Chapter 425 The land in the city
ww.x.om Is the third ring road in Beijing far away? Su Cheng felt that he had a say. He was afraid that Zhang Chao would say too outrageously, so he kept saying: "Just the third ring road, don't do things like demolition, and don't deal with factories directly. You can learn how other foreign-funded enterprises buy and sell real estate. You must be reasonable and legal, and have complete procedures to get the land from the government, otherwise it would be better not."
The way foreign-funded enterprises buy and sell businesses in China is to let the government demolition and then buy it from the government. Because commercial real estate is mostly in densely populated areas, the demolition work is very complicated, both at home and abroad. The stalemate for a nail household and losses of tens of millions for 10 years has been experienced by multinational companies, and domestic companies will also experience more and more.
Although it will cost more money to hand it over to the government or other companies for demolition, the risks and troubles are less. Judging from the land transfer fee in 1993, the so-called expensive ones are really limited.
Zhang Chao said with understanding: "It's just like Pudong? Ask the government to organize a special company to carry out demolition and level the land? Well, this is really good. I'm afraid that the local government will not agree. If it only solves the survival problem of one or two factories, the local government will probably not make a lot of effort."
Li Lin also said: "If the land you bought is vacant, and you don't build a factory or develop real estate, the government is afraid that it will not want to. If they ask them to come forward and become bad people, they may ruin their relationship."
"This is also a problem." Su Cheng had long wanted to set up an investment company, but he had a sudden idea of buying land and was not fully considered. After hesitating for a moment, he said, "Then use it for business, how about supermarkets?"
"Building a supermarket on the Third Ring Road? It's too remote." Zhang Chao said in an old Beijinger: "The Second Ring Road is the inner city of Beijing, and the streets are all inside, and people live in it. If the Third Ring Road, I think there is no good business prospect in five years, and supermarkets are easy to squeeze goods."
As he said, Zhang Chao said with great memory: "My aunt married to Guang'anmen Street. There was also a farmer's vegetable garden and an ancestral tomb behind the house facing the street. She has moved some in recent years. I heard that there are still some left. I think it's not far from building a factory in the Third Ring Road. If you do business, it's better to have another ten or eight years."
The pace of urban expansion was not achieved overnight. Five years later, it was only 1998. The housing prices in Beijing were still in the category that ordinary people could buy, and Zhongguancun was still a suburb outside the Third Ring Road... If you use it to build a supermarket, purchasing power is indeed a problem. Instead of doing it now, it is better to do it five years or ten years later.
From the perspective of 1992, Zhang Chao's words were fine. Su Cheng nodded in recognition, and then thought of the later Red Star Macalline. They developed by building furniture cities and buying land. The profits of the main business were almost all given to the bank as interest, but the appreciation of real estate became a means of company appreciation. So he said again: "Then do some. You can consider furniture cities, decoration cities, etc. Is there any future?"
Zhang Chao and Li Lin looked at each other, but Li Lin whispered: "Dr. Su, I have never done decoration before, so I bought the furniture in the city center. It is not too troublesome to transport such a large item from outside the city."
Su Cheng looked out the window silently. The sun was very big and the clouds were white. It turned out that the second ring road was a good day for Beijing City.
In another 20 years, a few people bought things on the Second and Third Ring Road, and transported them inside, and they were all pulled out.
The three of them thought about their own thoughts and were all thinking.
After a moment, Zhang Chao suddenly slapped his thigh and said, "How about being a hotel?"
“How to say it?”
"I often hold meetings. If I suddenly decide to go to a city, I often can't find a hotel. If I don't book a meeting room two days in advance, there will definitely be no one. Build a hotel a little far away. As long as it has characteristics and is well built, everyone will not care about the distance. In cities like Beijing, Shangha, and Guangzhou, there are so many business activities that our company has a headquarters guesthouse. If it is not like this, we have to book a hotel all year round. Otherwise, suppliers from other places will often not find a place to live." Zhang Chao said happily: "Beijing Xiangshan Hotel is so far away, and we can't book a room 10 days in advance. We choose the site from the Second Ring Road to the Third Ring Road. As long as the design is good enough, the local government will definitely be willing to cooperate. This is a very beneficial thing for local development. I dare say that more than half of the government officials are interested in hotels and factories."
Hotels also have to pay taxes. In the 1990s, high-end hotels paid more taxes than large state-owned enterprises. Moreover, high-end hotels are very meaningful for enhancing the value of the city. Whether there are five-star hotels, four-star hotels, and Hilton and Kempinski are all very different. Dubai and Abu Dhabi are a good example. The so-called Seven-Star Sailing Hotel and Eight-Star Palace Hotel have invisibly enhanced the reputation of the two cities, making it possible for those who have never been there to know that these two cities must be prosperous metropolis.
