Chapter 215 This is a good idea
A commercial city of 500,000 square meters!
A typical large-scale farmers' market has an indoor area of around 50,000 square meters, with a larger area reserved for temporary parking for trucks and warehouses, as well as for smooth access to transportation routes. A building of 50,000 to 80,000 square meters would have been sufficient to supply the entire city of Shanghai's agricultural products during the time of the book.
The 500,000 square meters here are all used for commerce. After deducting offices and hotels, there are still 400,000 square meters left. Part of it is used for agricultural trade. What will be used to fill the rest?
It's unrealistic to rely solely on road transport for wholesale goods moving north and south; at least ocean shipping must be accessible. This is where the new concept of exhibitions comes in: simultaneous exhibition and trading, attracting a wide range of global trade products.
However, the building's shape is indeed similar to the Five Jiaotong-Liuhe Building, a military stronghold of the United States. It is a series of circles within a circle, like a layer of fortresses, overlooking a large and full mass. Surrounding it are farmland and sparse roads, a huge contrast that does not seem very scientific at first glance.
It just so happened that at that time, Wencheng was selling pre-sale properties. The first wave of the 500,000 square meter property had already been sold out before the pit was even dug. From then on, someone had to take over the next wave of properties.
Fang Yue had heard about the project and wanted to take advantage of the fact that it hadn't officially launched yet to sell some of the land at a low price, experimenting with small apartments specifically for those who would work in the commercial city. Five hundred thousand square meters, how many shops and stalls would fit in? These people would definitely need housing, and the surrounding villages certainly wouldn't be able to meet that need.
However, Fang Yue felt that she was not as experienced as Lin Ruoyan in the intricacies of apartments and hotels. Furthermore, she was unsure whether such a large project would succeed in the future. The person who introduced the project was pressing her, so Fang Yue hurried to ask Lin Ruoyan.
Fang Yue wasn't just doing it for herself. She'd visited the site and found the building was practically finished, with the main public areas fully furnished. The space inside was enormous, truly like a city. Perhaps it could house a movie theater or something, and there was also a taller building inside for offices or a hotel. Was Lin Ruoyan interested in that?
The idea is good, and Lin Ruoyan is very grateful to Fang Yue for thinking of her in everything, but the problem is that this project is really not good.
Because the system told Lin Ruoyan that the overall plan would be changed soon, and this place would no longer be the center of any region. The development focus would shift, and in the next twenty years, no businesses would move in, leaving it an empty city.
Of course, Lin Ruoyan would not completely deny Fang Yue's idea at the beginning. She asked about the location and then asked Fang Yue to send the photos of the scene to her email.
"I know a Feng Shui master. Let him help take a look. If there is any problem, let's stay away from it." Lin Ruoyan said seriously.
Fang Yue didn’t believe this before, but she knew that many people who bought luxury houses and did business believed this, and Lin Ruoyan said that she knew a master, so she shouldn’t be lying to her.
After dinner, Lin Ruoyan said she was tired and did not continue talking about the project. She just checked into the hotel and went to bed.
The next morning for breakfast, Fang Yue asked Lin Ruoyan to take a private room in the buffet breakfast restaurant.
This kind of private room requires an additional service fee, with waiters helping to pick up the food, plus some specially supplied high-end foods. Fang Yue treated her, and Lin Ruoyan accepted the offer without hesitation.
Lin Ruoyan said, "Mr. Fang, the master has replied to me. I paid extra money to expedite the process before he replied so quickly. He said that the location is inappropriate. While it may appear to be a treasure trove, it actually absorbs all the surrounding essence and uses it to build the building, like a manhole cover that directly covers up a large area of wealth. For at least twenty years, there has been no sign of prosperity there. If you want to do anything big there, it's not a good place."
Fang Yue was still not giving up: "My small apartment is not a big project, the total value is only a few million, I am just testing the waters."
Lin Ruoyan asked carefully: "I heard that all the pre-sale properties there are sold. Do you have a reliable middleman to resell them?"
"Yes, and they're almost finished. When we sign the official contract, I can get a shop for around 300,000 yuan per unit. I'll rent it back for two years after opening, and I'll deduct that portion of the rent on the spot, so the actual cost of one shop is only 200,000 yuan. I'll take ten units and convert them into small apartments, which can be divided into about 100 studios and rented out. I'll choose locations near the top floors; they're cheaper and no one else rents them as shops there. I've heard that several ladies in Wencheng are thinking of doing the same thing."
Lin Ruoyan frowned and reminded: "I remember there is a legal clause that prohibits sales and leasebacks."
"We all do this here. Otherwise, who would buy a shop? It's just a nice-sounding discount. How could the shop be fully rented so quickly in the first two years? The higher-ups are investigating, and we have our own countermeasures. We just say it's a profit-making sale, and any rent rebates won't be officially recorded."
Lin Ruoyan had a real-life experience with a similar situation. The contract stipulated a two-year lease for a shop. This type of shop was extremely popular when it was first sold, and people thought buying it would give them two years of rent in one go. How much of a bargain was that? After a comprehensive calculation, the price was cheaper than the surrounding area. Unexpectedly, after buying the shop, the project was left unfinished, and it couldn't be rented out even after five years, let alone two years. When she wanted to cancel her contract, the developer refused, and she took the case to court. The court ruled that the buyer had already enjoyed the rental rights, and the contract could not be voided, so the house could not be returned.
Lin Ruoyan brought up this matter but did not express her opinion, leaving Fang Yue to decide for herself.
Fang Yue's funds were limited to begin with, and she had intended to save the few million yuan she had to buy Lin Ruoyan's luxury home. However, Lin Ruoyan's luxury homes in Beijing were already sold out, and the ones in Shanghai were costing over 100 million yuan each. She gave up on buying luxury homes altogether and decided to try something new, like this small apartment.
According to Lin Ruoyan, renting out properties has become a risk. Several wealthy friends she knows have invested in them, including the wives of some prominent figures in Shanghai. They've taken over the pre-sale properties because of the allure of the rental rebate. They also have inside information that they can expect to receive formal purchase contracts by the end of the year at the latest, with property deeds issued within a year or two.
This is a high level of security for many small, unknown developers. Crucially, she brought an expert to inspect the building in person. The construction quality was excellent, and the relevant approval and acceptance authorities confirmed that the building would be successfully constructed. A successfully constructed building of 500,000 square meters, with no nearby competitors, would be a monumental and impressive sight, even if only half the tenants were occupied.
Moreover, with so many concepts incorporated before and after, and some policy guarantees for future international cooperation, it all seems plausible. Could it be that the feng shui is bad and there will be major problems in the future?
Seeing Fang Yue wavering, Lin Ruoyan didn't try to persuade her. Their friendship wasn't particularly deep to begin with, and back then, Fang Yue had misunderstood and despised her. If she pushed harder, she might not appreciate it. She'd addressed the issue, hinted at it subtly, and all she needed to do was keep a clear conscience.
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