Rebirth of the Industrial Tycoon

Chapter 711 A qualified catfish

"Shortlisted for the second-stage bidding of all projects? Eight projects? Who is it? Dongshan Real Estate? Is there such a company in the mainland?" In addition to shock, Mr. Huo's face was filled with disbelief.

Taking up eight pieces of land at the same time, something that even Yangtze Real Estate, the top real estate company in Asia, did not dare to try, was actually done by an unknown company!

Dongshan Real Estate has only been established in recent years and has never done a project in first-tier cities. Therefore, in the eyes of many major real estate companies, Dongshan Real Estate is really unknown. It is not an exaggeration to say that it has never been heard of.

"Mr. Huo, I have already inquired. Dongshan Real Estate was established in the past two years. It has been doing projects in second- and third-tier cities before, and the projects are relatively successful. This should be their first time entering first-tier cities." The assistant spoke.

"Eight projects can enter the second round. What is the background of this company?" Mr. Huo then asked.

"The information I know so far is that behind Dongshan Real Estate is a company called Dongshan Mining, which is a coal production company." The assistant continued.

"Coal digger? I heard that coal mining has been quite profitable in recent years." Mr. Huo then asked, "So does Dongshan Mining have a background as a central enterprise?"

"No, this is a private enterprise, but among the private coal production enterprises in the mainland, it is relatively large." The assistant said.

"Not a central enterprise? Just a private enterprise? Why can a private enterprise be shortlisted for the second round of bidding for eight projects? There must be some secret operations! That's not right. Private enterprises should not have such great capabilities." Huo Huo The gentleman said to himself.

The assistant shook his head instinctively: "It shouldn't happen. The scale of this project is not small, and the risk is too high if it is operated behind the scenes. What's more, eight projects have been shortlisted. If it is operated behind the scenes, it would be too blatant! "

"That's right. If there is no behind-the-scenes operation, then Dongshan Real Estate has put forward very good conditions!" Mr. Huo pondered for a moment and said; "But if we want to talk about conditions, they must be the conditions of a large enterprise like ours. Even better, it’s the first time for an unknown small business like Dongshan Real Estate to do a project in a first-tier city. What good conditions can it offer?”

"Mr. Huo, I have sent people to inquire about this aspect. It is expected that there will be news soon." The assistant said.

As soon as the assistant finished speaking, the phone rang. The assistant looked at the caller ID and then said, "Mr. Huo, I'm going to answer a call."

After a while, the assistant returned to Mr. Huo with a solemn expression.

"Mr. Huo, we have news. The real boss behind Dongshan Real Estate is Li Weidong, the chairman of the Puppy Group." The assistant said.

"Li Weidong? I remember that on the day of the bidding, he also went to the site! It turned out that he was going to participate in the interview in person." Mr. Huo nodded as if in a daze, and then said:

"But this doesn't make sense. Can Li Weidong really have such a great reputation? Even if our Li Chaoren takes action in person, he may not be able to be shortlisted in all eight projects. His influence, Li Weidong, can be compared to Go to Superman Li?”

The assistant replied: "Li Weidong's personal involvement may be only one of the factors. More importantly, they have put forward a very attractive offer. I guess it will be difficult for the local government to refuse."

"What conditions did Dongshan Real Estate offer?" Mr. Huo asked immediately.

"Dongshan Real Estate said that none of the profits generated by their development projects will be taken away. All of them will be invested in Shanghai to drive the economic development of Shanghai!" the assistant replied.

"What!" Mr. Huo's mind suddenly went blank.

It wasn't until more than half a minute passed that Mr. Huo came back to his senses, and then said loudly: "How could they do this! This is breaking the rules of the industry!"

"There don't seem to be any rules for this in the industry!" The assistant complained in his mind, but then said, "But this condition is very tempting to the local government and it is simply impossible to refuse.

Mr. Huo, as you know, the mainland's economy has developed rapidly in recent years, and for local governments, GDP growth is the most important factor in assessing local political performance, so all localities give top priority to attracting investment.

Dongshan Real Estate offers such conditions, which means that the local government can get a large amount of investment while selling land. This is more capable of driving GDP growth than simply selling land at a high price or launching a successful project. "

"That's the truth! But in this case, we will be passive. Even if we increase the quotation for land purchase, the price difference that we increase is not worth the investment of gold and silver. And the project operation capabilities that we are good at are not worth the investment. But invest!”

