Chapter 69 Metro Strategy
In 2006, a total of 15 Jiangnan plazas opened in China, and on average, at least one new Jiangnan plaza landed in a new city every month. Pen, fun, pavilion www. biquge。 info Jiangnan Plaza, is the advertising slogan in the center of the city is deeply rooted in the hearts of the people, and Jiangnan Group has also become the object of investment attraction by the local government.
With the acceleration of urbanization, Jiangnan Group has also extended from first- and second-tier cities to third- and fourth-tier cities along with the strategy of attracting investment. According to preliminary statistics, by the end of 06, in the first and second tier cities, Jiangnan Group has laid out a total of 86 Jiangnan Plazas, of which 26 are officially in operation, 18 are under construction, and the remaining 42 are in preparation. The strategic goal of the first and second tier has been achieved, so there will be three years to expand in the third and fourth tier cities. It is preliminarily estimated that there will be about 60 eligible cities in third- and fourth-tier cities, which means that there will be 60 Jiangnan squares settled in third- and fourth-tier cities.
The landing criteria for third- and fourth-tier cities are as follows: 1. It must be a local core area, and a city can have a maximum of two cores. 2. The urban population is at least 500,000, and the per capita GDP is not less than 12,000 yuan. Third, the city has development potential, is not a resource-exhausted city, and has a certain economic pillar. Fourth, the preferential policies given by the local government are not lower than those of similar competitors.
At the same time as Jiangnan Plaza settles in, it basically binds Jiangnan Real Estate to form two major fists to work together, so it is better to enjoy the preferential policies provided by the local government and the dividends brought by the appreciation of the land. In the vicinity of Jiangnan Plaza, there must be a comfortable community of Jiangnan Real Estate, which has formed a certain brand effect.
In terms of land reserves, Jiangnan real estate is 24 million square meters, and Jiangnan commercial is 11 million square meters, forming a volume scale that amazes domestic counterparts, and what is even more terrifying is that this number is still increasing at an annual growth rate of 10%. The concept of occupying the pit first, and then planting trees is implemented in the hearts of Jiangnan Group employees, and when they see a good lot of land first, there will always be a time for development in the future, after all, the most important thing in real estate is the location.
In addition to relying on Jiangnan Square to open roads, many local governments in first- and second-tier cities hope that Jiangnan Group can develop landmark skyscraper buildings in the local area.
At present, Jiangnan Group is the only developer in China that has the ability to design, build and operate skyscrapers. The investment in a skyscraper is huge, the engineering is complex, the technology is high, and the risk-reward is too high compared to selling a residential building, so other developers do not want to get involved in this market. From the start of exploration and design to the opening of the operation, a skyscraper takes at least 5 years, which also squeezes out a lot of money, so the average developer really can't play it.
The reason why skyscrapers are not popular in Western developed countries in the near future is because they already have skyscrapers and no longer need new real estate. But in China, skyscraper landmarks have become a symbol of the city, and even a spiritual totem, popular with local governments and local people.
If a landmark building is really needed, Qin Ran will consider the situation of the local government, especially the potential for local economic development, and of course, the most important thing is the supporting preferential policies of the local government. After calculation, if this business can be done and Jiangnan Group can make a profit, then it can cooperate with the local government. In this context, in addition to the landmarks of Hudong and Jianghan, a total of 4 skyscrapers have entered the design and construction stage, which are located in Yangcheng, Jinmen, Jiangzhou and Rongcheng. I dare not say that it is the highest in the country, but it is definitely in the position of the tallest building in the province.
While asking for space from the sky, Qin Ran is thinking about the next strategic direction, referring to the development model of "subway + property \ community \ town" of the Hong Kong subway, and with the saturation of urban areas in the future, expansion to the suburbs is the same direction. Therefore, whoever masters the new direction of urban development in the future will be able to take the lead. In particular, with the further introduction of private cars into thousands of households, urban public transportation has become a major headache for the rulers of major cities. Therefore, the development of underground transportation has become the first choice of mayoral projects in many cities, not to mention that a subway line will not only bring about an increase in public satisfaction, but also have tens of billions of direct investment.
Relevant studies show that every 100 million yuan invested in rail transit projects can drive GDP growth of 263 million yuan and increase more than 8,000 jobs.
Therefore, there is also a nice name for building a subway called subway economy. The accessibility of the subway will change the reshaping of space, the agglomeration of people and logistics, the increase in land development and land prices, and the formation of new urban sub-centers. In 2006, the investment per kilometer of subway was between 350 million and 400 million yuan, and a short subway line would consume all the financial revenue of the municipal government in the next few years.
