Chapter 711 The temptation of GDP

The latest website: This time the bidding of eight pieces of land is divided into two stages.

In the first stage, companies participating in the bidding submit bids and accept on-site interviews. The companies must introduce their own situation and project plans. At this stage, most of the 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 company directly submits the final bid, and then it is better than whoever gave it. The conditions mentioned here are not only more 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 needs to consider the overall planning and future development, so it will also consider what conditions the developer can provide for the project.

For example, if a commercial project is to be planned for a certain plot of land, then the operating capability of the bidding enterprise in the commercial project will be included in the scope of consideration. When the locality sells land, it will take into account the driving effect of the project on the business of the entire city. Even if the land price is slightly lower, it will give priority to the introduction of well-known and mature commercial complexes.

For example, Vientiane Place under China Resources, InCity 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 they definitely have an advantage when bidding for commercial land.

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, if the price is high and the sale is good, 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, and there are many other conditions, which are also within the scope of consideration.

In this regard, powerful real estate development companies are definitely more advantageous.

It is also for this reason that before 2006, Hong Kong-invested real estate companies could kill the Quartet in first-tier cities.

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

This time, eight pieces of land were released in one go, but with a piece of fat, there will definitely be many housing companies with relatively average strength, but they want to fish in troubled waters and try their luck.

Therefore, there are two stages of bidding. The first stage of bidding is to eliminate those companies with insufficient strength, so as to avoid people fishing in troubled waters to the greatest extent possible.

To put it simply, it is to prevent those who are low-level, poorly equipped, operate garbage, and have no awareness from mixing in the team.

Leaving a group of advanced players to enter the next stage of PK.

...

Li Weidong personally came to the bidding site of the first stage.

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

Have you met an acquaintance? the middle-aged man next to him asked.

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

Mr. Huo looked up, then nodded: I'm familiar. I should have seen his photo in a magazine. But today is a land bid, what is he doing? Isn't he a small household appliance!

Could it be that the Puppy Group has also started to get involved in real estate? After all, in recent years, there have been many companies that have transformed 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 come to real estate.

Mr. Huo pouted, and then said: This Li Weidong is also a well-known entrepreneur in the mainland. He is not good at making home appliances, and he came to the real estate industry to get involved! Does he think that making a hair dryer is the same as developing a real estate!

It's not like you can do real estate with money. It seems that Li Weidong doesn't know that the first stage of bidding today is to eliminate a less professional real estate developer like him first!

Mr. Huo's tone was full of disdain, as if he still looked down on Li Weidong.

This Mr. Huo is a senior executive sent to the mainland by Changjiang Properties on Hong Kong Island.

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

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

Mr. Huo also comes from a leading Hong Kong-funded company like Changjiang Real Estate. If it is the big brother in the mainland real estate industry like Vanke, or a real estate company with a central enterprise background like China Resources and Poly, Mr. Huo will take a look. A well-known real estate company can't get into Mr. Huo's eyes at all.

Li Weidong didn't stop there, but went directly to a certain lounge, so not many people saw him at the scene.

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

...

In the room, Director Chen took off his glasses and rubbed the Seimei acupoint.

Director, we have reviewed more than a dozen companies in succession, do you want to rest for a while? 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 their ambitions are not small, and several plots of land are marked at once.

This kind of person also has no idea. They may not be able to get a piece of land when they concentrate their efforts. The big fat man who wants to eat in one breath is purely a waste of time!

Yeah, I don't know who gave them the courage. They don't need scale, and they don't have any significant projects. Some real estate companies, I think it's difficult to even apply for a loan from the bank, so they want to come to us to get it. Land! another said.

Another person said: Hey, the real estate industry has indeed been too chaotic in recent years, and a lot of real estate companies have emerged. Although there are many high-quality large companies, more of them are bad money. Many small companies do The project is not only cutting corners and worrying about the quality, but may even be unfinished.”

Director Chen immediately said: So we have to do a good job, and we must not let the bad money drive out the good money! We can't control other places, but on our land, every project must be done well, and we must not let the bad money drive out the good money! Give the bad coins room to live!

After Director Chen finished speaking, he picked up the next document, glanced at it, and said, The next one is Dongshan Real Estate, have you heard of it?

The name is quite smooth, but unfortunately I haven't heard of it. Someone immediately shook his head and continued: The data shows that this company has only been established in recent years, and it has also done several successful projects.

It's all projects in third-tier cities, how can it be compared with our projects here! Enterprises developing in small places definitely want to come to first-tier cities to get a piece of the pie. When we sell land this time, there are a lot of small companies in third-tier cities bidding.

