Chapter 135 Hutchison Real Estate’s Planning

Author: Underwater Wild Fish

Chapter 135 Hutchison Real Estate’s Planning

On the second day after meeting with Li Jiacheng and Wu Yingxiang, Hutchison Building Headquarters:

"This is really a good way to get around Hutchison's current predicament that no bank is willing to support it." After listening to Chen Zhiwen's introduction, Zhou Jiayang praised it greatly.

"Of course, Li Jiacheng has been able to develop to today's scale. In terms of ability, he is definitely at the top level in Hong Kong." Chen Zhiwen nodded and said.

Hutchison holds a large amount of land and has suspended the project because no bank is willing to lend money to Hutchison, not even HSBC. If Chen Zhiwen goes to HSBC to ask Shen Bi to borrow money for Hutchison, it is estimated that 99% of them will be rejected. This trap is really too big. Historically, HSBC was also forced to take over. If housing prices had not risen sharply later, HSBC might have suffered a huge loss.

But according to Li Jiacheng's method, if the project is sold, it will have nothing to do with Hutchison. Naturally, it can be recalculated and re-mortgaged, and Hutchison will directly obtain the much-needed cash.

The premise of all this is absolute confidence in the real estate market, otherwise it will be a suicide, especially in order to obtain enough mortgages, three companies need to jointly participate in the mortgages, and the bank willing to borrow money must have an unusual relationship with Li Jiacheng.

Another prerequisite is to be able to operate real estate projects. This is also Chen Zhiwen's weakness. Even many British capital cannot get started. Although developing residential areas or office buildings seems simple, British capital often loses money unless they hold it after development. , eventually many British investors had to cooperate with Chinese investors to develop their own land.

Chen Zhiwen didn’t understand community development, and no one inside Galaxy did. Previous property acquisitions were just holdings, and Hutchison didn’t have a talent team in this area. If there had been, it wouldn’t have been acquired by Chen Zhiwen in the end.

Therefore, the most important thing about this cooperation model is the ability of Li Jiacheng or Chinese Capital to operate real estate projects. Although Chen Zhiwen also knows that real estate prices will rise in the future, it is only suitable for judging whether to hold the property for a long time.

Individual real estate projects span a very short period of time, many of which only last about a year. If you want to really make a lot of money, you have to look at your operational capabilities.

"Then we will cooperate with Li Jiacheng for all the land that Hutchison does not have on Hong Kong Island? Is this a bit too much?" Zhou Jiayang asked.

"Except for the Whampoa Company's Hung Hom land, other non-Hong Kong Island land can be negotiated, but the amount is indeed too much. How much can be eaten depends on Li Jiacheng." Chen Zhiwen thought for a while and nodded: "In addition, It is very important to arrange for Hutchison’s Chinese people to go to the joint venture company and learn from Li Jiacheng’s team how they operate real estate.”

As a novice who doesn't understand real estate operations, Chen Zhiwen doesn't want to spend too much energy on this kind of thing. In the future, his main investment in real estate will be to hold properties to collect rent: large office buildings, large shopping malls, luxury apartments, large hotels, etc. , very simple, very profitable.

Of course, Li Jiacheng's kind of community development business can actually make much more money than owning properties, so Chen Zhiwen doesn't intend to let it go, but there is no need to really spend too much effort to develop various small communities. Just target large super communities.

For example, the four most famous walled villages in Hong Kong in later generations are "Whampoa Garden", "Hong Kong Peninsula", "Laguna City" and "Kingwood Villas".

Of these four super walled villages, the former site of Whampoa Garden is the Hung Hom land currently in the hands of Hutchison. The former Whampoa Port, South Horizons and Laguna City were all developed by the Hong Kong Electric Group. In later generations, Li Ka-shing's

Hutchison Whampoa acquired Hong Kong Electric and subsequently developed these two villages. The last Kingswood Villas is in Tin Shui Wai, which is still a large pond.

The most important of these is the Huangpu Garden project. According to his plan, it will need to be launched soon. He is not planning to form a joint venture with outsiders for this project, so he naturally needs talents for real estate operations.

"I can propose sending people in, but I'm afraid I won't be able to learn it in a short time. Li Jiacheng is probably not a fool and knows the purpose of sending people in." Zhou Jiayang said with some worry.

"It doesn't matter. You can learn as much as you can. If you stay for a while, it won't be ineffective." Chen Zhiwen said: "There is another purpose. Get close to the people at Cheung Kong Holdings and find out about their internal structure and core talents. At worst, I will be paid a high salary by then.

Just poach people."

"Will doing this affect our cooperative relationship with Yangtze River Industries?" Zhou Jiayang said.

"It's okay. We have land. It's impossible for a person like Li Jiacheng to stop cooperating for such a trivial matter. He won't even mention it." Chen Zhiwen smiled and said, "Besides, we have a relationship with Yangtze River Holdings.

It’s not a deep relationship, it’s just company cooperation.”

The Whampoa Garden project is very important to Hutchison and even to Chen Zhiwen's entire future plan. If the development goes smoothly, the profits of at least one billion Hong Kong dollars will most likely exceed the short-term profits of the arcade and Red Bull. Therefore, no matter how difficult it is, it must be promoted.

.

This cooperation with Cheung Kong Holdings is a good opportunity for the people under my command to truly understand how the real estate market operates. In this field, the team of Cheung Kong Holdings can definitely be ranked among the top three in Hong Kong. Li Jiacheng will be able to acquire it in future generations.

