Chapter 62 McDonald's is both a real estate company and a nail household

Jia Lei and Dong Li negotiated several times and reached an agreement to invest in the capital land, and finally accounted for 25% of the shares in the project.

"Young Master Jia, I hope you can remember your own words! You only take dividends in this project, do not participate in operation and management, and will not use your voting rights to support other shareholders to oppose our Dong and Li families?" Miss Zhang reminded Jia Lei again.

"Of course I will abide by what I said, but since you want absolute control, then I will not interfere in the construction of this commercial plaza. I hope that no matter what happens in the future, you will not come to me again, you can't not give me no benefits, but throw trouble at me, right?" Jia Lei asked.

With the connections of our Dong and Li families and several other shareholders, it is not a big deal to build a square. Miss Zhang said confidently.

"Yes, then I'll wish you all the best, and I hope you don't come to me if something goes wrong, or I'll have to charge you." Jia Lei said, and then he got up and left.

"Jia Lei, how did I hear that last sentence you just said was a bit yin and yang? Do you have something to say?" Zhang Wenwang, who accompanied Jia Lei to sign the contract, asked with a frown, and many officials also attended the signing ceremony of the development case.

"Huh...... Miss Zhang is a foreigner, so she doesn't understand what's on Chang'an Street? Fan Ping'an, as a local, don't you know what's there? Do you think the demolition will be so smooth in the future?" Jia Lei asked.

"No!" Fan Ping'an replied categorically.

"Why?" asked Zhang Wenwang.

"Don't you know what units are on Chang'an Avenue? There are foreign trade cloth companies, railway cloth dormitories, the State Oceanic Administration, the post and telecommunications publishing house and telegraph office, and the civil aviation building...... ,

There is a hidden dragon and a crouching tiger on Chang'an Street, and even the plaque of a small Dongdan vegetable market was personally mentioned by Guo Moruo, which unit can be underestimated?

It is not certain that this piece of land will be demolished or not? It will definitely offend many people when it is demolished, and of course I can't take care of it. Jia Lei said.

"That's right! None of these families are easy to offend, so it's right if you don't show up. Zhang Wenwang nodded in agreement.

"Hey...... , I can't take advantage of it if I don't come forward, and I'll have to make a lot of money if I don't make any effort now!" Jia Lei sighed and said, there will be no shortage of nail households when it is demolished.

Jia Lei was right, when the report of Huixian Investment Company's desire to develop the Oriental Plaza project was sent, it caused an uproar in the capital.

"Ridiculous! Who is it? Who is going to demolish the headquarters of the Xinhua Bookstore in Wangfujing? That is a symbol of national culture!" Someone immediately objected after learning the news.

In the minds of intellectuals of the older generation, the status of Xinhua Bookstore is sacrosanct, and the demolition of the headquarters of Xinhua Bookstore is an insult to culture.

Of course, in addition to cultural significance, this group of people values more political significance, Chang'an Avenue used to be a royal street, and it has been an important place for yamen for hundreds of years.

"Chang'an Avenue should be the location of some important government departments and some typical units, and this kind of commercial project of Oriental Plaza is completely inconsistent with the positioning of Chang'an Avenue, and you are not ashamed of the country by putting it on Chang'an Avenue. A certain master architect in charge of the review at the time said.

"Yes, if the Oriental Plaza is built in the outer city and in the Asian Games Village, there will definitely be no problem, but if it is built on Chang'an Avenue, it will directly affect the antique style of the Forbidden City. Another academician of the Academy of Engineering, who was in charge of the review, said.

Although the development project attracted collective opposition from the engineering department, the demolition of the Dong family still began, because the Dongcheng district government did not object to their demolition plan, and they did not want to return the $200 million project money that Jia Lei had already given.

The Oriental Plaza project occupies a large area, in addition to the part of land in Jia Lei's hands, Dong and Li also spent hundreds of millions of dollars to buy other land from the district government, and also plan to spend more than one billion yuan to carry out demolition and resettlement.

These demolitions are semi-coercive, and ordinary people have no say in this matter.

"Actually, I have always had a question that I don't understand, the building on this piece of land on Chang'an Street has not been handled at all, so how did you sell it to me as a piece of land and an investment project?" Jia Lei looked at the noisy situation in the city, and finally couldn't help but run to ask Wang Lao.

"Oh! The Beijing city government has long wanted to reform and replan the city's construction, but unfortunately the city has not had the money to carry out demolition, so in 92 the city government made the idea of this land.

They first took out the land development project to attract foreign investment, and then waited until someone gave the investment money before thinking about the demolition. This method was pioneered in Dongcheng District!" Wang Lao said.

