Chapter 548: Buying the unfinished building at a bargain price

Chapter 548: Buying the unfinished building at a bargain price

In the past two weeks, the share price of Penguin has risen sharply.

On the day when it announced the strategic acquisition of Jingdong Mall and the reintegration of its online shopping platform system, coupled with the news that the third quarter user data and profit growth exceeded expectations, the stock price soared 27.5% in a single day, and the total market value increased by approximately HK$70 billion.

No matter what the actual situation is, at least the pie has been rounded off, and many institutions and investors are very supportive.

Three days ago, in the international market, Britney Spears used the account "Ms. Monster" to personally experience the international version of Weibo's emoticons, emoticons, self-destructing messages and other features, and in just 24 hours, more than 269 million new registered users were added.

This also prompted Penguin's stock price to rise for three consecutive trading days, and its total market value increased by approximately HK$20 billion.

As the largest shareholder of Penguin Group, Fan Wumian became the biggest winner. In just the past dozen or so trading days, his book wealth increased by about HK$38 billion.

Although many investors failed to get on the train and could not get the grapes, they complained that the stock price was too high. The reason was simply that the total market value of Penguin stocks had increased fivefold from the beginning of last year to now.

But the sharp rise again after several months seems to indicate that Penguin Group has once again reached a new level and started the next round of growth cycle.

Penguin's market value is so high that it can indeed consider building its headquarters building in advance while the price is low.

After sending people to help investigate the details of the Olympic Village and Morgan Center projects, Fan Wumian personally took a car to Shenzhen and found Xiao Ma Ge who was busy working in Penguin's current simple office building.

It was rare to see Fan Wumian in the company, and Xiao Ma Ge was very surprised:
"I asked someone to prepare an office for you, Mr. Fan, a few months ago. I didn't expect that you never came once. Is the sun rising today?"

Fan Wumian ignored his teasing and asked directly:

"Do you want a headquarters building with a great location? There is an opportunity to make a fortune. I am choking on my food and can't bear it anymore. I suggest you take a closer look."

The company is constantly hiring, the office space has become increasingly crowded, and the stock price has continued to rise sharply recently. Xiao Ma Ge has indeed considered buying one or two office buildings in Shenzhen.

When the business grows big, but there is no decent office building, it is like walking in the night in fine clothes. Not only is the rental of the venue expensive, but there will also be troubles such as the owner's request to relocate, price increases, and inability to concentrate on renovations.

So, after hearing Fan Wumian's words, Xiao Ma Ge perked up and asked tentatively:

"Which building is being sold at a low price? Or are you planning to develop the land near Shencheng Bay?"

Fan Wumian shook his head and said:

"There is a perfect reason that 'seaside land needs to settle naturally for a few years'. It is a pity to put money on it too early. I don't need too many office buildings here for a while, and I have to hold on to hotels, shopping malls and residential buildings for a few more years."

"There was a piece of unfinished land, and the government wanted me to take it over. After looking at it, I thought it was very suitable for building the headquarters building of Penguin Group. However, the location is not in Shenzhen, but in Yanjing."

"We are now helping in times of need, and there are many benefits. The company now has 23.9 billion Hong Kong dollars in cash on its books. The development cycle may be as long as four or five years. In addition to bank loans, it will not take up too much cash each year. Just by bringing a large amount of tax revenue and employment to Yanjing, there is a chance to obtain some policy preferences, such as selling funds through the Internet platform and tax reductions and exemptions."

In fact, when I heard about the unfinished project, which was far away in Yanjing, Xiao Ma's heart sank.

On second thought, I felt that it was not completely impossible to open a branch in Yanjing, whether for the purpose of attracting talents, expanding the market, or accumulating personal connections.

In addition to thinking about tax and fee reductions, Xiao Ma Ge also hopes to use the development in Yanjing to ease the relationship with the operator behind DreamNet.

The current situation is that a certain telecommunications operator has been expanding wildly recently, taking countless profits into its own hands, just like Microsoft's downward market grabbing, causing many Internet companies to have a hard time.

The same was true for mobile phone ringtones. After Fan Wumian's new album was made into a ringtone, the profit sharing ratio was cut from 50-50 to only one-fourth. After finally reaching an agreement, he only got 30% in the end.

The contract was signed in the end.

After all, apart from cooperating with monopoly-type telecommunications operators, there are no other channels for distribution, and it is better to make less money than to make no money at all.

The instant messaging product launched by Penguin Group includes video call and voice call functions, which has indeed taken away the cake that originally belonged to the telecommunications operators. Under the influence of this factor, it is indeed difficult for the relationship between the two parties to be harmonious.

After taking the file bag and opening it, Xiao Ma asked:
"How much will the whole project cost? Many businesses in our company are just starting up, and the wireless value-added business has lost a large chunk of revenue. Many companies are competing with us for the market. If we lack working capital as a moat, we will be courting death."

Hear the words.

Fan Wumian nodded and replied, "Well, it will take a long time to develop, and only a small amount of money needs to be invested each year. Taking into account the possible appreciation of real estate, the returns should be good if you buy at the bottom."