Mr. Huo took a deep breath, then frowned. After a moment, he said: "I never thought that mainland companies would use this method to obtain projects! If other companies do the same, how will we get land in the future? .

No, we have to fight back! You immediately contact Sun Hung Kai's Lao Liu, Henderson's Lao Zhao, New World's Lao Li, and Swire's Lao Song. We have to unite and discuss a countermeasure! "

…

At the same time, other real estate companies also got the news and knew that the reason why Dongshan Real Estate was shortlisted for the second round of bidding for all projects was because they put forward a condition that the local government could not refuse.

Real estate companies come to buy land for development projects to make money, not to alleviate poverty. Why should they not let people take away the money they make?

Letting companies reinvest the money they earn is probably like a Las Vegas customer who won money at the poker table and did not stop, but ALL-IN the next game.

There was once a poor county that asked a real estate giant to retain all profits from the project and use it for local development and construction. However, the real estate giant directly responded and said that I will not do any projects anymore, and I will simply give you five dollars a year. Let you share a hundred million!

Therefore, for real estate companies, they will never take the initiative to reinvest all profits in the local area. If you can set aside a few percent of your profits for poverty alleviation, you are considered a conscientious enterprise.

What's more, even large-scale developers have to rely on bank loans to ensure their capital chain, so they need to make profits as soon as possible to repay the loans, so that the capital chain will not be broken.

If you reinvest the profits, the first thing you will face is that the investment is risky. Even if a profit can be made, it is not known until the Year of the Monkey and the Horse. This will cause greater financial pressure on developers and increase the risk of a break in the capital chain.

It is precisely because developers rely on banks to maintain their capital chain that they have no reason to make medium- and long-term investments. Once a project is successful, developers will choose to make money and stop immediately, rather than ALL-IN the next project.

In order for Dongshan Real Estate to successfully enter first-tier cities, Li Weidong planned to eat these eight projects in one go, so he had to adopt this unconventional method.

With all profits reinvested, it's a bait that's hard to refuse for the local area.

If the land is sold more expensive, the local government will get a few hundred million more fiscal revenue at most. But if the profits are reinvested, the local government can get tens of billions of investment. The subsequent tax revenue, employment and economic growth will not be much more. It can be compared to hundreds of millions. This account will definitely be calculated locally.

Although there will also be pressure on the capital chain, Dongshan Real Estate owns a mine after all, and the income from Dongshan Mining's coal sales is enough to ensure that Dongshan Real Estate's capital chain is not broken.

Li Weidong is not worried at all about the income from investment. The Yangtze River Delta and the Pearl River Delta are the two major engines driving China's economy. There are many industries worth investing in, such as ports, trade, bio-industry, technology industry, and cultural tourism industry. Wait, you can get huge rewards.

…

In the conference room of Hengtai Real Estate, everyone was also discussing countermeasures.

The director in charge of the project said: "We all know the specific situation. Dongshan Real Estate has been shortlisted for the second round of all eight projects. I think this can already represent the attitude of the local government. So we must now find a response plan."

"I really didn't expect that Li Weidong would be so courageous, and he would make such a big move when he made his move. All the profits would be invested in the place. Once such conditions are offered, no place would be willing to refuse." One of them said.

"If Li Weidong really gets all the projects in the second round of bidding, then there may be a reshuffle in our country's real estate industry. If any developer wants to get a certain project in the future, they can just use this One move is not a sure win! But once a trend is formed, it will be much more difficult for us real estate development companies to maintain their capital chain," another person said.

"If he wants to take on eight projects in one breath, Li Weidong is not afraid of dying! And he hasn't taken away the profits yet. It will be a few years before he can invest again to generate profits. How can he get so much money!"

"Li Weidong started his career in the manufacturing industry. The manufacturing industry is different from our real estate industry. It is easier to save cash flow in the manufacturing industry. And isn't it said that Dongshan Mining is behind Dongshan Real Estate? These days, coal bosses have too much money to spend. , are you still worried that the coal boss has no money? "

At this time, the director coughed dryly: "Okay, don't say these are useless, I called you here to think of countermeasures. The conditions offered by Dongshan Real Estate are clearly better than ours. If this continues, the project will definitely belong to Dongshan Mining No, there’s no part for us!”

"Mr. Liu, if we raise our bid in the second round of bidding, we might be able to get the project," someone said.

"How much should we increase it? If we raise too little, there will be no effect. If we raise too much, it will definitely exceed the cost, and there will be no profit after the project is developed! What's more, even if we raise the quotation, it will be cost-effective for someone to invest all the profits directly. ?" Another person said.

