mtl008 Chapter 602
Chapter 602
Cheng Hua's eyes lit up involuntarily. Jiangcheng Department Store was actually going to start bidding. If it was sold directly to Si Group, he really had no good solution. However, since the other party was unwilling to transfer it all at once.
This is clearly for the purpose of earning long-term benefits. Although his roots in Jiangcheng are shallow, he is not as simple as it seems to outsiders.
There are already 600 million yuan in the account of Hanhai Group, not to mention that his mother also prepared a big gift for him. Before coming to Jiangcheng, Han Ying told him about the 200 million yuan, but he only found out what it was in the past few days.
Previously, in order to raise funds, the Si Group sold a project worth 270 million yuan, and this project happened to fall into the hands of Fang Yuejin, chairman of Tongjiang Real Estate.
Of course, this is just an appearance. In fact, the more than 200 million yuan to buy the Si Group project was raised by Han Ying. At that time, she planned to let Cheng Hua come here for a visit. These more than 200 million yuan turned into a project that would soon make money, which was naturally much more meaningful than more than 200 million yuan in cash.
Now, this 270 million project will naturally fall into the hands of Hanhai Group.
But what's even more coincidental is that, also in the northern suburbs, another project of the Si Group is still under construction. Han Ying, who is thousands of miles away in Beijing, wants to let Cheng Hua and Si Xuezhong compete against each other!
The real estate industry's profit model is naturally different from other consumer industries.
At the same stage and during the same period, the number of customers is basically the same. Two identical real estate projects have similar locations, consistent positioning, and similar prices, so they are naturally competitors.
The competition between real estate companies is basically a zero-sum game. If one side adds one, the other side will subtract one. For those customers who have the demand to buy property, it is not like shopping at one store and then going to another one for consumption, just like shopping at other stores for snacks.
It is highly likely that each customer can only choose one house from a real estate company, and for a long time in the future, they will not have the ability to buy a second house.
Therefore, as long as the sales of a certain type of house are poor within a period of time, good news will not spread far and wide, but bad news will spread far and wide, and invisibly, many shortcomings will be magnified.
Just like the real estate market, home buyers would rather enter the market crazily when there is a lot of noise and pass the parcel around, than take out a loan to buy a home when no one is interested.
The growth of the domestic economic cycle, which comes from the leverage of the real estate market, will one day die from the backlash of deflation.
As for a mature real estate company like the Si Group, they will certainly not stay on a single project for too long. After selling most of the houses during the sales window period, they will give the remaining part to the construction company to offset the construction costs, or simply mortgage it to the bank in exchange for working capital.
For them, time means efficiency, and hoarding more land, building more real estate projects, and chasing after housing prices is the right way to go.
However, what would happen if, in this situation, a real estate project with an investment of 200 million yuan was suddenly overwhelmed by competitors?
The funds invested in the early stage cannot be recovered quickly, the inventory of shops has increased sharply, and no one is interested in the built commercial streets. Although the houses are just bricks and tiles, they will not expire after a few years, so you can buy them slowly.
But for a real estate company, illiquid funds are like a balloon that cannot be blown up. It will only continue to leak air, become smaller, and become limp, and finally become a pile of unwanted garbage.
Failure to recover funds means not being able to grab the best land and not being able to carry out the most expensive and best-selling projects.
It seems invincible, but in fact, it may fall behind other companies by more than one step in the next two years.
Cheng Hua knew clearly that the failure of a single project would not bring down the Si Group, but this was just the beginning. If one project didn't work, then he would try two projects. If that really didn't work, then he would try three or four projects!
Although he doesn't have much time, he has strong enough barriers and backing.
Why is Fang Yuejin of Tongjiang Industrial willing to cooperate with his mother!
Of course, they want to take off the hat of being the second-best player for a long time and sit on the leading position in the real estate industry!
Fang Yuejin was very smart. After taking over the Si Group, neither the Cheng family nor the Han family would hide in the tiny city of Jiangcheng. So in the end, the leading real estate company in Jiangcheng could only be his Tongjiang Industry.
Cheng Hua stood up slowly, walked to a corner with a smile, and called Fang Yuejin.
The phone rang once and was answered immediately.
Fang Yuejin was obviously a little excited: "Mr. Cheng!"
Cheng Hua smiled and said, "Uncle Fang, you're too polite. Just call me Xiao Cheng. I called to ask you to do me a favor!"
"Jiangcheng Department Store is inviting bids. Could you please prepare a bid for me? As for the price, it should be 20% higher than the highest estimated price. You know, I don't like petty things."
"As long as we can get the department store project, I will agree to what Uncle Fang said on behalf of my mother."
Fang Yuejin took a deep breath and said, "Mr. Cheng, are you serious?"
Cheng Hua smiled and said, "I still have the final say!"
"Also, the project in the northern suburbs of Jiangcheng, which was originally called Songjiang Chenyuan, please change its name after you transfer it to our Hanhai Group. Songjiang Chenyuan sounds so rustic, so change it to Hanhai Tianxia City!"
"Now that I'm here, I have to let these country bumpkins in Jiangcheng know that I'm here!"
"Also, I have rented an office space. As for personnel, please recommend someone, Uncle Fang. I know nothing about the real estate industry. I am here just for the Si Group. I will have to trouble you with the rest."
Fang Yuejin laughed loudly and seemed indifferent to all this.
The project of Si Group was named Songjiang Chenyuan, and he called it Hanhai Tianxia City, which had nothing to do with him at all.
As for recommending personnel, he was even more happy about it. By then, Hanhai Group would be full of his people from Fang Yuejin. If Cheng Hua made any move, even if he farted in the morning, he would know about it in the afternoon.
Fang Yuejin would naturally not let go of such an opportunity that would put the handle in his hands.
"Don't worry, Master Cheng. I promise that we will win the bid for Jiangcheng Department Store this time!"
"What a coincidence! Our biggest competitor in Jiangcheng Department Store this time is the Si Group. As long as we can deal with Si Xuezhong, there will be a high probability that there will be no problem!"
"But for Si Xuezhong, this project is not a must. As long as our bid is high enough, the department store will definitely consider us!"
Cheng Hua sneered. This was not a coincidence. He was heading for the Si Group.
"Okay, okay, then I'll trouble you, Uncle Fang. I must ask you to ask the newspapers to write about the Hanhai Group's arrival in Jiangcheng!"
"Especially the renaming of Songjiang Chenyuan, we need to make it famous!"