Chapter 218219 [The potential of Huazhi] (seeking the moon
March 9, 1987.
Monday.
Lin Zuhui came to the office of New Era Real Estate, picked up the newspaper on his desk and took a look. Sure enough, his feat was published overnight.
It was even published in the Daily Daily, but the theme was charity, while in other newspapers, the theme was romance.
After a few glances, he lost interest. He didn't care about these tidbits at all. Instead, he felt that they were advertising for himself, and he didn't even need to pay for the advertising.
After a while, Chen Bin came to the office.
Lin Zuhui asked: "How is the progress of the project in Beijing?"
Chen Bin knew that his boss valued the honor of having the state-owned land certificate number 0001, and wanted to become the first mainland real estate developer to export real estate.
"Baoli Technology is negotiating with the government and I believe we will be able to get the permit this year! We have already sent key personnel there. Once we get the permit, we will soon start expropriating and leveling the land..."
After listening to the report, Lin Zuhui had a blueprint for this project in his mind.
Although he had not been to the capital to inspect the critical moment of Xiangjiang affairs, he had suggestions for choosing the location near the Wenyu River near the airport.
Not only that, with a wave of his hand, the entire project covers an area of 260 square feet, about 235,000 square meters, and the total construction area is 1.2 million square feet. To put it more vividly, it is equivalent to the size of Taikoo Shing in Hong Kong and Huangpu Garden!
The entire project is planned to include approximately 400 villas and thousands of residential apartments. It sounds like a big project, but how can the land prices and house prices in the mainland be compared with those in Xiangjiang!
At present, the housing prices in Xiangjiang Island are generally more than 1,000 yuan per square foot, which means more than 10,000 yuan per square meter.
The housing prices in Pengcheng and Beijing were only about 1,600 yuan per square meter in the early 1990s, and the difference at the same time was more than 10 times. In her previous life, Gong Li received a salary of 1 million from Yongsheng for filming Tang Bo Hu Spots Autumn Fragrance. In 1992,
I bought a villa in Lijing Garden that just went on sale, with a unit price of 5,000 yuan per square meter.
"We can't rely entirely on Baoli Technology. You also know how efficient they are in doing things. We also need to do more activities!"
"Well, I have already told the senior staff stationed there to consult more about policies and go to more activities!"
Lin Zuhui nodded, then thought of something, and said: "I will introduce you to someone later. I plan to invest in her operation business in the mainland and let her participate in this project!"
"good!"
Chen Bin didn't care what the boss said about the person. He only knew that the boss would not make fun of the project.
Lin Zuhui planned to let Zou Kaixuan go to the mainland to set up a trading company, mainly to collect antiques for himself. At the same time, he would cultivate her ability to operate in real estate and make plans for the future.
If she is truly a talent, she can come into his sight with these two projects. If she is a Dou who cannot be supported, Lin Zuhui can only let the richest man train her!
...
This week, an important task for Lin Zuhui is to solve the 1 billion loan problem of Chinese Land. Of course, this is not difficult. The Royal Building and Harcourt Building are both high-quality properties, and the cash flow of Chinese Land itself is already as high as 1.6 billion.
It can be said that the company's reputation is strong.
Lin Zuhui directly invited several banking syndicates to the conference room of Chinese Real Estate and reached a portfolio loan agreement at one time.
In the conference room, Lin Zuhui specifically explained his views on the future of office buildings in Xiangjiang to several bankers.
"Office buildings in Xiangjiang will be one of the most eye-catching investments in recent years. The vacancy rate has been falling year by year and the rents have been rising... The Harcourt Building and Royal Building, which are located in prime locations, will have future rental income and the property itself.
The prospects for appreciation are very optimistic... Let's take a look at the asset allocation of Chinese Land. Harcourt Building, Imperial Building, and Hongji Building. These three buildings currently bring more than 200 million in net rent to the company every year.
Income... And Huazhi Center will be put into use next year, which is also when the market needs office buildings the most. These five buildings alone will bring the company an annual net profit of about 400 million in the future...
. Don’t forget, Chinese Land also owns high-quality rental properties worth nearly 1.2 billion, and the annual rent is also high... So, despite the fact that this round of Chinese Land’s liabilities has reached 2.6 billion after borrowing
, but our asset value and debt ratio are very good."
