Chapter 318: Entering the Real Estate Industry

Xu Yang here.

Not long after Chen Guanglei left, he got down to business, preparing to acquire real estate in the old city district, this time hoping to make a quick and large sum of money again.

But before he was ready, he heard the municipal government announce the redevelopment of the old city area.

That dashed his hopes of making a quick fortune.

Half an hour later, Xu Yang received a phone call.

It was from the real estate tycoon Lan Penghua.

Initially, the two had only met once at a property owners’ gathering.

Last time, when Jiang Zhiyong bought a house, Xu Yang called Lan Penghua, who offered a fifty percent discount.

Their relationship had taken a step forward from there, and they could be considered friends.

Xu Yang knew he owed Lan Penghua a favor, neither too big nor too small.

In the future, he would involve Lan Penghua in any good investment projects to make money together.

"President Xu, you’re impressive, securing the most central shop in the old city area before the municipal planning was even announced,"

the phone had barely connected when Lan Penghua praised him.

"President Lan, would you believe me if I said it’s a coincidence?" Xu Yang said with a laugh.

As Jiangcheng’s real estate tycoon, it wasn’t surprising for Lan Penghua to know about this.

The news that Chen Guanglei had compensated him with that shop must have already gotten out.

"Coincidence?" Lan Penghua was skeptical.

After all, Xu Yang’s timing was too accurate.

He had acquired that shop shortly before the municipal government released the redevelopment plan for the old city district.

No businessman would believe it was a coincidence.

"It really was a coincidence. I believe you already know the story; it was Chen Guanglei who took the initiative to compensate me with it," Xu Yang explained.

"He took the initiative to compensate the shop to you?" Lan Penghua was somewhat taken aback.

He knew that Chen Guanglei compensated Xu Yang, but didn’t know that it was done on Chen Guanglei’s own initiative.

"Yes, he offered it himself. I thought the location there was good. Having such a place, I considered doing something with it in the future, but out of the blue, the municipal government announced the redevelopment plan for the old city, making it seem like I had insider information."

Xu Yang did have insider information, not from the municipal government, but from the system.

"I see," Lan Penghua didn’t linger on that—Xu Yang said it was a coincidence, so let it be a coincidence. The main issue at hand was more important, "President Xu, I’m not sure what your plans are for that shop, whether to sell it directly, or..."

Xu Yang raised his eyebrows, "President Lan, are you interested in buying it?"

Lan Penghua laughed, "If I said I had no interest, that would make me an unqualified real estate developer. Right now, there must be many people eyeing your shop."n/o/vel/b//in dot c//om

Xu Yang nodded, "That’s true."

Before Lan Penghua called, a few people had already called with offers, some of them quite high. One person had bid one billion.

Lan Penghua said, "President Xu, I have an idea, but I’m not sure if I should say it."

Xu Yang replied, "Go ahead."

Lan Penghua continued, "President Xu, I see you’ve established quite a few companies and invested in many acquisitions, but you don’t have a property company. How about seizing this opportunity to establish a real estate company and enter the property industry?"

"Enter the property industry?" Xu Yang was taken aback, then said, "I haven’t really thought about that. It’s mainly because it’s too much trouble."

Lan Penghua replied, "So you are interested. This is exactly what I wanted to discuss with you. I know you don’t like dealing with the day-to-day management, so I have a proposal: Let’s establish a real estate company together. I will take care of the operational management, and you can just be the silent partner. How does that sound?"

This was Lan Penghua’s true purpose for making the call.

There was no opportunity for collaboration between them, and this was a chance.

If they established a property company together, their relationship would undoubtedly deepen.

This partnership would be more solid than many other business relationships.

```

There will be even more opportunities to participate in Xu Yang’s other investment projects in the future.

"I see," Xu Yang couldn’t make up his mind at the moment.

The system only said that the shop would appreciate in value.

It didn’t say whether establishing a real estate company would be profitable.

Establishing a real estate company does involve significant risks.

Lan Penghua continued, "Mr. Xu, rest assured, with my years of experience in the industry, our newly established real estate company may not make a fortune, but at least it won’t lose money. Moreover, starting with the redevelopment of the old city district is definitely profitable."

Xu Yang thought about it and agreed that capturing part of the redevelopment of the old city district was sure to be profitable, as it was an official project with guaranteed returns.

As for future projects, that would depend on the circumstances.

But no matter what, it wouldn’t be too bad.

To put it bluntly, even if it ended in a loss, it wouldn’t be much, and with his net worth, he wasn’t afraid of losing that bit of money.

His business empire was bound to touch all trades and professions in the future.

Not every investment had to rely on the system.

After all, businesses that the system advised to establish or acquire were definitely profitable.

Those not mentioned by the system, he could try himself as a way to hone his judgment and abilities.

Even if it resulted in losses, it wouldn’t be much, inconsequential, and wouldn’t impact the bigger picture.

Hadn’t it been the same with establishing the security company?

Entering the real estate industry could be approached in the same way.

With this in mind, Xu Yang said, "Mr. Lan, since you sincerely invite me and there’s such a great opportunity, I’d be embarrassed not to accept. Tell me, how will we do this?"

Lan Penghua was overjoyed, "Mr. Xu, I’ve thought about it. You can value that shop at one hundred and fifty million as your share, I’ll invest three hundred million, you’ll have forty percent of the shares, and I’ll have sixty percent. What do you think?"

Xu Yang said, "But wouldn’t you be at a loss that way?"

That shop had already received offers of one hundred million.

But reaching one hundred and fifty million seemed unlikely.

Valuing it at one hundred and fifty million, owning only a third of the investment, yet holding forty percent of the shares.

Clearly, he was getting a great deal.

Lan Penghua said, "Mr. Xu, let’s not talk about losses. Being able to establish a company with you, I feel I’m the one making a profit. If you think I’m at a loss, just include me in other investment projects that suit me in the future."

He wouldn’t make a losing deal, he was just looking at the long-term picture.

As long as Xu Yang included him in future investments, he could easily make back this money.

Plus, their relationship would be stronger through this cooperation, which was worth more than anything else.

Lan Penghua was confident in his ability to judge people.

Given Xu Yang’s capabilities, in the near future, he could very well become the richest man in Huaxia, or even the world.

With this relationship, the value it could bring him in the future was incalculable.

"All right, if I say any more, I’ll just seem pretentious."

With Lan Penghua having expressed himself to this extent, it wasn’t good for Xu Yang to say much else.

That very afternoon, Lan Penghua personally came to see Xu Yang.

The two talked for over an hour, and Xu Yang signed all the necessary documents.

The next steps were Lan Penghua’s responsibility now.

Three days later, Huayang Real Estate Company was established.

The first order of business was to announce a bid for the old city district renovation project.

However, on the very next day, an issue arose with the bid for the old city district renovation project, forcing Lan Penghua to seek out Xu Yang.

```