My 1999

The next day came the new dream.

"Mr. Xu, are you looking for me?"

Xu Liang waved, "Old Teng, come and sit."

As he said that, he put down the documents in his hands and looked at Teng Huaming who was sitting down.

"The company did well in the third quarter."

New Dream's net revenue in June, including Ideal Education, was only about 30 million Chinese dollars, but by June, it suddenly rose to 50 million, in July to 70 million, and in August it exceeded 8,300. million, dropped to 55 million in September, and became 35 million in October.

"Thanks to the summer vacation, the number of students enrolled in cram schools and art training classes has been several times more than usual. Otherwise, our revenue would not have been so high," Teng Huaming said.

Winter and summer vacations are the peak periods for class registration.

Last year, the new dream of only doing high school art training was not obvious, but this year I entered the new dream of kindergarten art education and middle and high school subject education. For the first time, I felt that winter and summer vacations are so delicious.

Income can be doubled instantly.

Xu Liang nodded slightly, "How many branches does Ideal Education have in Shanghai now?"

"There are 17 stores, and we can expand to about 25 by the end of the year."

"Where is Pengcheng?"

"14. There are 13 in Yangcheng. Counting Beijing, there are a total of 67 ideal education schools in the country."

Ideal Education and New Dream Art Education share the same building. Basically, there are as many New Dream kindergarten art training institutions as there are branches of Ideal Education.

"You can discuss with the owners of the commercial buildings we are leasing now and buy the properties." Xu Liang said.

Teng Huaming frowned slightly, "Mr. Xu, we currently lease more than 480,000 square meters of commercial real estate. Although most of them are old commercial buildings or office buildings from the 1990s, the amount ranges from 5,000 to 7,000 per square meter.

To buy them all would require at least 5 billion Chinese coins. We don’t have that much money. "

Xu Liang thought for a moment, "How much money does the company have in its account now?"

"140 million Chinese coins." Teng Huaming said immediately.

As the CEO of New Dream, he is very familiar with New Dream’s finances.

Xu Liang nodded slightly, feeling a little lucky in his heart.

If New Dream hadn't been one of the "Top Ten Innovative Enterprises" in the capital city and the corporate income tax had been halved, they wouldn't have been able to save so much money.

"Mr. Xu, the Chaoyang District Government has agreed to help us find a piece of land to build a new headquarters. We are currently selecting a site. If everything goes well, construction will probably start next year. If the money in the account is used to buy a building at this time, we will build a new headquarters. The headquarters’ money is gone.”

After the failure to purchase Area 798A, the construction of a new headquarters was put on the agenda. This was something Xu Liang knew.

Xu Liang nodded and thought for a moment.

"Lao Teng, I plan to spin off the real estate business of New Dream."

"Mr. Xu, in fact, I am not opposed to investing in real estate, but it must be done in a planned and step-by-step manner, otherwise it will put too much pressure on the company's finances." Teng Huaming explained quickly.

"I know this, but the new dream should be purer."

Saying that, Xu Liang made up his mind.

The real estate business requires large capital investment, and he has prepared a huge investment of US$500 million for this purpose.

But through the conversation with Teng Huaming, he suddenly discovered one thing. It is difficult for a company that mainly focuses on education to enter real estate.

According to his idea, after buying all the commercial real estate for US$500 million, he would immediately obtain a mortgage loan from the bank, and then continue to purchase and repeat the mortgage.

On the eve of China's real estate industry taking off, this can quickly amplify his net income.

But Teng Hua obviously disagreed with his idea.

Think the risk is too high.

His idea was correct. For a company with normal development like New Dream, Xu Liang's approach of treating real estate as a financial operation was indeed too risky.

But if you don't do this, the return of investing US$500 million in real estate will be too low, and it is better to invest in the stock market.

This is the contradiction between the two sides.

Although Xu Liang knew that if he forced it, Teng Huaming would also comply, but it would definitely create a gap.

Teng Huaming is an excellent CEO, and New Dream has maintained a monthly growth of more than 10% in his hands, so he does not want to cause the two to be separated because of this incident.

In this case, simply divest Xin Meng's real estate business and turn it into a purely asset-light education company.

Seeing that he had made up his mind, Teng Huaming said nothing more.

He is really not optimistic about New Dream's entry into real estate. It consumes too much money. The interest of nearly 3 million per month and the 500 million fund due in five years are a huge burden for New Dream.

If you get rid of this burden, your new dream can develop faster.

"Mr. Xu, if all the New Dream Real Estate business is divested, then the financing conditions of Ideal Education will also have to be completely revised," Teng Huaming reminded.

According to the strategy previously set by the two, New Dream’s Series A financing was launched in October, with the fund-raising targets being IDG and Yingke.

Teng Huaming is solely responsible for this financing negotiation.

According to the agreement reached by the two parties, based on the equalization of Ideal Education’s revenue and net profit in the first nine months, taking into account conditions such as development speed and industry status, the valuation is 1.5 billion Chinese dollars.

