Today is the delivery day for May futures (three trading days are reserved for delivery), and it is also the day for Lin Zuhui’s harvest;
At the beginning of the year, Hengjin Investment purchased the May futures contract, and the average price of the Hang Seng Index was 4,400 points, and the opening today was 6,100 points.
In other words, he invested about 440 million, and after the market closes today, he may make a net profit of about 850 million and withdraw 1.3 billion.
This fund came very timely, because he had no money!
It was incredible, he felt like he was always short of money.
At the beginning of the year, there was still more than 6 billion in cash. As a result, it cost 2.5 billion to purchase overseas trust banks, 1.5 billion in margin was spent on short selling US dollars and yen (20 times leverage, average point 132.8 points), and 25 was spent on rights issue financing/bond subscription.
billion, and paid Fairy 700 million to purchase overseas assets.
If it weren't for the dividends of over 1 billion during this period (many listed companies), Hengjin Real Estate's rental income would be hundreds of millions, and I'm afraid he would have gone bankrupt!
Lin Zuhui is used to this kind of life where he earns a lot and spends a lot.
If he had tens of billions of cash in hand but no investment projects, he would actually feel uncomfortable.
The short-selling USD/JPY this year has now fallen to more than 129 points. It has begun to fall. I don’t know if it will rebound;
The key is that if it falls to around 120 points this year, he may not close his position. After all, he is looking forward to falling to around 100 points next year.
Therefore, if you want to buy gold futures at the end of the year, you will need to borrow some money in advance.
Now, he doesn't need to think about the risks of taking out loans for finance. After all, his US stock market value, Hong Kong real estate, and shares of listed companies are all very generous.
It is impossible to lose everything and go bankrupt.
"Dong dong" the knock on the door sounded.
Secretary Li Ke came in with Chen Bin.
"Boss, a formal contract has been signed for the project with HSBC. We will complete the demolition work before the end of this year and start the superstructure project early next year." Liang Zhenxun sat on the sofa and reported.
Lin Zuhui is a little bit satisfied. This is the first cooperation between New Era Group and HSBC in real estate.
HSBC plans to rebuild two 40-storey residential buildings at the former staff quarters site at No. 23 Pofield Road, Hong Kong. The total construction area of the site is approximately 350,000 square feet. The "New Era Group" is responsible for the entire project.
Development, New Era Group plans to invest HK$500 million to supplement the land premium and construction costs. Both parties will each hold approximately 50% of the entire development, and it is planned to complete occupation in 1995.
You won’t earn much, at most 30% per year, but after all, it’s a project snatched from Cheung Kong Holdings, so it’s still satisfying.
It turns out that in April this year, Li Chaoren officially resigned as a director of HSBC, and also announced that the honeymoon period between HSBC and Li Chaoren was over. Although it cannot be said that they are in conflict, at least they will not be as close as before.
Of course, Lin Zuhui certainly didn’t mean to push for the top. He only cooperated with HSBC on loans and real estate, which was far from the good relationship between Li Chaoren and HSBC, even now it is still far behind.
He doesn't need to have a good relationship with HSBC! Both parties have interests in this cooperation - HSBC is eager to continue cooperating with New Era Group (loan), and also hopes that Lin Zuhui's relationship will help them return to the mainland.
Lin Zuhui said: "Well, we will try to sell them all by the end of next year and the beginning of the next year."
Chen Bin nodded and said, "Okay, I'll make a note later!"
Lin Zuhui added: "Next year we will strive to sell 3 million square feet of residential area, and we must make full preparations and arrangements."
In fact, this is because he is calculating carefully.
He knows that with this wave of Hong Kong government's crackdown on real estate speculation, the mid- to low-end housing market can only be said to have risen slightly, not sharply. This indicates that there will be a big market next year, so more housing should be sold.
And in 1994, the Hong Kong government is afraid that it will crack down on real estate speculation even more severely. In addition, Xiangjiang Real Estate will enter an "adjustment period" by then, and it is possible that it will fall by 20% to 30%.
In the Ma On Shan showdown between Li Chaoren and Lee Shau Kee in the previous life, the property price went from over 5,600 Hong Kong dollars to finally being sold for 3,950 Hong Kong dollars (Li Chaoren beat the market, which is not the normal price).
Therefore, in order to achieve a better benefit ratio, Lin Zuhui usually makes careful calculations, that is, the supply fluctuates.
For example, if 3 million square feet were supplied in 1993, it would be enough to supply 2.8 million square feet in 1994.
