Chapter 492 The three stable anchors of the consortium
a few days later
The heavyweight merger and acquisition that took place on Hong Kong Island has finally come to an end. Royal Fund has officially entered the above two real estate flagship companies with an absolute controlling stake of 52.2% in Cheung Kong Holdings and 53.4% in Hutchison Whampoa.
since then
Together with two powerful real estate companies, Swire Properties and Wharf Properties, Royal Fund has brought together the four kings of Hong Kong's real estate industry, occupying half of the entire Hong Kong real estate industry, leaving more than 100 Hong Kong real estate companies occupying the other half.
Soon, the God of Wealth King gained another nickname: "Wang Bancheng".
This means that more than half of the entire commercial real estate and residential properties in Hong Kong are the assets of the Wang Consortium.
The four kings of the real estate industry alone can steadily earn more than 200 billion Hong Kong dollars every year, which is converted into 37 billion U.S. dollars, of which the Royal Family Fund can account for 60% of the profits, about 20 billion U.S. dollars or more.
As Hong Kong's economy gradually improves, this part of stable income will continue to grow.
In Wang Yaocheng's conception, the anchor for the entire consortium's stable revenue has initially appeared, which is mainly composed of three major assets.
First, income from commercial and residential real estate development and leasing of its real estate companies.
Hong Kong and Southeast Asia;
Including commercial properties and shops owned by the four major blue-chip commercial real estate companies in Hong Kong, and a large number of mortgaged properties with property rights for rent. This part also includes the property rights of commercial properties, ports, toll roads and warehousing facilities throughout Southeast Asia, with stable annual income.
Approximately more than 20 billion US dollars
continental part;
Pacific Real Estate Company and Côte d'Azur Real Estate Company, one in the south and the other in the north, have a total of more than 100 urban commercial plaza shops and operating income from commercial office buildings and some bank-mortgaged properties.
This includes Yanjing City Pacific Plaza, Jinbao Street, SOHO brand projects, as well as super high-rise building rights revenue developed in first-tier cities such as Beijing, Shanghai, Guangzhou, Shenzhen and Jinling. The average annual revenue can reach 40 billion yuan, about 5 billion US dollars.
level.
Changjiang Industrial Group invests in toll highways, ports and real estate projects in the mainland.
Including 70% equity of Yantian Port, partial equity of Qingdao and Dongying Port, and more than 200 million square meters of reserve land accumulated for more than 100 projects to be developed, which can bring about 4.3 billion yuan in dividend income every year, about 500 million US dollars.
The key is that the value of this part of gold assets is growing rapidly year by year, the rental level is also increasing rapidly, and the future prospects are the brightest.
European and American parts;
HSBC merged with more than ten banks in the United States and Smithsonian Bank in the United Kingdom. With it, a large number of mortgage properties, commercial office buildings, and rental properties were repossessed by banks. This is a huge burden that cannot be shaken off during the economic crisis.
All these assets were transferred to the Royal Family Fund Fixed Asset Management Office, which not only reduced the burden on HSBC, but also resolved a large number of accumulated non-performing asset claims, allowing HSBC to carry out operations with ease.
As the world economy gradually picks up, the value of this part of real estate has risen sharply, and now it has become a hot commodity.
Due to the huge stock of some assets, there are approximately hundreds of thousands of properties across Europe and the United States, which were originally worth approximately US$46 billion, but have now appreciated in value by more than US$70 billion.
Excluding the high annual fixed asset tax, it can generate a stable net rental income of US$6 billion per year, and it is growing rapidly.
These commercial real estate, shops, office buildings and individual residential units in various forms are characterized by their wide range, large quantity and dispersion, and a single asset is not valuable.
The entire fixed asset package contains a large number of manors, villas and apartment buildings ranging from millions to hundreds of thousands or even tens of thousands of dollars, which are used for rent or simply idle.
Because the scope is too broad and the management manpower is insufficient, I am afraid that not even half of them can actually play a role.
According to the plan of the Royal Family Fund Fixed Asset Management Office, these assets that cannot be used for leasing will be sold for cash.
