Chen Rui said that Li Dong was eager to prove himself, so he must be spending money fast.
Chen Rui was right about spending money fast.
Li Dong left Jiangbei on the 27th, and his first destination was Shanghai.
Compared to spending money, it was not as fast as Shanghai.
Opening a Yuanfang City in the bustling area of Shanghai would easily require billions of investments. This was not a false report at all.
Moreover, Faraway Supermarket also needed a landmark building in Shanghai since it integrated with Carrefour.
Other places could wait, but not the major municipalities. The sooner it opened, the more helpful it would be for Far away City.
…
Shanghai City.
In the second half of 2008, the land market in Shanghai was extremely quiet.
Since March, land prices had been falling. Compared to 2007, the decline was generally more than 10%, and the highest was more than 30%.
Even if measures were taken to reduce the price, the land introduced in Shanghai continued to be rejected, and the number of rejected land was increasing.
On March 1st, the Shanghai land market officially opened, but on April 8th, it was given a cold reception. Out of the eight lands introduced that day, two were rejected.
In 2007, such a thing would not have happened at all.
In 2007, no matter what kind of land was introduced, no matter the location, no matter how many people there were, as long as it was auctioned, there would be people bidding. Money was not money at that time.
This year, with the further impact of the economic crisis, the proportion of rejected land auctions was also increasing. From 25% in the beginning, to now, almost half of the land introduced in Shanghai would be rejected.
In addition to the rejected land, there was also the issue of retreating land.
Last year, Zhicheng Group won the King of Putuo Land at a price of more than 1.1 billion. This year, Zhicheng Group gave up a deposit of 30 million to return this land.
In the past year, the price of this land not only did not increase, but also dropped a lot.
On the day Li Dong came to Shanghai, the land was re-listed with a base price of 760 million, but no one was interested.
In addition to Zhicheng retreating land, Suning also recently retreated the King of Putuo Land in Shanghai, plot 163 on South Jingdong Road.
This land was bought by Suning at a sky-high price of 4.4 billion last year. The construction area was only slightly more than 60,000 square meters, and the floor price was as high as 67000 yuan per square meter.
But this year, the price of land had plummeted. According to professional estimates, the price of this piece of land might have dropped by more than 30%.
In other words, the value of plot 163 would only be around 3.2 billion if it was auctioned now.
Of course, Suning didn't want to lose so much money.
Suning had discussed with the Shanghai Municipal Government many times. Even Zhang Jindong himself had come forward to talk to them. In the end, after a "friendly negotiation," Suning was allowed to return the land.
The outside world didn't reveal what price Suning paid for this, but Li Dong and Zhang Jindong had a good relationship, and they were both members of the class reunion, so they naturally understood how much Suning had paid.
Nothing was done. The land was left there for a year, and Suning finally got rid of the land at a loss of 200 million.
During those few days, Zhang Jindong often complained in the group chat. However, compared to the 1.2 billion yuan drop, a loss of 200 million yuan was considered acceptable. At least he didn't suffer a huge loss.
After a series of failed bids and land withdrawals, the major real estate developers no longer dare to blindly buy land in Shanghai.
The drop was so big, and the commercial land prices had dropped even more, which was generally around 30%. Who would dare to spend so much money to buy land in Shanghai?
Last year, they spent 1 billion, and this year, they were only worth 700 million. Next year, if the price dropped by another 30%, they would only be worth less than 500 million.
No matter how rich they were, no one would dare to gamble like this.
Therefore, this year, the land transactions in Shanghai were extremely quiet, and the Shanghai Municipal Government was also having a headache.
Selling land was one of the sources of the government's finances.
On the other hand, it was also to improve the city's construction. How could the city's economy develop if there was no one to develop the vacant land?
This year, the Shanghai Municipal Government expected to develop more than 3 million square meters of commercial residential land. In fact, as of September, the newly developed commercial land was only about 1 million square meters.
By the end of the year, it was very likely that only about half of the government's plan would be completed.
At this time, the real estate developers were not anxious, and the citizens who wanted to buy the land were also not anxious. The one who was really anxious was the government.
Not to mention that the plan was not completed, the economy had also suffered a heavy blow. Several leaders in Shanghai were worried about this matter.