Hutchison Whampoa has passed many assessments by Shen Bi. Otherwise, good luck would not have befallen him. His own hard power is the foundation of success, which is much more important than choice, because "choice"

It's the result of vision and ability. If you don't have enough strength, you won't be able to choose the track.

"Okay, in this case, it's the best of both worlds." Zhou Jiayang thought for a moment and said. First, Hutchison can quickly obtain funds, and then use the funds to invest in suspended high-return projects to obtain more funds.

To cope with the huge debt problem that almost wiped out the company.

The second is to be able to cultivate a large number of new talents to prepare for other future projects.

"So if you have land in your hands, someone will naturally come to solve the problem." Chen Zhiwen said calmly.

It seems that Li Jiacheng likes this. If any company has a problem, he will take the initiative to provide solutions and then make money together.

Later, the large-scale project of Kingswood Villas in Tin Shui Wai was the result of the mainland giant China Resources not being able to develop it at the time and being forced by the Hong Kong government to take back the land. Finally, Li Ka-shing came to the door and offered China Resources a guaranteed profit of 700 million, plus a 49% post-development fee.

Net profit, China Resources naturally happily agreed to cooperate and handed over the entire project to Li Jiacheng for operation.

In the end, Li Jiacheng made billions, and so did China Resources. For China Resources, even though half of the money was distributed, the result was much better than leaving the project to lose money.

"It's no wonder he became one of the five real estate tigers." Zhou Jiayang said.

"It also has resources. The bank that is willing to lend money is definitely unusual." Chen Zhiwen said with a smile: "But it is also capable of such a bank to cooperate with him. I hope there is such a bank."

I have cooperated with HSBC many times before and made many "shows of goodwill" to Shen Bi, hoping to get a lot of support from HSBC. So far, the results are considered successful, but people are greedy and always want more. If HSBC is willing to lend him more than one billion at this time, and he buys a property with his eyes closed, he won't be able to earn another Hutchison in a few years?

Unfortunately, it is impossible. Chen Zhiwen can only achieve this goal by acquiring Hutchison.

Zhou Jiayang suddenly said: "By the way, Mr. Chen, since the cooperation with Li Jiacheng can solve part of Hutchison's debt problem, then maybe we can use the 200 million Hong Kong dollars you promised us for other purposes?"

"What do you think?" Chen Zhiwen asked.

"According to your requirements, acquire Huangpu Company, and if possible, privatize Watsons as well." Zhou Jiayang said: "Galaxy Trading Company has opened up channels for large supermarkets in Europe and the United States. The purchase cost of daily necessities in supermarkets is very low. This point , can be used in PARKnSHOP supermarkets owned by Watsons. With such an advantage, it will be a matter of time for PARKnSHOP to dominate Hong Kong. Maybe, we can also use the platform of Galaxy Trading and PARKnSHOP supermarkets to enter the Bay Area or Southeast Asian market?”

"Wanwan and the Southeast Asian market? That's fine. Let's privatize Watsons too." Chen Zhiwen thought for a while and agreed.

The existence of Galaxy Trading does give Parknshop an extra advantage, but it is not that easy to really defeat Wellcome Supermarket, which is backed by Landmark.

Supermarkets in Hong Kong are also supermarkets, but they are much different in area from supermarkets in Europe and the United States. In later generations, the two supermarkets that monopolized Hong Kong, Parknshop and Wellcome, had a total number of over 300. In a small Hong Kong, The only reason why so many supermarkets can be accommodated is that they are all small-scale supermarkets. Monkeys are kings. Small cities and medium-sized supermarkets have also become supermarkets.

One of the special features of medium-sized supermarkets is that their main feature is convenience. In addition, public transportation in Hong Kong is not very convenient. Basically, supermarkets cover the surrounding people and there is no competition with supermarkets far away, even if the prices are slightly different. , people nearby will not go to another one just for a small price difference.

The confrontation with Wellcome ultimately depends on the support of the capital behind it. The existence of Galaxy Trade will give the situation a slight advantage, but going overseas is a completely different matter. It is difficult to handle even Wanwan. Forget about Southeast Asia, at least not likely in the next ten years.

The only market with more opportunities is the mainland next door, but except for the opening of Shenhai City, the frontier, other places in the country will have to wait until 1995 to allow foreign-owned supermarkets, which is a bit too late.

Therefore, Chen Zhiwen has not planned to invest too much in the retail industry in Asia recently. At least in the next ten years, it is unlikely to become bigger. It would be good to defeat Wellcome in Hong Kong, or acquire it.

"Okay, then when Hutchison's delisting is over, I will privatize Whampoa and Watsons." Zhou Jiayang said. Two days ago, Hutchison had handed over the delisting matter to the stock exchange, although many

Everyone knows Chen Zhiwen’s purpose, but this is a normal and legal application, and the stock exchange has no reason to reject Hutchison’s delisting request if it is approved by the Hutchison shareholders’ meeting.

After submitting the documents, you only need to wait according to the process and then submit the relevant documents. The senior management of the stock exchange may have some questions, but Zhou Jiayang has already prepared a rich team of lawyers. Under the circumstances that it is legal in itself,

, approval is also inevitable.

"Well, I actually have other ideas for Watsons. Let's talk about it after privatization." Chen Zhiwen thought for a while and then said.
Chapter completed!