"That's right. A project can have a profit of at least one billion, which means it can generate an investment of more than one billion. How much more money do we have to add to make it worth the investment of more than one billion? By then, even if we get the project , and you’ll lose money even if you do it!” The person next to me agreed.

"Mr. Liu, I have an immature idea!" A young project manager said; "Since Dongshan Real Estate can use profits to reinvest, why don't we use the same method? We can also use all the profits of the project for investment place.

Our Hengtai Real Estate is stronger than Dongshan Real Estate in all aspects. As long as we give the same conditions, we will definitely win the bid in the end! "

As soon as these words came out, everyone looked at the young project manager as if they were looking at a fool.

"Manager Zhao, we are a real estate company, not an investment company. We make profits by developing real estate projects! If we want to make investments, why should we develop real estate!" the director said coldly, obviously feeling that his subordinates This advice is unreliable.

"Mr. Liu, what I mean is to reinvest the profits from the project into real estate!" The young project manager then explained: "We can promise to the local government that all the profits from the project will be used for local investment, but we did not say Which industry to invest in.

Isn’t this real estate investment also an investment? After the project makes a profit, we can use the money to buy another piece of land and start new projects. The only disadvantage is that the capital chain is longer. "

"It makes sense. What we are doing is not a one-time deal. We will still acquire land for projects in Shanghai in the future. Using profits to invest in the next new project does not violate our investment commitment."

"Although the capital chain will be longer, thinking about it conversely, it is equivalent to using the money from one project to build two projects. With the strength of Hengtai, we can accept the longer capital chain."

Everyone agreed. The director pondered for a moment and then said: "This is probably the best way we can think of at the moment. Let's do this. I will report it to the headquarters immediately. If the headquarters approves, we will do this!"

…

In a private room of a certain club, several heads of Hong Kong-funded enterprises were sitting together, drinking red wine and smoking cigars, and they were also discussing countermeasures.

"We at Sun Hung Kai can increase the land quotation by 10%, but it is impossible to reinvest the profits from the project."

"Yes, so do we at Henderson. In other aspects, we can make concessions, but in terms of profits, we definitely need to take them away. Otherwise, I will have no way to explain to the board of directors!"

Seeing the "teammates" expressing their opinions like this, Mr. Huo felt a little anxious and said, "Everyone, in this situation, if we just raise the price, it will be difficult to get the project. We might as well take a step back, even if we can't get it." If you pay all the profits, you can also use part of the profits to invest, so you might still have a chance to win the project.”

"Mr. Huo, in business, we develop projects just to make money. We operate legally and pay various taxes and fees in accordance with regulations. But if we can't take away the money we make, then we might as well just leave it alone. do this project.”

"But in this case, we also lose the opportunity to make money." Mr. Huo said immediately. ,

Someone immediately laughed and said: "Hahaha, the mainland has developed rapidly in recent years. It can be said that there is gold everywhere. Even if these eight projects are not available, there will be other projects in the future, not to mention there are other cities, and other cities are also There will be projects. The mainland is so big and there are so many cities, why are you worried that there are no opportunities to make money?”

Another person said: "Mr. Huo, the subprime mortgage crisis in the United States has begun to spread to the world, and China may also be involved. If this is really a global financial crisis, then China's economy will also be affected. There is a shrinkage. So at this time, we don’t dare to make long-term investments.”

Another person next to him also added: "Yes, during the Asian financial crisis that year, Hong Kong Island's real estate plummeted, causing huge losses to developers. We have all experienced it ourselves. Of course we have to learn from it and gain wisdom. Don’t fall in the same place twice!”

Seeing that everyone's attitude was so unified, Mr. Huo could only sigh helplessly.

Mr. Huo originally planned to follow Li Weidong's example and win projects by reinvesting project profits. However, Yangtze Real Estate is a Hong Kong-funded company after all, and its business culture and philosophy are different from those of mainland companies. Mr. Huo is not sure that he can convince himself. boss.

So Mr. Fok decided to join forces with other Hong Kong-funded enterprises. If other Hong Kong-funded enterprises reinvest their profits to win projects, then Mr. Fok's plan can be implemented.

But it is a pity that Hong Kong-funded developers value direct profits more, or in other words, everyone focuses more on immediate interests.

This is the difference between Hong Kong-funded developers and mainland developers. Mainland developers are rooted in the mainland, so they are willing to reinvest profits in exchange for project development rights.