Chen Bin naturally knew that the boss was good at calculating carefully and seizing the opportunity, so he believed in it.
"Well, there is no problem with planned supply!"
Lin Zuhui thought for a while and said: "Recently, due to the opening up of the mainland, the prices of industrial buildings in Hong Kong have fallen instead of rising. You can have people search for some redevelopment industrial property sites and old buildings in Kwun Tong and purchase them. These redevelopment sites and old buildings
, it can be used as a land reserve and can be converted into a complex building in the future, which is quite cost-effective!"
Because factories in Hong Kong have moved to the mainland, the Hong Kong government has already allowed industrial land to be built on comprehensive buildings, that is, buildings with two uses: office buildings and factories.
Nowadays, there is less and less land in Hong Kong and Kowloon, so if you want to reserve more land, you need to be more flexible.
Chen Bin asked: "It's easy to find a suitable one, but how much do we plan to invest?"
Lin Zuhui said: "Within 800 million!"
"Okay, I know!"
In other words, New Era Group's net profit for one month is nothing.
And it's a semi-commercial building, so getting a bargain is a very good thing.
In Lin Zuhui's view, New Era Group makes money quickly, so it must also spend money quickly, and cannot keep too much money in its hands.
After a while, Liang Zhenxun also walked into his office to report on his work.
First, the acquisition of Miramar Hotel was officially launched, with an estimated cost of HK$2.95 billion and the acquisition of 34.5% of Miramar Hotel equity;
Secondly, news came back from the United States that it had purchased Microsoft shares worth about US$250 million.
Lin Zuhui is very satisfied with these two investments.
The Miramar Hotel has no liabilities, but it still has a cash flow of 520 million on its account. This money can start the Miramar Plaza project (already approved); in addition, it can also make loans and invest in the mainland.
The cost of the U.S. stocks invested by New Era Group has reached 350 million U.S. dollars, and the current profit is 15 million U.S. dollars; according to Lin Zuhui's prediction, it will maintain a return rate of more than 35% every year until the beginning of 2000, and can earn more than 8 billion U.S. dollars in 8 years.
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This money can be used as a "guarantee" for New Era Group's investment in commercial real estate from 1993 to 1994. It is like the egg philosophy. If a project produces losses and low profits, another high-return industry can increase the overall return on investment.
Of course, Lin Zuhui is also confident about investing in U.S. commercial real estate, and he will definitely be able to succeed at bargain hunting.
At the end of May, Lin Zuhui came to Beijing.
He signed three contracts in a row with Beijing officials and won three major projects negotiated at the beginning of the year, namely:
The Dong'an Market Renovation Project on Wangfujing Street. After the entire project is renovated, the business area will reach 1.5 million square feet. The building has a maximum of 10 floors and two underground floors. It is composed of multiple buildings; one of them is used as the 'Dongan Market'
A department store model with a central cashier model, and the rest is a modern rent-collecting shopping center model. The cooperation model between the two parties is: Dongan Market will invest in the land, accounting for 35% of the shares; New Era Group will bear all construction fees and taxes, accounting for 65% of the shares.
.The entire 'New Dongan Market' project is expected to be completed in the first half of 1997 and put into operation.
The "Wangfujing Hilton Hotel" (Xiaowei Hutong) project adjacent to Dong'an Market covers an area of 200,000 square feet. This project was purchased by New Era Group and is solely owned by the New Era Group.
Sanlitun's Central Plaza covers an area of 700,000 square feet. It is a modern shopping mall composed of 19 low-density buildings (10 floors) and creates a fashionable, trendy and artistic style block. This project is wholly Hong Kong-owned.
All three projects went very smoothly, and the negotiation time was less than three months. This is closely related to Lin Zuhui's personal connections and influence. Lin Zuhui himself is not just a real estate businessman. He employs thousands of workers in garment factories in the mainland.
It is a representative of the manufacturing industry among foreign investors.
After winning three projects, Lin Zuhui did not leave the capital, but continued to negotiate with Beijing officials.
In a conference room, Lin Zuhui expressed his thoughts: "Beijing is the capital of China. Foreign tourists who come to China will basically come to Beijing. In recent years, there have been many new buildings in Beijing, but if the low and dilapidated buildings in the center of the city
Rotten residential buildings really hinder the appearance of the city. Therefore, I would like to discuss with the leaders to comprehensively renovate the old city of Chongwen and build new modern urban buildings."
A capital official said: "The old city of Chongwen covers about 2 million square meters (22 million square feet). For such a huge project, just relocation is a big problem. People must live and work in peace and contentment, otherwise there will be trouble."