Several bankers listened and applauded Lin Zuhui's speech. Everyone believed that they had already made up their mind to agree to the loan before they came.
Their first condition for providing loans to Chinese property buyers is that it is Lin Zuhui himself, not the Chinese property owners.
A successful enterprise must have a successful leader, and Lin Zuhui fits the bill perfectly.
After reading the financial report of Chinese Land, all bankers have no doubt that after the acquisition of assets worth nearly 6.2 billion, there are liabilities of 2.6 billion.
The important thing is that its rental properties are of very high quality, with high rent collection rates, low management costs and high rents. They can be said to be truly high-quality assets.
A debt ratio of 40% is completely reasonable.
What's more, Lin Zuhui is good at raising funds through rights issues in the stock market, so many bankers have subscribed for the loan amount, just like grabbing chips.
If other entrepreneurs find out, I don’t know what to think.
The God of Wealth in their hearts now regarded Lin Zuhui as the God of Wealth.
After settling the loan matter, Lin Zuhui didn't feel that it was a big deal. As far as he knew, when Liu bought these two buildings in his previous life, he originally made a plan to raise 3 billion through rights issues, which scared Wei Li and quickly sold them.
Stock Wei Li was the second shareholder and chairman of the board of directors of Huazhi at the time, and resigned as chairman. However, more than a month later, the stock market crash came and the plan to raise funds through rights issues was cancelled. However, Liu Luanxiong did not back down, but took a high-value bank loan.
Still captured the Royal Building and Harcourt Building.
For bankers, these two buildings are high-quality assets in themselves, so they will naturally not refuse them. Bankers will only retreat unless there is a serious political crisis and real estate plummets. However, the August 7th stock market crash did not have a great impact on real estate.
...
Gao Yi sat respectfully on the sofa, waiting for Lin Zuhui's explanation.
Lin Zuhui calculated the financial situation of Chinese Real Estate on paper and prepared for investment. This time, including bank loans, Chinese Real Estate actually has 2.6 billion in funds, and the two buildings only require more than 2.3 billion including tax, and there is still 200 million left.
Lots of cash.
This year, Chinese Land’s dividend strategy is to use bonus shares instead of cash.
After calculating the disposable funds, Lin Zuhui took out his Hang Seng Index curve chart.
He has been paying attention to the securities market and hand-drawn the Hang Seng Index as a curve chart for his own reference. Although he knew the general trend of the Hang Seng Index, he also wanted to speculate on the possibility of every slight adjustment.
After drawing on the paper for a while, Lin Zuhui was once again surprised to find that he might have guessed another trend:
It turns out that the Hang Seng Index briefly touched 2,950 points in the first week of March, and then quickly began to fall back. As of Wednesday this week, it had fallen to 2,750 points.
Lin Zuhui’s technical analysis is based on two factors:
First, there is still nearly half a year to go until the highest point of 3,900 points at the end of September, which means there should be a slight correction to complete the half-year period.
Second, there is still one and a half months until the delivery time of the April index futures contract. There is a high probability that there will be a correction from the highest point of 2950 points in early March to 2600 points. The reason is very simple. Investors are buying futures.
contract, then short selling futures contracts is an opportunity.
Through this analysis, Lin Zuhui said to Gao Yi: "Once the Hang Seng Index falls below 2750 points, Chinese Real Estate will buy the September index futures contract, with a maximum purchase amount of 200 million. Remember, only buy below 2750 points.
The buying action should be small, I predict there will be opportunities before the end of April."
Gao Yi nodded quickly and said, "Okay! But now the market is actively trading futures contracts. There are 16,000 trading orders every day. 200 million funds are not huge."
"Then reduce the impact to the minimum! For example, if we calculate based on 2750 points, our 200 million capital can buy 7200 futures contracts, and we cannot buy more than 1000 futures contracts every day. Moreover, I think April is the time when the long-short battle becomes fierce.
So April has the best chance. Don’t be impatient!”
Gao Yi is not a professional securities professional, so Lin Zuhui had to give more advice!
He does not want the impact to be too great, thereby affecting his securities investment.
"Okay, I understand!" Gao Yi said seriously.
Lin Zuhui nodded and estimated in his mind that he might have made another 350 million for Chinese real estate!