At this time, Li Dong came to Shanghai!
Far away's 50 billion Far Away City plan was also heard in Shanghai.
As soon as they heard that Li Dong took the initiative to talk to the government, both sides hit it off.
Far away had never been stingy with the land. It was easily hundreds of thousands of square meters, and one Far Away City was equivalent to dozens of real estate developers.
Especially in this context, if Far Away could really build Far Away City in Shanghai, just Far Away City alone might be able to complete 20% of the Shanghai Municipal Government's plan.
With the stimulation from Far Away City, maybe the Shanghai Municipal Government could really complete this year's plan.
In a situation where everyone in the government was almost in despair, the arrival of Far Away Li Dong was tantamount to a shot in the arm. It gave everyone hope and lifted their spirits.
When Li Dong met with the Shanghai Municipal Government, they talked about the Far Away City plan.
The Shanghai Municipal Government was very proactive and immediately gave a few pieces of land suitable for building Far Away City for Far Away City to choose from.
Moreover, the government promised to achieve three roads and one flat land. If there was a need for demolition, the government would also be responsible.
If it was in the past, there would be no such treatment.
No matter how strong the real estate developers were, they had to obediently take the land from the land exchange market and participate in the auction.
But now, the land exchange market was cold. Even if there was an auction, no company was willing to take over. Especially for large pieces of land, the value was shocking, and not many people dared to spend money at this time.
The few pieces of land provided by the Shanghai Municipal Government were all in the center of the business district.
South Jingdong Road was the first business district in Shanghai, so it was naturally in consideration.
The piece of land provided by the Shanghai Municipal Government was the piece of land 163 that Suning returned not long ago.
For this piece of land, Li Dong politely declined.
Even if the starting price given by the Shanghai Municipal Government was only 3.6 billion, which was 800 million lower than when Suning bought this piece of land last year, Li Dong did not consider it.
On one hand, the construction area of this piece of land was indeed too small. It was only slightly more than 60,000 square meters. It was possible to build a shopping mall, but it was completely impossible to build an urban complex.
On the other hand, based on the current market price, this piece of land could be sold for 3.2 billion. Li Dong did not want to buy it.
This piece of land did not have much potential. Even if it was 3.6 billion, the floor price would be close to 60000 yuan per square meter.
After the construction was completed, it would not be worth it if it was not sold for 80000 yuan per square meter.
With such a high starting price, the future increase would not be too big.
Even if Li Dong wanted to spend money, he would not spend it on this.
Other than the piece of land at South Jingdong Road, there were other pieces of land at Wujiaochang and Xujiahui in the center of the business district.
If it was last year, this piece of land would probably cause a frenzy of fighting over it.
But this year, unless the Shanghai market was willing to split up the land and sell it piece by piece, not many people were tempted, let alone fight for it.
As for Wujiaochang, because Wanda Plaza had already opened, the piece of land provided by the government was not far from Wanda Plaza. With such a close distance, it was obviously not worth it for two urban complexes to open at the same time.
In the end, Li Dong picked the piece of land at Xujiahui.
The construction area was up to 400,000 square meters, which was more in line with Li Dong's expectations.
Xujiahui was also one of the busiest business districts in Shanghai. There were many subway lines passing through it, including a few lines that had not been opened yet. There were a total of more than five subway lines passing through this area.
The Shanghai Municipal Government's starting price was not too high because the urban complex included residential, office, and commercial uses.
It was not just a simple commercial land. In the end, the Shanghai Municipal Land Bureau and the land trading market jointly offered a starting price of 6 billion yuan.
The average floor price was 15000 yuan per square meter. It did not seem high, but in fact, it was not low.
In 2008, housing prices were hit hard. The average residential building in Xujiahui was only about 14000 yuan.
The average price of the shops was not too high either. It was less than 30000 yuan in the busiest areas, and only about 20000 yuan in some of the more remote areas.
Far away City was used for both commercial and residential purposes. Based on the price given by the Shanghai Municipal Government and the construction investment, if the housing prices remained the same after a few years, the most they could do was to recoup their capital.
But to Li Dong, this price was not too high.
Even if the land cost was 50%, the cost after completion was less than 30000 yuan per square meter.
