Chapter 317
Everyone understands the people, and everyone knows how to calculate this account in their hearts.
Seeing Chen Li making such a promise with confidence, Kong Wenzheng and others couldn't believe their ears.
Kong Wenzheng is just a boss from coal. His predictions on the domestic economic situation and the prospects of the real estate market are not as accurate and in-depth as Chen Li. No one knows what kind of variables will happen in the long construction cycle of Qingquan Xinrui City.
However, no matter what, the two major projects of Xiushan Xinrui City and Qingquan Xinrui City are in front of you. After raising funds, Xinchaorui also invested solidly in construction and converted into physical assets that they can touch and see.
Even if the future value-added and profits are not as expected, it is impossible to lose all the underwear. In other words, with Chen Li's billions of funds as a guarantee, their returns can still be guaranteed.
Chen Li used the equity to mortgage Nanhua Group, which actually provided another layer of guarantee.
In other words, if the entire project stagnates due to the lack of subsequent construction funds, Nanhua Group will take away Xinchaorui's controlling stake in two years. At that time, Nanhua Group will ensure that the entire project will continue to be built for its own interests.
As long as the project can be finally completed, even if a total of 7 billion yuan of capital is invested at this time, it will only be able to recover 5 billion yuan and lose 2 billion yuan. The five-phase funds can only get back 15.6 billion yuan at the same rate. The funds they invested can almost guarantee a 60% rate of return. The losses are all the funds invested by Chen Li personally.
For Nanhua Group, the 100 million yuan loan to Chen Li cannot be recovered, but they obtained 55% of Xinchaorui Real Estate's equity. As long as this equity assets exceed 1 billion, it is not considered a loss.
In fact, even if the Xinrui City project company may eventually generate a huge loss of nearly 2 billion yuan, the 55% equity of Xinchaorui Real Estate is worth far more than one billion yuan. Therefore, as long as Nanhua Group has the opportunity, it must take over Xinchaorui Real Estate.
In other words, Chen Li bets all his wealth and life, taking all the risks while ensuring that the entire project can be finally completed in the future.
At this time, Kong Wenzheng had nothing to say and looked at the other investors in the room: "Old, since Mr. Chen has said that, what else can we say? Xinchaorui can guarantee our profits, and taking the money from us is not something else to do construction. After all, in the end, we spend the money in Qingquan - when we participate, we can contribute to the construction of our hometown."
"A few days ago, Mr. Li from Xishan County asked me to tell me that Jiahe Group has been doing financing recently and wants me to go there. Look, we don't have to go anywhere. It is the main thing to do in Qingquan." A dark-faced man near Qian Wanli said with a smile, "Mr. Chen is so confident that he can build a new city well. We old hats should not be suspicious anymore, so as not to prevent Mr. Chen and others from doing projects with peace of mind."
Chen Li said this, and these Zimei bosses changed their volatile attitude and decided to use the money to participate in the fundraising and investment of Dashang Capital's fifth phase fund. At this time, they were even more generous than they had originally talked with Zhou Dahai, and they wanted to invest all the idle funds in their hands. Kong Wenzheng decided to directly invest 50 million yuan.
The purpose of doing business is to make money and make a fortune. What projects can be guaranteed to have a 60% return rate in the next three years?
Kong Wen was about to keep Chen Li and Zheng Wenyuan and the others for dinner. Chen Li rushed back to Shangdu with something, but refused and stayed with Zhou Dahai to continue to talk to everyone about the follow-up matters.
On the way back to Shangdu, Zheng Wenyuan seemed a little silent. After all, Chen Li's gamble this time not only affected his personal interests, but also the entire Xinchaorui and the development direction of Dashang Capital.
If Qingquan Xinrui City is successfully built, Dashang Capital and Xinchaorui Real Estate will take the lead in the business world, and can be considered to have truly entered the ranks of big real estate developers in China, and can become a large company with a scale of over 10 billion yuan like Nanhua Group and Wanbang Real Estate.
As the executive director and president of Dashang Capital, he can truly be proud and let the people in his family take a good look. This young man is not as useless as they see him.
