Rebirth of the Industrial Tycoon

Chapter 710 The temptation of GDP

This time the bidding for eight pieces of land is divided into two stages.

In the first stage, companies participating in the bidding submit bids and undergo on-site interviews. The companies have to introduce their own situation and project plans. At this stage, most bidders will be eliminated, leaving only single-digit bids. Enterprises participate in the second stage of bidding.

In the second stage, there is no on-site explanation stage. The bidding companies directly submit the final bid documents, and then it is a competition to see who offers better conditions. The conditions mentioned here are not just the amount of money given, but also other factors.

In fact, the sale of land in first-tier cities is not as simple as giving it to whoever pays more. The city must consider overall planning and future development, so it will also consider what conditions developers can provide for the project.

For example, if a commercial project is planned for a certain land parcel, the bidding company's operational capabilities in commercial projects will be taken into consideration. When local governments sell land, they will consider the project's role in driving commerce throughout the city. Even if the land price is slightly lower, they will give priority to the introduction of well-known and mature commercial complexes.

For example, Vientiane City under China Resources, ImCity under Vanke, Wanda Plaza under Wanda, Plaza 66 under Hang Lung, and Taikoo Li under Swire Properties are all mature commercial complexes. These companies have experience in operating commercial projects and will definitely have an advantage when bidding for commercial land.

As for residential projects, the driving effect on the surrounding industries and land will also be considered. For example, if a residential project is built on a certain plot of land and the price is high and the property sells well, the surrounding land will also appreciate in value. If the price is cheap and cannot be sold, the surrounding land will also depreciate in value.

These are the most basic. In addition, there are many conditions, which are also within the scope of consideration.

In this regard, strong real estate development companies will definitely have more advantages.

It is also for this reason that before 2006, Hong Kong real estate companies were able to dominate first-tier cities.

Because Hong Kong-funded enterprises not only have financial advantages, but also management advantages, they have more bonus points when bidding for land parcels.

Eight pieces of land were released at once this time, but it is a big piece of meat. There will definitely be many real estate companies with relatively average strength, but they want to fish in troubled waters and try their luck.

This is why there are two stages of bidding. The first stage of bidding is to eliminate those companies with insufficient strength and avoid anyone fishing in troubled waters to the greatest extent.

To put it simply, we do not allow those with low levels, poor equipment, crappy operation, and unaware people to join the team, leaving a group of advanced players to enter the next stage of PK.

…

Li Weidong personally came to the first stage bidding site.

"Why is Li Weidong here!" A young man quickly noticed him.

"Have you met anyone you know?" the middle-aged man next to him asked.

"Mr. Huo, that person seems to be Li Weidong, the chairman of the Puppy Group." The young man said.

Mr. Huo looked up and nodded: "He looks familiar. I should have seen his picture in a magazine. But today is a land bidding, what is he doing here? Doesn't he make small household appliances?"

"Has the Puppy Group also begun to get involved in real estate? After all, in recent years, there have been many companies transforming into real estate." The young man said.

"No matter what you do in the past two years, you have started to engage in real estate. The order of the mainland real estate market should be rectified, otherwise all the cats and dogs will be engaged in real estate."

Mr. Huo curled his lips and continued: "This Li Weidong is also a well-known entrepreneur in the mainland. If he doesn't make home appliances well, why would he come to the real estate industry to get involved! Does he think making hair dryers is the same as developing real estate!"

You don't have to be rich to do real estate. It seems that Li Weidong doesn't know that today's first phase of bidding is to eliminate unprofessional real estate developers like him first! "

Mr. Huo's tone was full of disdain, and he seemed to look down on Li Weidong a little.

This Mr. Huo is a senior executive of Hong Kong Island Cheung Kong Properties posted to the mainland.

Many Hong Kong people have a sense of superiority when facing mainlanders, and so does Mr. Huo. Even though Li Weidong is a well-known entrepreneur in the mainland, in Mr. Huo's view, Li Weidong is just a person who has only become rich in recent years. "Old watch".

What's more, Hong Kong-funded real estate companies at that time were still at their peak, and they would also put themselves in an advantageous position when facing mainland companies.

Mr. Huo also comes from a leading Hong Kong-funded enterprise like Yangtze River Real Estate. If it were a big brother in the mainland real estate industry like Vanke, or a real estate company with a central enterprise background such as China Resources and Poly, Mr. Huo would take a closer look at those who don’t know. Well-known real estate companies cannot get into Mr. Huo's eyes at all.

Li Weidong did not stay longer, but went directly to a certain lounge, so not many people saw him on the spot.

