Chapter 712 1 qualified catfish

The latest website: Have been shortlisted for the second phase of bidding for all projects? Are there eight projects? Who is it? Dongshan Real Estate? Is there such a company in the mainland?

Eat eight pieces of land at the same time, something that even Changjiang Real Estate, the top real estate industry in Asia, dare not try, was actually done by a little-known company!

Dongshan Real Estate has just been established in recent years, and has never done projects in first-tier cities, so in the eyes of many big real estate companies, Dongshan Real Estate is really unknown, and it is not too much to say that it has never been heard of.

Mr. Huo, I have already inquired. This Dongshan Real Estate was established in the last two years. It has been working on projects in second- and third-tier cities before, and the projects are quite successful. This should be their first foray into first-tier cities. The assistant said.

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 mining? I heard that coal mining has been very profitable in recent years. Mr. Huo then asked; So does Dongshan Mining have a background in 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? How can a private enterprise be shortlisted for the second round of bidding for all eight projects? There shouldn't be any black box operations! It's not right, private enterprises should not have such great capabilities. Huo Mr. said to himself.

The assistant shook his head instinctively: It shouldn't be so, the scale of this project is not small, and the risk is too great to operate in the dark, not to mention that all eight projects are shortlisted, if it is operated in the dark, it is too blatant!

That's right, if there is no black box operation, then this Dongshan Real Estate has put forward very good conditions! Mr. Huo pondered for a while, and said; But if we want to talk about conditions, it must be the conditions of a large company like ours. Even better, it is the first time for an unknown small company like Dongshan Real Estate to do a project in a first-tier city, what good conditions can you get?

Mr. Huo, I have already sent someone to inquire about this. It is estimated that there will be news soon. The assistant said.

As soon as the assistant's voice fell, 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, there is news. The real boss behind the Dongshan Real Estate is Li Weidong, the chairman of the Puppy Group. The assistant said.

Li Weidong? I remember the day of the bidding, he also went to the scene! It turned out to be to participate in the interview in person. Mr. Huo nodded suddenly, and then said:

But it doesn't make sense, can that Li Weidong have such a big face? Even if our Li Chaoren went out in person, he might not be able to be shortlisted in all the eight projects. His influence, Li Weidong, can be compared with that of Li Weidong. Go to Superman Li?

The assistant replied: Li Weidong's personal presence may only be one of the factors. More importantly, they have put forward a very attractive offer. I guess it is difficult to refuse locally.

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

Dongshan Real Estate said that the profits from their development projects will not be taken away, and they will all be invested in Shanghai City to drive the economic development of Shanghai City! the assistant replied.

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

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

There seems to be no such rule in the industry! The assistant complained in his heart, but said with his mouth; But this condition is very tempting for the locality, and it is impossible to refuse.

Mr. Huo, you also know that the mainland's economy has developed rapidly in recent years, and for local governments, the growth of GDP is the most important factor in assessing local political performance, so local governments put investment promotion in the first place.

Dongshan Real Estate offers such conditions, which means that the local area can get a large amount of investment while selling the land. This is more able to drive GDP growth than simply selling the land at a high price or engaging in a successful project.

That's the truth! But in this case, we will be passive. Even if we increase the price of land purchase, the increase in the price difference is not comparable to the investment in gold and silver. And the project operation ability we are good at is also worth it. But invest!

Mr. Huo took a deep breath, then frowned, and after a while he said, I really didn't expect mainland companies to use this method in order 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 Lao Liu of Sun Hung Kai, Lao Zhao of Henderson, Lao Li of New World, and Lao Song of Taikoo. We have to work together to discuss a countermeasure!

...

At the same time, other real estate companies have also received news that the reason why Dongshan Real Estate can be shortlisted for the second round of bidding on all projects is that they put forward a condition that the local government cannot refuse.

Real estate companies come to buy land for development projects to make money, not for poverty alleviation. Why don't people take away the money they make?

Letting the business reinvest the money it makes is probably like a Las Vegas guest who won a poker table and didn't close his hand, but ALL-IN the next game.

A poverty-stricken county once asked a real estate giant to keep all the profits from the project and use it for local development and construction. As a result, the real estate giant responded directly, saying that I would not do any projects anymore, and I would just give you five a year. A million for you to share!