Of course, in reality, there was no need to spend so much. The land was always a big part of the project, and the cost after completion was slightly more than 20000 yuan per square meter.
In the next few years, the housing prices in Xujiahui would increase by quite a lot.
The average price was more than 40000 yuan per square meter, and it was normal for the higher price to reach 100,000 yuan.
With Far away City as a driving force, as long as the nearby population and economy could be boosted, it would not be difficult to triple the cost, and it would not take more than eight years.
Li Dong was clear about this. This time, he took the land not only to scheme against Han Yu and the rest, but also to make money for himself.
Making money and scheming against others at the same time. This was Li Dong's goal.
He was not that generous to use tens of billions of yuan just to scheme against a few villains.
Li Dong's plan was that even if Han Yu and the rest did not fall into his trap, he would still be able to make a lot of money from this.
The starting price given by the Shanghai Municipal Government was 6 billion yuan. Although the price was not too high, Li Dong did not agree to it directly and offered 5 billion yuan on the spot.
The leaders were shocked when Dong Xuebing cut the price by 1 billion yuan in one go.
They had seen people haggling, but they had never seen someone haggling like this.
This was not the market, and the price was not one or two hundred yuan. It was 1 billion yuan!
Even the top few tycoons in Shanghai did not dare to agree to 1 billion yuan easily.
Both parties were stuck on the price. As for other aspects, it was not a problem. The key was still money.
Li Dong gave a starting price of 5.5 billion yuan and did not negotiate with the government anymore. He handed the matter over to Dong Yu.
… …
After leaving the government building.
Li Dong heaved a sigh of relief. This time, other than Dong Yu's people, Chen Lang had also come to Shanghai.
Chen Lang did not participate in the whole negotiation.
He and Li Dong walked out of the government building together. When they got into the car, Chen Lang said, "General Manager Li, 6 billion yuan is not too high. But the land market is not clear now, and all the real estate companies have small pieces of land. But it is rare to see a large piece of land like ours. So far this year, the property prices have fallen by more than 10%. If it does not ease next year, or if it continues to fall in the second half of the year, it will be our turn to give up the land next year. "
Li Dong shook his head and said, "The property prices will rise sooner or later. It's hard to say for the third or fourth-tier cities. For a first-tier city like Shanghai, the property prices will not fall for too long.
If there is demand in the market, there will be room for us to survive.
The reason why the major real estate companies did not make any moves now was not because they were worried about the land prices falling, but because the banks were not lending.
In the past, they only needed to pay a deposit, and the rest could be found ways to get money from the banks.
But now?
Wu Shengnan had said that it was necessary to prepare more than 30% of the funds.
For example, if anyone wants to take down Xujiahui, they will need to prepare 1.8 billion to 2 billion yuan.
Don't think that the major real estate companies have a lot of funds. If we really ask them to take out so much money, how many of them can afford it? "
Chen Lang nodded and hesitated for a moment before he asked, "General Manager Li, are we really going to take it down? We just arrived in Shanghai. Isn't it a little hasty? It's still necessary to do a preliminary inspection and market research. I think it's not too late to make a decision after three to five months of investigation and then look at the market. "
If it was according to normal procedures, this was right and necessary.
After all, it was an investment of billions of yuan. How could it be decided in a few days?
But Li Dong wanted to make a quick decision now. He would not hesitate to spend one or two hundred million yuan. In any case, he would still make a profit in the end.
After Chen Lang finished speaking, Li Dong rejected, "The sooner the better. It's best if it's before the end of the month. Also, I won't stay in Shanghai until the end of the month. Hurry up and negotiate. After you're done, immediately transfer the first batch of funds to the government and officially put this land under Far away's name. "
"So fast?"
Chen Lang was stunned. Today was the 28th. Even if there was a 31st of the month, there were only three days left.
Was Li Dong joking to confirm a land deal worth about 6 billion yuan in three days?
Li Dong exhaled and said, "Just three days. Three days to settle the general conditions. The handover will take at least ten days. We have to complete all the procedures with the government before the 15th. "
"But it's so urgent. I'm worried that we will spend a lot of money." Chen Lang was a little worried. He felt that Li Dong was too anxious this time.
If they were to slowly drag it out with the government this time, they wouldn't dare to say that they could close the deal by 5 billion yuan.