While talking, this person looked at the bidding materials of Dongshan Real Estate, and then suddenly exclaimed: I really answered that sentence, how bold people are, how prosperous the land is, this Dongshan Real Estate actually wants to participate in all the Bidding for eight plots!

What? Bidding for all eight pieces of land? Changjiang and Vanke don't dare to play like this! Don't you count how many kilograms you have? I think this Dongshan Real Estate is here to make trouble! Such a company would simply be killed. What a waste of time!

It was Director Chen who coughed dryly; We made the bidding process ourselves. People participate in accordance with the rules. How can we kill it! Then we have become a black box operation! If we want to be eliminated, we must follow the rules.

The person next to him immediately said: Then let's not waste time. Go and call the representatives of Dongshan Real Estate to come in! End the interview as soon as possible, and kill them as soon as possible!

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

This person looks quite like Li Weidong, the chairman of Puppy Electric! Director Chen thought to himself.

An entrepreneur like Li Weidong, who invests in a project can bring a lot of employment and tax to the local area. Therefore, even if the local cadres do not know Li Weidong, they must have seen Li Weidong's photos.

In addition, with the advent of the Internet age, the appearance of these big entrepreneurs is no longer something that can only be seen in magazines, and a lot of photos can be found in any encyclopedia.

Director Chen was still wondering why the person in front of him looked like Li Weidong, and Li Weidong introduced himself; Hello everyone, I'm 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 a few seconds before asking, Are you Chairman Li of the Puppy Group?

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

Oh, Chairman Li is here, and it's a shame to welcome him! 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 a senior of Dongshan Real Estate? Consultant?

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

The people present looked at each other for a while. At this time, everyone understood that Li Weidong had appeared in person to participate in the bidding interview, so this Dongshan Real Estate was definitely not here to fish in troubled waters, and he was determined to win a certain plot of land.

After a little chat, Li Weidong took the initiative to ask: Director Chen, your time is also very precious, and there are so many companies queuing up behind, so let's start the interview!

Okay, let's start the interview. Director Chen returned to his seat, and then 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 do you have any unique ideas for project development? planning?

Enterprise advantages and project planning, this is the top priority of the interview, and it is also where each enterprise can widen the gap.

Li Weidong was already prepared, he said; We Dongshan Real Estate have always been doing projects in second- and third-tier cities, and this is the first time we have come to a first-tier city. We are still newcomers in the real estate market of a first-tier city.

If it is the size of the company, the experience in project development, or the ability of business operations, we are indeed inferior to those top competitors in the industry, and I admit this.

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

Therefore, I can make a promise to Shanghai City. In this bidding, Dongshan Real Estate will not take any money from the project obtained by our Dongshan Real Estate after development, and will invest all of it in Shanghai City!

What! Everyone was shocked.

Enterprises come to develop real estate projects to make money. And Li Weidong said directly, I don't take any money with me this time, I invest it all locally, which means I don't intend to make money.

It was Director Chen who first came back to his senses: Chairman Li, let me confirm with you again. You mean, these projects, you don't plan to make money?

It's not that we don't make money, but that we will reinvest the money we make into you. Li Weidong smiled and said, We will acquire land from you, make projects with you to make money, and then invest the money in you. Here, it can be regarded as a kind of feedback to the local people. You should not not welcome investment, right?

Welcome, how can we not welcome investment! Director Chen hadn't calmed his mind before he continued, Chairman Li, with all due respect, you should be doing business for profit, right? But you If you make money but don’t take it away, how can you make money?”

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

I understand! Director Chen nodded, and he was a little overwhelmed at this time.

Director Chen has also presided over many land bids, but this is the first time he has encountered such a situation.

Li Weidong said: This time we participated in the bidding of all eight projects. If we finally bid on one project, then the income of this project will be our future investment in Shanghai City. If we win two projects, it will be Proceeds from both projects serve as investments.

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

According to our assessment, the total revenue of these eight projects can reach RMB 10 billion, that is to say, if Dongshan Real Estate can win all eight projects, Hucheng will not only be able to get the income from land sales, but also at least 10 billion RMB investment.

10 billion investment! This figure led Director Chen to take a deep breath.

Even after more than ten years, tens of billions of investment in first-tier cities can definitely enter the top ten local projects.

In 2008, investment of tens of billions of dollars was basically possible only by relying on policy orientation. But relying on enterprises to invest tens of billions of dollars is something that you can't even think about.

The tens of billions of investment, the tax, employment, and net growth that can be brought behind are even more immeasurable.

Director Chen quickly understood this, and he suddenly realized that if he could do this well, his promotion would definitely be just around the corner!

Just relying on the fact that tens of billions of investment have been drawn into the city, if you don't give yourself a higher level, it will definitely be unreasonable!