"Look at the information first. The location of this land is quite good. A hotel was originally planned, but I don't think it's necessary. The residential project can be retained. According to the area of ​​the land, two office buildings can be built, plus three residential buildings, and some commercial projects can also be built as supporting facilities."

"The company that took over the project failed, and the development rights of the land returned to the original company. If the Yanjing government is anxious to revive this project, we can take the initiative and strive to take over the land at the 2002 land price, which means we will make a profit right after we get the land. This project with a total construction area of ​​42.6 square meters had an average floor price of only 856 yuan at the time. Even if the purchase price is a little higher, it is still very cost-effective overall."

In the Internet industry, Pony Ma is very proficient, but when it comes to real estate business, he is a layman who knows nothing about it.

The report says: "The Notice on Standardizing the Management of Revenue and Expenditure of Transfer of State-owned Land Use Rights clearly requires that the land transfer income be fully included in the local fund budget and that the 'revenue and expenditure are separated'. If the winning bidder fails to pay the land price on time, the government has the right to terminate the contract and reclaim the land."

Brother Ma pointed at the article and asked in confusion:

"I don't quite understand why the development rights can be returned to the original developer after the land is auctioned for the second time? This means that once we get the land for development, we have to pay the full amount of the land in the early stage, and we have to develop it before the Olympics, right? Such a project will cost more than 10 billion yuan in the early stage, and the subsequent decoration will cost several hundred million yuan. Isn't it too much money?"

Fan Wumian explained the key points and said first:

"There is no need to worry about the funding issue. I have talked to Bank of China and they can provide us with 80% of the land acquisition and development funds."

"At that time, Yanjing officials chose to terminate the contract and confiscate the land. The original developer filed a lawsuit, demanding the restoration of the right to use the land and promised to pay the remaining balance. I don't know where they raised the money from, but they really paid the land transfer fee."

"The developer is looking for funds for development. I asked someone and they said they are planning to raise 8 million RMB. The building area is 42.6 square meters and the cost per square meter is 2000 RMB, so they really need about 8 million RMB."

"We can negotiate a price with the original company, buy the land as a whole, and then start designing and construction as soon as possible. We will first complete the facade, and there is no rush for decoration. When the time comes, we will build a few sky villas with gardens on the roof, and we will each keep one."

Xiao Ma Ge probably understood what he heard, and asked with interest:

"Mr. Fan, are you still short of houses? I saw the news yesterday that you bought a luxury house near CITIC Golf Villas."

"Well, the developer gave it to me. I don't even know where the house is. The news also said that I went to see the house and was so satisfied that I paid the price on the spot. It's all made up. Don't take it seriously."

Fan Wumian had a headache and said:

"The courtyard houses on the north bank of Houhai are quite nice, but there are too many people at the door. If I develop this project, I will keep another one on the rooftop so that I can have some quiet time occasionally."

Not knowing what to say, Xiao Ma just gave a thumbs up and while carefully looking through the information, he exclaimed:

"It's more than 100 meters away from the Water Cube and only 400 to 500 meters away from the Bird's Nest. This location is really quite good. How much do you think we need to pay the original developer before they are willing to take the money and leave?"

Fan Wumian smacked his lips, shook his head and said:

"During this period, the land price has risen a lot. I'm afraid we have to offer 17 to million yuan before we can negotiate. The previous two land auctions sold for more than billion yuan, which has proved that there are indeed developers who are optimistic about the land, but they are not strong enough to take on such a large project."

Xiao Ma calculated silently for a moment and nodded:
"The floor price of two to three thousand per square meter is not too expensive. In addition to the office building, there are also residential buildings. By then, I'm afraid we can sell dozens of units just to our company. Living closer to the company will be more convenient for commuting. But I'm afraid that if I move to Yanjing, Shenzhen will have objections. We have worked hard to establish a good relationship, and we can't just break it off like that."

Fan Wumian continued:
"The headquarters is still in Shenzhen. Why not just open a branch in Yanjing? Once construction starts on my land, we can jointly build a super skyscraper, four or five hundred meters high."

"In fact, in addition to this Morgan Center project, the Yanjing government also wants me to provide funds for the Olympic Village. I plan to continue to pledge Penguin shares to acquire one-third or half of the Olympic Village residences."

"With the popularity of the Olympics, the Olympic Village will definitely be popular. The urbanization process in the mainland is so fast, and the real estate in first-tier cities is very valuable for investment."

"."

Xiao Ma Ge was quite speechless after hearing this. He always felt that Fan Wumian was not doing his job properly, so he said helplessly:

"As a major shareholder, you are desperately pledging Penguin shares. I'm afraid the stock price will fall again by then. You really like real estate."

"Who doesn't like it? Especially in Hong Kong, where everyone from ordinary people to the four largest families has been involved in real estate for so many years."

Fan Wumian said with a smile:
"If I want to invest in the Olympic Village this time, I will only need to borrow a few hundred million, and use the houses as collateral for the rest. My fund business is about to start, which can bring me sufficient cash flow. At that time, I will publicly promise not to reduce my holdings of Penguin shares in the next five years, which will help stabilize the stock price." (End of this chapter)