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Research from Research Paper:
Chinese Real estate property Company and a Us Real Estate Organization
The objective of this study is always to conduct a comparison of a Chinese real estate company vs . A property company in the United States.
For the purpose of this kind of study, real estate companies to get compared will be those of 100 years 21, a property company located in the United States and Xinyuan Real Estate Company, Ltd. located in China. Century 21 is reported as the “franchisor with the world’s greatest residential real estate sales organization. inches (Marketmag, 2012) Xinyuan Property Company, Limited. Is a “developer of large level, high quality home resale house projects targeted at providing middle-income consumers using a comfortable and convenient community lifestyle. ” (Xinyuan Real Estate Company, Ltd. website, 2012) The company started by Yong Zhang in 1987 and it is ranked leading is Zhengzhou by residential contract product sales in 2004. (Xinyuan Real estate property Company, Limited. website, 2012, paraphrased)
We. Century 21 years old Real Estate LLC/Realogy (Owned simply by Parent Firm Domas Coalition Company)
Century 21 Real Estate LLC can be headed by the company generally known as Realogy Organization, “a leading global company of real estate property and moving services which has a diversified business design that is including “real estate financing, broker agent, relocating and title services. ” (Realogy, 2012) The world-renowned brands and sections of Realogy include Better Homes and Gardens, Property, Century 21, Coldwell Company, The Corcoran Group, ERA, Sotheby’s International Realty, Coldwell Banker Business, NRT LLC, Cartus and Title Useful resource Group (TRG). Realogy is definitely owned by simply affiliates of Apollo Supervision L. S. A subsidiary of Apollo Global Management, LLC, a leading global alternative asset manager. (Realogy. com, 2012) Century 21 years old Real Condition LLC’s director and CEO is Rich W. Davidson. The company offers approximately ciento tres, 000 brokerages and product sales associates all over the world. Century twenty-one system is the largest residential real estate persuasion organization in the world and is reported to provide “comprehensive training and marketing support for its members. CENTURY 21 brokers and sales co-workers use advanced technology to help make the transaction as smooth and convenient as it can be. Founded four decades ago, the System is comprised of about 7, two hundred and fifty franchised broker offices in 73 countries and territories. ” (Realogy. com, 2012) Realogy is definitely owned by parent company Domas Coopération Corporation. Realogy Corporation, real estate brokerage and franchise firm that possesses Century twenty one is reported as “preparing to go public again, practically six years after the firm was used private by a hedge fund at the elevation of the casing boom. ” (Realogy, 2012) The record states which the 2006 offer was a highly leveraged offer. As of 03 31 organization had $7. 23 billion in spectacular debt. An idea was submitted with government bodies by Realogy’s parent business and specifics show which the company provides the hopes of paying down $3 billion in debt by providing up to $1 billion in new shares and converting $2 billion in convertible paperwork into prevalent stock. It is reported that in the first two months of 2012 that Realogy had already cut $500 , 000, 000 from the working cost of the business and $2. 1 billion in reduction carryfor4wards. ” (Realogy, 2012) Realogy’s organization sectors will be shown in the following graph and or chart labeled Number 1 from this study.
Physique 1
Realogy Business Industries
Source: Realogy (2012)
The provision of real estate operation services to company operating under 13, 800 offices under the Century 21, Coldwell Banker, Era, Sotheby’s Worldwide Realty, Coldwell Banker Commercial and Better Homes and Gardens Real estate property brands happen to be reported to have “accounted pertaining to 61% of Realogy’s adjusted (EBITDA) earnings. ” (Realogy, 2012) Realogy is reported as having 725 NRT-owned brokerage offices – which operate within the following:
(1) Coldwell Bank
(2) Sotheby’s International Realty
(3) AGE, Corcoran Group
(4) CitiHabitats brand names (Realogy, 2012)
These four will be reported to account for 11% of tweaked earnings in the company.