But even those who saw Li Weidong didn't pay too much attention. At this time, everyone was focused on the bidding. Who would pay attention to Li Weidong's appearance.

…

In the room, Director Chen took off his glasses and rubbed his Qingming point.

"Director, we have reviewed more than a dozen companies in succession. Do you want to take a break first?" the clerk next to him asked.

"No, let's continue!" Director Chen put on his glasses again and continued: "There are still many companies waiting for us to interview, so don't waste time. Let's complete the task as soon as possible so that we can report the results to the leaders."

Another person next to him said: "The main reason is that there are too many people who want to fish in troubled waters. Some real estate companies are not large in scale but have great ambitions. They bid for several pieces of land at once.

People like this don’t know what they are doing. They may not even be able to win a piece of land even if they concentrate their efforts. The big fat guy who wants to eat it all in one go is just wasting his time! "

"Yes, I don't know who gave them the courage. They want a scale but not a large one, and they have no projects of any importance. I think some real estate companies have difficulty even applying for loans from banks, but they want to come to us to get them. Earth!" Another person also said.

Someone else said: "Hey, the real estate industry has indeed been too chaotic in recent years. There are a lot of real estate companies popping up. Although there are many high-quality large companies, most of them are still bad money. Many small businesses do The project is not only cutting corners and worrying about quality, but may even be unfinished.”

Director Chen immediately said: "So we must keep good control and never let bad money drive out good money! We can't control other places, but in our three-thirds of an acre, every project must be done well, and we must not let bad money drive out good money!" Give bad coins room to survive!”

After Director Chen finished speaking, he picked up the next piece of information, glanced at it, and said, "The next one is Dongshan Real Estate. Have you heard of it?"

"The name is quite catchy, but it's a pity that I have never heard of it." Someone immediately shook his head and continued: "According to the information, this company was only established in recent years and has done several successful projects."

"They are all projects in third-tier cities, how can they be compared with our projects here! Companies developing in small places definitely want to come to first-tier cities to get a share of the pie. When we sell land this time, there are quite a few small businesses from third-tier cities bidding."

As the man spoke, he looked through the bidding information of Dongshan Real Estate, and then suddenly exclaimed: "It really corresponds to that sentence, how bold the people are, how rich the land is, Dongshan Real Estate actually wants to participate in everything Bidding for eight plots!”

"What? All eight plots of land are subject to bidding? Yangtze River and Vanke don't dare to play like this! Don't you know how many pounds you have? I think Dongshan Real Estate is here to cause trouble! Such a company should be killed directly. What a waste of time!”

It was Director Chen who coughed dryly; "We have formulated the bidding process ourselves. People participate according to the rules, and they will be killed at any time! Then we have become a black box operation! If we want to be eliminated, we must follow the rules."

The man next to him immediately said: "Then let's not waste time. Let's call the representatives of Dongshan Real Estate to come in! End the interview early and kill them early!"

After a while, Li Weidong was brought into the room.

"This man looks a lot like Li Weidong, the chairman of Puppy Electric!" Director Chen thought to himself.

Industrial entrepreneurs like Li Weidong can bring a lot of jobs and tax revenue to the local area every time they invest in a project. Naturally, they are a popular investment attraction for various places. Therefore, even if local cadres do not know Li Weidong, they must have seen Li Weidong's photos.

Furthermore, with the advent of the Internet era, the appearance of these big entrepreneurs is no longer something that can only be seen in magazines. A lot of photos can be found in any encyclopedia.

When Director Chen was still wondering why the man in front of him looked so much like Li Weidong, Li Weidong introduced himself: "Hello, leaders, I am Li Weidong, senior consultant of Dongshan Real Estate."

"Also called Li Weidong? This person is really Li Weidong of the Puppy Group!" Director Chen was stunned for several seconds before asking: "Are you Chairman Li of the Puppy Group?"

Li Weidong smiled and nodded: "Yes, it's me."

"Oh, Chairman Li's visit is too late to welcome him from afar!" Director Chen stood up directly, stepped forward to shake hands with Li Weidong, and at the same time asked: "Chairman Li, how did you become the senior executive of Dongshan Real Estate? Consultant?"

"To be honest, Dongshan Real Estate has two shareholders, one of whom is me. I am also very interested in this land bidding, so I came in person." Li Weidong explained.

Everyone present looked at each other. At this time, everyone had understood that Li Weidong had appeared in person to participate in the bidding interview. Therefore, Dongshan Real Estate was definitely not here to fish in troubled waters, and was determined to win a certain land parcel.