By raising another RMB 1 billion from the rights issue in September, Chinese Real Estate will be able to reduce its debt holdings by RMB 1 billion and still have sufficient cash flow. After the stock market crash, it can buy the Entertainment Building of its subsidiary China Entertainment and rebuild it.
In this way, Chinese Real Estate may squeeze into the top ten real estate industries in Hong Kong, surpassing Taoda Real Estate and Hang Lung Real Estate Company.
Lin Zuhui owns two of the top ten real estate companies and has a huge reputation.
.......
.......
On Friday, New Era Real Estate made another big move, announcing that it had purchased a batch of land reserves from Real Estate at a price of 1.3 billion.
Suddenly, Hong Kong and Kowloon were shocked, and the stock prices of all listed companies of New Era Real Estate surged.
In fact, Land is not in a hurry to sell its land bank because two buildings have already been sold. Land not only disrupts the deployment of the five Chinese-owned real estate companies, but also eases the financial situation of the Jardine Group.
However, New Era Real Estate offered too much, and directly quoted a 20% premium, which impressed the management of the Land!
As for what Lin Zuhui thinks?
In fact, it is very simple. These land reserves are all high-quality land, which seems to be at a premium of 20%. In fact, it is September, or the land price level in the first half of 1988 next year. The land price fell by 15% during the August 7th stock market crash, and soon rose back up.
It will be developed in the future anyway, and Lin Zuhui doesn’t care about the slight price difference!
Moreover, if New Era Real Estate wants to buy so much high-quality land at one time, it can only go through official land auctions, and the premium may be even higher.
If you search a little bit in the market, first of all, high-quality land is hard to come by, and secondly, it is time-consuming and labor-intensive. When you find so much land, the price will also go up.
...
In the office of New Era Real Estate, Lin Zuhui stood in front of the window, looking at the prosperous scene of Queen's Road, and fell into a thought.
Since entering the capital market in early September 1984, it only took 920 days for Lin Zuhui to realize the ambition he made when he was alone one ordinary night three years ago: to directly own a consortium with a market value of more than 10 billion. At the beginning of his business
, he thought it would take until the early 1990s to squeeze into the top ten chaebols and control listed companies with a market value of more than 10 billion. 920 days after starting his business, he unexpectedly completed his ideal three years ahead of schedule.
How many people can match this achievement?
On this day, Lin Zuhui turns 22!
A man, an enterprising man, in his weak years, through his own hard work and some good luck, shameless! It is obvious that through this golden finger, he can turn the wildest dreams of the past into reality.
My biggest dream in my previous life was to have a net worth of over 10 million, which is indeed an exciting and proud thing.
Lin Zuhui, who has always been cautious and low-key, started in 1987, and his usually serious and handsome face always showed a little relaxation and smile inadvertently.
deep feeling!
"Dongdong"
There was a knock on the door, and Lin Zuhui retracted his thoughts. He was still young and could not live his life resting on his laurels.
The more money, the better, just like my wife and children!
"Boss, it's time for the meeting!" the assistant said respectfully.
"Well, I'll be here right away!" Lin Zuhui said majestically.
After a while, Lin Zuhui walked into the conference room, and nearly 20 senior executives stood up one after another. After Lin Zuhui sat down, everyone took their seats again.
This meeting is a group meeting. The senior executives of New Era Real Estate Department's parent and subsidiary companies attended today's meeting. As for the Sun Company's China Entertainment, Furama Hotel, and Grand Hotel, they are naturally not eligible to participate.
China Entertainment Company: Before the August 7 stock market crash, it would sell properties to China Real Estate and Securities Investment, and then pay off debts. After the August 7 stock market crash, it would sell the entertainment business to China Real Estate, and the company would pay dividends. At this point, Central Entertainment will become a shell company, according to
The market price is at least 50 million yuan. It can be sold to ATV or DreamWorks for listing in the future.
Furama Hotel: Six months after the August 7th stock market crash, it will be privatized with the Lin family and will be directly managed by Cathay City. Note: The privatization was carried out at the highest price in the past six months, so it will be six months after the stock market crash.
If you pay a premium of 20%, you will succeed easily.
Grand Hotel: The war of words between the two sides continues, and Cathay City has not yet launched a new offensive.
The content of the meeting is very simple. Each company reports on its work and raises any problems it encounters, and everyone discusses it together.
