Chapter 307 Ants
After entering the room, Gao Shan warmly invited Zhang Yunqi to sit on the sofa and served him tea. The two of them had a pretty good conversation, but who would have known that the young man sitting in front of him had once sent his son to a juvenile detention center?
The world is like a game of chess, and human hearts are unpredictable.

Gao Shan stood in front of a huge French window that covered an entire wall, with his hands behind his back, and said, "Perhaps this is a little rude, Mr. Zhang. I asked you to come this time because I heard that Longjingyuan is about to move. As for the old factory area, I wonder what your plans are?"

Zhang Yunqi said something nonsense: "Boss Gao, what rumors did you hear yesterday that made you come to me?"

Gao Shan said: "I said yes, do you believe it?"

Zhang Yunqi smiled: "Mr. Gao, do you have any good suggestions?"

Gao Shan said: "I don't have any suggestions, but if Mr. Zhang is interested, we can cooperate."

Zhang Yunqi asked: "How do we cooperate?"

Gao Shan said: "I know that Mr. Zhang has a long-term vision. He has built a huge Longjingyuan Industrial Park project, and has also laid out plans in the catering industry and the electronics industry."

Zhang Yunqi was not surprised that Gao Shan knew all of his businesses, even the VCD project. "Mr. Gao is also interested in the DVD player industry?"

Gao Shan said, "No, I don't do business if I don't understand it. New things like VCD are more suitable for ambitious young people like you. I can't keep up with the times. If possible, you can give me one when you put it on the production line."

Zhang Yunqi said straightforwardly: "No problem. Mr. Gao will definitely be among the first batch of products after production starts."

Gao Shan smiled for the first time and said, "Then I'd like to thank you, Mr. Zhang. However, as far as I know, you have invested a lot in the industrial park, and you are also planning the DVD player industry, which is even more expensive. To be honest, it may not be realistic for you to come up with enough capital to operate the old factory at the moment."

Gao Shan brought the topic back. Zhang Yunqi was of course aware of his intention. The Phoenix Group mainly engaged in commercial real estate and entertainment industries. There was no doubt that Gao Shan had already set his sights on the land of the Longjingyuan Cannery.

Although the commercial housing market had not yet taken off in the mid-90s, let alone a small city like Jiangchuan, domestic commercial real estate had already grown in scale, and commercial real estate development was definitely a profitable business. The land of the Longjingyuan Cannery was located in the south of the city center. When the project was launched in the s, it was still relatively remote. With the expansion of the city, its advantageous location became more prominent. It is close to Yuxian Street, the starting point of the Hunan-Guangdong Ancient Road, which has the largest flow of people and the most vendors, and borders Xiangnan College. If developed, the commercial value will be huge.

Zhang Yunqi said: "I want to hear what Mr. Gao thinks."

Gao Shan said: "You lack capital, but I have it, including foreign capital resources. The general framework can be like this: you and I, and then bring in a foreign real estate company, and the three of us will jointly establish a real estate company. Of course, the proportion of foreign capital will be actually controlled by the two of us. As long as it is called a joint venture, we can develop the old factory area of ​​Longjingyuan in the name of attracting investment. Mr. Zhang, what do you think?"

Gao Shan turned his head to look at Zhang Yunqi.

His eyes were sharp, but he was practical and his words were correct.

Although Zhang Yunqi was not short of money, he did lack the capital to leverage commercial real estate at that time.

94 was the second year of a new round of high inflation in the domestic economy. As far as Zhang Yunqi remembers, the retail prices of commodities skyrocketed this year, at least by more than 20%. For this reason, the state launched a series of tightening policies to stabilize the economy, and adopted strict measures such as recalling illegal loans within a time limit, strengthening control over bank loan quotas, and raising deposit and loan interest rates. In such an environment, it was very difficult for private enterprises to get loans from banks. Even if they got regular loans, the high loan interest was not something that ordinary enterprises could afford. This was an important reason for the slowdown in the development of private enterprises in the mid-90s.

For a project as large as the new Longjingyuan Industrial Park in Yunxi Village, with the instruction of Yang Jiarong, it would be no problem to mortgage the assets of Longjingyuan and borrow 2 million yuan from the bank. However, this is an agricultural industry that benefits the country and the people after all. It is not realistic for the old factory to borrow 20 million yuan for commercial real estate development.

Secondly, in addition to the differential value of the land itself, the reform policy of state-owned enterprises in Jiangchuan City from the 90s to the early 21st century resulted in very low costs for starting commercial real estate.

According to the city's policies, the government will take 70% of the added value of commercial real estate development land! However, if it is a state-owned enterprise restructuring, this proportion can be reduced to 40% or even zero!

Similarly, real estate development requires a one-time payment of a series of taxes such as business tax, land value-added tax, corporate income tax, stamp duty, deed tax, etc. If a cooperative development is adopted, only the deed tax needs to be paid in advance, and other taxes can be considered after the development is completed and benefits are generated.

Whether this policy is like giving birth to a child without an anus has been complained enough by those 996 workers who work hard but cannot afford to buy a house in later generations. However, there is no doubt that at that time, this policy led to many real estate companies in the city being eager to seize the land of state-owned enterprises. But the problem was that the city did not trust these natives very much. In the 90s, the concept of foreign investment was strong, and the city was keen to pursue foreign capital, including for later development. The city has always hoped to introduce outside capital.

Gao Shan proposed this strategy, that the two companies jointly set up a real estate company with a foreign-funded company in name only, which firstly solved the problem of leveraging the source of capital for commercial real estate. Zhang Yunqi could completely invest in land, and if he had a bigger appetite, he could even cash out a considerable amount of money; secondly, it was only in the name of a joint venture, and the jointly established real estate company was actually their own piece of land. At the same time, holding the banner of attracting investment, it was invincible and absolutely in line with the city's idea of ​​attracting investment. In the deed tax and the added value extracted by the government from the change of the property of the land used for commercial real estate development, there was a lot of room for operation and preferential policies were obtained.

If you cooperate with Gaoshan, this operation can indeed minimize investment and maximize benefits.

Zhang Yunqi put down his teacup and said to Gao Shan, who was standing calmly by the French window, "Mr. Gao's idea is very touching, but I also have my own problems. You should know that Longjingyuan is in a turmoil right now. Everyone is against closing down the old factory. If I cooperate with you to develop that piece of land at this time, it will undoubtedly add fuel to the fire. How can Liansheng afford this risk?"

Gao Shan said: "The employees may make a fuss, but one thing is clear: that piece of land is already yours."

Zhang Yunqi smiled and stood up, walked to Gao Shan and stood side by side. This was already the highest floor of Jinmao Building. Looking outside through the French windows, the view was excellent, the sky was high and the sea was vast: "Mr. Gao, do you like standing here to enjoy the scenery?"

Gao Shan said: "Men like to stand high so that they can see far. Where is Mr. Zhang?"

Zhang Yunqi shook his head: "Looking down at the mountains and rivers from a bird's eye view can certainly inspire great ambitions, but I prefer to look down. Mr. Gao, look at the pedestrians on the road. They are as small as ants under your feet. They walk hurriedly. Although I can't see their faces clearly, they probably look numb and tired. When I'm bored, I can't help but wonder, these people live such a tiring and painful life, why do they still work so hard to live?"

Gao Shan looked at Zhang Yunqi deeply, his eyes were very sharp: "People are different, and you are different from the workers in Longjing Garden. I think that a young man like you with a bright future should not be indecisive."

"so?"

"If you are woken up by a mosquito while sleeping and you can kill it with a slap, will you think that all living things are equal and not kill it?"

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(End of this chapter)