Reborn Capital Empire - v2 Chapter 685

Chapter 685 The Plan of Universal Real Estate

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“Boss, the leverage of Huaxia’s real estate industry generally exceeds 70%. And unlike the United States, you can also withdraw funds through the sale of off-plan properties. In this case, why do we only guard the core plots of first- and second-tier cities? Like you said Yes, it is a perfect real estate development process to support the construction of first- and second-tier core blocks by collecting funds from off-plan house sales in third- and fourth-tier cities. In this way, we can not only leave more residential assets in first- and second-tier core cities for rent , but also to obtain more community properties.”

“Boss, although property services are not as good as real estate development and housing intermediaries, they are also a powerful complement to our group’s business. In addition, real estate development always has a low ebb. When we have enough income from residential property services, we will obtain lasting capital income and effectively to make up for the deficit in real estate development.”

“As for the shortage of personnel you are worried about. We can hand over the construction to Huaxia Real Estate Construction Corporation and professional construction companies such as Hutchison. The sales can be outsourced to specialized housing sales companies, and we only need to be responsible for design and investment. .Although the profit margin will be lower, it also saves us time and energy.”

“You have your own ideas, and I don’t object to your plan to make a big splash in the real estate development field, but you must fulfill my requirements. … The capital has Dongcheng, Xicheng, Chaoyang, Haidian, Fengtai, Shijingshan, six core urban areas, and the magic capital. There are Huangpu, Xuhui, Jing’an, Changning, Yangpu, Hongkou, Putuo, seven core urban areas. Pengcheng has Futian, Luohu, Nanshan, Yantian, Baoan, Longgang, six core urban areas, Yangcheng has Yuexiu, Haizhu District, Liwan, Tianhe , Baiyun, Huangpu, Nansha, seven core urban areas.”

“Jinmen, Jinling, Wuchang, Hangzhou, Suzhou and Hangzhou, Daocheng, Fengtian, Shangdu, Tanzhou, Shancheng, Rongcheng, Chang’an, Ningcheng, Guancheng, Xinwu, Quancheng, Dalian, Chuncheng, Luzhou, Luzhou Island, a total of 20 second-tier cities, each city has 2 to 4 core urban areas, a total of 75. Counting the 26 first-tier cities, a total of 101!”

“I require that the real estate development area of ​​each core urban area is no less than 600 mu, which can be developed in a decentralized manner or concentrated together, and it can be a residential area or a commercial complex full of hotels, apartments, and shopping centers. It depends on the surrounding location factors.”

“Currently, the land transfer price in first-tier cities is 1.6 million to 2.5 million per mu; the land transfer price in second-tier cities ranges from 400 to 1.5 million. Taking the median value, first-tier cities need 15,600 mu of land and 31.98 billion in land acquisition funds. Second-tier cities need 45,000 mu of land and 4.275 million land acquisition funds. 24 cities, 60,600 mu of land, need a total of 74.73 billion Chinese dollars. I will give you 42 billion, and then let Hanhua and Dongfang Group issue 80% for you ABS, so you can have land purchase funds of 75.6 billion Chinese dollars. The extra part can be used as a supplement to cope with emergencies. The income of Universal Group can be used as funds for land leveling and foundation construction in the early stage of the project, and subsequent construction. Funds are expected to be recovered from the sale of houses.”

“The sale of off-plan properties can be stopped after the three-month construction investment is met. I will let Hanhua Trust and Oriental Group use the total real estate of all projects as collateral to issue a second ABS to meet the follow-up project development funds. That is to say, before the entire project is developed, you only need to withdraw half a year’s investment in project development through the sale of off-plan properties.”

“After the entire project is completed, all the ABS bonds and interest can be repaid through the income from the sale of existing houses. According to my calculations, after all the projects are completed in three to five years, the price of the property will increase by 1-1.5 times. At that time We can keep more properties and properties and maximise profits.”

“In addition, this year, and the first year after the project starts, all net income of Universal Group will be invested in the core projects in these 24 cities. However, subsequent years, and the additional income generated by all funds circulating in the account, can Leave it for your own use.”

Now the daily interest of Huaxia deposits is as high as 2/10,000. The 42 billion funds deposited in Huaxia’s bank for one day is 8.4 million, and a month is 252 million Huaxia coins. In addition, the construction funds of the project are not all transferred to the account of the construction company at once. With such a large development project, Universal Group can completely strive for more favorable conditions for itself. There are so many things, the money saved will be very considerable, enough for Tang Wenfang to be able to work in third-tier cities.

“Mr. Tang, as long as I complete my development plan of 101 districts and 60,600 mu within three to five years. How far the rest of Global Real Estate’s business can develop depends on your ability. I won’t ask. But there is one point, However, any real estate project developed by Global Real Estate cannot have any quality problems.”

“clear!”

Tang Wenfang nodded solemnly. Although the big boss has given her a lot of space to display her talents freely, the 60,600 mu and 40.36 million square meters of real estate development projects are also a huge pressure.

Guo Shouyun smiled, stood up and walked closer to the projector.

“I’m not a harsh and stingy boss. You can get 1.5% of the net profit as your personal return for the projects you develop yourself, and the project team can share 3.5%. As for the core projects in the 24 first- and second-tier cities, wait for them to be completed. , and after paying off all the bonds and interest, on the first year of net operating income, you get 1% and the project team gets 4%.”

Tang Wenfang’s eyes suddenly lit up.

If the real estate development projects covering 60,600 mu and 40.36 million square meters in 24 cities are all leased to the outside world, then the operating income of Universal Group will exceed 100 billion. The net profit will also reach tens of billions. One percent is 100 million Huaxia coins, and this is the most conservative estimate.

A bonus of 100 million, compared to his current annual salary of 2 million, is really too much, a completely astronomical figure.

“Thank you boss!”

Guo Shouyun nodded slightly, “Work hard, I will not treat any employee who has worked hard and made outstanding contributions to the company.”

“Yes!”

“Okay, that’s all I have to say, do you have anything else to do?”

“there is none left!”

“Let’s go here first for this meeting. Remember what I said today.”

“Yes!”

Guo Shouyun cut off the contact ~www.mtlnovel.com~ After taking a deep breath, looking at the dim night outside the window, not only a trace of fatigue appeared on his face. Although he has done his best to hand over the day-to-day management of the company to the top executives he has hand-picked. But there are still many things that he needs to personally check every day.

“Global Group doesn’t need to worry about it in three to five years. It just needs to pay attention to it. Although the Huaxia real estate industry is in deep water, we do not eat alone, but only share a little profit. The development volume of more than 40 million square meters is not comparable to that. Country Garden and Evergrande have a lot of land in their hands. With my background, sufficient funds, and the contacts I have built in China over the years, I think I won’t encounter too many obstacles.”

After a pause, he rubbed his eyebrows.

“The next step is ruby. It was a bad decision to merge the ruby ​​mall into the ruby ​​company! But John Roberts does need to be beaten.”

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