Chapter 485 [Making Big Money by Speculating in Real Estate]
In mid-April, Lin Zuhui went to New York to inspect the office market in Manhattan, New York.
During this period, he listened to the advice of a family office investment consultant and was not optimistic about the prospects of the Manhattan office market. The main reason is that many institutions and large companies have withdrawn from Manhattan, and the office buildings there will not perform well in the short term.
Then he had another meal with Buffett and heard relatively insider news that the New York government was planning to set up a company, RTC, to collect non-performing assets from bankrupt banks, and then sell the assets to repay the debts.
Then he met with John Reed, Chairman of the Board of Directors of Citibank, and learned that Citibank was still cautious about lending to commercial real estate.
For a moment, Lin Zuhui quickly came to his senses!
You should not invest in Manhattan office buildings in the next two to three years, otherwise you will be embarrassed!
First, he remembered that the basis for investing in Manhattan commercial real estate was: Buffett invested in a commercial property around New York University in 1993 and had a 150% return in five years. Maybe this return on investment is because he bought
It's a discounted item (distressed asset auction), and because it's commercial real estate around New York University, the university can't move.
Secondly, if there is a subsequent boom in Manhattan office buildings, there must be a reason. The most likely reason is the development of the Internet and the financial industry. As far as Lin Zuhui knows, before 1995, the U.S. banking industry was in the process of mergers and reorganization.
In the following five years, the S&P 500 Bank Index soared by more than 250%; as for the Internet, it would have to be at least after 1994 before it became prosperous. Taking all factors into consideration, New York office buildings may not be prosperous until after 1994 and continue to do so.
By 2007, although I experienced nine-year-old pain, I recovered within a year.
Finally, the five-year return rate is 150%, which seems to be only 20% per year. Although it is good, timing in all aspects is very important, and more importantly, the risk is too high.
Based on the three reasons, Lin Zuhui decided to postpone investment in Manhattan office buildings, or just invest a small amount in the future.
fortunately!
If you don’t learn from Japanese capital and certain enterprises in your previous life, you will not only lose money but also be embarrassed!
This is also one of the main reasons why Lin Zuhui invests cautiously:
In a previous life, Japan's Mitsubishi Land invested US$1.4 billion in the Rockefeller Center in Manhattan. In 1989, it spent US$1.4 billion to purchase 15 office buildings. By 1996, it sold only US$1.1 billion. Coupled with the appreciation of the yen during the period, this
Mitsubishi Land lost 88 billion yen (more than 800 million U.S. dollars) in one transaction. Like Mitsubishi Land, the U.S. real estate purchased by Japanese investors in the late 1980s almost ended at a loss.
In the previous life, in the 21st century, some companies went to Manhattan to buy buildings, but they also lost money.
Therefore, not only can the U.S. dollar be used to harvest the wealth of various countries, but even American buildings can be used to harvest the wealth of various countries.
Lin Zuhui secretly regretted that he should not have boasted in front of Zheng Yutong and others;
But fortunately he didn't take action, otherwise he would really fall off the altar in the future.
.......
Monday, April 20th.
Lin Zuhui came to his Huazhi Center office and felt a lot more at ease. He also warned himself that in recent years, New Era Group should be cautious about overseas investments to prevent the ship from tilting; capsizing would not happen, after all, New World Group has already
Grow into a warship-level company.
After a while, Liang Zhenxun came to his office and said: "Boss, the preparations for the rights issue are ready!"
You still need to raise funds, and money still has its uses!
Therefore, Lin Zuhui said: "Then make an announcement!"
"OK!"
Then, Lin Zuhui said: "I am going to spend 250 million US dollars, and I want to invest in a US stock!"
Liang Zhenxun immediately asked: "How much investment does it take to invest in a Manhattan office building?"
Lin Zuhui said: "It's not a good time at the moment. I went to check it out and it's not optimistic. So just invest in securities and use the rest of the funds to develop the real estate industry in Hong Kong and the mainland!"
"Okay, I know!"
After Liang Zhenxun left, Lin Zuhui relaxed for a while. As the saying goes, the goose has plucked its feathers, and this trip to New York will be more or less rewarding.
Therefore, he planned to arrange for New Era Group to invest in Microsoft stocks.
At present, Microsoft's market value has risen to US$23 billion, with an average annual return rate of more than 30% in the later period, and an increase of more than 20 times by 2000, making it very worthy of investment.
However, Lin Zuhui's Hengjin Investment holds only 2% of the shares, and it is offshore and decentralized, so it is not very eye-catching.
And New Era Group invested a little more than 1%, which is naturally an aboveboard investment.
In this way, if New Era Group invests in the stocks of Citibank and Microsoft, and then invests in commercial real estate in the United States, the combined rate of return will be considered a sound investment.
In the morning, Gao Yi from Chinese Real Estate brought Swire Group Chairman Shi Yadi and Swire Properties Jane Jifu to Lin Zuhui's office.
Lin Zuhui was quite surprised to be able to come to the door so quickly.
But no matter what, you are a guest when you come to your door, not to mention that Lin Zuhui and Shi Yadi have many acquaintances.
He stretched out his hand politely and said with a smile: "What kind of wind brought you two distinguished guests to my office!"
Shi Yadi responded with a smile: "Of course it was Mr. Lin's wind that brought us into your office."
While Lin Zuhui invited a few people to sit down, he pretended not to know and said, "What's the explanation?"
Shi Yadi said seriously: "That's right, we want to buy the two buildings in Quarry Bay that Chinese Land purchased last year!"
Lin Zuhui suddenly became embarrassed, picked up the tea cup and drank tea.