Hudong subway construction is at the forefront of the country, there is a very mature subway construction and operation team, Qin Ran plans to cooperate with Hudong Metro Company, with the development model of "subway + property \ community \ town" to expand the new strategic development direction. In this plan, Hudong Metro Company has achieved construction and operation output, and has a fixed project, while Jiangnan Group has invested funds to obtain the priority development right of the subway line, especially to cooperate with the local government to build large urban communities.
Jiangnan Group and Hudong Metro Company partially contributed to help build the subway, and the local government can reduce the amount of capital contribution and use land to compensate Jiangnan Group, so that everyone can take what they need. In this way, a win-win situation was achieved, the local government got the subway, the subway company got the project, and the Jiangnan Group got the land.
It seems simple, but there are many problems involved, after all, the subway investment is huge, and there is no precedent for tripartite cooperation, which needs to be explored step by step. But from a strategic point of view, this is very good for the future of Jiangnan Group.
With this thought, Qin Ran set off to visit Li Zhiguo, and of course brought Ye Linghan and Qin Yezi together to deal with both public and private affairs. Qin Ran doesn't need Li Zhiguo's more attention now, because Jiangnan Group has become a giant in the industry and has always been business-oriented.
In Qin Ran's villa in Hudong, Li Zhiguo met his long-lost little granddaughter Qin Yezi. As the largest city, Hudong often comes here on business trips, so he also has a foothold here. It was not easy to talk about taking his wife and children to the office, so he asked Li Zhiguo to come by car after work.
"Call Grandpa."
Ye Linghan hugged Qin Yezi and asked her to shout, but the child twisted his head and didn't shout, he wanted to find his father to hug him.
"Just like when you were a kid, just ignore me."
Li Zhiguo said to Ye Linghan with a smile.
While the family was eating, Qin Ran put forward his subway strategic plan, planning to cooperate with Hudong Metro Company to expand into China together.
Li Zhiguo listened to Qin Ran's proposal and felt that it was not bad, Hudong City was now overhauling the subway, and he knew how much the government needed to invest. If a large enterprise like Jiangnan Group comes in to share the burden, then the government's investment pressure will be much less. In particular, Hudong Metro has now absorbed advanced technology from Germany, and has achieved results in independent research and development. It's just that because of the huge investment in the subway, many local governments could not afford this fiscal expenditure before. Now that the economy is developing, the local government has some money, which is enough to cope with such a big project of people's livelihood.
For Jiangnan Group, in fact, the risk is the greatest, because the real money invested is betting on the city's tomorrow. As for local governments and subway construction companies, the risk is much smaller.
In the Disneyland project, the cooperation between the Hudong Municipal Government and the Jiangnan Group was quite pleasant, and the Jiangnan Group acted as a lubricant between the Hudong Municipal Government and the Disney Company, resolving many differences and locking the three parties firmly together.
Hudong Metro Company is a state-owned enterprise under the Hudong State-owned Assets Supervision and Administration Commission, and its independent operation has always been a loss-making posture, because the subway investment is huge, and it cannot be returned by relying on ticketing alone. In Hong Kong, ticketing accounts for only 15% of the MTR's revenue, and the rest is recouped by operating properties on the MTR.
How to cooperate with Jiangnan Group to explore a new path for the reform of state-owned enterprises is also a very good choice. Li Zhiguo thought about it for a while and felt that he could match the Jiangnan Group, and how well they talked about it depended on the sincerity of the two companies.
Jiangnan Group and Hudong Metro Company formally conducted preliminary contact on the cooperation between the two sides, and after listening to Qin Ran's cooperation plan, Hudong Metro Company was also very moved. Although the construction of the Hudong subway is in full swing, the limited underground space will always be completed, and enterprises must expand in order to survive in the future.
At this time, there is also good news that the Jiangzhou Municipal Government has officially decided to build a subway, and they are sending an invitation to the Hudong Metro Company, after all, the Hudong Metro in the Yangtze River Delta is the big brother.
Jiangnan Group is also an acquaintance of the Jiangzhou Municipal Government, so it simply held a three-party meeting at the same time to discuss the development plan of the first commercial subway line in China.