After all, the foundation of Hong Kong-funded developers is in Hong Kong Island. For them, the mainland is just one of the markets. If they can make money, they will naturally flock there. If they can't make money, they will leave immediately. There are very few Hong Kong-funded developers who are truly willing to take root in the mainland market.

When competition in the mainland's real estate market intensifies in a few years, many Hong Kong-funded developers will sell their assets and leave.

…

The second bidding process soon began.

This time there is no need for interviews, but bids will be submitted directly.

Facing the tender documents one after another, the professional review team immediately became busy.

"Director, the bidding document of Hengtai Real Estate says that all proceeds from the project will be invested in our city of Shanghai!"

"Director, the same is true for Biguiyuan. They are also willing to reinvest the proceeds from the project!"

A smile appeared on the director's face: "Our city leaders still have the foresight. When Dongshan Real Estate proposed this condition before, the leader said that Dongshan Real Estate will be a catfish. If you put this catfish into the pond, other developers will There will definitely be better conditions, so Dongshan Real Estate was shortlisted for the second round of all projects.

Now it seems that it is indeed the case. This Li Weidong is really a qualified catfish. Other real estate companies are also willing to reinvest the proceeds of the project in us. In this case, our city will receive tens of billions of investments for nothing! It will definitely be beneficial to the city's economic development. "

The director changed his tone as he spoke, and then asked: "By the way, what do those Hong Kong-funded developers say in their bid documents? Hong Kong-funded developers have taken a lot of land and made a lot of money in recent years. They should be more interested in our projects here! ”

Someone immediately replied: "Director, I have a bid from Yangtze Real Estate here. They have increased their offer, about 5% higher than the first time."

"Just increased the price by 5%? Is there nothing else? For example, the reinvestment of project profits?" the director asked immediately.

"No!" The other party shook his head.

"Director, here is Sun Hung Kai's bid. They only raised the price and there are no new conditions."

"Director, the same is true for New World's tender documents."

The director frowned, then sighed softly: "Are these Hong Kong-funded enterprises planning to give up on these projects? We have cooperated with Hong Kong-funded developers for so many years, and we have always been very happy. If they don't get anything, what will they do? It’s a pity! ”

A subordinate next to him immediately said: "Director, there is nothing to regret. Anyway, our mainland real estate companies have also developed. Without Hong Kong-funded developers, we can still live well."

"Hush, how can you say that to compatriots on Hong Kong Island! Over the years, Hong Kong-funded developers have also made great contributions to our economic development!" The director glared at the man and continued: "This is just a statement. Say it here, don’t talk nonsense when you go out!”

"I understand, Director. I just dare to say a few words in front of you. I will definitely not talk nonsense when I go out." The subordinate immediately replied.

At this time, the director thought of another thing, so he asked, "By the way, any of you have read the bidding document of Dongshan Real Estate, and what is it written on it?"

"I have the bidding document of Dongshan Real Estate here, I'll take a look right away!" Someone said and found the bidding document of Dongshan Real Estate, opened it, and immediately let out a "huh" sound.

"What's wrong?" the director asked.

"Director, Dongshan Real Estate has also changed the content of the bidding document." His subordinate immediately replied.

"Is it possible that they regretted it? They don't want to reinvest the proceeds from the project?" the director asked with a smile.

"That's not true." The subordinate shook his head and continued: "Dongshan Real Estate has added two new conditions. One is that if they reinvest the profits, they will not continue to invest in real estate projects, but will invest in other than real estate projects. project."

"Oh? Don't invest the income in real estate? That's interesting!" The director immediately showed an interested expression and asked at the same time: "What is the second condition?"

"The second condition is that the project income will be invested in the manufacturing industry, and the proportion invested in the manufacturing industry will not be less than 50%!" the subordinate replied.

When he heard that the manufacturing industry should not be less than 50%, the director stood up from his chair and said, "Show me the bid document quickly!"

The subordinate handed over the bid document, and the director took a look and found that it was indeed what the subordinate said.

"Invest in industries other than real estate, and the manufacturing industry will not be less than 50%. This Li Weidong has increased his bid based on the first bid! You continue to review the bids, and I will report to the leadership!"

The director took a breath of air and continued: "A catfish was put into the pond. It was originally intended to have a catfish effect, but now it seems that the entire pond will belong to this catfish."

Six thousand words, thank you all parents for subscribing!