MTL - Reborn Capital Empire-v2 Chapter 708 6 reasons for the acquisition of Shunchi

Chapter 708: Six Reasons for the Acquisition of Shunchi

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"What does this reporter think of Rover's car-making skills?" Brito asked.

As a British reporter, he still has the arrogance of the declining old aristocracy in his bones.

"Rover's automotive technology, especially engine and chassis technology, is unquestionably the best in the world!"

Brito nodded with a smile, "Exactly, we think so too. With Rover's technology, coupled with our sales channels in China, and rich financial resources, I believe that our Red Star Auto Group can reproduce Rover's technology. brilliant!"

Hearing this, everyone suddenly remembered that standing behind the Red Star Auto Group was Bruce Guo, who was praised by countless people as a business wizard and financial giant. From the founding of LinkedIn in 2000 to the present, the other party's wealth and career have maintained exponential growth, and they have never suffered too much failure. There is such a figure standing behind the Red Star car at the helm. Red Star's acquisition of Rover Motors doesn't seem so absurd anymore.

"Is the acquisition of Rover by Red Star Automobile Group at the behest of Mr. Guo?"

"certainly!"

"So what specific plans does Mr. Guo have for the future development of Rover?"

"Of course there are specific plans. We do not do anything out of liking, but based on rigorous analysis and investigation. However, because corporate strategic planning is a business secret, I won't reveal too much. But I can talk to you about it. We promise that Red Star Rover will appear at next year's five major auto shows including Geneva, Frankfurt and Tokyo. We will invest 3 billion US dollars to launch four brands of Austin, Rover, MG, and Red Star, and 12 models! We will become an international A force to be reckoned with in the automotive industry."

There was an unexpected uproar among the reporters. With 3 billion US dollars and 12 models, the Red Star Motors team's ambitions for the auto industry were clear. Regardless of whether it was successful or not, this kind of revelation is too much for the reporters on the scene. They like this kind of big news that can attract public attention.

"Mr. Brito, will all 12 models be launched next year?"

"Of course not. It takes enough time to develop a new car. So we will push 12 new cars to the market in the next three years."

"May I ask what level does each of the 12 models belong to? Do you have a plan now?"

"Actually, everyone from the brand can judge the level of cars that the 12 models of Red Star Rover are aimed at. As for the plan, of course we have, and we have even prepared all the car design drawings. The next step is the research and development stage. As for more, I am inconvenient to disclose. As long as you always pay attention to the official website of our Red Star Rover, I believe there will be news you are looking forward to.”

Brito used this press conference to advertise its own vehicle first.

Having worked hard all his life in the business world, the experienced Brito's ability to deal with reporters is naturally no problem. Soon, the hour-long press conference passed.

After closing YouTube and opening the webpages of Internet media such as LinkedIn News and Yahoo News, as expected, on their front pages, I found the report of Red Star Automobile Group's acquisition of Rover Motors.

Simply flipping through it, basically it is written around the content disclosed in the Brito press conference. Seeing that there was nothing new, Guo Shouyun turned off the computer.

"Any news today?"

Wang Jue replied: "Mr. Morris reports that he has hired Kobre & Kim to deal with Gary Barber's lawsuit."

Kobre & Kim is best at resolving all kinds of commercial disputes and investigations. It would be appropriate to have them deal with the Gary Barber lawsuit.

"What about the merger of Matrix and Conscart?" Guo Shouyun asked further.

"The two sides are still in secret contact, and there is no further news for the time being."

Guo Shouyun nodded, "Is there anything else?"

"General Manager Tang from Global Real Estate reported that she intends to acquire China's second largest real estate development company, Shun Chi, and hopes to get your approval."

"Shunchi? Sun Hongbin?"

When he decided to enter the Huaxia real estate industry, Guo Shouyun had a good understanding of it. Now the real hegemons in the Huaxia real estate market are neither Evergrande nor Country Garden, but Vanke and Shunchi.

Especially Shunchi, in 1995, Sun Hongbin took 500,000 Huaxia coins borrowed from Liu Chuanzhi to Jinmen. It has only been 9 years. The Shunchi he founded has already crossed the intermediary and real estate, with an annual revenue of 4.5 billion. Huaxia Coin, second only to Vanke's Huaxia real estate giant.

Even Guo Shouyun admired Sun Hongbin's understanding of the Huaxia real estate market and his extreme mode of operation of capital. However, as often seen on the Internet, God does not bless Sun Hongbin. In 2004, the Central China crackdown on the real estate market directly cut off the capital chain he built on bank loans. In just two or three years, Shunchi, which has acquired more than 30 pieces of land and hoarded more than 10 million square meters of land, has become shaky.

However, Sun Hongbin’s acquisition of land has its own characteristics. They are all located in the urban fringes or sub-centers, such as Daxing Huangcun in Beijing, Zhengdong New District in Zhengzhou, and Qingpu and Fengxian in the magic capital. They are generally the birthplaces of more than 1 hour’s drive. These raw sites are often not favored by local developers who focus on short-term benefits, the competition is relatively less intense, and there is potential for future appreciation. The local government is eager to sell, which is easy to obtain support, especially financial support; basically there is no remaining demolition problem, which is conducive to rapid start and delivery; the land area is generally large, suitable for the construction of large-scale low-end residential buildings.

