The rise of a great power: starting with military industry

Chapter 880: Better to be brave

Dalian.

Wanda Real Estate Group Co., Ltd.

A meeting is being held in the conference room.

There were some people in the conference room who sat very upright, with strong military qualities.

"We need to continue the old city renovation project, but we can't just do old city renovation. We should also enter the residential development. I have learned that now everyone's income has increased, and every household has savings. There is an urgent need to improve the living environment. The country has also introduced a housing system. Welfare housing distribution must be fully transformed into commercial housing. This is a huge business opportunity. We have been to Guangdong Province and Hong Kong. You all know the real estate situation there."

Wang Jianlin said: "As long as we get a piece of the pie, it will be enough for our company to enjoy a good life."

In 1987, Wang Jianlin applied for discharge from the army and returned to his hometown with a considerable amount of severance pay. Because he had won two first-class merits, three second-class merits, and six third-class merits, he was appointed director of the Xigang District Construction Bureau of DL City, and later transferred to DL City to be in charge of construction and finance.

After returning to his hometown, Wang Jianlin got married. Soon his wife became pregnant. In 1988, she gave birth to a son, whom he named Sicong, which means very smart.

In 1992, the second wave of people going into business started sweeping the country. Wang Jianlin was unwilling to stay put, so he also chose to go into business. He contacted more than fifty comrades to raise funds, and first took over the Xigang Residential Development Company which was on the verge of bankruptcy, thus officially entering the real estate circle.

Wang Jianlin's first pot of gold came from a project that his peers at the time did not dare or were unwilling to do: old city renovation.

Development projects require "indicators". Wanda is no longer a state-owned enterprise, so it naturally cannot get indicators. However, the government is very supportive of the old city renovation. So the government leaders gave Wang Jianlin a very unsightly shantytown north of the DL City Government.

At that time, it was calculated that the renovation cost would be 1200 yuan per square meter, and the company's funds were insufficient to support such a large project, so Wang Jianlin and others invested all their fortunes in it and also sought loans from Hong Kong Construction Bank and Hong Kong Bank.

All the money was used to transform the area into commercial housing, and then more than 2000 houses were sold out two months after they were built, with an average price of yuan.

This project made Wanda earn more than 3 million.

But now, Wang Jianlin is not satisfied with just carrying out the "old city renovation" project. The "old city renovation" project he has obtained now is to build more than 7000 houses.

Wang Jianlin plans to build mid- to high-end residential areas.

The "old city renovation" project has many restrictions, such as a maximum of 7 floors, and each house has a square footage limit. Although Wang Jianlin tried to skirt the rules, he only dared to build houses up to 70 square meters.

However, mid- to high-end residential areas are different. The house types can be larger, and even villas can be built, and the floors can also be higher, so the profits here are also greater.

"But how do we solve the land problem?" Guo Yan frowned. "The Guangdong government is auctioning land, but we don't have any here."

"I have heard that there is a 320-mu piece of land for transfer in the city. The current residential land price is 300 yuan per square meter. We can get this land for only 6391.56 million yuan, and there is no need for auction." Wang Jianlin said, "I have calculated that the construction cost of mid- to high-end residential buildings is about 1200 yuan. At that time, we can sell it for 2500 or even 3000 yuan per square meter."

"We don't have enough funds for such a large piece of land!" Yang Yuanchao said, "and it's so expensive, can anyone afford it? If we can't sell it, we will lose it."

"Let's take out another loan and give it a try. Before, everyone was worried that our renovated houses in the old city wouldn't sell for 1500 yuan per square meter, but in the end, we sold them at an average price of 2000 yuan." Wang Jianlin said, "Tsinghua University and Peking University, why not be bold? If we really lose everything, the worst that can happen is that we start all over again. We can go overseas and be mercenaries and fight for a few more years!"

Wang Jianlin is very optimistic about this project because the land is in a good location, facing the lake on one side and close to the city center.

Dalian's development is far inferior to that of Guangdong Province, and it is far behind Zhejiang, Jiangsu, Shanghai and other cities.

But he is confident about the future, and he has also learned that the country is now encouraging the construction of commercial housing, and even allows a down payment and the rest of the payment on schedule.

However, he only holds 30% of Wanda's shares, while others hold 70% of the shares. It is true that he is the largest shareholder, but not the controlling shareholder. He needs to obtain the consent of other shareholders.

When the others heard this, they were convinced.

At worst, I can go out and work as a mercenary for a few years. Anyway, everyone has a wife and children now.

Everyone had strong military qualities and acted decisively, so they all agreed to do this right away.

"Everyone should bring your military medals and certificates tomorrow. You can get a preferential interest rate when you go to the bank to apply for a loan, and you can also borrow more money!" Wang Jianlin reminded.

After the meeting, Wang Jianlin’s wife came to his house and angrily said, “Old Wang, are you crazy? Can you handle such a big project?”

"If the company goes bankrupt, my mother and I will be left with nothing!" Wang Jianlin's wife has a good family background. Her father is an old comrade-in-arms, a few years younger than Wang Jianlin. They got married after Wang Jianlin retired from the army.

Wang Jianlin's wife was very dissatisfied with his decision to go into business.

After all, Wang Jianlin has reached that level when he is less than 40 years old, and he has a bright future.

But Wang Jianlin was determined to get into business, and he was able to succeed.

Wang Jianlin took the enamel cup on the table, poured a glass of water and took a big sip.

Although he is now a billionaire, Wang Jianlin still likes to use this enamel cup, which he has used for many years.

Even though it doesn't look beautiful now and seems very old, he likes it very much and can't bear to throw it away.

"The risk is huge, but the return will also be huge!" Wang Jianlin's eyes flashed with a gleam of light: "I have analyzed that we can divide this land into three phases. Phases one and two will build high-rise buildings with 18 floors, two elevators per floor, 8/4 units, and the units are divided into 100 square meters, 120 square meters, 150 square meters, and 180 square meters. One building can build 144/72 units."

Wang Jianlin is an expert at accounting, having learned the skills while in the army. "Phase I and Phase II can have 30 buildings, plus some shops and supermarkets, about 3500 units, about 42 square meters. If we calculate at 1 yuan per square meter, we can sell it for 2500 billion yuan."

"Phase 500 is located near the lake. We will develop it into single-family villas. Each villa has a construction area of ​​125 square meters, so we can build 3000 villas. If we sell one square meter for 150 yuan, one villa will be 125 million yuan, and 1.875 villas will be 125 million yuan." Wang Jianlin said, "You don't think that even villas can't be sold in the whole of Dalian, right?"

Lin Ning shook her head. That wasn't the case. She knew that there were still some rich people in the entire DL city.

"As long as we build the houses, don't you think the whole of Dalian can't absorb 3500 units?" Wang Jianlin's eyes sparkled.

Lin Ning shook his head again. Dalian is still in urgent need of a house.

In the past, housing was distributed as a welfare benefit, but it was public housing. However, the living environment of most ordinary people was very poor, with a family crowded into a house of about 30 square meters.

The other is welfare housing, which is only for departments with good performance and money. It is difficult for government offices with little money to get welfare housing.

(End of this chapter)