Spring Breeze Twenty Years

Chapter 1276 The Province Needs a Request (+231)

Liang Gao organized the materials and documents here, and then left with his men for Hong Kong.

Du An'an started asking people in the province about the International Aviation Plaza. Xiao Wei didn't take it too seriously; if it was suitable, he'd take it, but if not, he wouldn't force it. His main purpose in coming here was to develop this resort; everything else was just something he brought along.

Shi Li and Jiang Xinting, along with their company's staff, are working on an investment plan. They need to prepare two copies: one for internal use and one to be submitted to the government. The basic framework has been largely agreed upon with the Sanya government; now they're just negotiating the details.

The investment plan has changed somewhat, expanding from a single seaside resort to a seaside resort estate, encompassing nearly 1.5 kilometers of beach and almost 1,000 acres of land. At this point, the entire Sanya Bay area remains a pristine natural landscape, with large tracts of land still undeveloped.

The total planned investment is 350 million yuan, with Xiaowei and Wu Guolin contributing funds according to their shareholding ratios. Of course, this money won't be invested all at once; it will be poured in over three phases over three years.

At this time, although tourism is hot, it is not booming. People's investment focus is on the bustling areas in the city. Places like the seaside are not yet investment hotspots, so land prices are not high. In addition, the aftermath of the real estate collapse on the entire island has not yet subsided. Finally, the land price was negotiated down to 60,000 yuan per mu.

Throughout the 1990s, the tourism sector was largely government-run, involving large investments, long investment cycles, slow capital recovery, long cost recovery periods, high maintenance costs, and significant investment risks.

During this period, almost all non-famous scenic tourist areas were developed and operated by local governments or the National Tourism Administration.

It wasn't until the late 90s that private capital began to enter the area, leading to a proliferation of artificial landscapes, concrete "historical sites," and various unique legends that left listeners embarrassed and visitors bored.

While Xiaowei and Chen Hui were negotiating with the government with their company employees, Du An'an was contacting the International Aviation Plaza, and Wu Guolin and his group went to investigate relevant officials in Sanya regarding land and collect evidence.

During this period, the unfinished buildings in Haikou were put out to tender again. This time, seven projects were offered for bidding, but only the smallest villa area was selected. The other projects failed to attract any bids.

Du An'an's father contacted Xiao Wei's side to inquire whether they were interested in investing in Haikou.

The consecutive failures in bidding were unexpected and caused even greater anxiety from both the provincial and Hong Kong city governments. This was not a good omen.

This indicates that investors have lost confidence in real estate investment across Hainan Island, which in turn means they have lost confidence in Hainan itself. Without the prior development of infrastructure such as real estate, there is no way to talk about the next stage of development.

Tax revenue accounts for only a small portion of the government's development funds; the main source is land sales. This is why housing prices remain high. Without real estate developers, land cannot be sold, and development funds will dry up.

"Uncle Du, I am still interested in this place, otherwise I wouldn't have come here and even set up a company here. But as you know, the things that were done back then were too scary, and they drove up the prices. That's not a hurdle that rational investors can overcome."

Our company operates in a slightly different way than others. We don't focus on selling, and frankly, there are too many properties here now, so deciding who to sell to is also a problem.

We primarily use and operate this business ourselves, so we need to be even more concerned about costs and cash flow. The housing and land prices here haven't been finalized yet; you know the situation better than I do.

Du An'an's father sighed and said, "The province is also making adjustments, preparing to lower prices again. Have you chosen a project in Sanya?"

Xiao Wei said, "It's basically decided. We plan to invest in a resort estate by the sea, primarily for our own use. It will allow our employees to come and relax, which can be considered a kind of benefit."

As you know, making money through operations these days is extremely difficult. Investing in this resort was a decision we made after repeated calculations and discussions.

Du An'an's father said, "I heard from An'an that you're interested in the International Aviation Plaza?"

Xiao Wei pinched his nose and said, "I guess so. It's the tallest building around here, and it's quite big, which meets our company's needs. But I haven't paid much attention to it. I'll take it if I can, and I won't force it if I can't."

To reiterate, operating large-scale real estate projects here is quite challenging in the current environment. The investment is large, and the returns are slow. Furthermore, leaders at all levels have their own agendas, making it a very tiring process. Haikou is a bit better; it's the provincial capital, so everything is definitely better than here.

Du An'an's father thought for a while and said, "Next week, Haikou will hold the third auction for the abandoned and stalled housing project. The provincial auction failed twice, so this time it has been handed over to the Hong Kong city government. As you know, two consecutive failed auctions have a significant impact on the credibility of the government in various aspects."

This time, I hope you can take the lead and take over the Huamei Building. The price has dropped again, to 36.6 million, which can be paid off within three years. Just consider it a favor to your uncle.

Furthermore, the provincial authorities will discuss with the airport that since they are already running out of funds and facing financial problems, transferring the assets out to recoup some of the funds is appropriate.

Xiao Wei thought for a moment and said, "Uncle Du, since you've said so, then okay. I'll have someone from the head office participate in the auction. This company is newly established and can't handle the workload or operate smoothly yet. As for Sanya, whether it succeeds or not, Xiao Hui and I will be very grateful for Uncle Du's support."

After hanging up the phone, Xiao Wei thought for a moment and said to Chen Hui, "Let Huang Laowu come over. It seems we can't avoid this auction. The price is acceptable, not much higher than the current market price. Let's take it."

Chen Hui said, "Let's take it over. At worst, we can leave it idle for two years. Actually, spending a little more money is worthwhile. It's almost finished, which saves a lot of trouble and time. It's worth it, let's take it over."

"Oh, right, Miler took a fancy to that place on that island. We had them add it to the auction, agreed on a price, and then we bid on it directly to increase the success rate." He chuckled a few times.

Xiao Wei thought about it and realized it was a good idea. It was much easier than going to talk to people himself. He picked up the phone and called Du An'an's father back: "Uncle Du, could you add another bid to your auction? Xiao Hui has his eye on a villa complex on Haidian Island. Could you have someone calculate the price and add it in? If it's about right, we'll bid on it directly."

Du An'an's father didn't even hesitate: "Okay, have someone send the documents over, I'll arrange it."

Xiao Wei hung up the phone and called Miler, arranging for the people from the Haikou company to send the relevant documents to the provincial capital.

Just as I finished arranging my work, Liu Jiaming came over and called two people over, saying that they were recruiting a general manager and someone had come to apply.

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(End of this chapter)