SOE Developer Well-Poised To Outperform Peers in Challenging Market

China Resources Land, or CRL is unique among Chinese real estate developers. Among large-cap developers, CRL is the only one with a credible investment property business. Riding on the success of the Shenzhen MixC, arguably the most successful commercial project in a highly visible and competitive city, CRL aims to transition from a predominantly residential developer into one known for developing and expanding large-scale, mixed-use projects. The residential development business provides the necessary fuel to power this growth as the company progressively builds up a recurrent income investment portfolio. Historically, the company has benefited from a nearly annual asset injection from its parent company at a discount to NAV. However, asset injections may be coming to an end. Hence, the company may experience some challenges ahead as it wades into the competitive land auction market.