Jiangzhou Metro Line 1 has a total length of 53 kilometers and a planned investment of 21 billion yuan, which is divided into two parts: A and B. Part A is civil engineering and tunnel engineering, with an investment of about 13.5 billion yuan, accounting for 62.48% of the total investment; Part B is the part of mechanical and electrical, vehicle and other facilities, with an investment of 7.5 billion yuan, accounting for 37.52%.
Originally, the Hong Kong subway was enthusiastic and planned to go north to cooperate with the Jiangzhou municipal government, after all, they had already won the Metro Line 3 project in Yangcheng. Unfortunately, under the strong matchmaking of Jiangnan Group, Jiangzhou finally decided to cooperate with Hudong City, because Hong Kong MTR Group is weaker than the consortium of Jiangnan Group + Hudong Metro Company in terms of comprehensive strength.
Jiangnan Group invested 6 billion yuan, Hudong Metro Company invested 3 billion yuan together with engineering equipment and personnel, the two sides jointly established Hujiang Metro Company, accounting for 49% to 51% of the shares, Jiangnan Group does not interfere with the operation of the subway company, and enjoys financial supervision and shareholders' dividend rights.
To build this subway, the Jiangzhou municipal government only needs to come up with 20% of the project money, and the remaining 80% is undertaken by the Hujiang Metro Company established by Jiangnan Group and Hudong Metro. In the future, Jiangzhou Metro Line 1 will be operated and contracted by Hujiang Metro Company for 20 years, and the subway operation right will be returned to Jiangzhou Municipal Government free of charge after the end of the 20-year period. The construction of the subway line was undertaken by the Hudong Metro Construction Company, and Jiangnan Group obtained the right of first refusal to operate the large commercial hub of the subway stations along the line, as well as the right of first refusal to subscribe for the land along the subway line.
Jiangzhou Line 1 will take five years to build and is expected to be put into operation in 2012. The surrounding land near its subway station will become the priority of Jiangnan Group.
Here, Qin Ran is betting on the future of Jiangzhou, with the extension of the subway line, other price depressions in Jiangzhou will skyrocket, resolving the large investment of Jiangnan Group. And what he needs to do is to get these price depressions in his hands before the subway line is opened, and ensure future investment returns. After strict calculations, Jiangnan Group needs to invest at least 8 billion yuan in Line 1, and after the project starts, it can use the future subway revenue to borrow from the bank, and no more capital investment is needed. On Metro Line 1, Jiangnan Group must earn at least 8 billion yuan to return to its capital, which is also a big test for Jiangnan Group's vision and management ability in selecting land. The risk is large, the benefit is also large, others need 100 million to get the land, Jiangnan Group only needs the cost of 50 million, and it can give priority to the selection of the favorite land, and it will not suffer a loss.
When the cooperation plan for Jiangzhou Metro Line 1 was announced, it immediately attracted a lot of attention, more of which was the attention of other city leaders who were interested in building a metro city. Originally, it took at least 10 billion yuan to exchange for a decent subway, but now it can be implemented for only 2 billion, and there is no need to worry about engineering construction and future operation, everything can be done with the help of skilled workers. The government can pass on the risk to enterprises, which is a great news, and many places have sent delegations to Jiangzhou to inspect the subway construction model.
The government's consideration of the construction of the people's livelihood project is not to say casually, whoever has the lowest price will win the bid, and the ruler must consider the credibility and strength of the other party. Otherwise, it is not a good thing to get half of the mess or run away, and it is not a good thing to make the people's grievances boil in the future, and the Hujiang Metro Company stands behind the Hudong Metro Company and the Jiangnan Group, which are well-known giants in the industry and have become a priority for many governments.
"Jiangnan Commercial", which is listed on the A-share market, and "Jiangnan Real Estate", which is listed on the H-share market, respectively announced a financing plan specifically for the strategic development of the subway, with A-share financing of 5 billion yuan and H-share financing of 6 billion yuan, and it is the smartest way to rely on shareholders' money to invest.
With the precedent of Jiangzhou Line 1, Jianghan Metro Line 1 also found the Hujiang Metro Company, and finally the two sides reached an agreement to refer to the Jiangzhou model to build Jianghan Metro Line 1. The reason why Jianghan City came here is because it had a happy cooperation with Jiangnan Group before, and now it is natural to develop the subway, and it is natural to find old partners without taking too many risks.
Hudong Metro Company did not expect to receive a large order of business so soon, which is completely brought by the reputation of Jiangnan Group, which strengthens the confidence of the other party to cooperate with Jiangnan Group.
While busy thinking about strategy, Qin Ran did not forget to dig a pit for his old classmates. (To be continued.) )