Chapter 48: The Wealthy Man

After some effort, Li Dong finally met the head of the Dragon Hua leasing office. 

The manager, surnamed Wang, was polite and sent Wang Jia to make tea before inviting Li Dong to the meeting room.

Li Dong was impressed; this was the manner of a big company.

Not judging people by their appearance was a basic requirement. Who knew if the guy wearing slippers might be the CEO of a listed company?

Besides, Li Dong wasn't wearing slippers today; he was just younger.

Once they were in the meeting room, the two of them took their seats facing each other.

After Wang Jia had poured tea for both of them and left, Li Dong stood up and introduced himself, "Manager Wang, hello. I am Li Dong, General Manager of the Yuanfang Chain Supermarket!"

"Hello, Mr. Li. Nice to meet you!" 

Wang Yunqing quickly stood up and shook hands with Li Dong.

Although Wang Yunqing had never heard of Yuanfang Chain Supermarket, his years of experience in business had taught him not to express such disdainful opinions.

After some pleasantries, Wang Yunqing got straight to the point, "Mr. Li, are you looking to have Yuanfang Chain move into Dragon Hua?"

"Yes, that's the plan," Li Dong nodded.

Since he was here, it was naturally to discuss renting the space. Li Dong didn't beat around the bush and asked directly, "Do you know if the second floor is still available for rent?"

Wang Yunqing was taken aback. He had expected Li Dong to be interested in renting a few small shops to test the market, not the entire second floor.

Fortunately, his experience allowed him to quickly regain his composure. "The second floor is still available. We are indeed looking to lease it to a large supermarket, but…"

His unspoken words clearly indicated a lack of confidence in Li Dong's proposal.

A small, unknown supermarket run by a twenty-year-old, dreaming of opening the largest supermarket in Pingchuan? Wang Yunqing had to admit he was judging based on appearances.

Li Dong wasn't surprised and smiled, "Manager Wang, could you give me more details?"

Wang Yunqing, fully aware of the commercial property, began to detail the specifics of the second floor. Li Dong listened attentively, getting a clearer picture of the space.

After Wang Yunqing finished, Li Dong suddenly asked, "Is it for sale?"

Wang Yunqing was genuinely dumbfounded. At that moment, he had no doubt that Li Dong was just toying with him! 

Maintaining his composure, he said with restrained irritation, "If you want to buy it, it's 6,000 per square meter, totaling 70 million. You can buy it outright."

The mention of "70 million" was delivered with emphasis, nearly suggesting that if Li Dong didn't have the money, he should leave immediately!

Li Dong merely clicked his tongue, not caring about Wang Yunqing's attitude.

If he had the money, he'd really consider buying it. At only 6,000 per square meter, in ten years, the price of the prime ground-floor shops at Dragon Hua Plaza could soar to 50,000 per square meter, and at peak times, even 70,000 to 80,000.

Though the second floor couldn't compare to the ground floor, a price of 40,000 to 50,000 per square meter wasn't impossible. With a return rate of nearly seven times, it would be a profit of 400 million in ten years—faster than making money by any other means.

However, dreaming wasn't practical right now. Li Dong didn't have 70 million to spend.

Returning to the matter at hand, Li Dong asked, "If I were to rent, what would the rent be?"

Wang Yunqing sighed with relief. He had feared Li Dong would continue his impractical demands.

Seeing Li Dong asking about rent, Wang Yunqing promptly responded, "The annual rent is 8 million. We offer contracts for either five or ten years, with the first year's rent paid upfront."

For large commercial spaces, long-term leases of five or ten years were common.

"8 million?" 

Li Dong thought for a moment. An annual rent of 8 million wasn't too high considering the large space. However, based on current market rates, 8 million was excessive, exceeding 11% of the purchase price.

Typically, the annual rent for a mall ranges between 6% and 9% of the original purchase price. Although Dragon Hua Plaza would prosper in the future, it wasn't at that level yet, making Wang Yunqing's offer a bit high.