Therefore, for real estate companies, they will never take the initiative to reinvest all the profits in the local area. If a few percent of the profit can be taken out for poverty alleviation, it is already considered a conscientious enterprise.

What's more, even large-scale developers have to rely on bank loans to ensure the capital chain, so they need to obtain profits as soon as possible to repay the loan, so as to keep the capital chain from breaking.

If the profit is used to invest, the first thing you will face is that the investment is risky. Even if it can make a profit, it is not known that it is a matter of the year of the monkey and the horse month, which will cause relatively great financial pressure on developers and increase the risk of capital chain breakage.

It is precisely because developers rely on banks to maintain the capital chain that they make medium and long-term investments for no reason. Once the project is successful, developers will choose to make money and quickly close the deal, rather than ALL-IN the next one.

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

All profits are reinvested, which is a hard bait for localities to refuse.

Land is more expensive to sell, and the local government is at most several hundred million in fiscal revenue, but the profit is reinvested, and the local can get tens of billions of investment, and the subsequent tax, employment and economic growth will not be much. Several hundred million can be compared. This account will definitely be calculated locally.

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

Li Weidong is not worried about the return of investment. The Yangtze River Delta region and the Pearl River Delta are the two major engines driving China's economy. There are many industries worth investing in here, such as ports, trade, biological industries, technology industries, and cultural tourism industries. And so on, you can get a lot of rewards.

...

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

The director in charge of the project said: You 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 area. So we must now find a response plan. .

I really didn't expect this Li Weidong to be so courageous, and the first shot is such a big move. All profits are invested in places. Once such a condition comes out, no place will 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 for our country's real estate industry. If any developer wants to get a certain project in the future, they will directly use this One move, it’s not unfavorable! And once a trend is formed, it will be much more difficult for us real estate development companies to maintain the capital chain.” Another person said.

If he wants to eat eight projects in one go, this Li Weidong is not afraid of dying! And the profits are not taken away. When he reinvests to generate income, it will be a few years later. Will he be able to get so much money!

Li Weidong started 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 that Dongshan Mining is behind Dongshan Real Estate? These days, coal bosses have money but can't spend it. , 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 asked you to come 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. Now, how can we still have our share!

Mr. Liu, if we raise the price in the second round of bidding, maybe we can get the project. Someone said.

How much is the increase? If you mention too little, it will have no effect. If you mention too much, it will definitely exceed the cost, and the project will be developed without profit! What's more, even if we increase the quotation, someone can directly invest all the profits to be cost-effective. ? Another said.

It's also true that a project can have at least one billion in profits, that is, it can generate more than one billion investment. How much money do we have to add to make it worth the one billion investment? Even if we get the project at that time. , it's a loss if you make it! The person next to him agreed.

Mr. Liu, I have an immature idea! a young project manager said; Since Dongshan Real Estate can reinvest its profits, why don't we use the same trick? We can also use all the project's profits 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 immediately looked at the young project manager with a foolish look.

Manager Zhao, we are a real estate company, not an investment company. We make profits by developing real estate projects! If we want to invest, then what kind of real estate are we developing! The director said coldly, obviously feeling that his subordinates This advice is unreliable.

Mr. Liu, what I mean is to reinvest the project's profits into real estate! The young project manager went on to explain: We can promise to the local government that all the project's profits will be used to invest in the locality, but we didn't say that Which industry to invest in.

Isn't this real estate investment also an investment? After the project is profitable, we can use the money to buy another piece of land and do new projects. The only downside is that the capital chain is longer.

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

Although the capital chain will be longer, on the other hand, this is equivalent to using the money of one project to do two projects. With the strength of our Hengtai, it can be accepted if the capital chain is elongated.

Everyone agreed, but the director pondered for a while, and said, This is probably the best way we can think of at the moment. Well, I will report to the headquarters immediately. If the headquarters approves, we will do it!

...

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

We, Sun Hung Kai, can raise the land price by 10%, but it is impossible to reinvest the project's profits.

Yeah, we Henderson too, we can make concessions in other aspects, but the profit aspect must be taken away. Otherwise, I have no way to explain to the board of directors!

Seeing the teammates make such a statement, Mr. Huo was a little anxious, and he said: Everyone, in this situation, if we just increase the price, it may be difficult to get the project, we might as well take a step back, even if we can't get it. If you make all the profits, you can also invest part of the profits, so you may still have a chance to win the project.”

