Chapter 58 Hudong Reinvestment Plan
In fact, the construction site in Hudong City has been started intermittently, although he and Xu Wenjie could not get along, but the other party did not take other actions during this time, and the two sides have been in a state of cold treatment.
The news that will make Qin Ran's attention not come from the construction site, but the new commercial plan of Hudong City, the second subway line in the city has been planned, and the government will take advantage of the successful experience of Hong Kong to introduce a plan to upgrade the old commercial center. The low-rise buildings and unplanned shops in the old commercial center have greatly failed to adapt to the rapid economic development of Hudong City, and the proposed positioning of Asia's largest metropolis, so the city government decided to cooperate with the subway renovation to upgrade the city's old commercial center.
At that time, Line 1 only considered the traffic problem, and did not start from the whole city, so it did not pay too much attention to the supporting facilities of the commercial center. At that time, the construction mileage was shortened due to financial problems, and the current operation is only two-thirds of the length of the plan. Line 2 decided to go the path of commercialization, because of the lessons of Line 1, the huge subway construction funds are under great pressure even for the deep-pocketed city of Hudong. Therefore, after investigation, it was decided to learn from Hong Kong to develop commercial real estate above the subway, and transfer the supporting commercial center land to obtain sufficient funds for subway construction. At the same time, it can also kill two birds with one stone, along the way to transform the old commercial center of the city and develop the regional economy.
Therefore, the Hudong Municipal Government first took out the land of two central stations for preliminary investment, one of which is located at the intersection of Huinan District Center Line 1 and 2, which will become a large-scale subway transfer station in the future, and the preliminary planning is to gather 600,000 square meters of commercial real estate within 500 meters of the ring subway station. The other is located in Pujiang District, at the end of Line 2. It will be built as a new sub-city center of Hudong City, with the goal of covering the northwest corner of the entire urban area, where 500,000 square meters of commercial real estate facilities are planned.
Hudong City is the key to the success of Qinran's Yangtze River Delta strategy. Although the first battle did not go well, he would never miss such a good opportunity. As a first-tier city in China, Hudong City is hard to find in a good location, and it is rare to have a good opportunity to get a slot now, how can Qin Ran not be tempted? If you miss this opportunity to reshuffle, it will be extremely difficult to enter Hudong City in the future. There are 5 to 6 commercial blocks planned above 1 subway station, that is, only 5 to 6 developers have the opportunity to get a piece of the pie here.
The mention here is about investment promotion. Instead of bidding, it means that it is not just money that determines the winner, but convincing the government of your ability. Your work should be in line with the government's positioning of the region. In a word, it is necessary to get the relationship between the government and the government to get the land. It is reported that this time the public investment promotion of Hudong City has attracted great attention from all over the world. In particular, Hong Kong's major real estate developers see this opportunity as a golden opportunity to pan for gold in the mainland. In addition to spending a lot of money to acquire land. It is also necessary to build a commercial body on top that satisfies the local government, which is a great test of the developer's strength. According to the grapevine, 2 to 3 large Hong Kong-funded real estate developers have reached a preliminary intention with the Hudong municipal government, and they promise to invest heavily in the development of a win-win situation.
This time, unlike Qin Ran's previous development experience, the participants are very optimistic about this project, and there is no longer a chance to pick up leaks, and it is completely dependent on strength to compete. If you want to get a kick in it. It can only be achieved with 100 per cent effort. The grapevine is not groundless, and it is very likely that the Hudong Municipal Government has preliminarily negotiated with Hong Kong-funded large real estate developers. At the starting line, Jiangnan Real Estate has been one step behind. It is also said that several local state-owned enterprise groups in Hudong City also have a strong intention to acquire land for commercial development, and the government intends to give due priority to them within the scope of the policy. The dragon is menacing, and the head snake is not to be outdone, and the prospects of Jiangnan real estate as an outsider are not very optimistic. But now that it is open to investment, it means that there must still be a position, and it depends on who can win the competition.
"Participate in the bidding for the subway hub commercial center in Hudong City?"
was temporarily summoned back by Qin Ran from everywhere for a meeting, and the company's executives were a little confused.
After listening to Qin Ran's brief introduction, everyone knew that he planned to further expand the strategy of Hudong City, and planned to compete with domestic and foreign giants for the development of land in the commercial center. Knowing that the competitors are either Hong Kong giants, or local predators, and there are many outsiders like Jiangnan Real Estate, everyone looks at each other a little.
Now that the company is in trouble at the construction site in Hudong City, the executives know very well that it is too strategically radical to provoke other giants if they fail to settle the trouble. What's more, the company has invested heavily in Jiangzhou Jiangnan Plaza, which has not yet started, and it will be a little overwhelmed to invest more money in Hudong. Commercial real estate has not yet had a successful experience, and it seems that it is still unknown how much revenue it can bring.
Even Guo Huiming, who is keen on commercial real estate, was excited for a while after learning the news, so he calmed down and carefully considered whether the company's move was appropriate.
"Mr. Qin, the land launched by Hudong City this time is indeed very good, and I am very tempted to see it. But we have to be realistic, and that's what you've been emphasizing. Our company is now focusing on Jiangnan Square in Jiangzhou, not to mention the second square on Ningbo's side, you also personally promised the other party to plan before the end of the year, which means that we will have two commercial plazas in the implementation stage this year alone. Under such a premise, if we still have to spend a huge amount of money to enter Hudong City to develop commercial real estate, the company's funds and talents will inevitably reach the limit, and the current good situation will be easily buried if we are not careful. ”
Zhou Zhidong, as the company's second-in-command, has a natural concern for the rhythm of the company's operation, in his opinion, Hudong's cake looks delicious, but Jiangnan Group is easy to choke to death if he is not careful. So, he was the first to raise objections.
