Seeking the best: on the rental yield of industrial plants

This is a complicated problem. Because it involves the operation of industrial land, our organization believes that it cannot be simply calculated according to the general return on investment.

In your list, the annual insurance and security income of the factory is offset, so you can ignore these two items. Others are considered from the following two parts:

1. land investment: the price of industrial land is very low, generally only one tenth of that of commercial and residential land in the same lot, far lower than the government's expropriation cost, so the appreciation potential is great and stable.

After the auction of industrial land, the local government is most concerned about whether the land can be used normally and whether the tax can be realized. Before a general enterprise is completed and put into production, many governments will not apply for land certificates for enterprises. If industrial land cannot be taxed for a long time, the government will try to recover the land in various ways and auction it separately. Therefore, only the smooth operation and the settlement of customers can keep consistent with the government in terms of interests and ensure the handling and land holding of land certificates.

2. Plant investment: The total cost of the plant after completion is 2000+500+500 = 30 million/3 million.

(annual rent) = 10 year. Regardless of the maintenance cost, the annual yield is 10%.

If it is a steel structure factory building, it can hardly be used or the maintenance cost is very high after 10 years.

What you can enjoy is and only the appreciation of land. This $30 million fund was invested in vain.

This means that you spent 30 million yuan to build many factories on 6,543,800,000 yuan of land, in order to get the land use certificate and prevent the land from being confiscated by the state. Let you enjoy the appreciation of industrial land.

According to the above two aspects, our hospital draws the following conclusions for reference:

First, the rate of return is too low.

Your current lease pricing cannot support the investment. It is necessary to adjust products and build low-cost and high-rent factories. Factories and houses have essential areas, so practicality is very important. High cost does not mean high rent, which may not meet the market demand. )

Second, reduce factory investment.

If the operation mode remains unchanged, the rent and cost will be restricted by the local market. It is suggested to reduce investment and reduce the building area of the factory building. Simply meet the minimum planning requirements of the government and achieve the purpose of holding land and enjoying value-added. As a fixed asset investment, mortgage loan can be used to invest in other projects after handling the land use certificate.

Third, consider adjusting the mode of operation.

If a simple factory building lease cannot achieve an effective return on investment, it is suggested to adjust the operation mode within a reasonable range. Such as: headquarters office, factory building repair and sale, land division and sale or lease, etc.

The above are some preliminary judgments made by our organization according to the conditions listed by you. The specific situation needs to be determined by combining the land conditions and the local market. If you have any questions, please call to discuss.

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