Chapter 1112 - How Did The Fixed Assets Reach 270 Million Yuan?
Chapter 1112: How Did The Fixed Assets Reach 270 Million Yuan?
Pei Qian felt light-headed. “Huh? Bought them? 40%?”
They had bought at least sixty shops with a rough calculation!
Based on an average price of 600,000 yuan for each shop, a 50% premium would be 900,000 yuan. These 60 shops… were close to 60 million yuan!
Pei Qian was confused. “When did I give you so much money? Didn’t I only give you 10 million yuan to buy the farmers’ market?”
The snack market chosen by the snack market was about 1,700 square meters. Due to its remote location and poor environment, the price was not high. Each square meter was about 4,000 yuan. Tengda had increased the price slightly when they wanted to buy it. In the end, the total price was more than 7 million yuan.
Pei Qian decided to give Liang Qingfan more than ten million yuan together with the miscellaneous expenses such as renovation.
However, it could not possibly be 60 million yuan more.
Liang Qingfan said, “Boss Pei, didn’t you call me to look for a new building? I asked you if shops are alright, and you said yes.”
Pei Qian’s mind filled with more question marks.
He was silent for a moment, and then said, “If I remember correctly, I asked you what location you were in back then. You said that it was a relatively remote location, and there was no way to guarantee the appreciation potential.”
Liang Qingfan nodded. “Yes, isn’t this location remote enough?”
“What I said was: I can’t guarantee the appreciation potential, but it should be alright.”
“If there is no appreciation potential, I won’t apply for funds to buy it.”
Pei Qian was speechless.
What the h*ll…?
I allowed you to buy shops, not at such a place!
Pei Qian quickly called out to the system and brought up the Fixed Assets list that he now had – no, the Fixed Assets of the company recorded by the system.
< Fixed Assets: 272,830,000 yuan >
< Details: >
< Ming Yun Villas Commercial villa (9.8 million yuan) >
< 12 units in Dawn of Prosperous City (42.77 million yuan) >
< Shundong Gardens Residential House 77 units (24.71million yuan) >
< Binhu District Block 8 and Block 9 with 32 units (28.18 million yuan) >
< 30 units in Block 5 of the Golden Residence’s Huating District (72.69 million yuan) >
[24 units in Huaxin Mountain District Block 3 (25.8 million yuan)]
< Old Industrial Region’s Farming Market (7.6 million yuan) >
< 62 shops along the street in the old industrial zone (61.28 million yuan) >
The Golden Residence, Huating District, was the first building that Sloth Apartments 2.0 had bought. Huaxin Mountain District was the second building in Sloth Apartments 2.0. It was located in a relatively remote location, so it was much cheaper.
Pei Qian had intended to sell the newly renovated Huaxin Mountain District previously when he was lacking in money. However, he had not succeeded. Thus, it was still in his hands.
There was also detailed information behind the last column ’62 shops along the street in the old industrial zone’. It could be opened to check the information of every shop.
Pei Qian finally remembered after opening it and scanning it.
There was a period of time before this when the system did notify him of the purchase information of some shops.
However, the information displayed at that time was not ’62 shops near the old industrial zone’, but the specific names of these shops!
Pei Qian might become slightly cautious if there were the words ‘old industrial zone’.
Unfortunately, there wasn’t any.
Liang Qingfan signed contracts with the bosses of these shops one by one after all. Naturally, the system recorded them one by one.
The system only created a compilation after signing everything.
There was too much information about fixed assets. Thus, Pei Qian habitually kept them hidden and was too lazy to look at it.
Pei Qian had forgotten what he was doing when the message was refreshed. He might have been playing games or watching dramas.
All in all, he saw a bunch of shops with messy names flashing past. The prices of each shop were not high either. They were about hundreds of thousands each. Thus, he did not think too much about it.
On the other hand, the system would only refresh the information once the fixed assets were purchased. Then, the information would only be refreshed during settlement. It would not refresh during other periods.
That was because the value of these fixed assets would change subtly at any time. Some would rise and some would fall. If it kept showing, Pei Qian would see these numbers floating in front of his eyes every day. It was too annoying.
Thus, Pei Qian only managed to obtain accurate information about the fixed assets at that very moment.
Pei Qian felt a headache when he saw the figure of 270 million yuan.
Buying buildings meant that one could only enter but not exit. There were already so many of them without them knowing!
What’s more, he only seemed to see these numbers rise and not fall every time he saw these numbers.
What a saddening story.
He had to consider the fact that Sloth Apartments’ expansion had been slightly interrupted.
Pei Qian had originally planned to get Sloth Apartments to buy buildings in remote areas of Beijing and Shanghai. However, Liang Qingfan had gone on a holiday at that time, so this matter was temporarily shelved.