Shi Yadi immediately continued: "I know this is a bit abrupt. After all, with Mr. Lin's eyes, he must have seen the future of office buildings in Xiangjiang. Therefore, we are willing to buy it at a 30% premium!"
The Swire Group did not dare to play tricks in front of Lin Zuhui, so the price quoted was reasonable. Of course, this only seemed reasonable, but in fact it was far from meeting Lin Zuhui's appetite.
At the beginning, he purchased these two buildings with two thoughts in mind:
The first is to speculate in buildings; the second is to invest in buildings.
These are all businesses that make a profit without losing money, but in fact, they are more concerned about building speculation, and the development prospects of Quarry Bay are still limited.
Lin Zuhui put down his tea cup and said: "Mr. Shi Yadi, why don't we Chinese property owners buy your three buildings in Quarry Bay. To be honest, there are a total of eight buildings there that can be rebuilt. My original intention is to rebuild them all.
And connect them together as a long-term development plan. By then, some tenants who cannot afford Central and Wan Chai can open up those areas as second office space."
Shi Yadi and Jian Jifu suddenly felt embarrassed, because Lin Zuhui's idea coincided with theirs. Swire Properties shamelessly came to buy this time for two reasons: first, the rise of office buildings in Xiangjiang is a trend;
Second, Quarry Bay is considered the hometown of Swire Properties. With the boom in office buildings, the eight commercial buildings there can be rebuilt one by one into high-rise buildings, and overall planning can be carried out to become a commercial center.
And now that Lin Zuhui has put forward this point of view, it shows that this place is of great value.
Shi Yadi immediately said: "Mr. Lin, we have three buildings and you only have two. Moreover, Quarry Bay has a different meaning to us at Swire Properties. We are willing to continue to discuss the price!"
Lin Zuhui thought for a while and then said: "Thirty percent is impossible. I will pay this price by the end of the year. The long-term investment will bring huge benefits. If it doesn't work, we can jointly develop the commercial center here, and the property rights of the building will be independent.
But unified planning and reconstruction. In this way, it will not only be more efficient, but also get the best of both worlds."
Shi Yadi didn't want to cooperate, but just wanted to buy it back. He gritted his teeth and said, "We are willing to pay 50% of the price!"
When things got here, Lin Zuhui also made a counter-offer: "If you insist on it, we can also give you the beauty of adulthood, but the price will be 1.65 billion, not a penny less. Or you can come back to negotiate the price with me in two years!"
Two years later, 1.65 billion may not be able to buy these two buildings, and it can still collect rent for two years.
Seeing how determined Lin Zuhui was, Shi Yadi also knew that others knew the market very well and would not hand over the two buildings easily. As for two years later, he might need to pay more.
"1.65 billion, deal! But we want to keep the price of this transaction secret to avoid causing too much impact on the market!"
He is not worried about the market impact, but is worried that it will not be conducive to the acquisition negotiations of other buildings.
Lin Zuhui said with a smile: "Our company's annual report will definitely be made public next year."
"This is no problem!"
"Okay then! Since the cooperation didn't work out this time, I hope we can cooperate next time!"
Shi Yadi responded: "I am very happy! This time can be considered a cooperation, but we want to use this Quarry Bay as the company's long-term development plan. And with the strength of New Era Group, we may not be willing to make a long-term plan of ten or twenty years!"
Lin Zuhui said generously: "It is indeed too long and does not conform to my style of doing things!"
Gao Yi, a Chinese real estate agent, couldn't help but admire his boss. It was obvious that his subjective intention was to speculate in real estate, and he spoke so grandly. In less than half a year, he made a little over 50%, amounting to more than 500 million. This money is really easy.
The South China Morning Post Building and the Toppan Building cost less than 1.1 billion in total, but now they have made more than 500 million in net profit, which is indeed a huge profit.
In fact, Lin Zuhui is not a cruel person. If the price is 1.8 billion, Swire may agree to it by the end of the year. The two buildings themselves are not worth that much premium, but looking at the overall plan, he can increase the value by another 10% or 20%.
After Shi Yadi and Jian Jifu left, Lin Zuhui said to Gao Yi: "We will start leasing Central Plaza and Wanguo Baotong Center in July. We must manage them well. For companies with good reputation, the rent can be appropriately discounted and make long-term investment preparations. Beware
Straw shoe company to avoid loss of credibility. The lease period should not be too long, as rents have been on the rise in recent years.”
Huaren Real Estate is not a simple rent collection company, but an excellent commercial real estate management company. Shopping mall management is a sophisticated industry, how to attract world-renowned brands, how to allocate shopping mall structure, how to manage...
.These are very challenging for management.
Over the years, Chinese Real Estate has accumulated a lot of experience in this area, and has long-term inspections of shopping malls in Europe, the United States and Japan, exploiting its strengths and avoiding weaknesses, and further strengthening its management capabilities in this area.
In this way, not only the shopping mall network in Xiangjiang can be managed well, but also the shopping mall network in the mainland can be managed well.
Gao Yi nodded and said: "Well, we must check it carefully. Especially the Central Plaza, which is the flagship commercial center of our New Era Group, and will definitely be managed into the world's best commercial center. As for the Wanguo Baotong Center, there are
We will also cooperate with Citigroup to create an Asian financial core area."
Lin Zuhui said with satisfaction: "The Wan Guo Baotong Center can be regarded as accumulating experience in financial buildings for our team. Later in Shanghai, I will invest in a global financial center, so the team needs to learn more."
"OK!"
Lin Zuhui is an important shareholder of Citibank. Although he has no right to participate in management, it does not affect the relationship between Lin Zuhui and Citibank. In addition, Lin Zuhui is a bank boss himself and has the reputation of a stock god.
Therefore, New Era Group will definitely not miss the Shanghai World Financial Center.