Finally, Lin Zuhui concluded: "It seems that everyone thinks that the biggest problem is in Cathay City. The problem is that the net profit is not enough to pay the interest! As for New Era Real Estate and Chinese Real Estate, although their debts are high, their asset values are also high, so
Both are only more than 40%, and the profit prospects are huge, so there is no need to worry about interest and net profit."
New Era Real Estate's internal asset value is estimated to be 7.5 billion, with debt of 2.7 billion. The debt ratio is less than 40%. The company's development real estate profit is expected to exceed 500 million this year. Add in the net rental profit, and the scale will be stable at 600 million.
The asset value of Chinese Real Estate is 6.2 billion, and the debt is 2.6 billion, which is only a little over 40%. The company's current net profit from rentals is conservatively at 300 million a year, which is enough to repay the interest of 260 million. And once the twin towers of Huazhi Center are put into use, the rent will continue
The rise will soon reverse the situation and the company will double its net profit.
And the senior executives all know that Chinese Real Estate New Era Real Estate will definitely need rights issues to raise funds and reduce debt holdings. The boss is just waiting for the opportunity.
Only Cathay City has a debt of 2 billion, and its current annual net profit is less than 100 million, which is far from enough for interest expenses.
Everyone nodded. Although Cathay City is the major shareholder of two listed companies, and the market value of the two listed companies it controls is higher than Cathay City itself. The market value of Cathay City is still only 800 million, while the market value of Furama Hotel is 1.1 billion. The big hotel
The market value is 8 billion.
However, due to high debt, Cathay City is not favored by investors. If the shares of the two subsidiaries were not very valuable, Cathay City would have plummeted.
Lin Zuhui nodded and said: "There is no need to worry about Cathay City. As long as the bank does not press for debts, we can turn around the situation in an instant when we are free."
His inner thought is: As long as he persists until September, Cathay City itself has invested 900 million in blue chip stocks and made profits of more than 350 million. The funds withdrawn can instantly reduce the debt by 40% and stabilize the situation. And Cathay Pacific
Backed by New Era Real Estate, the city can raise funds via rights issues and reduce its debt holdings.
The important thing is that after the stock market crash, with the support of the Lin Zuhui family, joint privatization is not a problem and can be avoided as much as possible.
Since the boss has said this, many senior executives are guessing that the boss must have a clever idea, so they settle down.
Liang Zhenxun said: "At present, the short-term development of the three companies has been in place. Next, we must stabilize and concentrate on development."
The company's money and short-term potential have all been used up, and even New Era Real Estate cannot borrow heavily, so it really has to be this way.
Lin Zuhui nodded and said: "It's just temporary. Development will not stop, but we also need a good foundation. So, let's stabilize it in the first half of the year! As senior leaders, you must do your job well.
Pay attention to details, develop properties, collect rents from properties, and maximize your potential. I will supervise you!"
"Yes, boss!"
Cathay City and Chinese Real Estate are all waiting for returns in September, while New Era Real Estate has not invested in securities business and is concentrating on developing real estate. But faced with such a huge debt, Lin Zuhui is naturally mentally prepared, that is, all rights issues will be issued at the end of September
By raising 3 billion, we can survive the August 7th stock market crash.
In his previous life, Li Chaoren originally planned to raise 10 billion through a rights issue for all listed companies before the stock market crash, and also spin off Hong Kong Electric's subsidiary Jiahong Real Estate to go public. However, when the stock market crash hit, about half of the plan was completed.
Lin Zuhui clearly knows the time of the stock market crash, so it is still possible for New Era Real Estate to raise 3 billion from the rights issue.
Of course, New Era Real Estate, the parent company, can raise up to RMB 101.5 billion through rights issues. Lin Zuhui himself can provide the funds through stock pledge loans. The rest is raised from rights issues of Chinese Land and Cathay City. In that case, New Era Real Estate only needs rights issues.
This is considered a simple rights issue. In their previous lives, when Liu and Luo Xurui encountered large-scale acquisitions, they both used Sun's company to raise funds through rights issues and conduct acquisitions. In this way, the funds can be magnified 2 to the third power by 8 times.
It supplies the parent company, the parent company supplies the subsidiary, and the subsidiary supplies the subsidiary company.