Tao Liangchen

Chapter 227 Buying Land is Easy, Building is Hard

The Jin Mao Tower, the highest, most iconic, and trans-century landmark in the country, built with funds raised by numerous companies, stood tall not far away.

Su Yehao first went to the construction site of the Jin Mao Tower, treating it as if he were just visiting a neighbor in advance.

Perhaps because he was riding in a "luxury car," the security guard at the entrance of the construction site immediately let him through, allowing the car to enter first, and then asking a few questions.

Nangong Tian and Jiang Yu had originally worried about miscommunication or being turned away, but they could only say they had worried for nothing.

They saw Su Yehao calmly tell them that he had bought a piece of land next door and wanted to ask about the details of the construction. The manager, upon hearing the news, quickly rushed over.

When he heard that it was the young master of Sihai International, his attitude became incredibly enthusiastic, and he directly led them to the office, using a small sun heater to warm them, and poured them a few cups of tea.

"My name is Li Xiang, Xiang as in long xiang hu bu (dragon strides and tiger steps). I am in charge of this construction site, and I am just a small manager in the company."

Li Xiang had just turned forty this year. Being able to manage such an important project meant his capabilities were definitely beyond question. He continued, "Sihai International's cultural and tourism city in Pengcheng has been very famous recently. Why did Young Master Su come to Hu City?"

News of scammers often spread throughout the region, using the guise of investment promotion to swindle and deceive.

Li Xiang had never met Su Yehao and didn't know much about Sihai International. Although he was polite at this moment, he was cautious and not foolish enough to believe everything others said.

Su Yehao was only visiting, trying to get some information in advance. Sitting on the sofa, he replied, "I was in Hong Kong yesterday and met the major shareholders of Wen Hua Real Estate. They wanted me to take over the land next door, so I came over to see the situation."

"Wen Hua… oh, that's right, that's also a good piece of land, with a large planned area, but construction has been stalled."

There were few projects in Lujiazui at the moment. Li Xiang had been here for almost three years and was well-informed. He had heard of Wen Hua Real Estate and knew where the land was located.

"It's indeed not small, and the price is quite high. Buying the land is just the beginning. The subsequent construction is the big issue. That's why I came to visit and want to use your project as a reference to assess the construction cost."

After Su Yehao finished speaking seriously.

Li Xiang looked at Su Yehao with a strange expression and said, "Although they are both office buildings, the costs are very different. The total cost of Jin Mao is expected to exceed four billion."

Hearing this, Su Yehao was shocked.

Su Yehao didn't know everything. This was the first time he had heard the cost of this building, and he was simply stunned.

He had thought that at current prices and labor costs, it would cost at most a little over a billion, especially since it was "his own" land, which saved a lot of money in the land acquisition process.

The Bank of China Tower in Hong Kong was more than 360 meters high and had a total of 70 floors. Apart from the 1.1 billion Hong Kong dollars spent on land acquisition, the construction cost was controlled at around 1 billion Hong Kong dollars. And the Central Plaza, built in 1992, was said to have cost only a little over 1 billion.

He didn't know if the figure Li Xiang mentioned was real, but he definitely couldn't use it as a reference.

Moreover, there was a rich way to build and an economical way to build. The most cost-effective building was a square, traditional building. The situation was different for each building, and the higher the floor, the more expensive it usually was.

Su Yehao vaguely remembered that the world's tallest Burj Khalifa seemed to have used the spire to make up more than 200 meters, which also saved a lot of money, and the construction difficulty was also reduced.

Since he had come, he turned to ask if the leasing was going smoothly.

After the building was capped, the hotel and office floors had already been negotiated. As for how much rent could be collected, Li Xiang didn't mention it, only saying that he wasn't responsible for this part.

Not to mention a high-rise of more than 400 meters, even a building of 300 meters had never been built by the construction team before, so they lacked experience, and building materials and elevators had to be purchased from abroad.

