Chapter 59 Speculating Heavily in Real Estate

In early October, the Yangtze Car Rental Company successfully concluded its September dividend distribution, leaving all major shareholders overjoyed.

At the same time, disputes with other car rental agencies were successfully resolved. Not only were two lost vehicles recovered, but a compensation of 600 silver dollars was also secured.

Originally, the compensation was supposed to be two rickshaws, but Chen Guangliang chose to take the cash instead. Accepting the 600 silver dollars in compensation, the entire sum went straight into his private pocket. Of course, he also had to treat the traffic department and police station personnel to some tea and hand out a little tip.

On the other end, Gu Zhuxuan also readily paid Chen Guangliang a commission of 10,000 silver dollars in advance.

This caused Chen Guangliang's cash flow to surge dramatically to 11,500 silver dollars.

Naturally, daring to take Gu Zhuxuan's 10,000 silver dollars came with risks. Because if the land prices in Zhabei did not appreciate by 200% over the next three years, Gu Zhuxuan might come looking for trouble.

Yet, Chen Guangliang could not afford to worry about other factors; after all, he was concerned that if he did not draw the commission in advance, Gu Zhuxuan might renege on the deal three years later. By then, wouldn't he have let Gu Zhuxuan effortlessly make hundreds of thousands of silver dollars?

Besides, Chen Guangliang three years from now would not necessarily fear Gu Zhuxuan.

The funds in Chen Guangliang's hands were earmarked to continue purchasing land between Jing'an Temple Road and Yuyuan Road, with the intention of specializing in real estate speculation in this area going forward, primarily because the geographical location was simply too superior.

"Manager Chen, I hope you are well!"

"Hello."

Meeting once again with the broker Wang Zuoyi to discuss business matters.

Both parties had been quite pleased with their previous collaboration. Wang Zuoyi was extremely familiar with the process of converting ordinary farmland into land with official title deeds.

Moreover, the final cost incurred was lower than buying land that already possessed official title deeds directly, which made Chen Guangliang very satisfied with this broker.

"Mr. Wang, I intend to continue acquiring land in areas such as Jing'an Temple Road and Yuyuan Road, and have specially invited you here for a consultation."

Wang Zuoyi immediately said with a smile, "Glad to be of service. Has Manager Chen considered land on Yuyuan Road a short distance away from Jing'an Temple Road?"

The two roads were roughly parallel, and the land in between was Chen Guangliang's primary target, though the outer sides could also be considered. However, Yuyuan Road extended much further to the west, and that area was predominantly farmland.

Chen Guangliang stated, "If it is not close to Jing'an Temple Road, the location of the land will be subpar and unsuitable for investment."

Wang Zuoyi immediately remarked, "Mr. Chen is an expert; you understand the importance of Jing'an Temple Road."

Chen Guangliang added, "If it is too close to the east side, the prices skyrocket. Therefore, I hope to find suitable targets within this specific zone. Of course, Yuyuan Road can also serve as an alternative option."

He gestured across a rudimentary map, pointing roughly to the section corresponding to future landmarks from Hang Lung Plaza to West Yan'an Road.

The scope of the land was still quite vast, as locations near the roads were all viable options, and the Yuyuan Road area was also under consideration.

***

Wang Zuoyi then asked, "How many mu does Manager Chen plan to acquire?"

With a sweeping gesture of his hand, Chen Guangliang replied, "This time, I want at least about 15 mu."

Wang Zuoyi was startled, but immediately said happily, "I will do my utmost to help Manager Chen achieve his goal!"

Chen Guangliang laughed, "Good... But ideally, complete it for me within this year, and avoid arousing the vigilance of people around."

"No problem!"

Fifteen mu would roughly cost around 22,000 silver dollars.

Although Chen Guangliang had less than 12,000 silver dollars on hand, he could utilize a bank loan to cover half of the amount.

***

At the end of 1908, the Shanghai-Nanjing Railway opened to traffic along its entire line, with the Shanghai station established within the Zhabei district (later referred to as the Shanghai East Station). Afterwards, this railway was extended eastward to the vicinity of Baoshan Road and Tianmu Road, becoming the Shanghai North Station.

In the future, even though Shanghai might still feature South and West stations, Zhabei would forever remain the location of the city's largest railway station, the North Station.

Under these circumstances, Zhabei became the overland transportation hub connecting Shanghai with other regions, providing convenience for the subsequent development of Zhabei.

Due to Zhabei's low land prices and convenient transportation, industrial and commercial enterprises flocked to establish a presence there.