The U.S. real estate market is heating up, and we need to wait for a suitable opportunity to take action.
From the perspective of the world economic environment;
The United States is now in a continuous interest rate cutting cycle. The Federal Reserve Bank has lowered interest rates from 6.25% more than a dozen times to the current level of 1.75%.
According to market forecasts from Hong Kong Guantianxia Research Center;
The George administration will continue to urge the Federal Reserve to lower interest rates, further stimulate the real estate market, and enter a longer period of economic prosperity, with the real estate industry benefiting accordingly.
Therefore, the Royal Family Fund Fixed Asset Management Office is patiently waiting for this opportunity to emerge.
For large consortiums, every investment has gone through scientific demonstration and rigorous market research. It is very difficult, almost impossible, to get a bargain from them.
Second, the consortium invests in leading companies and high-tech companies in traditional industries.
This includes;
Investment dividends to leading companies in their respective fields such as Microsoft, Apple, Oracle, Time Warner, News of the World, Disney, Corning, Johnson & Johnson, Pfizer, and Merck, constitute an annual income of more than 13 billion U.S. dollars.
stable revenue.
The reason why Corning, which holds absolute controlling stake, and Apple, which is the largest shareholder, is included is because these two companies are run by the original management team, with Royal Family Fund as the major shareholder and financial investor.
Not involved in specific business operations.
This is different from other companies under the consortium, so stock dividends every financial quarter are included in investment income.
Overall;
Compared with the previous year, investment income increased by 44.2%, which is a gratifying increase.
The reason is that after the sale of Yahoo's equity, it was used to significantly increase its holdings of 13.3% of Microsoft's equity, 4.4% of Time Warner's equity, and 7.8% each of Johnson & Johnson, Pfizer, and Merck, with a total value of US$46.83 billion in preferred equity.
More than half a year later
This part of the equity has appreciated to US$52.06 billion, with an appreciation rate of 11.17%, and received a total of US$2.76 billion in equity dividends in the first two fiscal quarters of 2003.
Yahoo.com won't be able to make this much money in ten years, and I'm afraid it will still have to spend money on it.
Wang Yaocheng is very satisfied with this investment. He did not rely on the foresight of a golden finger, but relied entirely on his keen investment intuition, which he has honed over many years, to make the right decision.
Selling the Yahoo website was very cost-effective, and I made a huge profit.
Senior Wall Street investors commented on this:
The high-tech godfather of Silicon Valley, BOSS King, has transformed into a successful investor with this beautiful transaction, and he is one of the top investors in the world.
A few more words to say here;
Compared with previous outstanding results
The performance of Yahoo.com in the first two financial quarters of 2003 was greatly inferior. CEO Yang Zhiyuan led blind mergers and acquisitions, and the thunder finally exploded.
Yahoo's financial statements have plummeted, from the original profit state to a huge loss. The total loss in the first two fiscal quarters was 1.76 billion US dollars, and it is getting worse and worse.
This once again proves Wang Yaocheng’s conclusion;
As a leader in high-tech Internet companies, no one can beat Yahoo except itself.
Wall Street investors voted with their feet. Not only did they disdain the Yahoo website led by Yang Zhiyuan, but they also seriously questioned his personal ability.
There are so many articles and newspapers attacking the company, and they are directly reflected in the Nasdaq market valuation.
The market value of Yahoo's website has shrunk sharply from its peak of US$182 billion, falling by more than one-third in just two financial quarters. The current market value is less than US$120 billion, remaining between US$117.6 billion and US$119 billion.
In other words, in more than seven months, Microsoft and its partners have lost more than $60 billion in investment.
Investing in the stocks of Internet high-tech companies is so exciting. When they rise, they are so excited that they want to help the old lady cross the street. When they fall, investors dare not go upstairs for fear of being unable to restrain the urge to jump down.
Mr. Bill Gates really has a splitting headache about this.
He and Microsoft CEO Steve Ballmer had serious differences over the treatment of the Yahoo website, and he no longer had the intention to harass Wang Yaocheng.
