Chapter 512 The Account Cannot Be Settled This Way

Linhe City has coveted more than 1,000 acres of land in Linyiji for more than a day or two. Even as early as 20 years ago, when Tang Zifeng followed Zhou Heng to Linyiji, he had a small dispute with the municipal government over this piece of land. Confronted once.

It was precisely because of that confrontation that the officials in Linhe City got to know Tang Zifeng. In the next 20 years, no one dared to openly raise the issue of expropriating Linyiji's land to Tang Zifeng. However, it was inevitable to find Zhang Jianyang and others in private to spy on him, and the frequency was getting higher and higher.

When Linyi Machinery was built, it was in the 1950s. At that time, Linhe was only a small city, and Linyiji was located on the outskirts of the city. The land was not valuable. The municipal government of that year approved 1,350 acres of land for Linyiji with a stroke of a pen. It is said that the land originally planned by the city government to give Lin Yiji was far more than this, but nearly 10,000 acres. On the contrary, the manufacturer of Linyi Machinery saw through the city government's conspiracy in time and resisted the plan very tactfully.

There is no other reason. If Linyiji really takes over these nearly 10,000 acres of land, the farmers on the land will be resettled by Linyiji. Linyiji is not so stupid...

Well, actually this story is about Tang Zifeng’s alma mater. At that time, the country planned to build this school into China’s “Moscow University” and was not stingy with land. Decades later, a professor from the land management department of the school found the land grant document from that year in the archives. It stated that the planning scope of the campus was "as far south as Zizhuyuan". However, this plan was politely rejected by the past school authorities. .

Times have changed, and the urban area of ​​Linhe City today has expanded more than ten times compared to 60 years ago. Linyiji's location in Linhe has changed from an outer suburb to an inner suburb, and is now considered part of the city center. In this place where land is at a premium, there is a factory. Real estate cannot be developed, business districts cannot be established, and even urban arterial roads have to be detoured. You can imagine the frustration of city government officials.

As early as a few years ago, the city had already let the news out, saying that if Linji Group agreed to return the land of Linyiji to Linhe City, Linhe City would be willing to compensate it at a price of 4 million yuan per mu.

It has to be said that this expression from Linhe City still made the executives of Linji Group very excited.

In recent years, urban development has been carried out all over the country. There are many industrial enterprises in the city centers like Linyiji. They all occupy prime locations in the city and earn 35,000 yuan per mu of land. The profits and taxes paid to the city are less than the income of a shopping mall.

In order to allow these companies to relocate, various places have offered high prices, and countless companies have moved away.

Linyiji's land is 1,350 acres, of which nearly 400 acres are Linyiji's family area. After several rounds of development, Linyiji is now the most high-end residential area in Linhe City. It is impossible to return it to the city.

The remaining 900 acres of land are the production and administrative areas of Linyi Machinery, so relocation is not difficult. If it is handed over, nearly 4 billion yuan in cash can be obtained immediately. Even with the scale of Linji Group today, this amount of money can be regarded as a huge sum of money.

In fact, relocation is also beneficial to Linyiji. Linyiji's factory is located in an urban area, so the transportation of large items has become a hassle. Noise pollution and wastewater and gas pollution during production are also serious problems. For this reason, there is a lot of friction with the environmental protection, urban management and other departments. If you move to the suburbs, these problems will disappear, and it will actually be beneficial to production.

However, when Zhang Jianyang raised the matter at the group's office meeting, Tang Zifeng directly voted against it on the grounds that the group had not yet reached the point where it needed to sell land to raise money. The other executives were somewhat dissatisfied with Tang Zifeng's opinions, but they were concerned about Tang Zifeng's always strong style, so they did not insist on it, and the matter was shelved.

After several years of shelving, everyone finally understood Tang Zifeng's vision. Because from then to now, the land price in Linhe City has increased several times. The more than 900 acres of land in Linyiji is now worth 7 billion. If it had been sold back then, everyone would have been crying in the toilet now.

After such an experience, when Tang Zifeng finally proposed to return the land to Linhe City, the group of executives who had actively supported the land sale suddenly turned against the land sale on the grounds that the land price had increased so much. It's so fast. If we keep it secret for a few more years, it might rise to 10 billion or 20 billion. If we sell it now, wouldn't we suffer a loss?

Tang Zifeng relied on his remaining foresight to tell everyone that China's urban development boom has passed, and the focus of future development will shift to third- and fourth-tier cities. Linhe is now considered a second-tier city, and there is room for rising land prices in the city center. It’s not big anymore, it’s time to take out the land and cash it in.

The key reason that prompted Linji Group to decide to sell the land was the plan to acquire PATEO. The current valuation of PATEO is between 1.5 billion and 2 billion euros, equivalent to 12 billion to 16 billion yuan. It is impossible for Linji Group to come up with such a large amount of money all at once. The only way is to sell land.

