Chapter 825: Chapter 296: Land Auction—Securing Binjiang’s Largest Commercial Plot of the Year!
Despite the large loan amount, the bank still approved it quickly.
Because the heads of several banks know that President Su always acts quickly, he does what he says without drawing circles for you.
The first batch is 2.5 billion, used for New Era’s national expansion plan, and the remaining 1.5 billion will be issued in batches as needed for headquarters construction.
The first thing Su Zelin did after getting the money was to auction the land parcels.
To expand nationwide, it’s essential to create momentum first.
Although New Era’s reputation is already quite prominent in the Jiangsu-Zhejiang-Shanghai area, outside of these three provinces, there aren’t many consumers aware of it, so Su Zelin needs to create a sufficiently large spectacle to make both investors and consumers realize that New Era is a powerful, large enterprise.
And this spectacle is to build a super headquarters.
After the national holiday in October, the Land and Resources Bureau publicly auctioned several commercial land parcels in the Binjiang High-tech Zone, including a 235-acre mega parcel that met Su Zelin’s requirements for the headquarters scale, the largest piece in Binjiang District this year.
Anything larger is unaffordable since the bank’s loan amount for headquarters construction is only 1.5 billion. With the current land prices in the high-tech zone, just this plot alone costs nearly 1 billion, leaving just enough for developing the first phase of the headquarters building.
The future Ah Li’s Xixi Park, also known as the Gold Rush City Park, another super headquarters, occupies a total land area of 426 acres, accommodating twenty thousand people to work and live simultaneously. However, it only signed its development agreement with the major leaders in 2008, with construction divided into four phases, the first phase completed in 2013 and the fourth phase finished by 2019.
By 2008, Ah Li was already quite large, with a stronger position to negotiate directly with the government. Old Ma even requested to build a Gold Rush City, asking if the government could designate a plot, big enough and cheap enough, and the government agreed. Of course, Old Ma might have employed some small strategies similar to Su Zelin’s, threatening to relocate the headquarters if conditions weren’t met.
New Era doesn’t have that confidence yet, unable to directly request the government to formulate projects and minimize costs. Moreover, Su Zelin can’t wait that long, so he started right away.
Auctioning land at this time is also quite cost-effective. In 2004, due to the state’s macroeconomic control, Lin’an’s real estate developers were discouraged, a situation that won’t gradually ease until after the property fair, so now is a good time to acquire land parcels.
Lin’an City Real Estate Trading Center.
Su Zelin, Yang Fen, and Kang Baohong sat in the auction hall.
Today, they came to participate in the bidding. They have already collected the auction documents, applied to the real estate trading center, and paid a certain amount of deposit, gaining recognized qualification.
The one holding the auction sign was Yang Fen, Brother Xiao Yang was a bit excited, as what they were about to bid on was a plot valued nearly at 1 billion!
If successful, the creation of the super headquarters would be hopeful.
Kang Baohong was also very excited; auction events of this caliber he could previously only see in TV dramas, never expecting to participate personally one day.
The auction time is approaching, everyone has entered and seated. The number of bidders for today’s mega parcel auction is not particularly many compared to the past. Firstly, the specifications are large, which small developers can’t afford. Secondly, this year’s national macroeconomic control policies have deterred many real estate merchants, so many cautious big bosses are choosing to watch the policy’s future development first.
The host appeared on time in the auction hall, first customarily informing that the auction activity will follow the principles of "openness, fairness, and justice," free bidding, the highest price wins, and then starting the formal auction.
Starting at 500 million, each bid must increase by at least 10 million.
The auction price rose all the way up to 870 million, at which point many bidders gave up.
Even if it transacted at this number, this parcel per acre also reached 3.7 million per acre.
If it were at the beginning of the year, even if this plot was 4 million per acre, many powerful large companies would consider continuing to bid, but now the situation is a bit special, too risky; there’s no need to take the risk.
Only two bidders chose to follow through. The first was Brother Xiao Yang representing New Era.
The other was a middle-aged man in his forties.
The owner of Lin’an Web News, who was also the one who won this commercial land parcel in a previous life, co-acquiring it with another partner, Tonghe Investment.
Both large companies coveted this parcel greatly, but New Era has been pursuing steadily, seemingly determined to get it. The two big bosses exchanged a look, briefly deliberated, and the Lin’an Web News owner gritted his teeth and raised the bid: "900 million!"
This had already reached the price threshold, everyone was increasing bids by one million at a time, and he went directly from 870 million to 900 million, raising by 30 million at once, deliberately demonstrating he’ll relentlessly follow through, hoping competitors would retreat when faced with difficulties.
The hall was silent, and everyone thought Lin’an Web News’s move might seal the deal.
"950 million!"
When Brother Xiao Yang raised the bid calling this number, the auction hall erupted.
Increasing by 50 million at once, 20 million more than Lin’an Web News!
This company really is rich and imposing!
Anyway, the money spent is the bank’s, and Su Zelin knows that the appreciation space for this plot is very large, so he’s not heartbroken at all. Even authorizing Brother Xiao Yang to shout 950 million, he’s still calm and collected.
The presidents of Lin’an Web News and Tonghe Investment weren’t as composed.