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 meeting room of the Municipal Party Committee, all leaders were present.

That's the way it is, we have sold a lot of land before, and have had a lot of successful development experience, but like Dongshan Real Estate, it means that the project income will not be taken away, but will be reinvested in us. This is the first time I saw it. So I called everyone here today to discuss this matter. The first person said.

Leader, is this Dongshan real estate reliable? Although their promises are very tempting, don't come here with empty gloves and white wolves. They talk nonsense, but in the end they regret it! Someone asked.

It's not that Dongshan Mining has two shareholders, one is Zhao Jinshan from Jinshan Investment, he is the youngest son of Mr. Zhao; the other is Li Weidong from Puppy Group. This time, the conditions were proposed by Li Weidong himself.

The leader of the man paused for a while, and then said: As these two people, it should not be a white wolf with empty gloves. And when we really operate, we are not without means of restraint.

First, we will definitely list this point in the contract when we sign the contract; secondly, we can ask for all the funds to go to Shanghai Pudong Development Bank, and then the funds can be 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 with the project income, what is the income of these projects?

I have sent someone to evaluate, and the specific figures have not yet come out. But according to Li Weidong, he estimates that the cumulative income of these eight projects will exceed 10 billion yuan! The person in the lead said.

Ten billion! Most of the 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 twentieth 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 revenue to exceed 12 billion, which is equivalent to 1% of our city's GDP!

When it comes to GDP, everyone is excited, and everyone starts to count the accounts silently in their hearts.

In 2008, it was still based on GDP, and GDP was the core or even the only indicator for evaluating political performance.

10 billion of funds, even if the money is taken directly, is equivalent to an increase of 1% of the city's GDP. If it is converted into investment, it will definitely be able to pull more GDP as a whole.

It is like investing one dollar in fixed assets, which can boost GDP by three yuan, while investing in service industry is more than five yuan. If you invest in mid-to-high-end manufacturing, it can produce more than ten times the driving effect on GDP. In terms of industry, it cannot be predicted by numbers.

This account, everyone will calculate, that is to say, no matter what industry Li Weidong invests in, as long as he can keep this 10 billion investment, he will have at least 3% GDP growth in the future.

Everyone pondered for a moment, but no one spoke first, and in the end, the person in the lead called for everyone to express their opinions.

The person who spoke first said: The conditions given by Dongshan Real Estate are indeed too generous, and I refuse to give up, but after all, 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. The company, this is also where I am more concerned.”

Another person said: I don't have this concern. Although this Dongshan real estate is not well-known, isn't there Li Weidong behind you? I'm worried about another aspect. If we really put the land It's all given to Dongshan Real Estate, will other bidding real estate companies have any opinions!

How can you give all the land to Dongshan Real Estate? I think it's enough to give them a piece or two. Sell other land to other companies. You can't put eggs in the same basket. We have to balance it! Someone else said. Say.

But if you give the land to other companies, they won't use profits to invest. We have lost billions of dollars in investment, which will affect the city's GDP growth! Someone next to him reminded.

When it comes to GDP, everyone's expressions become solemn again. Obviously, the growth of GDP is more important than the balance. As long as there is GDP, what's the harm in putting all the eggs in the same basket?

After some discussion, the person in the lead finally made the final decision: Isn't this bid divided into two rounds, it is only the first round, and the second round is the final decision.

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

Maybe there will be a catfish effect. After other bidding companies feel the crisis, will they give better conditions to the second round of bidders? At that time, the ultimate profit will definitely be us!

...

In the Hengtai Real Estate Office, the salesman walked into the manager's office beaming.

Manager, the results of the first stage of bidding have come out, and the three projects we are focusing on have all entered the second round!

Okay! In the next three projects, we only need to win one of them, even if it is a success. The manager said with a gloomy expression; Bring me the list of the second round, and I will study it carefully. , which project the second round should focus on.”

The salesman agreed and immediately handed over a document.

Let me take a look. In addition to our entry into the second round of the 5071 project, there are China Resources Land, Biguiyuan, Changjiang Real Estate, HNA Development, Dongshan Real Estate...

Project 5075 includes Henderson Land, Vanke, China Merchants Real Estate, SOHO, Hopson, Dongshan Real Estate... This Dongshan Real Estate coincides with our strategic goals!

Project 5076, there are Sun Hung Kai, Sino Land, Greentown, Shimao, Dongshan Real Estate... How come there is Dongshan Real Estate!

The manager frowned, then looked at the finalists of several other projects, and immediately discovered that all eight projects were actually owned by Dongshan Real Estate!

What's the situation! Dongshan Real Estate has been shortlisted for all eight projects? What is the origin of this Dongshan Real Estate!