The PropTech field, which started in 2021, is intertwined with fire and ice. On the one hand, there are continuous news of layoffs and closures of startups on the track. On the other hand, PropTech special funds have been established one after another, and projects with single financing of more than 100 million yuan continue to emerge. However, there is a PropTech entrepreneurial direction that is attracting more capital and talent influx, and that is the direction of space asset management, especially the direction of fine decoration and bag accommodation.
Former JLL executive Wu Yunshen joined Gee and started working as COO
On March 9th, PropTech Research Institute learned that Eddie Ng, the former executive of JLL (JLL), will formally join the company on March 16 this year as the company’s chief operating officer (COO). After joining Gee, Wu Yunshen will integrate the company’s core business and team structure, and start brand upgrades, and fully deploy the new track of “office space and asset services” to provide developers and enterprises with innovative smart space and asset services.
Jones Lang LaSalle is a foreign-funded company with a history of more than 230 years and a global top 500 listed on the New York Stock Exchange. Its current market value is nearly 9 billion US dollars. Why did Wu Yunshen make this decision?
Recently, Wu Yunshen accepted an exclusive interview with PropTech Research Institute and explained the reasons why he chose to start construction and his prospects for the future development of the commercial and office market.
Picture: Wu Yunshen (Eddie Ng)
Public information shows that Mr. Wu Yunshen has joined Jones Lang LaSalle for nearly 25 years, during which time he has made outstanding contributions to the rapid business development and territory expansion of Jones Lang LaSalle in the Chinese market. Before leaving office, Wu Yunshen served as the managing director of Jones Lang LaSalle East China (2016-2020) and the managing director of West China (2005-2015). He was mainly responsible for the organization strategy and business operations of the company’s multiple branches in various regions. And it has established close ties and cooperative relations with local governments, large institutions, domestic and foreign developers, investors and enterprises. With more than 20 years of professional experience in the real estate industry, Mr. Wu Yunshen is well versed in capital markets and commercial real estate operations and is one of the recognized experts in the industry.
Wu Yunshen said that in recent years, domestic technology companies have developed rapidly, and many domestic companies are actually better able to create value for China’s future real estate market. This is one of the reasons that attracts them to come out.
It is understood that it took Wu Yunshen a year to make decisions for his next development, but it only took two days to decide to join the company. In what ways did the start of work attracted Wu Yunshen?
Regarding the start of the business, PropTech Research Institute once introduced the company’s growth background and business model in the article “Contrary to the trend to obtain strategic investment from CapitaLand, this startup company has already circled 100 buildings”. On the whole, Kai Gong Da Ji was established in 2017. The founder Zhang Shikai was born in the 90s. At present, there are about 50 employees in the entire company. At present, 3 rounds of financing have been completed. The latest round is a strategic investment of tens of millions of dollars led by CapitaLand Group.
Wu Yunshen revealed to PropTech Research Institute that he had only heard of Kaigongdaji for the first time in the middle of last year. He met with the founder of Kaigongdaji Zhang Shikai for the first time in October 2020, and decided to join Kaigongdaji in January this year.
When I met Zhang Shikai for the first time, Wu Yunshen asked two questions: First, how did the company’s funds come from? Secondly, how does the business model of DaJiJi connect the owners and office users? The answer given by Zhang Shikai made Wu Yunshen believe that his knowledge and insight into this market is deep enough.
In Wu Yunshen’s view, if a startup company wants to succeed, it needs to have the following five points: first, strong learning ability, second, brave to innovate, third, clear business model, fourth, strong team cohesion, fifth, Can quickly build trust. These five points happen to be available to the team.
After joining Daji, Wu Yunshen will serve as the chief operating officer (COO) of Daji. The main goal is to continue to improve the company’s business model in the next 12 months and deliver what the new track has to do to the market.
Regarding the joining of this veteran commercial real estate industry leader, Zhang Shikai, founder and CEO of Gee Kai Gong Da Ji, said: “I am very pleased that we are able to welcome an executive from one of the commercial real estate giants to join Kai Gong Da Ji. This is not only a leading real estate industry partner. The recognition of Daji’s business and service model will also play a very positive role in our strategic layout of future office space and asset services, and seize new tracks. I believe that with Eddie’s years of accumulated commercial real estate experience and market resources, it will definitely Lead our team to provide customers with more comprehensive and high-quality space and asset services.”
