Chapter 712: 1 Qualified Catfish

Chapter 711 A Qualified Catfish

Shortlisted for the second-stage bidding of all projects? All eight projects? Who is it? Dongshan Real Estate? Is there such a company in the mainland? Mr. Huo's face was not only shocked, but also incredulous.

Owning eight pieces of land at the same time, something that even the top real estate company in Asia, Changjiang Real Estate, dared 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 company was only established in the last two years. It has been working on projects in second- and third-tier cities before, and the project is relatively successful. This should be their first time entering a first-tier city. The assistant spoke.

Eight projects can enter the second round. What is the background of this company? Mr. Huo continued to ask.

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 continued to ask; Then, does Dongshan Mining have a background in a central enterprise?

No, this is a private enterprise, but it is relatively large among the private coal production enterprises in the mainland. 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 eight projects? There must be some black box operation! 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 the project this time is not small, and it would be too risky to operate in secret, not to mention that all eight projects were shortlisted. It would be too blatant to operate in secret!

It's true, if there is no black box operation, then this Dongshan Real Estate has proposed very good conditions! Mr. Huo pondered for a moment, and said; If you want to talk about conditions, they must be the conditions of a large company like ours. Even better, for an unknown small company like Dongshan Real Estate, it is the first time to do a project in a first-tier city, what good conditions can they offer?

Mr. Huo, I have already sent someone to inquire about this aspect, and 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 that 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 scene! So it was to participate in the interview in person. Mr. Huo nodded suddenly, and then said:

But this is unreasonable. Can that Li Weidong really have so much face? Even if our Li Chaoren personally participated, he may not be shortlisted in all eight events. His influence, Li Weidong, can be compared with Up to Superman Li?

The assistant answered: Li Weidong's personal involvement may be one of the factors. More importantly, they proposed a very attractive condition. 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 stated that they will not take away any profits from their development projects. All of them will be invested in Shanghai City to drive the economic development of Shanghai City! the assistant replied.

What! Mr. Huo's mind went blank.

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

There seems to be no rules for this in the industry! The assistant complained in his heart, but then said; But this offer is very tempting for the local government, and it is simply impossible to refuse.

Mr. Huo, as you know, the economy in the Mainland has developed rapidly in recent years, and for the localities, the growth of GDP is the most important factor in assessing local political performance, so all localities put investment promotion at the top of the list.

Dongshan Real Estate offered such a condition, which meant that the local government could get a large amount of investment while selling the land. This is more able to drive GDP growth than simply selling 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 quotation for land purchase, the difference in the price increase is not comparable to the investment of gold and silver. And the project operation capabilities we are good at are also worth it. But invest!

Mr. Huo took a deep breath, then frowned, and after a while he said, I never thought that inland companies would use such means to obtain projects! If other companies are like this, then how can we get land in the future? .

No, we have to fight back! You immediately contact Lao Liu from Sun Hung Kai, Lao Zhao from Henderson, Lao Li from New World, and Lao Song from Taikoo. We have to join forces and discuss a countermeasure!

...

At the same time, other real estate companies also got the news that the reason why Dongshan Real Estate was shortlisted for the second round of bidding for all projects was that 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 help the poor. Why should they not let others take away the money they have made?

Asking the company to reinvest the money it earns is probably like a Las Vegas guest who won money at the poker table and didn't stop, but ALL-IN the next game.

There was once a poverty-stricken county that asked a certain real estate giant to keep all the profits of the project for local development and construction. As a result, the real estate giant responded directly, saying that I would not do any projects anymore, so I would give you five dollars a year. 100 million for you to share!

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

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

If the profits are reinvested, 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 will be a matter of the year of the monkey. This will cause relatively large financial pressure on the developer and increase the risk of capital chain rupture.

It is precisely because the developers rely on the bank to maintain the capital chain that they have no reason to invest in the medium and long term. Once the project is successful, the developer will choose to stop after making money instead of ALL-IN the next one.

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

Reinvestment of all profits is an irresistible bait for local governments.

Land is more expensive to sell, and the local government can 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, and the subsequent tax revenue, employment and economic growth will not be much. Hundreds of millions can be compared. This account will definitely be calculated locally.

Although there will also be pressure on the capital chain, Dongshan Real Estate has mines at home after all, and Dongshan Mining’s income from selling coal is enough to ensure that Dongshan Real Estate’s capital chain will not be broken.

Li Weidong is not worried about the return on investment at all. 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, biological industries, technology industries, and cultural tourism industries. Wait, you can get a lot of money in return.

...

In the meeting room of Hengtai Real Estate, everyone was 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 government. So now we must find a solution. plan.

I really didn't expect that Li Weidong was so courageous, and when he made a move, it was such a killer move. All the profits were invested in other places. Once such a condition came out, no place would be willing to refuse it. One of them said.

If Li Weidong really gets all the projects in the second round of bidding, then for our country's real estate industry, there may be a reshuffle. If any developer wants to get a certain project in the future, they can directly use this One trick is not invincible! And 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 you want 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 take a few years. Can he get so much money!

