After a period of low-key intensive research in Hudong City, Li Zhiguo has a clearer understanding of his governance ideas. ∈ ♀ Ding Xiaoxiao, as the largest metropolis in China and the bridgehead of reform and opening up, the most important task of Hudong City is still to develop the economy and consolidate the basic role of the engine of domestic economic development.

Hudong is the first stop for foreign investment in China, second only to the capital Tianjing, and has always been praised as the largest metropolis in the Far East. Taking Hudong as the center and driving the development of the entire Yangtze River Delta is a task stipulated at the national strategic level. Unlike the dominance of private capital in Jiangsu and Zhejiang provinces, Hudong is mainly foreign capital and state-owned capital.

After Li Zhiguo took office, the first fire burned on the Hudong Metro Hub Business Center project, which is a major project that Hudong City focuses on, especially the previous mayor was involved in it, resulting in the downfall. Li Zhiguo must clean up the bad debts left over from his presidency and cut it off from the past in order to better face the future.

The Hudong Metro Hub Business Center project was originally to announce the investment results on New Year's Day, but due to political factors, it was delayed for a period of time, and now it is time to solve the problem in a centralized manner.

Li Zhiguo convened an economic forum, mainly inviting investors who are interested in investing in the Hudong Metro Hub Business Center project, listening to their opinions, and also briefly reporting the results of the Hudong Municipal Government's handling to everyone. The Hudong Municipal Government continues to admit that the project has been reviewed and legalized, which is a relief to the big real estate developers from the Hong Kong government. At the same time, the Hudong Municipal Government will re-attract investment and find suitable partners to continue the development. Although there have been similar rumors of gossip before, there is an official conclusion from Li Zhiguo's mouth today.

Qin Ran was also invited. After Li Zhiguo was transferred, he never met the other party. Compared with in Jiangsu and Zhejiang. Li Zhiguo is now much more confident, and he has more domineering.

After the meeting. Secretary Ding specially informed Qin Ran that Mayor Li wanted to catch up with him alone, and the time schedule was only 15 minutes.

First of all, he congratulated Li Zhiguo, and Qin Ran also introduced the current situation of Jiangnan Plaza in Jiangzhou and Ningbo to the other party, and at the same time expressed a strong desire to invest in Hudong.

They also seized the opportunity to introduce the company's development strategy, further pointed out the indispensable strategic position of Hudong City in the company's territory, and of course, their plan to attract investment in the subway hub.

During the conversation, Li Zhiguo was more interested in the operation process of real estate developers acquiring land, especially the land bidding and auction and agreement transfer.

Qin Ran shared his experience with the other party one by one. It focuses on the reality that land bidding and auction bring huge fiscal revenue to local governments.

After the talks, Qin Ran vaguely felt that Li Zhiguo would make a big move in the land market, because he suddenly summoned him not to just talk about the past.

Sure enough, Li Zhiguo's second fire burned on the issue of land transfer, and he demanded that Hudong City clean up the chaos of land transfer within three months, and that all land for commercial development projects in Hudong City must be publicly traded through bidding, auction or listing from July 1.

This is good news for Jiangnan Group, which is about to enter Hudong City in a big way, and the local land market has opened its doors to fair competition. The company is not afraid of any rival.

Without interference from above, Jiangnan Group won the land covered by two major subway stations in one fell swoop with excellent design solutions and large investments. At that time, the 100,000-square-meter plot located at the intersection of Line 1 and Line 2 in the center of Huinan District will invest 3 billion yuan, and the 80,000-square-meter plot located at the end of Line 2 in Pujiang District will invest 2 billion. New Gangnam Square was built separately. Among them, Jiangnan Plaza in Huinan District will build a 66-storey skyscraper, which will become the second tallest building in Hudong City to date.

Because it is a land price transfer agreement. Therefore, the land price is not expensive, 100,000 square meters is 520 million. The 80,000 square meters is 400 million, and the installment will be paid within three years.

Thankfully, it was a project that had been negotiated before. Otherwise, according to Li Zhiguo's requirements, all of them will be auctioned and listed on July 1, and the price will definitely increase several times.

Originally, Qin Ran called the commercial real estate company "Jiangnan Commercial", but after using it for a period of time, he found that it was not so desirable, so he renamed it "Jiangnan Commercial Land" to distinguish it from "Jiangnan Real Estate", which focuses on residential direction.

"Jiangnan Commercial Land" was established for about a year, it has developed rapidly, and has won orders for 5 Jiangnan squares in a short period of time, with a total investment of nearly 10 billion.

However, unlike the cash cow performance of "Jiangnan Real Estate", "Jiangnan Commercial Land" is a black hole of funds, constantly devouring the cash financed by Jiangnan Group, and the harvest of output cannot be seen for the time being.

At present, "Jiangnan Real Estate" can start sustainable development with its own rolling capital, but "Jiangnan Commercial Land" is extremely lacking in capital investment, and the amount of a single Jiangnan Plaza project is calculated in billions.

Now the construction of Jiangzhou Jiangnan Square and Ningbo Jiangnan Plaza, after letting the construction of the Ninth Bureau advance part of the construction of the house, the real money investment of "Jiangnan Commercial Land" has reached 600 million, and it is expected that at least 1 billion cash flow will be prepared for its use in 2 years before completion.