After a brief exchange of greetings, it was Li Weidong who took the initiative: "Director Chen, your time is also valuable. There are so many companies queuing up behind us, so let's start the interview!"

"Okay, let's start the interview." Director Chen returned to his seat and said, "Chairman Li, please introduce the situation of Dongshan Real Estate first!"

Li Weidong briefly introduced the situation of Dongshan Real Estate, and then Director Chen said: "Chairman Li, what advantages do you think Dongshan Real Estate has compared with other companies? Or what unique features do you have for project development?" planning?"

Enterprise advantages and project planning are the top priorities of the interview, and this is where each company can widen the gap.

Li Weidong was well prepared, and he said, "We at Dongshan Real Estate have always been doing projects in second- and third-tier cities. This is our first time in a first-tier city. We are still newcomers to the real estate market in first-tier cities.

If we compare the scale of the company, project development experience, or business operation capabilities, we are indeed inferior to those top competitors in the industry, and I admit this.

But we still decided to participate in the bidding for all eight plots this time. This is not to fish in troubled waters, nor to try our luck in the lottery. We really want to participate in the construction and development of Shanghai.

Therefore, I can make a promise to the city of Shanghai. In this bidding, Dongshan Real Estate will not take away a penny of any income generated from the projects acquired by our Dongshan Real Estate after development. All of them will be invested in the city of Shanghai! "

"What!" Everyone was shocked.

Companies develop real estate projects to make money. Li Weidong said directly that I didn't take any of the money I earned this time and invested it all locally. This means I have no intention of making money.

It was Director Chen who came to his senses first: "Chairman Li, let me confirm with you again. Do you mean that you are not planning to make money from these projects?"

"It's not that we don't make money, but we will reinvest the money we earn in you." Li Weidong smiled and said, "We will get land from you, make money by doing projects here, and then invest the money in you." This can be regarded as a kind of feedback to the local area, shouldn’t you not welcome investment?”

"Welcome, how can we not welcome investment!" Director Chen's mind has not yet recovered. He then asked: "Chairman Li, with all due respect, you are in business for profit, right? But you If you make money but don’t take it with you, how can you make a profit?”

"Of course it depends on investment!" Li Weidong continued: "I am optimistic about the future development of Shanghai, so I will invest all the profits from real estate projects here, and then make profits, so I will definitely make money!"

"I understand!" Director Chen nodded, he was also a little at a loss at this time.

Director Chen has also hosted many land biddings, but this is the first time he has encountered this situation.

Just listen to Li Weidong say: "This time we participated in the bidding for all eight projects. If we finally bid for one project, then the income from this project will be our future investment in Shanghai. If we win two projects, it will be The proceeds from both projects are invested.

Therefore, if all eight projects are bid by us, all the income from these eight projects will be invested in Shanghai. I don’t know if you have an assessment of the profits from the development of these eight pieces of land, but I have made a detailed assessment here.

According to our evaluation, the total income of these eight projects can reach 10 billion yuan. That is to say, if our Dongshan Real Estate can win all eight projects, Shanghai City will not only get the income from land sales, but also get at least An investment of 10 billion yuan. "

"Ten billion investment!" Director Chen took a breath of air at this figure.

Even more than ten years later, tens of billions of investments in first-tier cities will definitely be among the top ten local projects.

In 2008, tens of billions of investments were basically possible only through policy guidance. But relying on enterprises to invest tens of billions is something that is unthinkable.

The tax revenue, employment, and net growth that tens of billions of investments can bring are immeasurable.

Director Chen quickly figured this out, and he suddenly realized that if he could get this thing done, his promotion would be just around the corner!

Just by attracting tens of billions of investments from the city, it would definitely be unjustifiable if we didn’t upgrade ourselves to a higher level!

Thinking of this, Director Chen suddenly stood up and said, "Chairman Li, please wait a moment. I have to report to the leader."

…

In the municipal party committee conference room, all leaders were present.

"That's the thing. We have sold a lot of land before and have had a lot of successful development experience. However, Dongshan Real Estate said that the project proceeds will not be taken away, but will be invested in us again. This is the first time I have seen . So I called everyone here today to discuss this matter." The leader said.

"Leader, is this Dongshan Real Estate reliable? Although their promises are very tempting, don't come here with nothing in mind. They tell lies and regret it in the end!" Someone questioned.

"That's not the case. Dongshan Mining has two shareholders. One is Zhao Jinshan from Jinshan Investment, who is Mr. Zhao's youngest son; the other is Li Weidong from the Puppy Group. This time the conditions were proposed by Li Weidong himself."

