Chapter 345 [Capture the King of Earth in Central]
In the blink of an eye, it’s a new week.
Monday, June 26th.
Lin Zuhui summoned Liang Zhenxun and Chen Bin in the office and said: "No matter what the result is this afternoon, starting from today, New Era Group will be aggressively acquiring land, exchanging land rights and interests, and old properties. However, do not cause an excessive reaction in the market.
, we have enough time to spend 6 billion."
At this time, New Era Group has the equivalent of 8 billion in funds (8 billion in debt) on its books, plus the loan from HSBC Bank.
As for the 'Garden Road Land King' project, New Era Group theoretically only needs to invest 1.5 billion (half of the equity); it currently holds 70% of the shares. After the preliminary plan is determined, it will sell 20% to Wanguo Baotong to reach a cooperation.
.
"Yes, boss!" the two said slightly excitedly.
According to the boss's prediction, real estate may recover in more than a year (actually one year), so this bargain hunting is equivalent to making more than 40%. After all, a 30% drop from ten yuan is seven yuan, and seven yuan needs to rise by 40%.
A little more can get you back ten yuan.
And bank interest is only 10% to 15% for more than a year!
The important thing is that there are only so many resources, and New Era Group’s acquisition of so much cheap land will inevitably drive real estate to higher levels.
Lin Zuhui added: "New Era Group's funds are used to expand our land bank! I already have a direction for the funds from Chinese Real Estate. But there are still many high-quality properties in the market, and I plan to invest in the name of the family, such as gardens.
Single-family villas, single-family villas, commercial buildings, etc. When you mobilize the marketing department, you can ask them to collect information together and then give it to me for reference."
The New Era Group’s 6 billion capital is equivalent to increasing the company’s land reserves to about 15 million square feet (excluding a large amount of agricultural land reserves, which can also be converted into residential land in the future). This will be the same as Henderson Land’s previous life.
The level is almost the same, surpassing the current Henderson Land and second only to Sun Hung Kai.
New Era Group's land reserves are not only valuable, but the shares of its subsidiaries are also valuable.
Therefore, the market capitalization before the plunge was greater than that of Henderson and slightly lower than that of Sun Hung Kai.
Chen Bin and Liang Zhenxun were naturally not surprised that the boss had a large amount of cash flow and could help the company earn a lot of net financial profits. The boss's personal investment was probably very large.
That afternoon.
The Hong Kong government revealed its plans for the "Garden Road King" and the winner was New Era Group.
However, the media responded relatively coldly and only conducted an interview with Chen Bin, the general manager of New Era Group, as usual.
After all, the price of 3.099 billion is not even as high as that of the ‘Wan Chai Land King’, which shows how bad the real estate market is!
Only Eagle Lord Luo Jiarui felt a little lonely. He stepped forward to say hello to Chen Bin and left the scene. He thought he was very confident, but he didn't expect that someone else directly gave him 3.099 billion. Even if the price was clearly stated, he
You may not even dare to come out!
When Lam Cho-fai heard the good news in his office, he was very excited. Although he was not too nervous beforehand, he was really happy once he won the bid. These are two super buildings in Central, and their future value is estimated to be more than 60 billion!
After acquiring this land, New Era Group will have to start purchasing land reserves on a large scale, and the current real estate market decline has reached 30~35%. According to the land exchange rights letter, the land in the New Territories is basically uninterested. Hong Kong
Properties in District 9 are not much better.
The drop was more than 30%, which is equivalent to returning to the price after the August 7 stock market disaster. It is not too cheap at all.
That kind of bargain-hunting mood, every transaction worth tens of millions is enough to make Lin Zuhui happy.
...
The next day.
Senior executives from the real estate, real estate, and construction departments of New Era Group were waiting for the arrival of their boss in the conference room. When Lin Zuhui walked into the conference room, everyone stood up to say hello.
Lin Zuhui motioned for everyone to sit down and observed everyone's mental outlook. It was very good. As the saying goes - one soldier is a raging enemy, and a general is raging in a nest. As the leader of the New Era Group, Lin Zuhui is fully optimistic about the prospects of Xiangjiang and has fighting spirit.
It was so expensive that these senior officials were also infected one after another.
"Let's all report on the important work first!" Lin Zuhui held a pen and motioned for these people to talk first.
Everyone knew that Lin Zuhui focused on efficiency, so he quickly started reporting.
"The groundbreaking ceremony of Chinese Real Estate's 'Central Plaza' is initially scheduled for mid-July, with a construction period of 32 months. It will be completed and put into use in 1992... The Central Plaza is 78 stories tall and has a floor area of 1.4 million.
square feet, with a total investment of NT$5.6 billion...After the completion of this building, our Liguang timepiece can be seen in all districts of Hong Kong and Kowloon at night, and it will be recognized as an internationally recognized symbol of Hong Kong."
The building under construction by Chinese Real Estate will soon be added to another one!
The Entertainment Building (Queen's Road, Central) will be completed in the first half of 1991.
The Grand Center (Yun Ping Road, Causeway Bay) will also be completed in the second half of 1991.
"Chinese Land has basically negotiated the acquisition of interests in the Chinese Bank Building on Connaught Road, with a total cost of 610 million. Before the plunge, the valuation of the Chinese Bank Building was 750 million."
"Chinese Real Estate acquired the Yongan Center in the Central District at a cost of 1.9 billion. After winning, our biggest customer was the Yongan Group, and it still serves as their headquarters."