But since Li Dong was so anxious, the government would see the opportunity and might not lower the price.
Li Dong smiled and said, "That's not necessarily true. We are anxious, but they are also anxious.
In the end, you can directly tell them that we won't choose Shanghai if we can't close the deal for 5.5 billion yuan. Our plan for Far away only has ten cities.
We can't close the deal in Shanghai, but Shenzhen and other cities are also within our scope.
Furthermore, I've always liked to settle things quickly, and this isn't the first time. We haven't been investigating the land in Beijing for long.
If the Shanghai government is really interested, they should know my habits.
Now that the market for land transactions is not good, there won't be another chance if we miss this opportunity.
If we want to meet a big client like Far away, and the requirements are not high, there won't be a second one. "
Chen Lang slightly nodded and agreed with Li Dong's statement.
He had no choice but to agree. This time, Li Dong was stubborn and no one could dissuade him.
At this time, all Chen Lang could do was to cooperate.
He was an expert in negotiations and had participated in no less than a hundred business negotiations.
Moreover, Yu Bo's team was not far from Shanghai. If necessary, he could call them together. Negotiating with the government would obviously lose.
If the negotiations dragged on, Chen Lang was even confident that he could lower the price to 5.5 billion yuan.
Unfortunately, Li Dong was too impatient.
It had only been about half a month. Usually, a round of negotiations might not even start after such a long time.
Chen Lang was thinking about this matter when Li Dong said, "Think of a way to lower the initial payment for the land in Shanghai to about 1.5 billion yuan. I still have eight plots of land to get for the remaining 8.5 billion yuan. If we use too much of the land in Shanghai, we might not be able to get all the remaining plots. "
Chen Lang couldn't help but ask, "General Manager Li, what about the follow-up development funds after we get the land?"
"I'll think of a way."
Li Dong was, of course, referring to Han Yu and the rest.
If Han Yu and the rest took the bait, they would have the funds to develop the land.
If they did not take the bait, Li Dong would drag it out for about half a year. When the real estate market picks up, he would sell off all the plots of land that Dong Yu had bought earlier.
Anyway, even without Han Yu and the rest, Li Dong had already prepared to start the construction of these ten Far away cities.
Now, it was only slightly accelerated, but it was still within Li Dong's plan, so it could not be considered as disrupting his plan.
Chen Lang was speechless when Li Dong said that he would think of a way.
Since Li Dong had thought of a way himself, what else could they say?
If they really ran out of money, they could just sell the land and make a loss. But if they did not start the construction, the loss should not be too big.
In fact, he wanted to persuade Li Dong not to pay the down payment and just pay a deposit.
As long as they paid the deposit, the land would belong to them for a certain period of time.
Even if they did not want it in the end, they could just be like Zhi Cheng and not ask for the deposit.
Suning did pay the down payment, but in the end, they had no choice but to cut their losses and make a loss of up to 200 million. If they only paid the deposit, 100 million would be enough.
Unfortunately, the current Li Dong did not listen to his advice.
Even Shen Qian couldn't persuade him, so what ability did he, Chen Lang, have to be able to persuade Li Dong?
Chen Lang was worried. His junior was becoming more and more domineering.
It was a good thing for some people, but for him, he was more anxious than excited.
Chen Lang sighed softly and became silent.
He still had expectations for Li Dong. In order to poach him to Far away, Li Dong compensated Huarun 30 million.
It was impossible to say that he was not touched.
Originally, he wanted to show off his abilities in Far Away so that he could live up to the tens of millions of annual salary and 30 million compensation.
But now, Li Dong seemed to be blinded by victory and could not listen to other people's opinions at all.
At this time, there was not much Chen Lang could do. He could only hope that there would not be a day when the tree falls and the monkeys scatter.
Li Dong was the stabilizing force of Faraway Galaxy. Once he fell, Faraway Galaxy's collapse would only be a matter of time.
As Chen Lang thought about this, he looked at Li Dong from the corner of his eyes.
Li Dong's expression was normal and did not seem to have changed much. But because of this, Chen Lang was even more confused.
Why did a trip to Sichuan cause Li Dong to change so much? What happened in Sichuan?
If Li Dong did not say, Chen Lang could not guess anything.
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