Then the two major projects that have just arrived in Hudong will immediately have to pay nearly 100 million yuan for the first installment of land transfer, and 920 million yuan for land within 3 years, not to mention the construction of two Jiangnan squares on the subway hub with a total cost of 5 billion.

Real estate development is indeed a capital-intensive industry, even if Jiangnan Group has taken shape, but now it is still facing a large funding gap.

What to do?

Reduce the development speed of the enterprise, first build the Jiangnan Square in Jiangzhou and Ningbo City, and then consider the construction of Hudong. As a result, the start of commercial real estate projects in Hudong City will be delayed for at least a year and a half.

No, step by step, the Hong Kong businessmen, who are competitors in Hudong City, are already preparing to start construction, and if they lag behind each other or go public on a large scale with each other, a large-scale market will be formed, and both investment and sales will face a red sea-like competition. What's more, this is different from the promise made by Hudong City when it attracted investment, which will damage the company's goodwill, and the government will repossess the land if it is not careful.

One way or another. Or in Hudong City, to start construction, at least to build a Jiangnan Square.

Qin Ran finally set the company's development strategy.

It is impossible to leverage such a large-scale development model with its own funds alone. I have to find a way to raise money.

First, of course, it is better to find a bank loan.

I really want to thank the state for not strictly managing real estate loans. Qin Ran borrowed 500 million yuan from banks in Jiangsu and Zhejiang Province with good relations, and later got 300 million yuan from Hudong City Bank.

Second, continue private financing.

Raising 1 billion funds from Lu Youcai and Lei Pingfu, a big shoulder guest in Wenzhou, made Qin Ran feel that the local private finance is developed, although the interest rate is 1% higher than that of the bank, but basically the procedures are much simpler.

The third is to raise funds abroad.

In March 2000, the NASDAQ bubble burst in the United States, resulting in a large number of international capital requiring new safe haven investments. China, which is preparing to join the WTO, has become their ideal destination.

At this time, Qin Ran's recruitment of talents finally came in handy, the group's CFO Sun Jingui is proficient in international financial operations, and has relationships with all parties, under his suggestion, Jiangnan Group successfully issued 2 billion yuan of 3-year RMB bonds settled in US dollars to foreign capital, with an interest rate of only 6%.

The two major projects under construction in Hudong have attracted the attention of investors, who unanimously agree that the future is promising, so the issuance of corporate bonds has been smooth. For them, China except for Tianjing. It is Hudong, and the project in the center of Hudong will definitely not lose money.

With these capital reserves, the project of "Jiangnan Commercial Land" should be able to sustain its development.

The next big thing is to attract investment.

As soon as Jiangnan Square is built, it must be opened to welcome guests. What about merchants? Now it's time to find a good partner.

When Jiangnan Group announced that it was preparing to build Jiangnan Plaza in Hudong City, many well-known businesses took the initiative to come to the door, after all, every inch of land in the center of Hudong City is valuable.

Zhang Cheng of the Investment Promotion Department was busy at this time. There are really not enough people, and he has been urging Liu Xufeng to deploy more people to help.

When the development plan of Hudong City was announced. Many front-line businesses have taken the initiative to seek opportunities for cooperation, which can be seen from one side of the importance of Hudong City in the national business map.

Order-based cooperation. Merchants can tell Jiangnan Commercial Land their own standards and requirements when Jiangnan Plaza is built, and Jiangnan Commercial Land will try to meet the requirements of the other party during construction.

"Our two sides are not just a square cooperation, but to face the whole country, our company is willing to build a stage for you to go to a larger market in the country. At present, there are already 5 that have been implemented in the plan, according to the company's plan in the future, every city center can see Jiangnan Plaza, you think about what kind of development prospects this is. Our company is 100% willing to develop together with you. Of course, as long as you have this intention, then you can discuss the requirements for rent, location, order planning and so on. ”

Zhang Cheng has been honed in a short period of time, and he already knows how to deal with these shrewd merchants.

According to Qin Ran's instructions, Jiangnan Group is looking for long-term and powerful partners, and the two sides will help each other and win-win and develop together.

Stimulated by the good news of the Hudong project, Jiangnan Plaza has reached cooperation agreements with several large enterprises, such as supermarket giant Wal-Mart, home furnishing giant IKEA Group, McDonald's, KFC, Xinhua Bookstore, Hudong First Department Store, Wanqian Food, etc.

Many of them are planning to expand in the Yangtze River Delta, and are looking for suitable places to settle in, and now the development steps of Jiangnan Plaza are in line with them, so the two sides are very happy to reach a cooperation agreement. However, this is only an agreement of intent, and what will happen in the future depends on the actual performance of the first Gangnam Plaza.

At the same time, the hotel, cinema, KTV, and amusement park companies led by Song Pengcheng are also being further formed, and they will all settle in Jiangnan Plaza.

The positioning of Jiangnan Plaza takes the low-end route, and it is enough to capture 80% of the general public, so the required brands must also meet the positioning of the square, for example, there is no need to enter international luxury jewelry.

In terms of positioning, Qin Ran requires 60% of the business to belong to commercial retail, and 40% of the business formats to belong to entertainment and leisure, so as to keep customers in Jiangnan Plaza as much as possible. (To be continued......)