"The production area and administrative area of ​​​​Linyiji total more than 900 acres of land. The city can give you 6 billion. On this basis, the city government can also come forward to guarantee you and coordinate with several banks to provide you with no less than 40 billion. A loan of 100 million yuan will be enough for you to acquire PATEO, right?"

Lai Dongyao understood what Tang Zifeng meant, suppressed his inner ecstasy, and began to bargain with Tang Zifeng.

"Mayor Lai, don't make trouble, let's be serious. Our land is a small 1,000 acres. According to the current surrounding land prices, it is worth at least 10 billion. Let's show our style and sell it to the city for 9.5 billion." Tang Zi Feng said generously.

Lai Dongyao cried out bitterly: "Mr. Tang, you are such a big talker. According to your calculation, one acre of your land is worth 10 million. How can the land price in Linhe be so high?"

Tang Zifeng said: "Why not? A piece of land in Linhe that was just auctioned last month, just over 40 acres, was sold for 600 million, or 15 million per acre. We gave it a 30% discount, and Mayor Lai also Is it because the lion opened his mouth?"

"That piece of land was called the King of Land in Linhe by newspapers. The current average land price in Linhe is less than 3 million per acre. We purchased the land in Linyiji for 6 million, which is already double the premium."

"The 3 million an acre that Mayor Lai mentioned is a place like Gaotan where birds don't lay eggs, right? We are in the city center, and the land next to it, even if it doesn't reach 15 million an acre, is worth 8 or 9 million. Right?"

"Mr. Tang, this account cannot be calculated in this way. The reason why land is valuable is that the supply exceeds demand. Now that Lin Yiji has taken out more than 900 acres in one go, there is more supply. The market cannot digest it all at once, and the price must not be based on surrounding areas. calculated at the level.”

"Is that so? That's easy. Let's take out 100 acres first, and the city will sell them first. After these 100 acres are digested, we will take another 100 acres. Mayor Lai, don't worry, before I retire, these 900 acres The land will definitely be sold out.”

"Mr. Tang, who doesn't know that you are young and promising? Before you retire, I am afraid that even being a minister is not enough. In the future, we, a small city like Linhe, will have to rely on you, Minister Tang, to take care of us. For a matter of just a few hundred acres of land, you can Don’t make things difficult for us.”

With a sad face, Lai Dongyao began to put a high hat on Tang Zifeng and play the emotional card. He had heard people talk about Tang Zifeng's bad temper, and he knew that if he played hard-to-get psychological games with Tang Zifeng, he would definitely be slapped in the face. If Tang Zifeng is made unhappy, it is possible to directly withdraw the motion to sell the land.

Linji sold the land because he wanted to raise money to acquire PATEO. With Linji’s status and Tang Zifeng’s connections, it was entirely possible to get 10 billion from other places. Therefore, in the matter of selling land, Linhe City Government also There is really no way to blackmail Tang Zifeng.

Since there are no cards in hand, there is no point in pretending to be tough. It is better to lower your head and say some soft words to Tang Zifeng.

After some twists and turns, the two parties finally reached a win-win result. Linji Group agreed to complete the relocation within one year, move the production area and administrative area to the outskirts of Linhe City, and free up about 950 acres of land to be returned to the Linhe Municipal Government.

Linhe Municipal Government promised to provide Linyiji with 1,000 acres of industrial land at a low price on the outskirts of the city to replace the 950 acres of land handed over by Linyiji. At the same time, it coordinated with banks to provide Linji Group with a 10 billion yuan loan for the acquisition of PATEO.

After Linhe City takes back 950 acres of land from Linyiji, it will develop it. Part of the land will be used for public welfare purposes, and the other part of the land will be auctioned, and the proceeds from the auction will be used to offset the bank loan of Linji Group. The guaranteed minimum price Linhe City promised to Linji Group is 7 billion yuan. If the auction result exceeds expectations, the excess will be distributed according to the proportion agreed by both parties.

Previously, Tang Zifeng offered a price of 9.5 billion, which was actually a sky-high asking price. It is impossible to use all the land in Linyiji to develop real estate. Road construction, greening and some public facilities must be built in the middle. Only 6 or 700 acres of land can actually be put up for auction. The city government promised to guarantee a minimum of 7 billion, which is about the same. You have to lose money.

Of course, from the perspective of the city government, the accounts cannot be settled this way. Taking back Linyiji's land will revitalize transportation and commerce in the city center, which will definitely drive up the appreciation of surrounding land. This is the so-called 1+1>2 effect. At present, the land price in Linhe City is still rising. If it drags on for a few years, who knows how much the Linyiji land will rise. Spending 7 billion to take it back now is definitely a good deal.

Tang Zifeng is a measured person and knows that he must pursue a win-win situation in everything. Although he could also blackmail the Linhe City Government into a higher price, there was no point in going too far.

After negotiating the land transfer, the funds for the acquisition of Botai were secured. Tang Zifeng immediately ordered the start of the acquisition process for Botai.

At this time, Liang Zile sent a message to Tang Zifeng from Europe:

The European Union issued an acquisition ban prohibiting Chinese companies from acquiring PATEO.