After chatting for more than twenty minutes, Su Yehao became more and more curious about the cost.

He first called his father and asked him how much it would cost to build a fifty-story building. Without thinking, Su's father said it would cost at least 1 billion Hong Kong dollars.

Then, Su Yehao went to other construction sites to inquire about the estimated costs.

The answers he received varied. The Bank of China Tower in Hu City, which was under construction, was expected to cost more than 200 million US dollars, while the Sen Mao International Tower, which was about 200 meters high, had a total investment of about 1.5 billion.

After visiting all the places, Su Yehao sighed.

It seemed that buying land was easy, but building a building was difficult. He suffered from a lack of experience, and the cost of building an office building was much higher than he had imagined.

Being doused with this cold water, his enthusiasm faded a little.

No wonder the price of the land was low, half-selling and half-giving away. The planned construction area of more than 100,000 square meters only cost more than 200 million. It turned out that the bulk of the money was in the construction costs.

After buying the land, he would have to spend at least another billion, no wonder Pei Xinyao and his wife said they didn't have the strength to build it.

Su Yehao also felt that he couldn't afford so much money. He probably wouldn't be able to do it in a year or two. Using the funds elsewhere would make more money in the short term.

A private plane costing twenty or thirty million US dollars would make Su Yehao feel a pang of pain, let alone spending about 200 million US dollars to build a building. He regretted making such a loud boast in front of the little girl and Jiang Yu.

People, indeed, shouldn't get carried away.

Investing was definitely profitable, but considering the costs, the profits would most likely be seriously reduced. Investing in an office building was probably not as profitable as investing in the land of Tomson.

Calm down and think carefully.

On the one hand, he felt that he would have money in the future, and on the other hand, he was reluctant to have an extra-large "business card" of his own in Lujiazui.

The idea of buying the land wavered for a moment, but Su Yehao gritted his teeth and ultimately decided to act tough and buy it. Anyway, he could hoard it for a while, and he didn't have to pay for the construction of the building all at once. Whether he developed it himself or resold it, he would decide based on the situation at the time.

The main reason was that the money for buying the land could be borrowed from the bank, which would not affect his existing business. If the land price in Lujiazui doubled in the next two or three years, the profit would be considerable.

So, he simply called Pei Xinyao to finalize the deal first.

Only then did he feel comfortable.

When going to the Jiangbian land held by Tomson, Su Yehao said, "If one day in the future, I regret not taking the money to speculate on residential land, remember to remind me not to forget my original intention. Building a building is for fun, not to haggle over the gains and losses of benefits."

"Why do you say that?" Jiang Yu asked.

Nangong Tian also asked him, "Brother Hao, are you having fun now?"

"More than 200 million is about to be spent, and I didn't even blink an eye, it's quite fun."

Su Yehao said with a smile, then looked at Jiang Yu and said to her, "Don't ask, asking is just impulse. Usually, I like to consider how to maximize profits, so I'm reluctant to even buy a private plane. The return on this investment may not be so great, but it's still a good project."

Jiang Yu grasped the wrong point and said, "Renting a plane is very convenient. You actually want to buy one yourself. Things are different after you make money."

The little girl immediately fueled the fire and said, "Brother Hao, don't take her with you after you buy the plane, she'll laugh at you for being stupid."

"..."

With the business done, Su Yehao bought a map and looked through it, planning to visit the West Lake in Lin'an.

Jiang Yu pointed to the southwest, saying she wanted to see the world's highest snow mountain.

As for Nangong Tian, she said she wanted to go to the grasslands and deserts of the Great Northwest, driving all the way and having fun along the way.

Take a few deep breaths and calm down.

Su Yehao said helplessly:

"I really should take you around more. After staying in Hong Kong for a long time, do you think it's like going from Central to Mong Kok? You point your finger, and it's thousands of kilometers away, and you still want to drive yourself? I'm afraid you'll be carsick..."