The characteristics are very clear, and the future appreciation potential is not small. However, Guo Shouyun pays more attention to the potential and value of urban core plots. Given that there is still room in the urban core today, there is naturally no interest in the suburbs.

After a brief consideration, Guo Shouyun picked up the phone, found Tang Wenfang's number and dialed it.

Obviously Tang Wenfang knew that he would make a call, and was connected a short time after Guo Shouyun made the call.

"Hello, boss!"

"Are you planning to acquire Shunchi?"

Guo Shouyun didn't waste any time and asked directly.

"Yes!"

"Tell me about your plans!"

Although Guo Shouyun himself was not optimistic about this acquisition, he did not reject it at the beginning. After all, it is Tang Wenfang who really manages Global Real Estate. She knows more about the company than herself, and she also understands the future development direction of Global Real Estate.

Obviously, Tang Wenfang came prepared. After answering, he opened his mouth in a clear and organized manner: "First, there are 15 undeveloped lands under Shunchi Real Estate, covering 12.38 million square meters, of which nearly 4.5 million square meters are located in the Yangtze River Delta region. And the plots are generally larger. , suitable for our long-term development, and the return of funds to support the development of core businesses in 25 cities."

"Secondly, there are 77 properties under development or completed by Sunco, of which 30 are in Tianjin, accounting for 20% of the real estate stock in Tianjin. If they can be won, the properties managed by the property service department of Global Real Estate will be will reach 257, with a 35% increase in revenue and net profit."

"Thirdly, in addition to real estate, Shunchi is also one of the largest real estate agencies in the country, with 459 stores in Tianjin, Beijing and other places. If it can be integrated into Global, our Global Agency's stores will reach 1,527. A real estate agency network covering major first- and second-tier cities across the country."

"Fourth, in 2000, Shun Chi established the earliest real estate agency website based on the Internet in China. At present, the website with the website '' is the largest real estate service website in Tianjin, and with the development of Shun Chi, it has become the forefront of the country. The real estate comprehensive website. I hope our global real estate website can integrate it and consolidate our leading position in the real estate agency field.”

"Fifth, Sunco currently has more than 10,000 employees, of which 35% are college graduates or above, and generally have rich experience in real estate work; winning Sunco can effectively make up for our personnel gap."

"Sixth, Sunco's total assets are about 8 billion CNY, and its debt is 3.56 billion yuan. Considering its current situation, I am confident to acquire all of Sunco's assets with 4 billion CNY and pay it in installments. In addition, Sunco's rigid funding gap is 600 million Chinese coins. That is to say, as long as we take out 2 billion Chinese coins, we can swallow up the second largest real estate company in mainland China and replace it. Regarding the source of funds, the boss invested in the global The funds for the core real estate projects are as high as 50 billion Huaxia dollars in the first phase. Although the cost of purchasing land is very large, the remaining part, with Huaxia's current deposit interest of nearly 8%, is enough for us to acquire Shunchi and maintain Shunchi. The operation of its projects. Even if there are some deficiencies, it can be recovered through real estate sales. ... As long as we have dealt with the first investment, it will become easier for us in the future.”

Guo Shouyun pondered for a moment, "It seems that you have been thinking about this for a long time."

"Yes! I've been thinking about it since the break of Sun Hongbin's Shunchi capital chain was exposed. Because Shunchi's business and personnel are really suitable for us. If it can be annexed, Global will become a leading domestic leader. As a real estate development company, we are stronger than Vanke when it comes to commercial real estate.”

"Are you sure? And I know that Sunco is now in contact with Morgan. If there is Morgan's investment, the funding gap of 600 million Huaxia coins is not a big problem."

"I have already inquired about it. What Morgan gave to Shunchi was a gambling agreement: Morgan bought 20% of Shunchi's shares for 750 million Chinese coins. Profits are less than 16%, and Morgan's 20% stake will be doubled, or 40%."

"...Morgan is obviously planning to take advantage of the situation. With Sun Hongbin's character, how could he agree to such a condition? Moreover, in order to avoid the complicated local government-business relationship, Shunchi often acquires land at a much higher price than the market, sometimes even higher than the market. The price is close to 30%; this has inadvertently pushed up the cost of land acquisition and compressed profit margins.”

"...16% of the net profit, although it seems that it is not difficult to achieve now, but everyone knows that with the Chinese government's suppression of real estate, the operation of real estate enterprises will become difficult, and the profit rate will also decline, 16% The risk is undoubtedly too high for Sun Hongbin to bear. Although he is called a 'madman' and 'fool' in the outside world, he is never stupid when it comes to his own interests."

Guo Shouyun thought for a while and said, "How sure are you about this matter?"

"80%!"

"Well, since you feel sure, then I won't stop you. But you should remember what I said at the beginning?"

"Yes! ... You can rest assured that I will definitely complete all the core projects of Universal Real Estate within three to five years according to your requirements!"

"Just remember it!"

"Boss, the core plots in first- and second-tier cities are often not large, and once there are large plots, the competition will be fierce. Therefore, the funds you provide may not meet the initial requirements."

"Just follow my request to get the land, and let me know if there is a funding gap."

"clear!"

Guo Shouyun ended the call after asking some questions about the operation of Global Real Estate.

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