Xia Xiwei was completely baffled by Zhou Wang’s sudden and inexplicable words.
But Zhou Wang didn’t seem inclined to explain. She decided not to press further and instead, resting her chin on her hand, looked at Zhou Wang with a smile, as if trying to see right through him.
"Gentlemen, this valuation report was issued by an authoritative asset appraisal company. I, Yang Liping, can swear by my artistic reputation that there is absolutely no embellishment in it."
On the other hand, Yang Liping couldn’t understand why it seemed like the people in front of her had reached some kind of prearranged agreement, so she had to hide her displeasure with a smile and said,
"I think you can all see that the overall market price given by the appraisal company is 179 million. Of course, my own expectation is certainly not that high, but isn’t 100 million too ridiculously low? Mr. Huo even offered 80 million, which I can only take as a joke..."
"Ms. Yang, I would never question your character."
Huo Chengrui merely smiled faintly and started speaking in his not-so-standard Mandarin, "But what I just said was not a joke... The valuation report overlooks a few factors."
"For example, before Yujiao Island, where the two properties are located, became a tourist spot, it was just an obscure little village with no commercial real estate. This means there was a lack of a horizontal reference point, wouldn’t you agree?"
Huo Chengrui spoke eloquently, "And the actual investment you made in developing these two properties initially wasn’t high. You could even say that a lot of the expenses were spent on early-stage design. Your total cost shouldn’t have exceeded 20 million, right?"
"The cost of constructing the Sun Palace back then was indeed not high, Mr. Huo, your estimate is quite accurate, 20 million is not far off, but... that was the year 2000."
Yang Liping maintained her smile, but her voice involuntarily rose a little, "I don’t have to elaborate on what the prices were like over 20 years ago versus now. With a span of 20 years, no matter where you buy a house, I think the current value would have increased at least tenfold, wouldn’t it?"
Huo Chengrui shook his head, "In first-tier cities, values might increase twentyfold without a problem, but after all, this is only White City. The fact is, the value of these two properties is greatly tied to the local tourism industry, and that brings me to the second overlooked factor I mentioned."
"Apart from other factors that could affect the rise and fall of tourism, Ms. Yang, what do you think the reason the Sun Palace could generate economic benefits is? To the extent that it turned Yujiao Island into a hot tourism spot in White City, what supported that?"
As Yang Liping was about to say something, Huo Chengrui continued with a smile,
"You yourself should be well aware of it. It is your personal immense reputation... However, as you are now in a nearly retired state and if we take over these two properties, no matter what direction we proceed in, we could no longer operate on your name. That’s the hidden risk we would need to undertake."
"Yes, Ms. Yang, Mr. Huo’s concerns are also mine. You can turn the Sun Palace into a personal art space, and even just collecting entrance fees and selling a few cups of coffee can create significant economic value, but for us, that’s clearly not a feasible path."
Mr. Liu from Guang Province also smiled and chimed in at this moment.
"I heard that when the Sun Palace was previously operated as a hotel, it was even ordered to rectify due to environmental issues. This indicates that the hotel approach is also challenging. To be honest, if we take it over, we wouldn’t even know what to do with it."
"What Mr. Liu said is also something I’ve been considering."
Liao Jianli nodded, his tone cautious, "These two properties undoubtedly have investment value, but their subsequent operations are a tough point."
The other two investors Yang Liping had invited didn’t say much more but slightly nodded, clearly endorsing what the others had stated.
"So, Ms. Yang, the valuation of 179 million is definitely inflated in our eyes. In reality, 80 million to 100 million has already been recognized by us all as a more reasonable base price."
Huo Chengrui put down his teacup and finally said with an indifferent tone, as if everything was under control.
Listening to the investors’ unanimous opinion regarding the valuation, Yang Liping’s expression betrayed a hint of helplessness and indignation.
This was because the situation was entirely different from what she had previously anticipated.
Organizing this small-scale auction was already Yang Liping’s last resort.
The real estate market had been extremely sluggish for the past couple of years. As early as a month ago, she had already commissioned an agent to help her find a suitable buyer, but it was either the offers were far below her expected price or the payment terms were too long, which she couldn’t accept.
Her status in the art world was undoubtedly high, but now, she was nearing retirement and her influence wasn’t what it used to be.
Due to the company’s operational crisis and the continuous failures of several investments, she faced a huge gap in her cash flow. If she couldn’t raise funds in the short term, what awaited her might be a collapse that affects everything.
Yang Liping was initially a bit surprised today because the number of investors present exceeded her estimates. She believed that this form of live auction would surely raise the transaction price higher.
But clearly, she was overthinking it.
All the investors present had obviously done their homework beforehand and might have even thoroughly investigated her financial crisis, as evidenced by the speed at which they flipped through the valuation report...