By the mid-to-late 1920s, Zhabei had rapidly developed into a major industrial zone in Shanghai, boasting 216 large factories, accounting for 45.23% of the city's total. People referred to Zhabei at this time as the 'stronghold of native Chinese industrial origin.'

The renowned American journalist Thomas F. Millard praised: China's own industrial construction, regardless of quantity or importance, surpassed that of foreigners in Shanghai, and they were primarily concentrated in the Zhabei area adjacent to Hongkou.

Simultaneously, commerce in Zhabei was also taking shape. Datong Road featured over 40 various types of shops, earning it the moniker of 'Zhabei's Nanjing Road.' The population of Zhabei also surged from fewer than 30,000 in 1903 to 300,000 by the early 1920s, making it one of the most densely populated regions in Chinese-administered territory.

The development of industry and commerce, coupled with the population growth, also expanded the scope of Zhabei and continuously elevated the status of its urban area. In 1923, Zhang Jian proposed establishing Zhabei as an independent county, which amply demonstrated its development.

Although this proposal ultimately did not materialize, in reality, it was difficult for Baoshan and Shanghai counties to continue jointly administering Zhabei. In 1927, the Shanghai Special Municipality was established, and Zhabei was designated as a distinct district, legally severing its administrative ties with Baoshan and Shanghai counties, which factually affirmed the crucial status of the Zhabei urban area within Shanghai.

Inside a conference room, Chen Guangliang delivered a business briefing to Gu Zhuxuan and the staff of Gu's Real Estate.

Gu Zhuxuan took the lead in applauding, then smiled and said, "Look, reading more books and newspapers is indeed very useful. Through Guangliang's detailed explanation, we have gained a deeper understanding of Zhabei."

The others nodded successively, harboring no further contempt.

The boss had invested 100,000 silver dollars to establish 'Gu's Real Estate Enterprise' and invited Chen Guangliang to serve as the deputy general manager, responsible for directing the land acquisitions in Zhabei as an investment.

Naturally, considering that Chen Guangliang had his own affairs to attend to, Gu Zhuxuan appointed his trusted confidant Zhang Jiepu as the general manager, in charge of actual operations.

***

Today was the first day of meetings, and Gu Zhuxuan had personally attended to join in the activity.

Chen Guangliang continued, "Currently, the average price of land in Zhabei ranges from 1,200 to 1,400 silver dollars per mu. The closer the land is to the station, the more valuable it is. Therefore, everyone's task recently is to deploy fully and scout the market for land up for sale, absorbing 80 to 100 mu of land in the shortest possible time."

Gu Zhuxuan added, "It doesn't matter if we get a bit more; I have the capital to supplement it!"

His wealth was merely distributed across various industries, and pulling out 100,000 silver dollars was not truly difficult for him.

Gu Zhuxuan's net worth was likely in the range of 500,000 to 1,000,000 silver dollars.

At this moment, General Manager Zhang Jiepu spoke up, "Acquiring so much land in a short period will undoubtedly drive up land prices in the surrounding area. Does Manager Chen understand this logic?"

Chen Guangliang countered with a question, "Driving up land prices—isn't that precisely our objective? Besides, the portion we inflate has zero impact on the overall trend of development. Just like those people outside shouting 'Boycott foreign goods, support domestic products,' yet they cannot change the backward state of our nation's industry."

Everyone chuckled, recognizing clearly that Chen Guangliang's final remark was merely a joke.

Zhang Jiepu was instantly left speechless.

Having concluded the meeting, Chen Guangliang stood up and bid farewell; he had no intention of reporting to this office every single day.

Still, every day or two, he would invariably drop by until Gu's Real Estate finished acquiring the land, after which his involvement would taper off.

In truth, regarding Gu Zhuxuan, Chen Guangliang had planted a delayed-action bomb—the land prices in Zhabei would not continue to rise indefinitely all the way to 1937.

This time bomb might eventually become a weapon in future conflicts between the two.

Afterward.

Gu Zhuxuan issued a warning to Zhang Jiepu: "Chen Guangliang excels at analyzing macro trends, while you excel at concrete operations. I do not want you holding any personal prejudices against him!"

Startled, Zhang Jiepu hurriedly replied, "Boss, I am addressing the matter rather than the person; I was merely raising a legitimate question just now."

Gu Zhuxuan said, "Very well then! I believe what Chen Guangliang said makes a lot of sense. Get to work and waste no time."

"Understood."