Jia Lei only then knew that this land acquisition model of first auctioning the land and then demolishing it started from the land in his own hands, as the first participant in this form, Jia Lei felt that he would be scolded by countless demolition households in the future.

"But now that things are like this, what should I do? Then the people from all the ministries and commissions are about to eat me, and I heard that there are still deputies to the National People's Congress who want to participate in this project? You can make me miserable!" Jia Lei said with a wry smile.

"Don't be afraid, this matter involves a number of Hong Kong companies, and the above will definitely let it continue. Besides, didn't you sell the land to Huixian Company, now that group of people are talking about Huixian Company, no one will come to trouble you with a child. Wang Lao comforted Jia Lei and said.

"I think it was premeditated for you to give me this project in the first place, and it's obvious that you don't want to keep such an offending project in your own hands. Jia Lei said angrily.

"Oh, we can't help it, everyone is working in the inner hall, the ministries and commissions don't look up and don't see it, if the land and the project are still in the hands of Dongcheng District, then I'm afraid the city government can't bear it." Wang Lao said.

"Then can the Dong family withstand it?" Jia Lei asked worriedly.

The Dong family has deep connections on Hong Kong Island and the mainland, and they also understand their importance, plus this is a special period of violations on Hong Kong Island, and this excuse can also be passed in Ouchi. Therefore, as long as the Beijing municipal government agrees to the development plan, no one else can stop it, and everyone knows that the overall situation should be the priority. Wang Lao nodded and said that if it were not for the relationship related to the return of Hong Kong Island, the ministries and commissions would definitely not compromise easily.

Would you agree with the Jingcheng City Government?

Of course, the city government agreed, because the renovation of dilapidated houses, the renovation of old towns, and the construction of large commercial areas are all obvious achievements, and as long as this matter is done, the city leaders can be promoted and raised, and there will definitely be some oil and water in such a large development project......

So the city government and Li Dong promised that as long as they paid the 1.8 billion yuan for demolition and relocation promised at the beginning, the city government promised to complete the demolition and leveling work within half a year.

Here, for the sake of harmony, we will not delve into the specific negotiation process, in short, the contradictions within the people are resolved internally, and several large local units agreed to move the units to other places after receiving generous demolition and relocation payments.

But some people disagree!

McDonald's in Wangfujing directly got into a lawsuit with the developer of Oriental Plaza because it did not agree to the demolition, and the two sides began to fight over the land below McDonald's.

Most people think that McDonald's is just a catering company, but in fact McDonald's is a real estate company, and catering is just their side hustle.

When McDonald's entered China, the first thing it saw was the geographical location of the prime location of Chang'an Street, and McDonald's business principle was to buy the best location first, and then open a fast food restaurant to find a franchisee to join in, while earning the franchise fee while waiting for the land to appreciate.

Now that the Dong and Li families want to demolish Oriental Plaza, McDonald's will certainly not let go of such a good opportunity, so they are ready to file a lawsuit to ask for more compensation.

"What are you talking about? McDonald's sued us, do they not agree with the standard of the demolition compensation agreement?" asked Jia Lei.

"Yes, they don't want to demolish this McDonald's because it's the most profitable McDonald's in the world, so they don't agree with our demolition compensation plan.

Because they had signed a lease with the city government for more than 30 years, we now have to fight McDonald's if we want to develop the land. Miss Zhang said.

"If it were me, I wouldn't have moved, this McDonald's is a hen that lays golden eggs! Even if it earns 1 million people a day, it will earn hundreds of millions of yuan a year."

This is a steady stream of money, except for fools who would do such a hammer deal as selling land, McDonald's is not a fool. Jia Lei said.

"But this piece of land was originally in your hands, so you can't leave it alone now, right?" asked Miss Zhang with a frown.

"Didn't we say okay, I won't interfere in the demolition?" Jia Lei said unhappily.

"McDonald's is an American-funded group, and we are not familiar with them, but as far as I know, you have a wide network in country M and are a shareholder of Citibank. Miss Zhang said.

"Wall Street banks aren't easy to get, and I don't want to ask for something like that. Jia Lei shook his head and said.

"I know it's too much for you to do this, so mention whatever conditions you have. Miss Zhang said.

"Shares! If you give up some more shares, I might be able to lend a favor to that. Jia Lei said directly.

"Do you still want to increase the proportion of shares?" asked Miss Zhang, frowning.

"Yes!" Jia Lei nodded and said.

"It's not impossible! Because there are too many people in the domestic government who oppose this project, and recently Xishi Xingye and Xinchang Department are planning to withdraw from this project.