He resigned from Wanbang and chose to develop in Shangdu. He relied on his second aunt's support to obtain some of the resources controlled by the Zheng and Han families, but if he failed, this might be the last time.
Now his future and destiny are closely tied to Chen Li. The pressure on his shoulders is not much smaller than Chen Li.
"Call Lao Qian tonight, Lao Hu and find a place to drink?" Chen Li looked at Zheng Wenyuan next to him so stressed that he could only act more relaxedly.
Zheng Wenyuan stretched in the car and tried to relieve himself from his concerns about the future: "Okay, I'll call Lao Qian first and ask him to go directly to the Guobin Hotel. I heard that the seafood there tasted good, so today we will help Lao Qian lose weight."
Inside the chrysanthemum platform of Guobin Hotel, Chen Li, Zheng Wenyuan, Qian Wanli, Hu Guoming, and other big business capitals, the trendy giants were having a break from their busy schedules to eat seafood.
After borrowing a billion-dollar loan from Nanhua Group, Chen Li has used the same trick again this time to stabilize the Qingquan investor, Qian Wanli, but Hu Guoming felt uncomfortable, and the atmosphere at the table was very depressing.
"Qingquan Xinrui City seems to be in great risk at the moment," Chen Li leaned back casually in the back of the chair and said with a smile. "We are now preparing for the possibility that Qingquan Xinrui City may not be profitable, but the profit prospects of Xiushan Xinrui City are relatively clearer. With a profit margin of 3 billion, I can't lose all my underwear - Besides, in two years, I really can't raise 1.2 billion yuan to repay the debts of Nanhua Group. They don't have the face to take away all the equity in my hand. They have to leave me some soup. Even if I have to sell the shares, I have to consider selling them to you first - don't do this, and I can't drink the wine without any taste."
"That's right. Even if it's not that smooth in two years, we have to raise 1.2 billion to help Chen Li overcome the difficulties first. We can't really let Nanhua pick up the cheap!" Hu Guoming said.
He Wan also drank a lot of wine today, blushing and said: "The 1 billion yuan loan from Nanhua Group, plus the 1 billion intention investment that Qingquan has agreed to, and the 200 million yuan newly raised by General Zheng from Beijing, are injected into the fifth phase of funds. With the 800 million yuan in funds that were injected into Xinrui City before, we have now had 3 billion yuan of start-up funds for the construction of Xinrui City in Qingquan. However, at the end of March, the East Outer Ring Expressway, Qingfeng Mountain Riverside Avenue and Liulin River water system renovation will be fully started, and the construction of twelve high-rise residential buildings and some low-density high-end residential buildings will also be started. The capital consumption will be huge in the next two years. We still need to do more work on the bank..."
"After you went to Qingquan at noon today, I made an appointment with President Chu in the afternoon. Old Chu is powerless now. After all, he is just the vice president and is very passive in this regard. However, Old Chu said that he will continue to find a way to help us borrow hundreds of millions of dollars more." Qian Wanli said.
After hearing this, Chen Li smiled and said, "The beginning of the new trend, President Chu was able to connect us. It was a long time to talk about it. I'm looking for time to treat him to a meal..."
Although there is still a need to continue to borrow from banks in the future, the construction funds for Xiushan Xinrui City are guaranteed, and Qingquan Xinrui City has also raised 3 billion yuan in start-up capital, and the construction funds are abundant in one year. In the next year, Xiushan Xinrui City will gradually build 600,000 square meters of new houses for sale. This time, a large amount of profit will be generated and invested in the subsequent construction of Qingquan Xinrui City. The funding problem of Xinrui City is not so urgent.
However, Chen Li has to do a lot of things. Whether Qingquan Xinrui City can be successfully built also involves the promotion of work in all aspects of Qingquan Binjiang New District. The burden on Chen Li's shoulders has not been reduced at the slightest moment.
"In order to ensure the smooth implementation of Qingquan Xinrui City, Chen Li almost took all the risks on him," Hu Guoming said with emotion. "Dacheng Construction has no great ability. The construction of the land in Xinchaorui Real Estate Jiangwan will be guaranteed by Dacheng Construction. Before the opening sale and sales collection, Dacheng Construction can still barely bear the project payment, material payment, etc. before Qingquan Xinrui City sees the dawn of success, we will not accept other orders."