"Now the company's overall operation is good, and it is steadily developing in the residential market, and at the same time, it has also begun to enter the pace of commercial real estate, which can be said to be a good shape. As long as we don't make big mistakes, then in the foreseeable years, the company will become an influential real estate star in China. The Hudong Metro Hub Commercial Center can be said to be an unplanned product of us, and the investment conditions seem to be impossible without an investment of 1 billion yuan. If you go in with a foot. Personally, I think it's very likely to disrupt the pace of the company's development. The risk is too great, and the benefits and risks are completely disproportionate. Therefore, I agree with Mr. Zhou's opinion. The company should do its best to do a good job in the project at hand, and there will be a lot of opportunities to enter the commercial center of Hudong City in the future. ”
Vice President Liu Xufeng had worked in corporate strategy research at McKinsey & Company, so his advice was very professional. At present, Jiangnan Group is in an upward period and has its own pace of development.
At the outset, two heavyweight executives made their objections clear. This was somewhat unexpected by Qin Ran. He looked at Guo Huiming and wanted to hear the opinion of this expert who has been immersed in commercial real estate for many years.
"Frankly speaking, the subway commercial center proposed by Hudong City is very attractive to me this time. We all know it in real estate. The most critical factor in determining the success or failure of a project is location. Now Hudong City has taken one of the best locations, which is a good opportunity once in a century. If I am still in the original company and have state-owned assets behind me, then I will definitely do everything possible to grab it. But I'm in Gangnam Group now. You have to think about the future of the company. At present, the strings of our company are too tight. The temptation of the moment is very likely to cost the whole brilliant future. Therefore, it is better to be conservative and strategic, and my opinion is to endure the pain and cut love, and it is better to earn a penny if you have a penny in your hand. ”
Even Guo Huiming also made it clear that he persuaded Qin Ran to give up the plan, and it can be said that this time the Hudong Metro Hub Business Center investment plan was opposed within the company.
If the democratic vote had been held, the plan would have been rejected unsurprisingly. However, there is a saying in China called democratic centralism, and after democracy, it is necessary to make a decision, and the person who makes the decision can directly veto the opinions of the people. But it must fully shoulder all its responsibilities.
The commercial center of Hudong City was upgraded, under the condition that Qin Ran had the advantage of being a prophet. There are no disadvantages to understanding it. In less than three years, the companies that spent a lot of money to get the project have all made a lot of money, even if the vacant land or even the unfinished building directly changes hands, a lot of people have doubled their bids and rushed to ask for it. Because of the convenient transportation conditions, the hardware upgrade of the commercial center has brought a large number of people, coupled with the strong development of China's economy, it has quickly formed a first-class business circle in China, and the entire plot has continued to appreciate in value, becoming a well-known successful case of commercial center transformation in China.
In Qin Ran's heart, the probability of success of this Hudong investment plan is as high as 90%, and the only 10% probability of failure is a factor that cannot be controlled by human beings. Therefore, he decided to take advantage of the "centralization" of democratic centralism and single-handedly make a strong decision on the reinvestment plan of Hudong City.
"I remember that our company's goal is to become a leading representative in the field of the Yangtze River Delta within five years, and now a once-in-a-lifetime opportunity is in front of us, as long as we do it well, we can accomplish it. Not only can it successfully gain a foothold in Hudong, but also overlook the entire Yangtze River Delta. I know everyone's worries, you are afraid that the company will be greedy and big, and you will accidentally flash your waist, which is indeed one of the problems. But let's think about it, why the reputation of those old department stores in Hudong City is still strong after a hundred years, not because it occupies the most central position in Hudong City. As Mr. Guo said just now, the location was decided. Now, we have the opportunity to make the company a century-old store, and we also have the opportunity to enter the prime location that we usually dare not think of, and we can't get into it for a long time, why not give it a go? I think it's acceptable to take a certain amount of risk in this investment, our company is able to bear it, and our team has enough confidence capital to endure it! Therefore, I will make a direct decision on this investment, and I will bear the consequences! ”
Qin Ran has always patiently listened to the opinions of his subordinates, and then made a decision after adopting and synthesizing as much as possible. But this time, for the first time, he showed domineering in front of his subordinates, although you all have opinions, sorry please keep it. Time does not wait for me, a qiē responsibility is borne by him, and at the same time, let time explain a qiē.
So far, Qin Ran has been 100% accurate in terms of the company's strategy, so he has a certain amount of proud capital to arbitrarily implement what he thinks is the correct strategy.
Having said that, the executives had no choice but to reluctantly accept Qin Ran's plan to reinvest in the commercial center of Hudong City.
However, this is only the first step of the long march, only the company's internal preliminary argument, in the end, how to participate in the bidding work in Hudong, the Hudong Municipal Government needs to nod and agree to you to participate in the game.
Under the leadership of Qin Ran, the company quickly set up an investment team of Hudong Commercial Center headed by him to deal with this investment promotion and bidding activity.
Obviously, Qin Ran thought a little too much about this, and as a result, he encountered a disadvantage from the beginning. (To be continued......)