If you can help us get the McDonald's thing done, maybe we can talk about the shares!" Ms. Zhang said.

"I'll take care of McDonald's, but you'd better remember what you've said. Jia Lei said.

"I'll remember!" Ms. Zhang said.

******

"Jia Lei, is it possible that you really plan to meddle in this matter? McDonald's will never give up this store that is making money every day, and it is thankless for you to do so!" Fan Ping'an said.

"Don't worry, I won't make a move if I'm not sure!" Jia Lei said.

"Then what do you want to do now?" asked Fan Ping'an.

"Of course I'm looking for someone!" Jia Lei said.

"Who are you looking for? Will Citibank really come forward for such a trivial matter?" asked Fan Ping'an.

"If there is enough interest, they will definitely come forward, and I want to pull Citibank into this project as well!" Mr. Jia said.

Soon Jia Lei met the manager of McDonald's in Beijing through people from Citibank, and the atmosphere when the two sides first met was not friendly.

"How many times have I said that we don't want to sell this McDonald's, and the business on Chang'an Avenue is so good that we lose a lot of money every day we close down. The manager of McDonald's said with a frown.

"I'm afraid the reason you told me is a bit too fake, Chinese people think that you McDonald's is an ordinary catering company, so they will believe this statement.

But since I found you through someone at Citibank, it means that I have a certain relationship on Wall Street. As far as I know, your founder once said that McDonald's is not a burger business but a real estate business. Is that right?" Jia Lei asked.

"How do you know that? Our boss rarely says that outside?" asked the McDonald's manager, curiously.

Of course, Jia Lei would not tell him that this sentence would become a world-class business quote in a few decades.

"Because I asked someone to get your McDonald's financial announcements for the past few years, and then I found a very interesting thing.

The profit statement of your profit statement belongs to the catering sector with a very low proportion of profits, but the market value of your company has quadrupled in just a few years, and the fundamental reason for the skyrocketing market value of the company is the increase in the value of the real estate owned by your major McDonald's direct stores.

Judging from the balance sheet, McDonald's is really a real estate company, since you are a real estate company, then let's discuss the demolition of McDonald's according to the development plan of the real estate company.

What do you think of my proposal?" Jia Lei asked with a smile.

"Huh...... The people who can take a place on Wall Street are really not small roles, and you have to be much smarter than those who just want to give us a little compensation and send us away. The manager of McDonald's said with a smile.

"Then just tell me, how much money do you want?" Jia Lei asked.

"I can't say the number, you have to know that the business of this store on Chang'an Avenue is really good, we have to make millions less for every extra day of delay, and I don't know what price to put on it!" said the manager of McDonald's, embarrassed.

"Don't you know or don't want to say?" Jia Lei asked with a sneer, he felt that the other party was perfunctory.

"Well, I really don't want to say it, because one more day of this store will make a lot of money, and once you do tear it down, what will we do with McDonald's?"

So I really don't want to sell this store, we are more optimistic about the appreciation potential of the current location, because once the Oriental Plaza is built, this location will become more valuable. The manager of McDonald's said.

"It's impossible for McDonald's to want to demolish it! The development case of Oriental Plaza is of great political significance, and the Chinese government will not let you do it! Your McDonald's will have to be demolished sooner or later, and I hope you should think about it. Jia Lei said.

"If that's the case, then we don't have to talk about it, let's move on to the lawsuit!" said the McDonald's manager angrily.

"Don't get excited, if you keep being so tough, I'm afraid it will cause a backlash from the government, and then your business will not be able to continue in China.

Let's take a step back on both sides!

We will not demolish your store for the time being, so that you can continue to open. You are not allowed to stop us from demolishing places that do not belong to McDonald's, as for the final result, how about we let the court decide?" Jia Lei asked, anyway, he would not give as much as others wanted.

"Since you are a shareholder of Citibank, I will give you this face, and you can build and demolish near McDonald's. As for McDonald's's final specific compensation plan, we will leave it to the court to decide, right?" said the manager of McDonald's, saying that the people of country M prefer to speak with the law.

"Okay! Thank you for your understanding and concessions, and I'll take the others to thank you first. We'll see you in court for the rest, and I'm sure the law will give us a fair verdict for both of us. Jia Lei said indifferently that it is really common for developers to sue with nail households.

As long as the project can continue at this stage, Jia Lei can be regarded as having completed Miss Zhang's entrustment.

In this way, McDonald's relied on its identity as a foreign-funded company to become the largest nail in the Oriental Plaza development project.

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