For a good start, the joining of industry leaders from Jones Lang LaSalle for 25 years is undoubtedly a booster. From the acquisition of CapitaLand’s strategic investment at the beginning of last year to the joining of senior executives from the top five international real estate agencies, the start of the project has been recognized by more and more people. However, what will be the new track that is ready to start?
Nuggets 2 trillion new market, everything is going to the front
In an interview a year ago, Zhang Shikai, the founder of Kaigongdaji, explained the company’s main business model to PropTech Research Institute. One is to gain scale advantages by empowering owners and large customers; the other is to continuously upgrade the technological barriers of the supply chain and optimize the upstream supply chain. , Using self-developed assembly technology to improve office space transformation efficiency. At the same time, a new brand was launched: everything is fine.
All things are different from the development of the supply chain and real estate technology, but the introduction of the fund model, with the package office service and space service center as the carrier, linking the owners, tenants, and the start of the project, and exporting professional office asset management and space for the owners. Service management.
In the original business model, the start of the project provides office services for all companies in the cooperating buildings with baggage. Users can choose to decorate themselves or rent a house that can be moved in with a bag. If the user chooses to carry the house, in addition to the original rent, the user only needs to pay the service fee to Kai Gong Daji on a monthly basis.
In the more than three years of operation, the packaged office service has helped landlords achieve greater improvements in efficiency, tenant retention, and rent levels. Under the premise of good cooperation, more and more owners are injecting more refined office asset management services and space operation services into the building from the perspective of hoping to improve building supporting services and the ecological layout of the building, thereby realizing the appreciation of office building assets.
“Adhering to the vision of creating a world where companies can grow more easily and connecting to an infinite future,” Kaigong Daji officially established its sub-brand “Good luck”. Everything is good for the owners to deliver flexible, efficient, asset-light diversified office assets and space service solutions, breaking the boundaries of each asset portfolio, and comprehensively improving the tenant experience.
Now that the time is ripe, the strategy of commencing construction in 2021 is to bring “good luck” to the foreground, while commencing construction will provide supply chain and technological support in the back.
In the new structure, Kai Gong Da Ji will focus on supply chain and real estate technology, and Wan Shi Da Ji will open up a new track of “office space and asset services”.
Wu Yunshen told PropTech Research Institute that this year is very important for the successful start of construction. At present, the vacancy rate in China’s office market is very high, and the scale also means that the start of construction can quickly help developers solve the problem of occupancy.
How big is the market for “carrying in with bags” in which the company is located?
Wu Yunshen pointed out that the current office building market in China is at least RMB 10 trillion, and if construction can create 20% of added value, the market size will be at least RMB 2 trillion. “I believe it is absolutely possible to grow into a unicorn in a very short period of time in the future if we want to make the start of the project bigger and bigger.”
After 25 years of cultivating commercial real estate, Wu Yunshen has accumulated huge resources of developers and investors. “They are all worrying about the next 10-20 years. Asset prices will not go up as they did in the past ten years. This requires more innovation, more value extraction, and more services to get the returns they want. ”
In Wu Yunshen’s view, if you only talk about technology, but there is no way to transform technology into the real value or benefits of developers or owners, everything is empty talk. Technology companies need to understand what they care about for owners. They don’t care that you have a very beautiful app that can show what the space is like. What they need is to rent out the space quickly and get a better return.
In addition, many asset management companies currently provide a single service, and asset management involves multiple dimensions, including construction, operation, space, and services for space users, investors, or owners.
For example, a building has 100,000 square meters. Now most players manage only 10,000 square meters of public areas, and the remaining 90,000 square meters of corporate space are rarely serviced.
In order to solve the above problems, Wu Yunshen and PropTech Research Institute revealed that this year, Daji will set up a space service center in the office buildings it serves. This service center will help residential buildings greatly improve in supporting services, tenant experience, and asset value. “This is not to imitate the joint office.” Wu Yunshen said.
Up to now, the company has signed a package check-in service with more than 100 buildings. The company will soon set up three space service centers, and this year’s goal is to set up dozens of service centers.
Reprint indicated source：Spark Global Limited information