Chapter 185: Riverside Land
Lin Ruoyan enlightened: "The high-tech zone cannot only have enterprises. It also needs some housing and supporting facilities. People can't cross the river to work every day, and factory workers won't always live in factory dormitories without any living and entertainment."
Ms. Liu said, "Yes, we have considered planning some residential land and using the proceeds from the land sales to fund the industrial park. We'll build the park and attract investment, just like the ones you see in Beijing."
In Lin Ruoyan's opinion, private capital in the south is actually very active, and many factory owners have the money to build their own houses. The problem is that these companies probably already have factories, so why do they want to move here?
"Isn't the policy more attractive? Let companies buy their own land and build their own facilities, turning them into office and production bases. Even though this place is remote, it's still an urban area compared to the surrounding villages and towns in Hangzhou, and transportation across the river is not very convenient. So, we can design more residential and commercial facilities in the high-tech zone to facilitate daily life."
Lin Ruoyan remembered that in the real world, there were many large industrial parks in Hangzhou Binjiang High-tech Zone, some of which were engaged in software, some in mobile phones and related spare parts. In short, each enterprise was very powerful. They bought hundreds of acres of land to build their own factories and office buildings, not to mention staff dormitories. Some even built hotels in the industrial park, saying that they were factory-run guesthouses, but in fact they could also apply for star-level business.
However, these factory areas experienced ups and downs with the rise and fall of the mobile phone industry, changing hands several times. Twenty years later, with the rise of e-commerce, some of the former mobile phone parks were transformed into new e-commerce industrial parks. Furthermore, as the area matured, companies like Yili and Li Group established large campuses here, and residential prices gradually rose.
However, the housing prices in Hangzhou have never been as fierce as those in Beijing and Shanghai. Lin Ruoyan did not have a particularly strong desire to buy land in Binjiang at this time, so the atmosphere of the chat was relaxed, and she gave some opinions and suggestions from a friend's perspective.
Ms. Liu particularly enjoys such disinterested conversations. She's met numerous businesses in the local area and neighboring towns, all trying to get close to her, hoping to take advantage of the region's immaturity and acquire more land at a low price. Once they secure the land, they might not necessarily build a factory, but simply resell it to others. This deviates from the overall regional development plan.
“How can we attract large companies that really want to set up factories?”
"Can we take a look at the current plan?" Lin Ruoyan made a request.
Ms. Liu was willing to come because she heard that Lin Ruoyan had already acquired land in Yuhang and started a project. She knew she was a developer in Beijing and had experience operating industrial parks. So she brought the drawings with her, hoping to have a more in-depth conversation.
When Lin Ruoyan asked, she spread out the drawings on the table.
The girl from the design department that Lin Ruoyan brought with her also came forward to take a closer look. After a few glances, the girl asked in a low voice, "Why is this plot of land so big?"
Lin Ruoyan took a closer look and realized that the various industrial parks separated by the planned roads were indeed very large. The smallest one started at 400 mu. She asked, "Is each piece of land sold separately, or can it be broken up and sold separately?"
"Four hundred mu isn't too big, is it? Land along the river is cheap, and we can't build roads too densely, as that would increase the cost of road construction. An industrial park with a plot of land of four to five hundred mu and a building area of 200,000 to 300,000 square meters is the only way to scale up production. Furthermore, we want to build a demonstration park first to attract investment."
"I have some ideas, but I don't know whether I should tell you." Lin Ruoyan hesitated for a moment and then spoke.
Ms. Liu asked frankly: "Mr. Lin is an expert, just tell me what you want to say."
Seeing Ms. Liu's sincere look, Lin Ruoyan said, "When I was running the industrial base in Dax, I also came into contact with many southern companies, both large and small. When the large companies came to the industrial base, they just wanted the land and built factories and office buildings according to their needs. Small companies would weigh the options and would not invest so much in land and buildings at the beginning. They would instead think about renting already renovated factories and office buildings.
"It's a very good idea to create a model park. You could investigate in advance the size of nearby businesses with demand, the size of the plots, and whether they can be flexibly divided. If you simply prioritize management convenience while ignoring the true needs of businesses, you're putting the cart before the horse."
In fact, since the beginning of the 21st century, government agencies have also been transforming, striving to serve businesses rather than issuing orders for them to follow. Especially in southern China, many local government agencies and businesses have a consultative process, one driven by political achievements, the other by profit. Neither side has to make things difficult for the other, and policies are negotiated.
It is understandable that the high-tech zone needs to be beautifully planned and road infrastructure costs need to be saved. But if new roads appear on the subdivided land, can each company share the cost of road construction?
This is how many residential plots are built, especially in first-tier cities. In the later stages, when no one can afford to buy a large piece of land, they are cut into smaller pieces and sold. The municipal roads between the plots are repaired half by each side of the land purchase.
Lin Ruoyan raised this point, and Ms. Liu, who was in charge of planning, immediately understood. "Yes, the degree of matching between land parcels and business needs is a question worth studying." Industries vary in size, and they also need to develop high-tech industries. They don't really know what kind of factory buildings companies like those developing mobile phones and software need, so they're looking to find a model park to emulate.
In fact, large and powerful enterprises often inquire about whether they can acquire a large piece of land to build their headquarters. Smaller and less powerful enterprises, upon seeing such a large plot of land, calculate that they only need one or two factories. How can they afford a plot worth tens of millions of yuan? If they can only negotiate a small amount by merging with others, it is better to rent or buy an already built park.
Lin Ruoyan continued, "We do have some experience in constructing demonstration industrial parks in the High-tech Zone. We can provide construction and investment promotion services. As for whether to set up a factory, I'll have to go back and discuss this with my brother. He's in the manufacturing industry, and we have some factories in the north. Whether to expand our business in the south is not something I can decide."
Although Lin Ruoyan is good at developing medical devices, the scale of the company cannot be expanded so much all at once. It can be done in the biomedical industry base in Da X. If they really want to develop in the south, it must depend on whether Lin Ruxu's business is going to expand.
Ms. Liu nodded repeatedly after hearing this and said, "The tender for the demonstration park construction may be posted on the official website soon. If your company is interested in participating, we would certainly welcome it."
This is the attitude of fair and impartial handling. There are many companies doing construction projects, but in this era, there are relatively few that can provide supporting investment and operation teams. If Lin Ruoyan intends to participate in this bidding, she needs to show her advantages. People will not promise any benefits just based on today's meeting.
After Lin Ruoyan finished discussing these serious matters, she thought, if they really want to build an industrial demonstration park here, they must set up a branch company. Who should they find to take the lead then?
Hangzhou is a great place. Many industrial parks are being built in the high-tech zone, and there's no shortage of construction projects. Most companies don't have dedicated infrastructure management teams. If she can build a demonstration park, and other companies build their own industrial parks, she'll be able to attract more business.
Not only Hangzhou, but also several surrounding big cities, such as Shanghai and Suzhou, are places with extremely active domestic economies and great potential.
Moreover, these are all technical service outputs and light asset operations, which do not occupy too much of her investment. It is also a channel for her to spend money and make money in the future to achieve a balance.
By the way, Suzhou also has a large project like the High-speed Railway New City. At that time, it will be based in Hangzhou and radiate to the surrounding first-tier and quasi-first-tier cities. It is not too late for her to make plans now.
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