Chapter 179 The tuyere under the inflection point (2)
Chairman Gengniu invited him to the office for tea.
This year's spring tea, the first batch of tea leaves after winter, are all small tender teeth, and have a unique flavor to drink.
??The relationship is very good on weekdays. Old Man Geng didn't keep Fan Liancheng in secret and asked him directly:
"You don't think the market is bad now and you shouldn't spend a lot of money to buy that building. I saw that you didn't say much, so I just told me if I had any ideas so as not to be contrary to me until the meeting. I'm old and can't hold on to the face."
Fan Liancheng shook his head and said, "The big market is going down in the short term. The more you are at this time, the more you should increase your efforts. Putting aside the current financial form, the position and appreciation potential of the Golden Garden Building are absolutely nothing to say, and it is worth getting a bet.
You always say you are confident in finding a tenant. Of course, I believe that if the rent can be deducted from bank loans, it will definitely be good to hold it as a self-owned property for a long time. Moreover, the RMB exchange rate has risen madly. It is more cost-effective to trade in US dollars. It is much cheaper than the price I discussed last time. The price is more reasonable for a little over 2 billion. I will definitely stand on your side during the meeting and discussion."
After finding Fan Liancheng’s thoughts, Old Man Geng felt relieved.
A smile hangs on the corner of his mouth and continues to say: "That's the case. Qian Hai from the Investment Department has been running around recently and has found some investment opportunities worth taking.?? It has risen too much in two years, and it is normal for real estate prices to fall a little. Have you read the recent research report? The market is big. After this period, the house will still be easy to sell. If those peers lower the price but cannot sell it, I am really worried that this time is different from the South China Sea real estate bubble."
??Refers to the real estate industry research report last year. It not only focuses on the real estate itself, but also involves the speed of urbanization, the increase in the price of building materials labor costs, and official policies, etc.
Now that the real estate industry is facing setbacks, this is confirmed, but in the long run, the market is still broad, so neither Geng nor Fan Liancheng thinks that Longcheng Group can have any major problems.
??The opinion is unified first, and the rest is how to take advantage of the opportunity brought by this crisis. Fan Liancheng mentioned: "Recently, I got news that the boss of the real estate company called Hengda is almost crazy. He has a lot of good land in his hands and is positioned relatively high-end, but most of the development funds rely on foreign debt and have too low risk resistance."
"Well, I said I went out to seek funds. Wait and wait and see for a while. If I had the chance, Longcheng might be able to get some assets back at a low price. This Hengdazheng company is preparing to go public. I have seen the boss. He is a smart man. He is too strong and has high debts. He will not have any major problems.
??Xiao Fan, ask you something, if you swallow elephants with elephants now, can you and your dad accept it?"
The reason why Old Man Geng asked this is because there are not many major shareholders in Longcheng and their shares are concentrated in the hands of a few people. If there are opportunities for mergers and acquisitions, he is worried that the Fan family will stop them because they are unwilling to be diluted.
Judging from the current situation.
If the financial liquidity in the real estate market continues to deteriorate, there should be many opportunities to take action. They will all take three steps and look at the smart businessman with a long-term vision, and is venting in advance and getting a "vaccine".
Fan Liancheng hesitated for a while and replied calmly:
"You can also see that the shareholder Mr. Dong is ambitious and wants to bring his son into the company. The Liu family is focused on catching his own pocket. It is difficult to lead the team. At present, my family accounts for 40% of the shares. Occasionally, we have to rely on negotiation to resolve disputes, and there are fewer problems.
Mergers may lead to a wolf into the house, and you need to make a decision depending on the situation. There is no problem with the acquisition. I talked to my dad during the Chinese New Year. He thought it was the same as me and thought it might be an opportunity to grow the group. Especially recently, I have obtained a large loan, and the interest is more cost-effective than financing in society. I am also looking for a suitable investment opportunity."
The executives under the special matters handled well. These long-term plans are the key to the board of directors. They followed the steps last year, but now the situation has changed and many plans have been disrupted. Other companies are facing great enemies. Executives at the Longcheng headquarters, including Fan Liancheng, believe that risks and opportunities coexist now.
A large amount of money obtained from a loan should be used on the edge.
The reason why we can get such a high loan amount is that we have the idea of using social enterprises to alleviate the expansion of risks. The banks have made some requirements on how to use loans, including investment peers.
Many real estate companies have high debt ratios and are too high to continue to get loans from banks. This is equivalent to lending to Longcheng, which has more assets. While reducing its own risks, Longcheng Group will be allowed to select investment targets by itself. The nature of Wanke's credit line and loan is similar, and it is a practice of supporting the real estate industry and stabilizing economic fundamentals.
Loan investments, if they lose money, the bank will still collect debts if there is a problem.
The reason why I dare to get money from the bank is that if it becomes a big profit, I can take the opportunity to eat small fish.??
This has led to many real estate companies becoming dissatisfied with droughts, floods, and companies that are in urgent need of money cannot get money, while those who are not short of money can get large amounts of financial support.
