"All the projects were shortlisted for the second-stage bidding? There are 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 any projects in first-tier cities. Therefore, in the eyes of many major real estate companies, Dongshan Real Estate is really unknown. It would be an understatement to say that they have never heard of it.

"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 mining? 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.

"It's not a central enterprise? It's 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

The gentleman said to himself.

The assistant shook his head instinctively: "It shouldn't be the case. The scale of this project is not small, and the risk is too great if it is operated behind the scenes. What's more, eight projects have been shortlisted. If this 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 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. I hope 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 great reputation? Even if our Li Chaoren takes action in person, he may not be able to be shortlisted for 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 from their development projects will be taken away, and all 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 said loudly: "How could they do this! This is breaking the rules of the industry!"

"It seems that there are no rules in this regard in the industry!" The assistant complained in his mind, but then said, "But this offer 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 while selling land, local governments can also receive a large amount of investment. This is more capable of driving GDP than simply selling land at a high price or launching a successful project.

growth.”

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

But it’s investment!”

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 Lao Liu from Sun Hung Kai, Lao Zhao from Henderson, Lao Li from New World, and Lao Song from Swire. 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 don't they 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 didn't stop, but ALL-IN the next game.

There was once a poor county that asked a real estate giant to keep all profits from the project and use it for local development and construction. However, the real estate giant directly responded and said that I won't do any projects anymore, so I'll just 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 their profits in the local area. If they can allocate a few percent of their profits for poverty alleviation, they are considered a conscientious company.

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 use the profits to invest, the first thing you will face is that the investment is risky. Even if you can make a profit, you don't know how long it will take until the end of the year. This will cause greater financial pressure on developers and increase the risk of a broken capital chain.

risk.

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 is a bait that is hard to refuse for local governments.

If 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, and the subsequent tax revenue, employment and economic growth will not be much more.

It can be compared to several hundred million. This account will definitely be calculated by the local authorities.

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 return on 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 here, such as ports, trade, biological 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: "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 we must find a response plan now.

."

"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 has not taken away the profits. 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

Now, how can we still have a share!"

"Mr. Liu, if we raise the 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 more 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, we will even get the project.

, 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 provide 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 he were 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 a new project. The only disadvantage is that the capital chain is longer."

"That 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, we at Henderson are the same. We can make concessions in other aspects, 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 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 it."
To be continued...