Li Weidong started out in the manufacturing industry. The manufacturing industry is different from our real estate industry. The manufacturing industry is easier to save cash flow. And isn't it said that Dongshan Mining is behind Dongshan Real Estate? These days, coal bosses have money and 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 find a countermeasure. The conditions offered by Dongshan Real Estate are clearly better than ours. If this continues, the project will definitely belong to Dongshan Mining. Well, we still have our share!

Mr. Liu, if we increase the quotation in the second round of bidding, we may be able to get the project. Someone said.

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

That's right, a project can at least have a profit of more than one billion, that is, it can generate an investment of more than one billion. How much money do we have to add to be worth the investment of more than one billion? At that time, even if we get the project , You will lose money 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 use profits to reinvest, why don't we use the same method? We can also use all the profits of the project to invest 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 look of foolish eyes.

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

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

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

It makes sense. What we are doing is not a one-off 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, but on the other hand, this is equivalent to using the money of one project to complete two projects. With our Hengtai's strength, it is acceptable if the capital chain is lengthened.

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

...

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

Our Sun Hung Kai can increase the land quotation by 10%, but it is impossible to reinvest the profits of the project.

Yeah, so is Henderson. We can make concessions in other aspects, but the profit 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 raise the price, it may be difficult to get the project. We might as well take a step back, even if we can't get the project. If you donate all the profits, you can also use part of the profits to invest, so you may have a chance to win the project.”

Mr. Huo, in business and business, we come to develop projects to make money. We operate legally and pay various taxes and fees according to regulations. But if the money we can't earn is taken away, it's better to just quit do this project.

But in this case, we also lost 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 gold is everywhere. Even if there are no these eight projects, there will be other projects in the future, not to mention other cities. There will be projects. The mainland is so big and there are so many cities, so 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 by that time. Shrinkage. So at this time, we dare not make too long-term investment.”

Another person next to him also added: Yeah, the Asian financial crisis back then, the real estate on Hong Kong Island plummeted, causing huge losses to developers, and all of us have experienced it ourselves. Of course, we have to learn from it. You can't fall twice on the same spot!

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 the project by reinvesting project profits. However, Changjiang Real Estate is a Hong Kong-funded enterprise after all, and its business culture and philosophy are different from mainland enterprises. Mr. Huo is not sure that he can convince himself boss.

So Mr. Huo decided to unite with other Hong Kong-funded enterprises. If other Hong Kong-funded enterprises use profit reinvestment to fight for the project, then Mr. Huo's plan can be implemented.

But it is a pity that Hong Kong-funded developers pay more attention to direct profits, or everyone pays more attention to 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, Hong Kong-funded developers are based on Hong Kong Island, and the mainland is just 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 will be many Hong Kong-funded developers selling their assets and leaving.

...

The second bidding will start soon.

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

Faced with bids one after another, the professional review team immediately got busy.

Director, Hengtai Real Estate's bidding documents say that all proceeds from the project will be invested in Shanghai City!

Director, Bigui Garden is the same, they are also willing to reinvest with the proceeds of the project!

The director showed a smile on his face: Our city leaders still have foresight. When Dongshan Real Estate proposed this condition before, the leader said that Dongshan Real Estate would be a catfish. Put this catfish in the pond. Other developers They will definitely come up with better conditions, so Dongshan Real Estate was shortlisted for the second round of all projects.

Now it seems that this 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. If this is the case, our city will have an investment of tens of billions for nothing! It is definitely beneficial to the economic development of the whole city.

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

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

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

No! The other party shook his head.

Director, here is Sun Hung Kai's bid, and they only raised the price without any new conditions.

Director, it's the same with New World's tender.

The director frowned, and then sighed softly: Are these Hong Kong-funded enterprises planning to abandon these projects? We have been cooperating with Hong Kong-funded developers for so many years, and we have always been very happy. It's a pity!

A subordinate 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.

Shh, how can you say that about compatriots on Hong Kong Island! Over the years, Hong Kong-funded developers have also made great contributions to our economic development! The director said, glaring at the man, and then said: That's just what I said. Say it here, don't talk nonsense when you go out!

Understood, Director. I just dare to chatter a few words in front of you, and 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, who of you read the bidding document of Dongshan Real Estate, and what is written on it?

I have the bidding document of Dongshan Real Estate here, I will read it right away! Someone said and found the bidding document of Dongshan Real Estate, opened it, and immediately let out a huh.

What's wrong? the director asked.

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

Could it be that they regretted it? They don't want to use the proceeds of the project to reinvest? the director asked with a smile.

Not really. The subordinate shook his head, and then said, Dongshan Real Estate has added two new conditions. One is that if they use the proceeds to reinvest, they will not continue to invest in real estate projects, but will invest in other than real estate projects. project.

Oh? The proceeds are not invested in real estate? It's interesting! The director immediately showed an expression of interest, and asked at the same time: Then what is the second condition?

The second condition is that the investment in the project's income will not be less than 50% in the manufacturing industry! The subordinate replied.

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

The subordinates handed in the bid documents, and the director saw that it was exactly as the subordinates said.

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

The director gasped, and continued, A catfish was put into the pond, originally to create a catfish effect, but now it seems that the whole pond will belong to this catfish.

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