On the other hand, from the late 1980s to the mid-1990s, it was the first golden period of China's hotel industry. Government meetings and commercial negotiations everywhere filled the hotels and hotels in major cities. It was also at this time that almost every government bureau planned to build a guesthouse.
As Zhang Chao said, without his own guesthouse, guests came temporarily from other places and could not find a place to live.
This kind of tight hotel rooms was mainly concentrated in high-end hotels in the late 1980s. By the early 1990s, it expanded to ordinary hotels. Domestic tourism that had just begun to appear further gave rise to the development of the industry.
Su Cheng used to go to other places and could still feel this situation. With the development of Dahua, he now set out to other places. Local companies and governments often rush to entertain, so naturally, Zhang Chao, who often travels on business trips and holds meetings, was deeply touched.
Despite this, Sucheng still praised: "It is OK to build a hotel, but we cannot do it ourselves."
"Do you find someone to work with?"
Su Cheng thought, saying: "We will start two brands in advance. One is a high-end luxury hotel. It is based on four-star ratings and covers an area of more than 500 mu, preferably 1,000 mu. The second brand is an economical hotel, based on two-star ratings and covers an area of more than 50 mu, preferably 100 mu. For high-end luxury hotels, try to buy a brand from abroad or a joint venture. However, the land must be purchased by Dahua Industrial and enjoyed with all the money, and there is no room for negotiation."
Zhang Chao nodded repeatedly and said, "The first priority is to invest in land, and then the hotel. You see, every time we build luxury hotels in a region, we will build a second brand of economical hotel. However, I think 50 acres is a bit small. It is difficult to find a piece of 1,000 acres in the city, and it is still very simple to find a 100 acres of land."
"You can buy as big as you can." Su Cheng's words were full of heroism.
Zhang Chao realized the difference at this time and asked: "How much are you going to invest in Dahua?"
"Let's start with 300 million yuan. I'll prepare another 100 million US dollars to acquire foreign hotel companies. If there are many cities to negotiate, I think it's not a problem to add 300 million yuan." This will exceed 1 billion yuan. It is naturally not worth mentioning among investment banks on Wall Street. In China, it is undoubtedly a big tycoon.
Zhang Chao was speechless. He didn't expect that it would be such a big project with RMB 1 billion. Maybe he couldn't buy a central enterprise, but there are definitely not many Chinese central enterprises that can afford 1 billion yuan.
He couldn't help but say, "How about doing an assessment first... Our strategy department also makes a plan."
"Evaluation and planning can be done, with land purchase as the goal. Of course, it is good to have additional profits, and it doesn't matter if it doesn't happen. In addition, the land is not limited to Beijing, Shanghai and Guangzhou. Provincial capitals and cities with independent planning can be considered..." Sucheng is a person with oil fields. With Shanghai Cang Petrochemical Base, the cash flow is as abundant as the Yellow River and Yangtze River. Especially the annual output of 800,000 tons of ethylene, although the annual output of 800,000 tons of ethylene, can generate nearly 10 million yuan in profits and tens of millions of output every day. There are also unbuilt oil refineries and gradually improving large methanol, all of which are cash cows.
According to the land value in 1993, there is no problem with Sucheng buying a piece of land every day. If it weren't for the two gold-swalking monsters in Dahua Laboratory, Sucheng would be confident that it would sweep away the suburbs of Beijing or Shanghai. According to experience in 10 or 20 years later, the real estate industry would probably earn more money than making an LNG ship.
At this time, he was particularly able to understand why other Chinese businessmen were more willing to do business than industry.
It's too easy to make money in business.
Especially after having the first pot of gold, I was really snowballing.
However, Sucheng set a goal and will not be easily shaken. There is no doubt about the stability of industry, and the stability of heavy industry is unparalleled.
Dahua Shipping Industry, which built LNG ships, will be the pearl of Chinese industry. Dahua, which swept away the suburbs of Beijing or Shanghai, will probably become the target of public criticism.
Industry is an influential industry, real estate is also possible, but hoarding land and houses is not possible.
Su Cheng made the decision, and Zhang Chao said without further ado, instead: "If you start an investment company, the group's talent reserves are quite insufficient, and I want to poach a few people."
The reason why people are poaching rather than recruiting is that Dahua has no foundation for an investment company. Only by finding core members can it expand its recruitment on this basis.
Su Cheng agreed and asked Li Lin to set up a special department to be responsible for this matter. No matter where he works in a hotel or buys land, he will never be taken lightly with the city managers.
……
Chapter completed!