Original title: brief history of Internet giant’s land acquisition: byte leaping and Hao’s investment of 6 billion to buy a house
Internet giants are becoming the biggest competitors of real estate developers.
On November 20, Shanghai transferred a parcel of land numbered “m4-01, m5-01, n1-01, n2-01” of n090603 unit in Dinghai community, Yangpu District. As the only enterprise applying for bidding, Hanhai information technology (Shanghai) Co., Ltd. successfully obtained land with a floor price of 22350.36 yuan / square meter with a total price of 6541.3 million yuan.
Tianyancha app shows that behind Hanhai information is meituan’s comments, and the executive director of Hanhai information is mu Rongjun, co-founder of meituan.
Meituan also confirmed to the media that this piece of land was just taken by it and will be used to build a new Shanghai headquarters base, accelerate the research and development integration of new generation information technology such as artificial intelligence, and actively arrange innovative businesses such as cultural tourism, mobile travel, financial technology, etc.
Earlier, ant group, which will land on the capital market, also spent 2.7 billion yuan on a commercial land in the West Lake District of Hangzhou. As soon as the news comes out, it directly ignites the enthusiasm of the property market of Zhijiang plate.
From the perspective of land cost, the investment of Internet giants is no less than that of large real estate enterprises. The loose state of funds and closer industrial cooperation with local governments have even enabled Internet giants to acquire more land.
The magnate takes the land fiercely
In recent years, the most fierce land acquisition is the long-term “no fixed place” byte beat.
Although it has grown into China’s Internet giant with the highest degree of internationalization, byte hop did not have a proprietary office building before November 4 this year. Since its establishment in 2012, around AVIC Plaza, the byte skipping office building has been rented from the West Fifth Ring Road in Beijing to the East Fifth Ring Road, and even the AVIC Plaza in Beijing, as the headquarters, has been leased for a long time.
Forced, employees often move back and forth between major office buildings due to the adjustment of work content.
The situation began to improve on November 4. On the same day, the office building located in Beijing Fangheng International Center was officially opened. This is the first office building with its own property rights under byte skipping. The property rights were won by 5 billion yuan in 2019.
This is not the starting point of byte hopping. In 2018, byte beat had intended to invest 9 billion yuan to acquire Zhongkun square in Beijing’s Dazhong temple. However, the property rights of the project are complex, and the acquisition is not smooth, so it is basically shelved at present.
In 2020, byte skipping and land acquisition will become more frequent. For example, in June this year, it spent 1.082 billion yuan to enter the Yuehai Street Office of “wanghong Street” in Shenzhen, and became neighbors with Tencent Binhai building and Shenzhen Ali center.
Perhaps the bitterness of Zhang Yiming’s lack of constant production before is most understandable by Lei Jun. Since starting their business in 2010, Lei Jun and Xiaomi have successively moved to Yingu building, rolling stone building, China Resources colorful city and other places. Until 2015, Xiaomi bought land in Shangdi area not far from the colorful city to establish Xiaomi science and technology park. The whole park spent 5.2 billion yuan of Lei Jun.
This sense of vagrancy makes Xiaomi constantly increase the real estate plate. On November 5, 2018, a public mixed residential land auction was held in Shahe Town, Changping District, Beijing. The 47000 square meter plot was finally won by Xiaomi and China Resources Land consortium with a base price of 2.657 billion yuan, with the floor price of 19356 yuan per square meter.
Tencent, which will jump to become a neighbor with bytes, is undoubtedly a small expert in the Internet giant’s land hoarding. In Shenzhen alone, Tencent has completed three major relocations – from Huaqiangbei to feiyada building, then to Tencent building built by itself and Binhai building as global headquarters. In addition, Tencent also spent 8.5 billion yuan in November 2019 to win the Dachanwan Island plot in Shenzhen, which will be the Tencent technology Island project in the future.
According to the 58 city statistics, Tencent currently holds properties in more than a dozen cities, including Beijing, Shanghai, Tianjin, Chongqing, Chengdu and Wuhan.
Jingdong, another Internet giant, has been taking ground frequently in recent years. Jingdong’s most famous recent acquisition was the acquisition of Beijing Cuigong hotel for 2.7 billion yuan. Although the building was later transferred by Liu qiangdong to Anzu gaodun, a well-known hedge fund, the cloud computing Department of Jingdong still settled in the building and renamed it Jingdong technology building.
In addition, Jingdong has also appeared in the local auction market in Dongguan, Shanghai, Suqian, Chongqing, Jieyang, Zhaoqing, Jinan, Nanchang and Xi’an in the name of storage land and logistics center. As of 2018, Jingdong has obtained land use rights in more than 30 cities across the country.
