Chapter 337 - 214: Advancing with Measured Steps (Part 2)

Chapter 337: Chapter 214: Advancing with Measured Steps (Part 2)

’Counter them by pouring in a huge amount of promotional funds?’

His one square was up against Junxiao Business Management’s two. That meant for every two million he spent, Junxiao Business Management would have to spend four million!

At first glance, it seemed possible to wage a war of attrition against Junxiao Business Management. But as a man from Jiangzhou, Miao Lei wasn’t that naive. Behind Junxiao Business Management stood Junxiao Group—a powerhouse that would drop over a billion on a shopping center without batting an eye. Trying to outspend them? Wasn’t that just a death wish?

The situation now was that not fighting meant certain death, while fighting might offer a sliver of hope.

The key was whether the corporation could provide the support to weather this storm—specifically, support for the promotional budget!

This was a normal person’s line of thinking. No matter how rich Junxiao Square was, they surely wouldn’t be crazy enough to dump two million into promotional activities every single month. If that were the case, he might as well just throw in the towel.

If he knew the orders Xu Wu had given to Xu Jun, he probably wouldn’t be able to sleep at all.

Xu Wu had given Xu Jun carte blanche to attack until Wanhong Square submitted, until they begged for surrender.

As long as Wanhong Square refused to surrender, Junxiao Square wouldn’t just continue to pump in two million a month—they might even up the ante.

Of course, this was top secret. Other than Xu Jun, no one else knew the details.

Miao Lei sent a message to the chairman’s assistant at Minghan Commercial Management Co., Ltd., stating that he had an urgent matter to report to the chairman.

The assistant took Miao Lei’s request seriously. After all, Wanhong Square was a star performer among the more than thirty asset-light projects managed by Minghan Business Management across the country.

And as its general manager, Miao Lei was naturally a prominent figure within the corporation.

While waiting for the assistant’s reply, Miao Lei didn’t stay idle. He immediately called the owner of Wanhong Square to schedule a meeting.

The owner was a local Jiangzhou real estate company that didn’t do much residential development, but they had lucked out on the Wanhong Square project back in the day.

Now, with the real estate market in a slump, many developers—even formerly big players like Ding Yong—were in a dreadful state.

The owner of Wanhong Square, however, was a different story. He was living quite comfortably off this single mall.

His company now only had a dozen or so employees. Though it was called a real estate company, it operated more like a property management firm.

The staff spent most of their workdays playing cards. After all, their most important task all year was collecting rent. And with Wanhong Square’s business doing so well, Minghan Business Management wouldn’t dare delay payment by even half a day. So, the folks at Wanhong Real Estate were just a bunch of people who got to lie back and count their money.

The owner of Wanhong Real Estate was a man named Wan Chao, an unassuming man in his sixties. He was usually so low-key that if you saw him on the street, you might mistake him for a small-time street vendor.

When Miao Lei called, Wan Chao happened to be at the property. With the New Year approaching, there were always a few year-end matters to handle.

"Xiao Miao, have a seat!"

Being called Xiao Miao felt strange to Miao Lei, but since the man was the primary landlord and in his sixties, it wasn’t out of line.

He sat down across from Wan Chao and got straight to the point. "President Wan, I’m here today to report an urgent matter!"

Wan Chao tossed a cigarette to Miao Lei. Miao Lei promptly lit Wan Chao’s cigarette for him.

"Go on."

Wan Chao smoked with an air of perfect composure, listening leisurely. For a man whose only job was to collect rent on time each year, what could possibly be so urgent?

Whatever it was, it was Miao Lei’s problem, not his. So he wasn’t the least bit worried.

"Since Junxiao Group acquired Tianlong International, the two Junxiao Squares have been pouring massive amounts of money into marketing. They’re hitting us with a saturation attack from every angle—advertising, events, and joint promotions with tenants. Over the past week, our foot traffic and revenue have fallen by more than 35% year-over-year. If this continues, the impact on Wanhong Square will be devastating."

The hand holding the cigarette trembled for a moment, but it quickly steadied. Unless you were watching closely, you would have never noticed anything was amiss with Wan Chao.

He flicked the ash from his cigarette into an ashtray. "I gave you such a prime location to run. How could you let it come to this? You people need to figure something out!"

’Sly old fox,’ Miao Lei cursed inwardly.

Wan Chao had clearly guessed Miao Lei was here to ask for help—or more accurately, for resources—so he cut him off at the pass.

’I gave you such a great property. If you can’t make it work, that’s a reflection of your own incompetence.’

"President Wan, you know exactly what Junxiao Square’s goal is with this offensive!"

"Their goal is simply to beat down Wanhong Square so they can come back to the negotiating table for an acquisition. We’re grateful that you trusted us with the last offer and turned Junxiao Business Management away. Now, I believe we must join forces to fight them. Otherwise, if this goes on, it’s not just the project’s performance that will suffer."

"Once our foot traffic and revenue plummet and we’re reduced to a second-rate mall, then even if Junxiao Square comes back with another offer, the price will be drastically lower!"

"You’ll be caught between a rock and a hard place. If you sell, the price won’t be what it could have been. If you don’t, and Junxiao Square continues this pincer attack, the operational pressure will be immense."

Miao Lei left one thing unsaid: if Wanhong Square was indeed reduced to a second-rate mall, Minghan Business Management would also come to the table to renegotiate the lease.

By then, Wanhong Square would be half-crippled. And given Junxiao Business Management’s aggressive tactics, how many other asset-light operators would dare to take over the contract, even if Wanhong Square wanted to switch?

For the first time, a clear look of irritation flashed across Wan Chao’s face. It wasn’t as if he hadn’t considered this possibility.

’These Junxiao Group people are ruthless,’ he thought. ’They offered 1.7 billion for Tianlong International. If I were willing to sell, my property should be worth about the same.’

’But if, as Miao Lei described, they managed to cripple Wanhong Square first... When Junxiao Square comes back with a lowball offer, they wouldn’t be shaving off a few million here and there. They’d be slashing the price by a hundred, maybe two hundred million.’ Wan Chao’s heart bled at the thought!