The leader paused for a moment, then continued: "With the identities of these two people, they should not come here with nothing to show for it. And when it comes to actual operations, we are not without restraints.

Firstly, when we definitely sign the contract, we will list this point in the contract; secondly, we can require all funds to go through Shanghai Pudong Development Bank, and then the funds will be fully under our supervision. "

"It seems that the plan proposed by Dongshan Real Estate is feasible." Another person next to him said; "Since they are willing to reinvest the project income, how much income will there be from these projects?"

"I have sent people to evaluate, and the specific figures have not yet been released. However, according to Li Weidong, he estimates that the cumulative revenue of these eight projects will exceed 10 billion yuan!" the leader said.

"Ten billion!" Most people in the conference room gasped.

"Our city's GDP last year was 1.2 trillion yuan. If it is 10 billion, it is equivalent to one hundred and twenty-one percent of our city's GDP!"

"This 10 billion should only be an estimate. If the economic outlook is optimistic in the next few years, it is not impossible for the project to generate more than 12 billion in revenue, which is equivalent to 1% of our city's GDP!"

When it comes to GDP, everyone gets excited and starts to do the math in their hearts.

In 2008, GDP was still the only indicator for assessing political performance.

10 billion yuan of funds, even if the money is taken directly, is equivalent to an additional 1% of the city's GDP. If it is converted into investment, it will definitely drive more GDP.

It's like taking one yuan to invest in fixed assets, which can drive about three yuan of GDP, and investing in the service industry is more than five yuan. If it is invested in mid-to-high-end manufacturing, it can drive GDP more than ten times, and if it is a high-tech industry, it can't be predicted by numbers.

Everyone can do the math, that is to say, no matter what industry Li Weidong invests in, as long as he can keep the 10 billion yuan investment, there will be at least 3% GDP growth in the future.

Everyone thought for a moment, and no one spoke first. In the end, the leader called on everyone to express their opinions.

The first person to speak said: "The conditions given by Dongshan Real Estate are indeed too generous. I am reluctant to refuse. However, Dongshan Real Estate has no experience in developing projects in first-tier cities, and its comprehensive strength is not as good as those of large real estate companies. This is also what I am more concerned about."

Another person said: "I don't have this concern. Although Dongshan Real Estate is unknown, you still have Li Weidong behind you! I am worried about another aspect. If we really give all the land to Dongshan Real Estate, will other real estate companies have any opinions!"

"How can we give all the land to Dongshan Real Estate? I think we can only give them one or two pieces. The rest of the land can be sold to other companies. Eggs cannot be put in the same basket. We have to balance it!" Someone else said.

"But if we give the land to other companies, they will not use their profits to invest. We have lost billions of investment for nothing, which will affect the GDP growth of the whole city!" Someone next to him reminded.

When it comes to GDP, everyone's expression becomes serious again. It is obvious that GDP growth is much more important than balancing. As long as there is GDP, what's the harm in putting all the eggs in one basket?

After a discussion, the leader finally made the decision: "We have two rounds of bidding this time. Now is only the first round. The second round will be the final decision.

So I suggest that Dongshan Real Estate be approved in the first round of bidding. This is also a warning to other companies participating in the bidding, which is equivalent to putting a catfish in the pond.

Maybe it will produce a catfish effect. After other bidding companies feel the crisis, will they give better conditions to the bidders in the second round? At that time, we will definitely be the final beneficiaries!"

...

At the Hengtai Real Estate Office, the salesperson walked into the manager's office happily.

"Manager, the results of the first phase of bidding are out. The three projects we focused on have all entered the second round!"

"Okay! In the next three projects, we only need to win one of them to be considered successful." The manager looked dead, and said at the same time; "Bring the list of shortlisted for the second round, I will study it carefully and decide which project should be the focus of the second round."

The salesperson agreed and immediately handed over a document.

"Let me see, in project No. 5071, in addition to us entering the second round, there are also China Resources Land, Biguiyuan, Changjiang Real Estate, HNA Development, Dongshan Real Estate..."

"For project No. 5075, there are Henderson Land Development, Vanke, China Merchants Real Estate, SOHO, Hopson Development, Dongshan Real Estate... This Dongshan Real Estate coincides with our strategic goals!"

"For project No. 5076, there are Sun Hung Kai, Sino Land, Greentown, Shimao, Dongshan Real Estate... Why is there Dongshan Real Estate again!"

The manager frowned, and then looked at the shortlisted status of several other projects, and then found that all eight projects actually have Dongshan Real Estate!

"What's going on! Dongshan Real Estate was shortlisted for all eight projects? What's the background of this Dongshan Real Estate!"

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