Cartus is Realogy’s relocation organization and is reported to have aided in the facilitation of in excess of 150, 000 relocations to get 1, 500 clients this summer, which makes up about 22% with the company’s tweaked earnings. (Realogy, 2012, paraphrased) Title Reference Group is usually Realogy’s title and settlement services organization and is reported to have made up 6% from the company’s 2011 adjusted revenue. (Realogy, 2012, paraphrased) Name Resource Group, accounted for 6% of 2011 adjusted revenue. The record states, “Most TRG office buildings are co-located within one of Realogy’s company-owned real estate brokerage offices. This past year, approximately 38% of the buyers of Realogy’s company-owned broker agent offices that offered subject coverage also utilized the company’s title and settlement providers. ” (Realogy, 2012) In accordance to administration of Realogy:
“Our 4 complementary businesses and mortgage loan joint venture interact to form each of our ‘value group, ‘ enabling us to create revenue for various items in a household real estate purchase, ” the company said. “Unlike other industry participants who also offer only one or two services, we are able to offer property owners, our dispenses and our corporate and affinity clients ready entry to numerous connected services that facilitate and simplify your home purchase and sale process. ” (Realogy, 2012)
Quotations stated by simply Realogy managing is that “brokerages it owns and agents it provides franchise services were involved in 26% of 2011 home-sale deal volume involving a real estate brokerage firm. ” (Realogy, 2012) The intentions with the company includes growing their franchise business by “selling new franchises “and helping current dispenses recruit successful sales associates and grow their businesses. We believe we have significant gradual franchise sales opportunities with real estate agents that are unaffiliated with a property brand, currently estimated to represent 46% with the market, and also real estate brokers which can be affiliated with contending brands. inches (Realogy, 2012) Independently owned or operated brokerages affiliated with Realogy’s franchise brands will be reported to have “handled 909, 610 deal sides, down 1 . 4% from 2010 and 51% from a 2005 maximum of 1. eighty-five million. During the first 3 months of 2012, Realogy franchisees closed 197, 458 deal sides, up 6. 5% from the same period a year ago. ” (Realogy, 2012) 254, 522 transactions were dealt with by Coldwell Banker, Sotheby’s International Real estate, ERA, Corcoran Group and Citihabitats this summer. It is reported that among 2006 a great d2011, there were a decrease in the number of residential real estate brokers and revenue associates operating at Realogy-affiliated franchises and company owned franchise by simply 23. 4%. (Realogy, 2012, paraphrased) During the same time there was a 25. 6% decline inside the memberships with the National Connection of Realtors.
SWOT Research
Strengths
The strengths of this company include the length of time the organization has been in business and its duplicate customers.
Disadvantages
Weaknesses just for this company contains the underhanded business methods which the firm was involved in and which the company can be presently financially responsible for.
Opportunities
The possibilities that are present for this company include the countries to which the company is currently expanding the business and services.
Risks
There is relatively little risk for new marketplace entrants currently.
II. Xinyuan Real Estate Business Ltd.
Xinyuan Real Estate Firm Ltd. sticks to a tight Code of Business Perform and Ethics, which is aimed at deterring wrongdoing and on campaign of the next:
(1) Genuine and honest conduct, like the ethical controlling of actual or obvious conflicts appealing between personal and professional relationships;
(2) Full, fair, accurate, timely and understandable disclosure in reports and documents the fact that Company will file with, or submit to, the U. S i9000. Securities and Exchange Commission rate (the “SEC”) and in other public marketing communications made by the corporation;
(3) Complying with suitable governmental regulations, rules and regulations;
(4) Prompt interior reporting of violations in the Code; and (5) Liability for faith to the Code. (Realogy, 2012)
The work titled “Differences Between Corporate Governance Practices of Xinyuan Real estate property Co., Ltd. And the Requirements Under the NYSE Listing Standards” states the following:
“Section 303A of the Corporate Governance Rules of the Nyse, or the NYSE, requires outlined companies to obtain, among others, a compensation panel and a nominating and company governance committee each made up solely of independent owners. As a overseas private issuer, however , were permitted to, and we perform, follow country practice instead of the above requirements. The corporate governance practice within our household country, the Cayman Islands, does not require the implementation of a compensation committee or a nominating and corporate governance committee, nor does it require any such committees to be made up solely of independent company directors. Xinyuan can be committed to a high standard of corporate governance and as such, Xinyuan endeavors to comply with the majority of the NYSE company governance procedures. Xinyuan has built a separate reimbursement committee and a nominating and corporate governance committee, and requires that a majority of the people of such committees end up being comprised of independent director. inch (Xinyaun Real estate property Company, Ltd. 2012)
Xinyaun Real Estate Firm Ltd. declared its initial quarter 2012 financial outcomes and says the following features for this year’s first 1 / 4.
Total 1st quarter revenues were U. S. $172. 6 mil, an 88. 0% boost from U. S. $91. 8 mil reported inside the first one fourth of 2011, and a 13. 6% decrease from U. H. $199. almost 8 million noted in