Ted Turner, the chairman of Time Warner who stepped in halfway and cried out for investment, claiming to be well-informed, is now filled with regret.
He spent all day in his luxurious office scolding Bill Gates, Steve Ballmer, and the prodigal Yang Zhiyuan. At the same time, he also scolded Wang Yaocheng, blaming him for not strictly rejecting his investment?
Employees at Time Warner were scolded so badly that many of them suffered from severe depression.
In particular, Shea, the chairman of its subsidiary Hollywood New Line Film Company, was scolded for doubting his life because of his continuous investment in several A-level commercial blockbusters and serious losses.
Shay's investment rights have also been taken back. He was originally able to lead investment in commercial blockbusters with an amount of less than 100 million US dollars, but later it was reduced to 30 million US dollars, and now it is directly reduced to less than 3 million US dollars, which means that all rights have been withdrawn.
The salaries of Hollywood's first-tier celebrities are a fraction of this amount. At this price, even second-tier popular movie stars can't sign. Shay was directly hung up and relegated to the sidelines.
Third, family funds within the consortium.
This part of the invisible assets is the largest, including Shenzhen Atlantic Industrial Park Phase I and II, Future Science Park, Jinling City Industrial Base, Huaizhou High-tech Development Zone Industrial Base, Mingzhu City, Yanjing City, Central Plains Province, Sichuan Province
The real property rights of the provincial high-tech park industrial base, as well as the Hynix Industrial Park in Malaysia and industrial bases throughout Southeast Asia belong to the family foundation.
The Carrefour supermarket chain has previously built 108 hypermarkets, more than 1,200 city center stores, Pacific chain home appliance properties, more than 20 domestic inter-provincial logistics centers, more than 100 inter-city logistics centers, as well as Yangtze Technology Group and Huanghe
The ownership of fixed assets of technology groups is invested and owned by consortium family funds, and these enterprises are all leased.
In addition, the property rights of the Peninsula Hotel, Miramar Hotel, and Shilla Hotel, which are affiliated to the Hong Kong and Shanghai Hotel Group, and are expanding at home and abroad, are all owned by the family foundation.
The Hong Kong and Shanghai Hotel Group, a company listed on the Stock Exchange, leases the buildings of the consortium and carries out renovation operations. While working hard to revitalize the assets, most of the money earned goes into the pockets of the family foundation.
As a large multinational hotel group, the Hong Kong and Shanghai Hotel Group only has a good appearance, and its annual profits are indeed not much.
More than 200 mid- to high-end hotels have been developed around the world, with annual net profits of less than HK$3 billion.
The pressures such as operating risks and fixed asset appreciation are all on the listed companies, while the real benefits of leasing income are in the hands of family funds. The calculation is too shrewd.
After Carrefour is listed, the funds raised will be used to invest in hypermarkets and shops, and the property rights will truly belong to Carrefour Supermarket Group.
also
There are also some famous jewelry and paintings, special planes and cars, Mediterranean manors and Key Garden in Yanjing City, the Peak Tower in Hong Kong, the penthouse unit in the Viking Building in New York, and other personal properties, all of which are managed by the family foundation.
This part is handled by a team personally controlled by Chen Shi, director of the Accounting and Audit Office. Only Wang Yaocheng knows the total income. The amount has never been disclosed, and no one else can know it.
With these three pieces of stable cash flow income, it is equivalent to the anchor of the entire consortium.
Regardless of the wind and rain of the world economy, it can help the consortium survive severe economic crises and international market difficulties and usher in the dawn of victory.
Wang Yaocheng has put in a lot of effort to ensure that the consortium's business will be passed on for a long time.
As a last resort, the consortium went bankrupt...
There are still two retreat options for future generations. One is the China Nursery Charity Fund, which is in charge of Si Wanru, and the other is the Guodong Charity Foundation, which is led by Wang Guodong.
Both funds have fixed assets, and part of the investment income is used for charity every year, which is a golden rice bowl that can be passed down for a long time.
No matter how unworthy or down-and-out the descendants are, if they can work in the two charity funds mentioned above, they can always make a decent living and avoid being relegated to the streets.