Mr. Huo, in the business, we develop projects to make money. We operate legally and pay various taxes and fees according to regulations, but if we can't take the money we earn, then it's better not to do so. do this project.

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

Someone immediately laughed and said, Hehehe, the mainland has developed rapidly in recent years, and 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 other cities, other cities are also There will be projects. The mainland is so big and there are so many cities, are you still worried that there will be 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 contraction. So at this time, we dare not make too long-term investments.”

Another person next to him also added: Yes, the financial crisis in Asia and the collapse of Hong Kong Island's real estate caused huge losses to developers. We have all experienced it ourselves. You can'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, and also learned from Li Weidong, to win the project through the reinvestment of project profits, but Changjiang Real Estate is a Hong Kong-owned enterprise after all, and its business culture and philosophy are different from those of mainland enterprises. Mr. Huo is not sure to convince himself. boss.

So Mr. Huo decided to cooperate with other Hong Kong-funded enterprises. If other Hong Kong-funded enterprises all use profit reinvestment to win projects, then Mr. Huo's plan can be implemented.

But it is a pity that Hong Kong-invested developers place more emphasis on direct profits, or in other words, everyone is more focused 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 their profits in exchange for the right to develop projects.

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

After a few years, when the competition in the mainland real estate market becomes fierce, there are not a few Hong Kong-invested developers who sell their assets and leave.

...

A second bid will soon begin.

This time there is no need for an interview, but a direct submission of the bid.

Faced with a lot of bids, the professional review team immediately got busy.

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

Director, the same is true for Biguiyuan. They are also willing to reinvest with project profits!

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

It seems that this is the case now, this Li Weidong is really a qualified catfish, and other real estate companies are also willing to reinvest the project's income into us. In this case, our city will have an extra tens of billions of investment! For the city's economic development will certainly be beneficial but not harmful.

The director changed his voice and then asked: By the way, what did the bidding documents of the Hong Kong-funded developers say? In recent years, Hong Kong-funded developers have taken a lot of land and made a lot of money. They should be more interested in our projects here!

Someone immediately replied: Director, I have a bid from Changjiang Real Estate. They raised the price by about 5% compared to the first time.

Just raised the price by 5%? Is there nothing else? For example, the reinvestment of project income? The director asked immediately.

No! The other party shook his head.

Director, here is Sun Hung Kai's bid. They just raised the price without any new conditions.

Director, the same is true for New World's bid.

The director frowned, and then sighed lightly: Are these Hong Kong-funded companies planning to give up this batch of projects? We have been working with Hong Kong-funded developers for so many years, and we have always been very happy. It's really a pity!

A subordinate next to him immediately said, Director, it's not a pity. Anyway, our mainland real estate companies have also developed. Without Hong Kong-funded developers, we can still live well.

Shh, how can you say that about the compatriots on Hong Kong Island! Over the years, Hong Kong-invested developers have made great contributions to our economic development! Talk here, don’t talk nonsense when you go out!”

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

At this time, the director thought of another thing, so he asked: By the way, who has read the bidding document of Dongshan Real Estate, and how is it written?

I have Dongshan Real Estate's bid here, I'll read it right away! Someone said, and found the Dongshan Real Estate bid, opened it, and immediately made a Huh sound.

What's wrong? the director asked.

Director, Dongshan Real Estate has also changed the content of the tender. The subordinate replied immediately.

Shouldn't they be regretting it? They don't want to reinvest with project profits? 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 their earnings, they will not continue to invest in real estate projects, but will invest in non-real estate projects. project.

Oh? Don't invest in real estate? It's interesting! The director immediately showed a very interested expression and asked at the same time, What is the second condition?

The second condition is that in the investment of the project income, the proportion of investment in manufacturing will not be less than 50%! The subordinate replied.

Hearing that the manufacturing industry is no less than 50%, the director abruptly stood up from his chair: Show me the tender quickly!

The subordinate handed over the bid, and the director saw it, and it was exactly as the subordinate said.

Invest in industries other than real estate, and the manufacturing industry will not be lower than 50%. This Li Weidong has added more weight on the basis of the first bid! You continue to review the bidding documents, and I will report to the leader!

The director sucked in a breath of cold air, and then said: A catfish was put in the pond. It was originally intended to have a catfish effect. Now it seems that the whole pond will belong to this catfish.