I am a Big Player
Chapter 414 - 409, The Land Price in 2007 (Third Update)_1

Chapter 414: 409, The Land Price in 2007 (Third Update)_1

Last time, Ren He was not able to fully articulate his detailed views on commercial complexes. In his previous life, his graduation thesis in Business Administration was about the development of large-scale supermarkets, except back then he didn’t write about Wanda, but about the large retailer Xin Mart.

However, he also had a good understanding of Wanda and had made detailed comparisons with Xin Mart.

Speaking calmly, Ren He said, "In my opinion, the respective proportions of retail and non-retail in a commercial complex should ideally be controlled at around 50%, or to be more precise, I prefer a ratio of 4,3,3; that is, 40% retail, 30% entertainment, and 30% dining."

"In the face of the impact of the internet economy, how should commercial complexes protect themselves? I believe that pedestrian streets are the soul and bond of commercial complexes. A one-stop experience of entertainment and shopping is the way for commercial complexes to carve out a path from the online shopping model. As shopping becomes more convenient, what offline stores need to improve is not the product quality, but the user experience."

Ren He spoke of these things, whether it was his own understanding of the future of the internet economy or sharing with Mrs. Ren the successful model of commercial complexes from his past life; it was all to make his parents prouder.

In fact, Qinghe Group’s current achievements are not enough to compare with Luohe Group, but parents are proud of their children not only when the children are the best in the world.

Sometimes, in his past life, Ren He would even see other parents proudly showing off on social media that their children won the "fastest eater, fastest dresser" awards in kindergarten, which Ren He couldn’t understand the significance of... Isn’t eating too fast bad for your health?!

But you can’t help parents being proud! In fact, these two awards reflected the level of independence of the children.

Ren He summed up that actually, the source of parental pride is simple: they are proud of you if you are better than your peers.

Making parents happy is so simple, Ren He felt ashamed that in his past life, he hadn’t done much to make Ren and Mrs. Ren proud, and they hadn’t gotten much joy from him.

Mrs. Ren and Ren sat on the sofa, not quite knowing how to express their current feelings in words; they were indeed very emotional and very proud.

In the blink of an eye, Ren He had become someone who could discuss the business domain with them as an equal, and even Mrs. Ren had better development thanks to his advice and strategies, an unexpected turn of events.

Ren asked, "Where are the 18 holding subsidiaries of Qinghe’s faction located?"

"Still in Luo City. For now, they are all set up in Qinghe Building, but in the future, they will form an internet park in the vicinity. One building is far from enough," Ren He explained.

They were, of course, going to be located in Luo City, which was Qinghe’s stronghold, and being together would also reduce communication costs.

However, one building was definitely not enough. After all, some subsidiaries would eventually have a staff count in the tens of thousands, and one building simply wouldn’t suffice. Moreover, Qinghe had developed to the point where Ren He had already started announcing his new welfare plan during meetings. To retain core employees, Qinghe was going to build a staff family housing complex, with the properties still owned by Qinghe but with individual rooms for employees over the age of 25, featuring amenities that must compare with private residences.

Veteran employees who had completed 10 years of service would be awarded a gold medal, and those who had completed 20 years would be able to purchase homes within the complex at cost price, which of course included Qinghe’s current land costs.

If this were his past life in 2017, Ren He would never have dared to do this, but now it was different; it was just the beginning of 2007, and Luo City was a third-tier city at this time, with an average house price of just over 2000!

Ren He knew that house and land prices were bound to appreciate and considered it an investment strategy; but he wasn’t trying to earn this money for himself, he was aiming to earn it for Qinghe’s employees, to let them enjoy the biggest difference between working at Qinghe and other companies.

Having made money, Ren He didn’t mind letting his employees ride along on the coattails.

This was included in Qinghe’s development plan for 2007; Qinghe Group had already spent 518 million RMB in November 2006 to acquire a commercial and residential plot of land to the west of Nanchang Road in the West Luocheng City area, with the land price per square meter of floor area approximately 483.25 RMB.

The plot covered an area of about 405,200 square meters, with a buildable floor area of 1.072 million square meters, of which approximately 622,000 square meters were designated for residential use, and office and commercial floor areas were about 200,000 and 240,000 square meters, respectively. The total construction area was approximately 1.3024 million square meters, with about 1.072 million square meters above ground, meaning the land price per square meter was about 483.25 RMB.

In his previous life, this was a famously bustling city center, but now it was still just a wasteland.

The price was unimaginably low, shocking even Ren He, who had traveled through time, because he wasn’t a professional and thus had no idea about the difference between land price and floor area price until after Qinghe Group secured the plot...

Ren He was peeing his pants at that time; no wonder so many people made their fortunes in the wave of rising house prices. It was really not known until not understood. When the Qinghe executive in charge told Ren He about this, they even mentioned that there were lower land prices available, with the lowest dropping to 210 RMB per square meter...

But those were too remote. Now, from what Ren He knew, the land that Qinghe Group had secured would also become one of the centers of Luo City’s development. He intended to have Qinghe’s employees live in the village, so that they wouldn’t be too grateful to him when the time came...

However, Qinghe itself did not have the qualifications to construct buildings and could only work with construction companies gradually.

At the moment, Qinghe’s employees simply grappled with the gratitude they felt for their boss’s generosity, who had dug so deeply into the company’s coffers—using up to 80% of Qinghe Group’s current liquid funds—to build housing for their families. This way, everyone could reassure their wives who were still in their hometowns to come over and set down roots in Luo City.

But what they did not understand was what Ren He’s action would mean in the future. For veteran employees who had been with the company for 20 years, they would be thanking Qinghe Group for the rest of their lives for buying them a house in advance.

For Qinghe Group, if there was ever any difficulty with cash flow, mortgaging it to the bank could be a colossal infusion of cash, which was Qinghe’s fixed asset. It was worth over 5 billion RMB then but would need just 5 years to be worth tens of billions...

Ren He felt that even though he didn’t touch real estate, there was nothing wrong with leaving himself an option for the future. He wasn’t stubbornly focused only on the internet; if there were convenient opportunities that came his way, why not take them? This was also a way to boost Luo City’s GDP.

It increased Qinghe employees’ happiness index, as well as providing Qinghe with a backup plan—a win-win situation.

As for the matter of using 80% of the liquid funds, for an internet company like Qinghe Group that didn’t require much in terms of costs, it wouldn’t have any adverse effects at the moment.

Even now, with Qinghe’s faction initiating operations in 18 companies, they still had more than a billion RMB in liquid assets...

This was why internet companies, like Tencent in his previous life, always had their market value greatly overestimated.

...

For the elegance and not vulgarity, I added more for the alliance leader.