After returning to the wealthy family, I was abused by my biological parents

"The old urban area renovation project involves a total of 42 old residential areas and shantytowns, with nearly 5 households, a construction area of ​​more than 7 million square meters, and a total area of ​​nearly 1 mu, including streets and parks.

The planned investment is RMB 347.8 billion, with a four-year planning period.

In terms of capital investment alone, no private enterprise can afford it on its own.”

The person doing the project analysis above is Huo Zhinian himself. He doesn't speak very fast, but most of the people present actually know what he is talking about.

"State-owned enterprises don't do this kind of thing, so this is a very difficult nut to crack. If we can get it, it will not only be outstanding, but also establish the company's position in Yunnan Province in one fell swoop.

In other words, as long as this project can be completed within a few years, we will be the only ones who can complete similar projects in the future.

The original plan was to complete the demolition and reconstruction work within four years, which placed higher requirements on construction progress and financial stability.

Taking into account that these are projects to improve the living environment, the impact of the funds we invested and their contribution to local political achievements must be considered by both the current and next leaders, so this is how we arrange our plans.

The contract must be a package contract, but the project must be carried out in batches and phases, and it can be promised to be completed within three and a half years.

Otherwise, our own capital costs and sedimentation costs will increase by at least 17 percentage points.

If we pool our financial strengths and cooperate with financial institutions, coupled with the government's credibility guarantee, we can shorten the cycle of recovering funds.

Generally speaking, the biggest fear of real estate projects is the unstable capital chain, but we do not have this problem.

In addition, there is another prerequisite for ensuring the stability of funds, that is, when the zoning is implemented, the entire community must be covered, rather than pouring money into all shanty towns like water.

Therefore, we suggest discussing the specific operational methods with the government.

We recommend adopting the model of overall development and operation, and project bundling and phased construction.

The scale of this incident is relatively large, and ordinary private enterprises dare not take such a big risk, especially those with insufficient working capital, as they cannot afford the capital costs.

As for the specific operation process, first of all, there is the issue of government demolition and storage funds. According to the comparison and estimation based on the housing prices in Yuncheng and the planned amount, we believe that the planned capital investment data is too high and is inflated by 5 to 7 percentage points.

Analyzing the land prices, housing prices and commodity price factors in Yuncheng, the funds for the acquisition and storage should not exceed 40 billion yuan, but if we concentrate the funds on one-third or one-quarter, we will not need that much money.

We will help the government to advance the funds for storage, and the next step is the supporting construction.

This part includes resettlement housing, daily necessities markets, streets, parks, green spaces, lighting, etc., depending on the government's requirements.

It should be noted that the government will put the cooperation rights for the part of collecting and storing funds out for bidding. This is the first time to bid.

The content of the bidding should stipulate two major items: the amount of funds and the demolition and resettlement project.

We should be able to achieve this, as there are probably not many companies willing to deposit 40 billion yuan in cash in a government-designated account for at least six months.

After signing the contract, we will advance the funds needed for demolition and storage in accordance with the contract. Of course, the interest will eventually belong to the government, and we will get nothing.

The second bidding is a package bidding for all the supporting construction projects mentioned earlier, including resettlement housing, land acquired after demolition, etc.

We must win this second bid as well.

Because the land and new construction in the second bidding are the biggest sources of profit for the project.

Otherwise there won’t be much profit.

The price of the second bidding will inevitably be higher than the first. The difference between the two auctions will be taken away by the government, no matter what name is used.

Since we won the bid the first time, we will definitely strive for the second time, so it is certain that they will find someone to raise the price, and we have to accept this.

After winning the bid for the first time, the use cycle of the land acquisition and storage funds will be proposed when signing the contract, which means that the government must clearly specify the time node for the completion of land acquisition and storage.

No matter how many processes and formalities they need to go through to make the reclaimed land eligible for sale, the time cannot be too long.

Otherwise, the interest on the billions they have already paid would be enough to make them continue to drag it out.

……

To sum up, the most difficult part of the entire project is not the issue of advance payment.

The most difficult part is to get the government to agree to our plan and continue to stick to it when more than a dozen communities are demolished and renovated. Only then can we take advantage of the larger amount of funds to gain the upper hand.

The advantage of the project plan is that the government did not spend a penny. Not only did it solve the project problems, but it also earned a large amount of price difference and interest, which is in the tens of millions.

I don't think the government will be unmoved. I think the focus should be on how to prevent the remaining projects from being taken over by consortiums of local companies...

Finally, I need to add that we are a new company and suggest that all demolition work be handed over to the government. As a company, we will not participate and will not inquire about it.

You just need to keep an eye on the storage time.

......"

Chen Shaojie and Huo Zhiqiang sat side by side, listening but never asking any questions.

The purpose of Huo Zhinian's speech was to unify thoughts, which was something he was used to doing.

The whole process seemed to be smooth and well-reasoned. No matter how you look at it, the PPT was really simple, with just maps, photos, data and tables.

Everyone was listening carefully and recording the data and information they were interested in.

Chen Pingan was sitting below, stunned by what he heard.

Isn’t demolition and resettlement the government’s responsibility?

How come it suddenly became a business matter?

Another thing, a matter worth tens of billions, is decided just like that?

Also, will there be any trouble during the demolition process? This kind of thing is often in the news...

He thought about it over and over again, and always felt that this plan was very interesting, and he would never have come up with it on his own.

He turned on his computer and searched for a while and found that this kind of case was not very uncommon.

In fact, it is just a PPP model.

But, he has never seen it!

In comparison, Chen Xiaolong's expression didn't change much.

Obviously he must have known or at least heard of similar cases.

Seeing that he was listening very attentively, Chen Pingan asked in a low voice: "Do you know something?"

Chen Xiaolong shook his head slightly. "I don't know. I don't know the specific situation. Anyway, there will be internal communication at home after the meeting. You will know then."

Seeing that he had no intention of talking to him, Chen Pingan had no choice but to keep quiet.

The next step is how the two teams will divide the work and cooperate.

Until the end of the meeting, Chen Pingan still didn't understand. This project required so much money. How did the two companies plan to allocate the funds, what projects would they undertake, or how would they divide the money?