AWB Chapter 225 Preparations
Chapter 225 Preparations
Several shareholders expressed their desire to buy houses, but some wanted to buy shopping malls and some wanted to buy office buildings. The area purchased by each person was different and each had their own requirements.
After consulting with the sales department, Xie Yang determined the sales units on each floor of the mall. Each floor of the mall is divided into 7 sales units, each unit is 1000 square meters. He then contacted the shareholders again and finally determined the quantity of subscription for each company.
Gu Qicheng subscribed to the hotel, a total of 2.8 square meters, Shui Ya bought the 1st to 4th floors of the shopping mall, a total of 1.2 square meters, Sun Zhengping bought 3000 square meters on the basement floor, Ji Feng also bought 3000 square meters on the basement floor, Xie Yang bought 4000 square meters of the second-floor office building, and Wen Qing bought 2000 square meters of the first-floor office building. All parking spaces are rented and not sold, and are held by the company.
Since the second phase of Dongcheng Lijing has occupied a lot of funds, the construction of the Xicheng project has to be considered separately. Fortunately, the land transfer fee for 20 acres of land has been paid, and what is lacking now is construction funds.
Xie Yang suggested: "Let Sun Zhengping and Wen Qing take charge of the West City project first. Do you have any objections?"
Now, the company's main focus is on the second phase of Dongcheng Lijing. Sun Zhengping and Wen Qing are mainly responsible for the preliminary work of the Xicheng project. When the project there is implemented to a certain extent, Xie Yang will be free to take charge of the Xicheng project.
Then Ji Feng was asked to complete the relevant procedures for the 300 acres of land in Shijingshan.
Wen Qing originally wanted to go to Ping An immediately and did not want to take this job, but seeing that everyone was indeed busy with their own things, it would not be good to continue to be a hands-off boss, so she had to take this job with Sun Zhengping.
The real estate industry is complicated. Although Wen Qing felt that she did not need to participate in the specific project, she subscribed to a floor, which was her own business. If the construction of the project was delayed too long, and the house was not available, or could not be obtained for a long time, wouldn't it be a pity? Fortunately, the construction speed of Dongcheng Lijing Phase II was relatively fast, and I believed that Xie Yang would be able to take over personally soon.
Wen Qing found Sun Zhengping to discuss the matter. The land for this project was found by Sun Zhengping, so between the two of them, Wen Qing agreed that Sun Zhengping would be the main one, and she would assist him from the side. The two of them discussed and decided to temporarily name this project Xicheng Lijing, get the design drawings, start to prepare the project report, do cost estimation, and apply to the relevant departments for various procedures required to start construction.
Sun Zhengping's family has many connections, so the task of applying for licenses and certificates from relevant departments was assigned to him. Wen Qing was responsible for perfecting the design drawings and writing various written materials.
Wen Qing had never done the preliminary work for a real estate development project, so she found the department in the company that was responsible for design and planning, and asked for advice humbly. She also took the relevant national documents and studied them carefully. She finally figured out the specific process and borrowed two people to start the work together.
When reviewing the drawings, Wen Qing discovered that the design draft lacked environmental protection design, and the water and electricity line design and fire protection design were also relatively rough. Considering that fiber optic and cable TV would be available in households in the future, she proposed a plan and asked the design department to modify the design. After reporting to Gu Qicheng and Xie Yang, she also raised the level of earthquake and disaster prevention. After all, raising the level will definitely increase construction costs.
Gu Qicheng took into consideration that there had been a huge earthquake in North China, and that their integrated shopping center was positioned at a relatively high level. His hotel had to be the best hotel in Pingjing, and he must not be lax on safety, so he accepted the increase in costs.
Xie Yang is also a responsible person. He has always adhered to the idea that "construction is a long-term project". He also decided to buy a house here, so he has relatively high requirements for building quality. He fully adopted the suggestions proposed by Wen Qing. After modifying and improving the design plan, the construction cost per square meter is about 1500 yuan. Together with land prices and taxes, the total construction cost is 1.3 million yuan.
Wen Qing said to Sun Zhengping: "Since Xicheng Lijing is a frame structure with many auxiliary equipment such as elevators, the total construction cost is 1.3 million yuan, which is much higher than that of residential buildings.
Although the land transfer fee has been paid, the funding gap is still relatively large.”
Sun Zhengping: "How much money do we have in our company's account to invest in this project?"
Wen Qing: "I asked Mr. Xie, the 1000 million yuan we can come up with right now is definitely not enough."
"then what should we do?"
"We raise funds in many ways. First, we implement the pre-sale system, that is, we start selling houses when the houses are 30% completed, and use the sales money to build houses. Second, we break down the entire project into multiple construction sub-projects and invite construction companies to bid for them to advance part of the funds. Third, we use the ongoing projects to seek bank loans."
"Okay, I'll go tell Xie Yang and see what he thinks."
Sun Zhengping handed the design draft, feasibility analysis and project report to Xie Yang. Looking at the neat and comprehensive information, Xie Yang felt that the project was progressing very smoothly. Regarding the three financing methods he proposed, Xie Yang called Shui Ya, who was in charge of finance, to discuss the funding matters together.
After discussion, everyone decided that these methods could be implemented together. That is, the company first divided the project into multiple sub-projects, issued a tender to the outside, and asked the construction companies to provide construction materials and labor costs. Blue Sky Company would only pay when the project progress met the standards.
Secondly, let the shareholders who subscribe to the house pay a certain deposit first. No matter what they buy, everyone must first pay a 2000% deposit based on the cost price of 10 yuan per square meter, and then pay the balance after the sales price is announced after completion. In this way, Gu Qicheng paid 1640 million yuan, Shui Ya 240 million yuan, Sun Zhengping and Ji Feng each paid 60 yuan, Xie Yang 80 yuan, and Wen Qing 40 yuan, a total of 2160 million yuan. Only Gu Qicheng paid more money, but his family has a deep foundation, so it's no problem.
Finally, after negotiations with the bank, they used the project under construction as collateral, and the bank gave them a credit line of 3000 million yuan. After 30% of the construction project was completed, the bank issued a loan of 3000 million yuan. The Municipal Construction Committee also agreed that after the project progress reached 60%, it could be officially sold to the outside world. This combination of measures can basically solve the problem of construction funds.
After discussing the funding, Wen Qing followed Sun Zhengping to several management departments. Seeing that they could not arrive in Ping'an County on the date agreed with Director Huang, she called and postponed it for half a month. It was not until early August that they completed the stamping of various licenses and the bidding of construction contractors before the start of construction. The two handed the things to Gu Qicheng and Xie Yang, "Director Gu, President Xie, our work is done, now the Xicheng project can start."
Sun Zhengping frowned and complained, "Oh, I didn't know that building a house was so complicated. I have to run around just to get the stamp."
In fact, he used a lot of connections and completed all the procedures in more than a month, which was very smooth. The employees of the design and planning department all praised Mr. Sun for being so awesome!