After Liang Qingfan returned, Pei Qian decided to set up a snack market at the last minute. Coupled with the money-burning war between Finger Games and Long Yu Corporation, Tengda’s funds were a little tight. Thus, the plan to buy buildings in Beijing and Shanghai was shelved again.
Even so, Tengda’s fixed assets had reached 270 million yuan, about to breakthrough to 300 million yuan!
His head was hurting.
The starting sum for the System Funds this month was 50 million yuan. A conversion of 270 million yuan to the System Funds was 27 million yuan. In other words, there was still 23 million yuan left in the System Funds that Pei Qian could use to incur losses.
Even if he cleared the System Funds, he would only be able to convert 2.3 million yuan into his Personal Wealth.
It was alright, it was not completely unacceptable.
What else could he say?
On the bright side, he had at least consumed a huge sum of money to reduce the pressure of loss.
Strictly speaking, these shops fit Pei Qian’s requirements. The location was remote and the price was moderate. The only problem was that they coincidentally connected the snack market and the Thriller Hostel…
The prices would appreciate in the next few years.
At this point, Pei Qian had nothing else to say. However, he still had one last question. “Why did 40% of the shop owners choose to sell?”
Logically speaking, if he knew that Tengda was going to make a big move in the vicinity, shouldn’t they be holding the shop firmly in their hands and asking for sky-high prices?
Perhaps they would only rent out and not sell.
At the mention of this, Liang Qingfan became excited and straightened his back.
“Indeed, I encountered many difficulties when buying these shops.”
“Many shop owners are asking for sky-high prices. They are either unwilling to sign long-term contracts or wanted to increase the rent by two or three times. It’s very ridiculous.”
“I definitely cannot be such a spendthrift!”
“Therefore, Boss Pei, after you specially approved the funds, I gave these shop owners an ultimatum: either sign a ten-year long contract, sign a long rental contract according to the current rent of 50%, or sell it to us according to the price premium of the shops.”
“If they don’t accept any of them, I will redesign the route of the Gourmet Street and bypass the nonoperative shops!”
“Therefore, Boss Pei, the route that you are looking at now is a redesigned one. Those shops that we’ve deliberately bypassed are basically shops that ask for sky-high prices and refuse to cooperate.”
“The remaining two proposals actually make sense.”
“The rental ratio of shops is basically around 1: 300. Even if the shops that are rented for 2000 months increase by 50%, they would only charge 3,000 yuan per month. What’s more, the contract is for 10 years. They cannot increase the rent at will. The rent is actually not that much.”
“If they sell the shops, the same shop would increase from 600,000 to 900,000 yuan. What’s more, we can get the money immediately.”
“Money has a time value. A 50% increase in price now would definitely be more worth it than a 50% increase in the future. What’s more, this is a sum of cash. It can be used to invest immediately. As long as it is operational, the income in the long term would far exceed the principal. It would be much more worth it than earning a little more rent.”
“Some shop owners intend to use this money to operate. Some shop owners are just short of money and are in a hurry to use this money to buy a house or cash flow.”
“Of course, there are also some shop owners who are more pragmatic. They would sign a long contract to rent it out if they are straightforward.”
“These are all personal choices after weighing the pros and cons. The two plans are actually similar for us.”
Pei Qian nodded.
Alright, he did not really understand these anyway. Since there was no need to worry about these things since they had already bought them.
The snack market would officially open the day after tomorrow. Pei Qian did not intend to come.
The results would be similar whether he came or not. The snack market would definitely be full.
As long as it did not make money.
Pei Qian looked at his watch. He had intended to leave an hour ago. He had not expected to be stabbed several times after walking around the snack street.
He should go home. It was time to comfort his hurt soul with delicacies and sleep.
Or perhaps, his injured back?
Forget it, it was about the same.
Pei Qian got into the car and left after Little Sun drove the car over.
Zhang Yahui and Liang Qingfan started walking back after watching Boss Pei leave.
Zhang Yahui sighed. “Boss Pei doesn’t show his emotions. I can’t tell if he’s satisfied with the snack market or not?”
Liang Qingfan corrected him. “You’re not right. Boss Pei doesn’t show his emotions, but his expression doesn’t seem to be in line with his true thoughts.”
“Boss Pei would be more optimistic in adversity and more cautious in the good times according to past experience.”
“He looks worried. That means we’re doing well, right?”
“At the very least, it means that there will be no problems in the short term. Even if there are shortcomings, they are problems that need to be considered in the future.”
Zhang Yahui heaved a sigh of relief. “I see. That’s good.”
“I just became the person-in-charge not long ago. I used to set up a stall to sell roasted cold noodles. I took on such a huge task as soon as I started. What’s more, it involved choosing locations, designing, and renovating areas that I have never come into contact with. I have been worried for the past few months, afraid that I would not do well.”
“I’m relieved now that I know Boss Pei is satisfied.”