and international visitors in 2018.

 

&ldquo We&rsquo ve acquired a land parcel of approximately 270,500 square metres next to Mount Yuntai Scenic Area. The Group intends to develop projects and plan thematic activities that cater to the tourism and new-retail trends in this area,&rdquo Fan noted.

 

The area surrounding this site has undergone significant developments and the Group is in the process of changing the land zoning from commercial to residential. This will result in an increase in gross floor area, and allow the property project to be marketed to a wider group of potential buyers.

 

Short-Term Challenges

 

In the near term, however, the Group continues to grapple with the fallout from COVID-19. &ldquo Our media-related businesses have been impacted, as clients undertook fewer branding and marketing events during the year,&rdquo Zhang said.

 

&ldquo We&rsquo re also examining our business continuity plans to assess which procedures and solutions work best for our organisation, and to implement policies and strategies that are agile and resilient enough to respond to future crises.&rdquo

 

Nonetheless, Fan remains confident that the Group&rsquo s robust fundamentals will enable it to stay abreast of the competition and navigate challenges ahead.

 

&ldquo Recognising that culture forms the backbone of organisational health amongst the most successful of companies, we&rsquo ve set out to create a strong identity that makes us more flexible, interconnected, and purposeful in the new-normal economy,&rdquo Fan said.

 

What stands out in the Group&rsquo s culture are innovation and operational excellence - two key elements that differentiate every business from its competitors.

 

&ldquo We believe our people want to be part of something bigger than themselves, so a significant part of what we do is to give them a reason to care, change, innovate or set an example. They are empowered to make the right decisions to help our business harness relevant opportunities as and when they appear, so that the Group can grow and prosper.&rdquo

 

Not surprisingly, there&rsquo s much to keep him up at night. &ldquo Business continuity and sustainability are issues that are always at the back of my mind,&rdquo Fan admitted.

 

&ldquo We aim to pioneer new solutions for sustainable development, while continuing to shape our business responsibly, and improve our operating performance. We&rsquo re also accountable to our shareholders, who rely on our operations to drive value creation.&rdquo

 

Outside the office, Fan usually turns to his books, reports and articles for fresh insight. &ldquo Reading gives me different perspectives on various topics, and it&rsquo s a good way to spark new concepts and ideas.&rdquo

 

Another source of inspiration is feedback from the Group&rsquo s teams, customers and partners. &ldquo All of that spurs me on to work harder and dream bigger, so we can continue to create value and be relevant to our stakeholders.&rdquo