Qingquan Xinrui City and Xiushan Xinrui City are too large, and a builder may not be found in China. Materials providers can advance funds to build, so Dacheng Construction is naturally far from this strength. The project funds and material funds must be settled in time to ensure that the subsequent construction can continue in an orderly manner. Dacheng Construction is doing its best to ensure the construction of 440 acres of Jiangwan, which is almost the limit.
As for the renovation of the Liulin River water system, they even had to pay a lot of money in advance so that the project contractors could purchase a batch of heavy engineering equipment before starting construction.
Hu Guoming's promise to make such a promise will almost tie the future fate of Dacheng Construction with Xinchaorui.
In early March, after the loan from Nanhua Group was in place, the establishment of the fifth phase fund was quickly launched, and investors such as Kong Wenzheng transferred the funds as much as possible. In less than a week, the amount of 2.2 billion yuan in the fifth phase was far beyond the original plan.
Next, Xinrui City project company made new equity adjustments, Xinchaorui Real Estate, and Xinchaorui Commercial's holdings in Xinrui City dropped to 33%, Dashang Capital increased its holdings in Xinrui City to 67% through the third phase, fourth phase and fifth phase funds (3rd phase funds hold 18%, fourth phase funds hold 23%, and five-share funds hold 26%).
Xinrui City holds Dashang Plaza, holds 100% of the shares of the two projects of Xiushan Xinrui City and Qingquan Xinrui City, and holds 5 billion yuan of funds to ensure the construction of the two projects, with a net asset of up to 8.2 billion yuan.
With other related assets, Xinchaorui has just entered 2004 and has controlled more than 10 billion yuan in assets.
At this moment, Fang Longmao, Mu Zhirong and the others were so anxious that they jumped straight into the air.
In the construction of Jiangwan Jialong City, the three companies need to guarantee 5 billion yuan of start-up funds - the 2 billion yuan invested by Wanbang is completely its own funds, and Fanglong Real Estate and Jiahe Group also need to receive an additional 500 million yuan each.
Currently, the Construction Bank has agreed to issue an additional 1.5 billion yuan in credit for the subsequent construction of Jiangwan Jialong City, but Fanglong Real Estate and Jiahe Group need to inject additional 500 million yuan of funds each need to be raised from other places.
Chen Li and the investors of Dashang Capital Phase 5 Fund invisibly directly raised the annual interest rate of private lending in Shangdu, Qingquan and Luocheng to 20%. How could they not jump?
Nowadays, bigger lenders know that Xinrui City is fighting against Jiangwan Jialong City. Xinrui City actually offers annual interest rates up to 20%. Jiangwan Jialong City has lowered its risk protection, and it is impossible for Xinrui City, Fang Longmao and Mu Zhirong to raise enough funds from the private lending market.
Moreover, in addition to the 5 billion yuan of funds they invested in the early stage and the 1.5 billion yuan credit limit provided by China Construction Bank, Jiangwan Jialong City had to invest in the early stage to build a large number of supporting entertainment, leisure and tourism facilities - this part of the investment had to be invested in at the beginning, but it required long-term operation to slowly recover the costs - resulting in a large amount of money they needed to borrow for subsequent construction.
Wanbang naturally did not want Jiangwan Jialong City's profit margin to be swallowed up by such high financial costs. Han Zirui, on behalf of Wanbang, proposed that in addition to the 5 billion yuan invested in the initial stage, the three companies would invest 1 billion yuan in Jiangwan Jialong City through loans, which actually required the three companies to share the high financial costs.
Wanbang has sufficient funds and can still get large low-interest loans from Dongjiang Province. However, Jiahe and Fanglong Real Estate have to raise another billion in funds, and they have to pay nearly 200 million in financial costs every year. How can they not jump?
But this is also a bitter fruit they had to swallow!
In order to minimize the amount of capital borrowing, Fang Longmao and others had to consider transferring the 1,000 acres of construction land they had previously held under the Shangqing Bridge to find buyers. After all, they were not able to develop that piece of land in a short period of time.
Chapter completed!