In the final analysis, we have to look for problems from ourselves. If the debt ratio is not too high and there are some problems in itself, the bank will not watch it and refuse to do business, and deliberately bully anyone.
The real estate market is really cold now.
From October last year to now, the transaction price of second-hand houses in Magic City has fallen by four points, and the transaction price of new houses has also dropped by about 2.6%. The land auction market is almost frozen, especially in first- and second-tier cities. When Fan Liancheng first entered the company, he heard that the land in Sijiucheng could not be sold, and only 30% of the land successfully sold, and the recent transaction rate is even lower.
??When I took the land of "welfth house" next to the Customs College, I almost failed to collect three developers. It was Fan Liancheng who used Fans Holdings to make up the numbers and then took it down at the lowest price, avoiding the situation of failure to sell.
By looking at these things, we can understand why Old Man Geng is preparing for the future and talks about financing and mergers with Fan Liancheng. The situation is really serious. It is estimated that a large number of developers will fall into the quagmire in the future and opportunities may arise at any time.
If the Fan family doesn't nod, the old man Geng, as the chairman, can't show his skills.
At this moment, when he heard Fan Liancheng's unexpected and reasonable words, Old Man Geng replied:
"Yes, it's really hard to deal with the shareholders here. If your father had taken money from a fund company and borrowed loans from a bank back then, there wouldn't be any trouble now.
Then let it be. I understand your idea. I will take a piece of information and take it back to the office to take a look at it carefully. I think there should be a market if the project is over 10 billion yuan."
Fan Liancheng stood up and saw the document saying "The Master Plan of Lin'an Baima Lake Cultural Tourism Project" without opening it to know that the scale is not small. In Lin'an, it is a real estate project with cultural tourism. The business of tens of billions is much larger than Thames Town. It is probably a consideration for promoting the urbanization process...
??However, cultural and tourism projects have advantages, and the land acquisition price is often relatively cheap, and you can enjoy investment promotion benefits. After reading the map, I found that the planned section is located between Baima Lake and Xianghu Tourism Resort. The total planned area is 2 to 3 square kilometers and the construction area is more than one million square meters. The supporting facilities require an amusement park, which is really a big deal.
One square kilometer is 1,500 acres of land. Even Longcheng Group must be extremely cautious if it wants to eat such a large cultural and tourism project. Fortunately, from the map, it is very close to the city and a new area has been planned nearby, which is much better than those in the wilderness where only scenery is the only wilderness.
He replied that he would consider it. Fan Liancheng was not too concerned. Before the rabbit could see it, how could he play the eagle? After a quick glance, he found that the land price was slightly higher. Now there are investment opportunities everywhere. He does not want to throw a large amount of money on a project with too long development cycle.
Of course, if the conditions given are good, such as reducing the land price, allowing land transfer fees to be paid in installments, and tax and fee reduction support are given, let's talk about it separately.
No one beaten to death.
After returning to his office, Fan Liancheng took a look and kept it at hand after he browsing, and carefully handled the affairs of the day.
More than half a year after I returned home, I went to the Longcheng Tianjie Shopping Mall next to Chenghuang Temple to see it. Now it is finally about to open. The occupancy rate of the supporting office buildings next to me is only 55%. It is located in the Yuyuan business district. It is not that no one wants to rent it, but mainly because the rent is high, so don’t worry too much for the time being.
Like shopping malls and hotels, they plan to be held by the company for a long time, so they did not sell them. They held a short meeting before noon, and the only topic was the Golden Garden Building.
Several senior executives, shareholders, and board members rushed to the building together during lunch to visit. After a few months of unfinished work, the surroundings were circled and a little messy.
The windows were not installed, and the building was pretty good. When you visit the top floor, you can see the headquarters of Longcheng, the Oriental Pearl Tower and the Global Financial Center Building with a investment of one billion US dollars. The Center Building of the Magic City is still under construction, and not far away is the open space in Longcheng.
Due to the poor market environment, Fan Liancheng was planning to start construction some time ago, and the plan was still alive at the beginning. His current plan is to continue to complete the design approval work. As long as the situation allows, construction will be started at any time.
This is Lao Fan's idea during the Chinese New Year. Fan Liancheng is preparing to implement it. When his son always needs to be a little filial, he knows that Lao Fan has been thinking about this building for many years. Fan Liancheng actually wants a landmark building representing Longcheng, mainly to satisfy his vanity. From a commercial perspective, it is not necessarily better than building a house. It is better to hold it for a long time and be more stable.
When talking about this at a meeting a few years ago, Zhou Weixi was half joking and half serious, and said that he asked Fan Liancheng to invest some money, about 200 million US dollars, to buy some floors to run a hotel.
The hotel's low rate of return has been proven by several Langham Dragon City hotels.
Fan Liancheng is not stupid, he just said that if he is taking the planned high-rise apartment, he can consider it himself and rent or sell it with Banyan Tree No. 1 for a long time.
Chapter completed!