"Manager Wang, could you give me a bottom-line price? I came here with sincerity. It's rare for a chain supermarket to commit to leasing over 10,000 square meters in Pingchuan."

Li Dong had already deduced that Le Gou had likely not yet made a move, otherwise, Wang Yunqing would have mentioned it.

Since he was in exclusive negotiations, Li Dong aimed to negotiate the price down.

Negotiating was expected, but Wang Yunqing still harbored doubts about Li Dong's capabilities. If they agreed on a price and Li Dong backed out, it would be a waste of time.

Wang Yunqing didn't rush to mention a price and instead suggested, "Let's not rush on the price. Mr. Li, you haven't seen the second floor yet, have you? How about I have Xiao Wang show you around?"

Li Dong wasn't interested in a tour; he knew the layout of the second floor better than anyone.

He wasn't going to waste time on a tour. "Manager Wang, let's be straightforward. You probably doubt Yuanfang's financial strength. How about this: we negotiate the price now, and if we reach an agreement, I can sign the contract and pay the deposit on the spot. How does that sound?"

Although this was what Li Dong thought, addressing Wang Yunqing directly about it made him feel somewhat awkward.

However, after years of experience in the industry, Wang Yunqing quickly recovered his composure and began to explain, "Mr. Li, 8 million really isn't high. You know the advantages of Dragon Hua Plaza…"

Wang Yunqing went on and on about the future prospects of Dragon Hua Plaza, its advantageous location, and bright development prospects…

Li Dong listened without interruption and, at the end, countered firmly, "5 million!"

Wang Yunqing's eyes widened in disbelief, as if he had been insulted by the figure of 5 million.

"Mr. Li!"

Wang Yunqing's voice became hoarse as he shook his head vehemently, "5 million? That's 3 million less than the asking price. This is for rent, not for purchase. If you lease for ten years, we'd lose over 30 million!"

...

The two argued fiercely for a long time, and Li Dong was somewhat exhausted.

The price settled at 7.2 million, still slightly beyond Li Dong's limit.

Not just the price, but also the contract terms were an issue. Wang Yunqing insisted on an incremental contract, with a 5% increase in rent every year, which Li Dong found unacceptable.

Although a 5% increase might not seem much, it would mean a rent of 10.15 million ten years later based on the 7 million rental rate, resulting in an additional tens of millions in rent over ten years. Li Dong wasn't willing to agree to that.

Li Dong picked up his cup to take a sip of water, signaling a brief break, but he shook his head instead.

Wang Yunqing noticed this and, his face darkening, called out, "Xiao Wang, bring a cup of water quickly!"

It had been over half an hour of discussion without anyone thinking to bring water, which greatly annoyed Wang Yunqing.

As this was an internal issue at Dragon Hua, Li Dong didn't get involved and instead continued with the topic, "Manager Wang, I cannot accept your terms. With an incremental contract, the total rent over ten years would exceed 80 million. If I had that kind of financial strength, I might as well buy the property."

"Mr. Li, that's not how it works. If you deposited 70 million in the bank, at the current 5% interest rate, the interest would exceed 30 million. Your rent increase is just a small fraction of the interest."

Wang Yunqing cleared his throat and added, "Moreover, property prices keep rising. Who knows what the price will be next year? You might even get a bargain."

Li Dong was about to retort when Wang Jia entered with a tea tray.

Wang Yunqing's face darkened again. He scolded Wang Jia, "Don't you know to knock?"

Wang Jia looked aggrieved, carrying the tray with both hands and unable to knock.

Since there were outsiders present, Wang Yunqing couldn't say much more, glaring at Wang Jia before letting her go.

He then continued, "Mr. Li, the annual rent of 7 million is Dragon Hua's bottom line. However, the contract must include the incremental clause."

Wang Jia, who was about to leave, was stunned for a moment. She glanced at Li Dong and suddenly realized something.

She hadn't expected that this person was actually a wealthy man!