Lin Zuhui immediately expressed his thoughts and said: "Naturally, we will consider it thoroughly. Our New Era Group is willing to cooperate with the government to develop and adopt the method of demolishing and building at the same time. Such a huge project can be constructed in multiple phases. We can cooperate to establish
The company carries out overall planning and construction of residential buildings, hotels, commercial buildings, etc. on the entire project.”
For a renovation project of 2 million square meters, and it is in the center of Beijing, it is unrealistic to purchase land and build it solely.
Not to mention other factors, if it is just a relocation project and there is no government to handle it, I don’t know how many things will happen.
Since this project is so huge, New Era Group’s phased construction and investment is equivalent to reserving land in disguise.
New Era Group's investment in the mainland must also adopt the method of "paying attention to land reserves", so as to slightly increase the rate of return. He knows that the rate of return of mainland projects is only in the 8-15% range, and it cannot make quick money. But
If the quantity is large, it is still very worth it.
During his visit to the mainland this time, in addition to signing six contracts, he also had to invest in "property development" (residential projects).
Because the return period for rent-collecting properties (shopping malls, office buildings) is too long; therefore, it is necessary to collect rental properties and develop properties in the Mainland, and do it together.
After two years of developing properties, you can start selling off-plan properties and collect funds;
The money earned just makes up for the investment in rental properties.
Officials in the capital immediately attached great importance to this project, and the two parties conducted preliminary negotiations.
Considering the situation in Beijing, Lin Zuhui also tried his best to show sincerity and achieve true win-win cooperation.
In the end, the two parties reached a preliminary intention and were quite satisfied with the cooperation.
Of course, this project cannot be approved immediately and must pass the approval from above, but Lin Zuhui believes that the problem is not big.
This is very beneficial to the development of the city!
To start such a project, New Era Group (China) actually does not need to invest too much, after all, it is carried out in phases.
Lin Zuhui's move to the mainland was very fast, and he quickly signed three contracts in Shanghai, and also successfully negotiated a large residential land (3 million square feet).
Returning to Guangdong Province, we acquired another 8 million square feet in Yangcheng and planned to develop residential projects over ten years.
On the Go board, playing black first is an established rule and a subtle winning rate. A smart player strategizes when playing chess, but a shrewd player understands the rules of points for promotion before the game starts. It is not a victory or defeat in a game, but a victory or defeat in a game.
It's a race to the top.
This is how New Era Group's project investments in the Mainland are laid out, grabbing the projects with the best locations.
This chapter is not over, please click on the next page to continue reading! Moreover, when developing real estate in the mainland, land reserves are very important, because housing prices rise rapidly, and the cheaper the land cost, the higher the rate of return of the project.
Therefore, when Lin Zuhui left the mainland, he said to Lu Donglai: "Your team will continue to inspect residential land in Beijing, Magic City, Yangcheng, Pengcheng, Foshan and other places. If you have any good projects, report them to me so that I can inspect them!"
"
Although all projects in the mainland require Lin Zuhui's approval, Lu Donglai's team must do a good job in the preliminary work.
"Well, we will keep an eye on the land market in these cities and strive to have better and more projects in the second half of this year."
Lin Zuhui nodded with satisfaction. Mainland projects may seem like large investments, but in fact the investment funds are very small. For example, for a project worth 60 billion, you only need to pay about 12 billion Hong Kong dollars, and there is no need to pay it out all at once.
At this time, New Era Group's total investment in the mainland has exceeded 20 billion.
For example, in the Modu Port, the cooperation agreement between the two parties is to invest 6 billion in renovation and upgrading in the future, split 50-50 by both parties. New Era Group will invest 1 billion Hong Kong dollars in cash, and Modu Port will inject assets. As for subsequent investments, New Era Group
There is no need to spend money, because the port itself is operating normally, has revenue, and can also obtain loans.
The start-up capital for some residential projects is even lower. Land in the mainland is now very cheap. After acquiring the land, you only need to develop it in phases. With a small amount of capital, you can start the first phase of the project, and then you can get a loan and sell off-plan properties.
Continue to develop.
In short, New Era Group plans to allocate 3 billion Hong Kong dollars to the mainland this year, and there is no problem in negotiating 30 billion projects. After all, several Central Plazas only need to purchase land first, and only hold 60% of the shares.
In the second half of the year, Lin Zuhui will come to the mainland to discuss more projects. The earlier you invest, the higher your future rate of return will be.