Chinese Real Estate has added two more rental buildings. As for the Wing On Center, it collects rent anyway. If Wing Ji is willing to rent, it is naturally a dream. As for renaming the building, Lin Zuhui will not be so boring. After all, the citizens are already used to it, so why bother to go there?
changed.
Lin Zuhui said: "Both the Chinese Bank Building and Hong Kee Building will not be demolished for the time being. They will be used for rent collection and will be rebuilt in the 1990s! The same is true for the four buildings of the original Lokko Real Estate. We will try our best to merge the buildings first. After the 1990s, we will
Then depending on the situation, whether to merge the buildings and rebuild, or to rebuild directly!”
You cannot rebuild too much at once, otherwise there will be no rent-collecting buildings, and you will have to spend a lot of construction fees and interest, which will be unbearable financially.
This chapter is not finished yet, please click on the next page to continue reading the exciting content! The properties of Chinese Real Estate now include 14 buildings:
Building 7, Central District:
Chinese Center Towers A and B (Admiralty), Entertainment Building (under reconstruction), Wing On Center, Chinese Bank Building, Wang Kee Building, Lok Ku Building, Printing House, Lucky House
Wan Chai: Harcourt Building, Central Plaza (under construction)
Causeway Bay: Royal Building, Grand Center (under construction)
North Point: Lok Kei Hong
Gao Yi nodded and continued to report: "We have contacted the Japanese company. They are interested in the Yongji stock in our hands, but they have some objections to the price!"
Lin Zuhui said with a smile: "It doesn't matter, it will only cost them a while! The stock market will rebound soon, and they are also eager to invest in Yongji so that they can reach a shareholding cooperation with Yongan Department Store."
It will rebound in July, and it doesn't matter if it waits until the end of the year. On the contrary, Japan's Seiyu Co., Ltd. should be very anxious.
The 25% shares held by Chinese Real Estate were valued at 800 million, and at least 750 million had to be withdrawn, otherwise he would not be able to afford the shame of being a 'loss-making business'.
At this time, there is only 3 billion in cash left in the account of Chinese Real Estate, and the property negotiations with the Land have not yet begun!
It seems that by the end of this year, Chinese Real Estate's debt may reach 6 billion to 7 billion!
By then, the difficulty of privatization will be greatly reduced!
Next, the senior management of New Era Group began to report.
"Garden Road King, we are spending 2.17 billion this time (currently holding 70% of the shares, and the other 30% is owned by the Lin family). According to your instructions, we plan to make a preliminary design first, and then contact you after two or three months.
Wan Guo Baotong proposed cooperation..."
"The property above Lam Tin MTR Station - Huijing Garden, the first draft of the drawings will be produced in August, and construction will officially start early next year..."
"Tower Three, Diligende Pavilion, we are actively communicating with the Planning Department to build the world's tallest residential building with a height of 66 floors in accordance with your requirements..."
...
After listening to the report, Lin Zuhui added: "In the second half of the year, I will have to discuss with the Hong Kong government the land supplement fee for the Heyuan Power Plant. This large housing estate was our flagship residential project in the mid-to-late 1990s."
Smiles appeared on everyone's faces. In early 1988, Li Chaoren's plan for three major housing estates was extremely popular in Hong Kong; and everyone also believed that Li Chaoren would have plans for four major housing estates in the 1990s.
Nowadays, New Era Group has not only killed off a large-scale housing estate project of Li Chaoren, but also cooperated with CLP on a housing estate project. Although it is still lagging far behind, it is becoming more and more powerful.
"The Romance of Fairy Wood"
Moreover, New Era Group develops real estate and collects rent from real estate at the same time, without any emphasis;
This is almost non-existent among real estate developers in Xiangjiang.
The reason why New Era Group is so courageous is because it is not afraid of debt;
It also avoided two crises in a row and aggressively bought bargains during the crisis.
Of course, by the end of the year, New Era Group's debt will reach a terrifying 15 billion, and it will be inevitable for people to ridicule it as the "Debt King".
Lin Zuhui is not afraid of the company's liabilities. Firstly, he has his own personal funds to cover it. Secondly, he plans to start planning oil futures before the "Yinlak invasion of Kuwait" incident, that is, in early 1990.
Although the price of oil fell quickly after the sharp rise, for people like Lin Zuhui who know the history, he is still confident to ship the goods on the basis of controlling a certain amount of funds; moreover, he knows that the highest price is 42 US dollars per share.
barrel, but he never makes the last amount of money. It is estimated that starting from 30 US dollars, he will gradually sell it.
From this meeting, Lin Zuhui finally concluded:
New Era Group, with a capital of 6 billion, went to the market to acquire a large amount of reserve land, and began to prepare a large number of land openings!
Chinese Real Estate still has 3 billion in cash on its account, and is planning to borrow another 3 billion in cash to prepare for the acquisition of Land's salable properties.
At the end of the year, New Era Group received the title of ‘Debt King’!
Lin Zuhui's personal debt is currently as high as 6.5 billion (he still has 7 billion in cash on hand, and the King of Garden Road has spent 1 billion), and he is also the king of debts.
However, although the debt is high, the assets of the New Era Group are really rich, and they were bought at the bottom.
As long as Xiangjiang real estate does not plummet further, no bank will be worried. After all, the debt ratio is only about 30% to 40%.