Internet giants are keen on land acquisition. On the one hand, it is related to more office demand brought by rapid business expansion, on the other hand, it is consistent with the demands of local governments to promote the development of related industries, so as to realize land reserve at a more favorable price.
Which house is better to sell for survival?
The value of real estate has long been confirmed by the pioneers of the Internet industry.
Sohu, which has fallen behind from the Internet industry leader, has been ridiculed by the outside world. The company’s market value is not even as high as the office buildings under its buttocks.
This is also true. So far, the total market value of Sohu is no more than 764 million US dollars (about 5.012 billion yuan). When Sohu bought Sohu building in Wudaokou, Beijing in 2006, it spent 277 million US dollars and used more than 30% of the company’s cash reserves at one time. Considering the current housing price of the “center of the universe”, Zhang Chaoyang’s investment has increased by many times.
It’s just the value of a building. In 2010, Sohu built its own Sohu media building in Rongke Information Center Park, the core area of Zhongguancun, with a total construction area of 41000 square meters and a construction cost of more than 2 billion yuan. In addition, Sohu Changyou building, located in Bajiao East Street, Shijingshan District, has a valuation of more than 1 billion yuan.
Judging from the current housing prices in Beijing, the total price of these three buildings has already exceeded the market value of Sohu company. That’s why Zhang Chaoyang, founder of Sohu company, dared to make a bold statement when building Sohu media building in 2010: China’s urban expansion makes asset appreciation faster, and it is profitable to buy land and build buildings.
Although Sohu’s life is very tight, it has not yet reached the critical point of selling buildings for survival. In February 2020, due to the economic uncertainty caused by the epidemic, LG, a South Korean consortium, finally sold the LG Gemini building along Chang’an Street to Singaporeans for 1.37 trillion won (about 8.046 billion yuan).
The construction of LG Gemini building started in 2002 and completed in 2005 with a total investment of 400 million US dollars. According to the exchange rate at that time, the building cost was about 3.28 billion yuan. This sale makes LG Group earn more than 5 billion yuan.
There are also Lenovo who rely on selling buildings to help. After the acquisition of Motorola’s mobile phone business, Lenovo’s financial report was once very bad. At that time, Lenovo’s main business PC was also in trouble, because the industry as a whole was shrinking. As a listed company, the financial pressure of Lenovo Group can be imagined. During the half year period from May 2016 to March 2017, Lenovo successively sold all shares of its three buildings and Rongke Zhidi, a real estate company, in exchange for an income of about 18 billion yuan.
Of course, not every company can make life-saving money by selling upstairs. Jia Yueting’s lessons are still in front of us.
In December 2016 and April 2017, Jia Yueting spent 420 million yuan to acquire a number of land in Moganshan high tech Zone in Deqing, Zhejiang Province, which was originally planned to be used for the construction of LETV ecological Automobile Industrial Park, with a total area of about 1.35 million square meters. However, due to the outbreak of LETV crisis, the plot has been on hold for a long time, and was finally recovered by the local government in November 2019.
It is worth noting that land trading is not a business that can make a profit without losing money. Even if the land is located in Sanlitun, Beijing, it will sometimes become a burden to you. Due to various factors, such as complex creditor’s rights, awkward positioning and poor operation ability, Jia Yueting spent 2.972 billion yuan to buy the third project of Beijing Shimao industry in 2016.
At that time, after the acquisition, Jia Yueting, who was in good shape, gave a ppt: build Shimao gongsan into LETV’s offline experience platform, and injected 2 billion yuan into Beijing Guoan club, which is the main venue of Gongti, to bring high viscosity marketing scene for Shimao gongsan. According to Jia Yueting’s idea, after all the projects are completed, fans can go to Shimao gongsan for drinking and entertainment after watching the game.
However, shortly after the acquisition of the building, the capital problem of LETV broke out on a large scale, and Jia Yueting failed to return to the United States. Before going abroad, he also tried to sell the building in exchange for life-saving money. In June 2017, Vanke offered 2 billion yuan for this building, but Jia Yueting’s counter-offer of 4 billion yuan frustrated Vanke.
Up to now, Shimao No.3 has failed to auction for three times, of which the third auction directly gave a 6.6% discount, but no one took over. After the auction, all the bidders who have not paid a deposit are worth one yuan.
Today, with LETV’s delisting, Jia Yueting is still trying to build cars in the United States, leaving only a chicken feather to the catcher and investors.