IDG and Yingke obtained 8% and 7% of the equity respectively.

Now that there is no drag from the real estate business, the valuation is definitely more than 1.5 billion Chinese dollars.

"Let's talk about it then."

Teng Huaming nodded.

After personally experiencing Hongmeng’s US$2.8 billion valuation and US$560 million in financing, he no longer has much interest in the financing of Ideal Education.

Leave it all to Teng Huaming.

He only cares about the end result.

After making the decision, Xu Liang quickly adjusted the business of Hongyan Fund.

Name the self-operated equity investment business ‘Hongyan No. 1 Equity Investment Fund’.

Responsible for investments in Apple, Amazon, and NetEase.

Then the second self-operated Hongyan No. 2 Real Estate Investment Fund was established to specialize in real estate investment.

At the same time, New Dream's debt of 520 million Chinese dollars and 19 commercial buildings with a total area of ​​152,000 square meters were transferred to Hongyan No. 2 Real Estate Investment Fund.

——

Lu Jue came to the ninth floor of Fukai Building with anticipation.

He has received news that New Dream has transferred all its real estate business to the Big Boss's investment fund, Hongyan.

As the director of the New Dream Real Estate Investment Department, if the company does not make new arrangements, he will be dismissed.

Of course, there may be other appointments.

The uncertain future made him very anxious during this period.

After getting out of the elevator, I saw the logo of Hongyan Fund and its standard script on the opposite wall. After taking a deep breath, I pushed open the pop-up door and walked in.

Across the street is the front desk.

The young lady wearing a women's suit with small lapels has a standard professional smile on her face.

"Hello, sir, do you have an appointment?"

"I am Lu Jue, director of the real estate investment department of New Dream Company. Mr. Xu Liangxu asked me to come here to meet him."

The receptionist, who had been handed over by Lu Hui a long time ago, turned around and walked out of the counter.

"Director Lu, please come with me."

Lu Jue nodded and quickly followed.

The lady at the front desk swiped her card to open the passage inside, and Lu Jue followed her in.

Soon there was an independent office space of about 300 square meters.

There are about fifty or sixty people working inside, and the space is very generous.

After passing through this office space, there are some independent offices and reception rooms.

Soon the receptionist led him to an office surrounded by tempered glass.

"Director Lu, Director Lu Jue from New Dream Company is here."

Lu Hui, who was working, got up and walked over after hearing this.

She had seen Lu Jue and walked over with a smile.

"Xiao Zhang, thank you for your hard work."

"You're welcome. It's okay. I'll leave first."

"Um."

After leaving the front desk.

"Director Lu, Mr. Xu is in the office. Come with me."

"well."

Xu Liang's office was next to the secretary's office, and Lu Hui knocked on the door.

"Come in."

Push the door open and go in.

"Mr. Xu, New Dream Director Lu Juelu is here."

"Let him in."

Lu Hui turned aside and let Lu Jue walk in.

"Mr. Xu."

Xu Liang walked to the reception area next to him with the documents in his hand.

"sit."

After he sat down, Lu Hui brought him a glass of water.

"Thanks."

"You're welcome."

Xu Liang handed over the information in his hand.

"You take a look first."

Lu Jue picked up the documents on the table and read them carefully.

There is a neat line of text on the first title page.

‘Hongyan No. 2 Real Estate Investment Fund’ planning document.

After turning to the second page and seeing the total fund amounting to US$500 million, my heart started to beat loudly.

Qiang Zi suppressed the excitement in his heart, carefully read the content at the back, and then put it down after reading everything bit by bit.

"Mr. Xu, this...?"

Thousands of words were stuck in my throat for a while, and I didn't know how to speak.

Xu Liang smiled and said: "I think you already know that New Dream's real estate business has been completely divested to Hongyan."

"yes."

Lu Jue nodded quickly and said expectantly: "Mr. Xu, you...are you going to let me be in charge of Hongyan No. 2 Fund?"

"That's right. After all, you and your department are the only ones here who know how to invest in real estate."

Although Lu Jue's ability is not top-notch in the real estate investment industry, it is better to use it with experience than with raw talent. Moreover, real estate investment at this stage does not require too advanced talents.

"Don't worry, I will definitely make Hongyan No. 2 Real Estate Investment Fund a success." Lu Jue assured quickly.

Xu Liang waved his hand to signal him to calm down.

"Don't get excited. Since I'm giving this fund to you, I believe in your ability."

"yes."

"As for the investment direction of Hongyan No. 2 Fund, it is still the same as when you were in New Dream. In line with the expansion of New Dream, it will focus on old commercial properties of about 10,000 square meters."

Although the appreciation potential of old real estate is not as good as that of commercial real estate in the core areas of the CBD, the purchase price is also much cheaper.

More importantly, a 100% rental rate can be obtained.

No matter how well-built your building is, if you can't rent it out, it's all in vain.

"yes."

"We will focus on first-tier cities and will not enter second-tier cities for the time being." Xu Liang emphasized.

In the case of limited funds, of course, properties in first-tier cities are more popular.