Richman took Lin Zuhui and his party to the building at 245 Park Avenue.
Lin Zuhui has an impression of this building. In his previous life, HNA bought it for US$2.2 billion in 2017. He single-handedly brought New York real estate back from the trough. However, HNA later went bankrupt and this building was listed for US$1.8 billion, but no transaction was completed.
.
"Mr. Lin, this building was built in 1967, with a height of 48 floors and a floor area of 1.43 million square feet. It was renovated in the mid-1980s and the current occupancy rate is 79%." Richman introduced with some pride.
He said, but soon his expression became depressed again.
Lin Zuhui observed the building, and also observed Richman, and knew what he was doing.
Anyway, he came to acquire office buildings in Manhattan with the mentality of picking up bargains, and he would definitely not buy them if they were too expensive.
As everyone walked towards the building, Lin Zuhui asked: "What is the average rental unit price?"
He must have an idea, but after all, the rent in each building is different.
Richman will not lie to Lin Zuhui because it will not benefit him. He thought for a long time yesterday and felt that his best hope is to complete London's 'Canary Wharf' and profit from it. Of course, he can be said to be bankrupt now
Naturally, it cannot redeem such a large project, so a large amount of venture capital is needed. Lin Zuhui is undoubtedly the best venture investor. He is a business leader in Hong Kong and the richest man in China.
“Currently it’s $30 per square foot per year!”
Lin Zuhui did some calculations and found that the total is US$2.5 per square foot per month (about HK$20 per square foot), which is less than the lowest office price in Kowloon, Hong Kong.
The office buildings in Hong Kong are currently the highest in the world, surpassing Tokyo and Manhattan, with an average range of 30 HKD to 60 HKD per square foot per month. The office buildings in Central District have reached 60 HKD per square foot per month, and will continue to do so.
Within two years, it will skyrocket to more than 90 Hong Kong dollars, and the highest should be 110 Hong Kong dollars per square foot in Exchange Square.
As for Manhattan, even before the Internet bubble crisis, it was estimated to be only 45 Hong Kong dollars per square foot (annual rent is 60 US dollars per square foot), which is far less than that in Hong Kong.
The important thing is that the taxes on office buildings in New York are higher than those in Hong Kong, and these buildings are all very old. Repairs and upgrades may be expensive.
The rate of return will not be too high. Even if the time to buy is to buy at the bottom, the price will be discounted.
However, buying a building in Manhattan is a symbol of strength;
At the same time, it is also a form of "protection fee". After all, New Era Group and Lin Zuhui personally have large investments in U.S. stocks. In order not to make people jealous, they must come to the United States to buy low-priced buildings to balance the balance.
It is related to the high rate of return. After all, the rate of return of securities is too high, so you still have to invest in some assets with a medium rate of return (deducting bank interest, a rate of return of 10% to 15%).
A group of people took the elevator and experienced the building. Overall, it is indeed a relatively new building.
However, Lin Zuhui knew that several other buildings in Olympia might be from the 1940s and 1950s.
In New York in 1902, a 22-story Flatiron Building was built, which was the tallest building at that time. Therefore, in the previous life, Li Hongzhang was given buildings such as the Empire State Building (1931) on the Internet to set off Li Hongzhang's despair. It was purely natural.
The media is raking in traffic.
After visiting No. 245 Park Avenue in Manhattan, Lin Zuhui said to Richman: "What is the current market price of such a building?"
Richman thought for a moment and then said: "The market price is estimated at US$300 million, but no one is buying it!" He didn't want to lie, because with the intelligence of this young man and the group of elite consultants who followed him, it was obvious at first glance
Very professional.
Lin Zuhui nodded. This kind of building is a test of compatibility between buyers and sellers because there is no standard.
If calculated according to Xiangjiang, the unit price is generally 100 times the rent, that is, at a selling price of US$250 per square foot, this building would cost 350 million. However, the vacancy rate of this building is so high, and the annual maintenance fees and taxes are so high
High, it is far impossible to calculate it like this.
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If Lin Zuhui came up with a psychological price, it would be 250 multiplied by the occupancy rate of 80%, and then discounted by 70%, which is a unit price of US$140. Based on the rental area of 1.43 million square feet, US$200 million is more appropriate.
This price did not increase much before 1995. The annual net rental profit may not be able to outpace high inflation, and the rate of return may only be 5% to 8%.
After inspecting 245 Park Avenue in Manhattan, Lin Zuhui and Richman went to the restaurant to have lunch together.
During the dinner, Richman seemed to be more concerned about Lin Zuhui's views on the prospects of 'Canary Wharf', so he said: "Mr. Lin also knows about the Canary Wharf project?"
Lin Zuhui nodded with a smile and said: "I have been there several times, and every time I lament that 'European Wall Street' is about to be born! Unfortunately, the British economy is in decline, and the subway project promised by the government has not been approved, which is the biggest constraint on this
Key to project success.”
Richman said with deep sympathy: "When I took over this project, the London government vowed to build a light rail, a subway extension, a water passenger terminal and a new international airport. In the end, it was only completed as planned.
The light rail... Of course, London's office buildings are also very depressed, which is also an important reason for the current situation."
What Lin Zuhui wanted was to cause Richmann to lose his car and keep his coach, so he continued: "It is impossible for London to stop such a big project. I think the resolution to extend the subway line will be passed soon, maybe next year or the year after..
...If you can raise enough money to redeem it from the creditor banks, as long as you stick with it for another five to eight years, this project will be a great success."
Richman said: "Having said that, if Olympia York goes bankrupt, even if I lead a group of venture capital investors to complete this project, I am afraid it will be the investors who make money."
Lin Zuhui said with a smile: "It's better than nothing! You are the leader of the project, you can give yourself a high salary, and you can also take a personal loan to join the investment. But then again, your company may not be so bad!"
Richman looked at Lin Zuhui and said seriously: "Mr. Lin, you are a businessman worthy of my admiration. But I would like to ask you, what is the biggest factor in your success?"
Looking at Richeman, who was once praised by European and American investors, and remembering how popular he was back then, and the commercial banks sending money to him one after another, Lin Zuhui couldn't help but sigh, things are unpredictable, and Richeman will soon be
There will be a new nickname - Canadian Roughneck.
"I think it's bargain hunting!" Lin Zuhui said.
"When is the bottom?" Richman asked quickly.
"Everyone is desperate, so I think it's the bottom. I go crazy when others are panicking, and I panic when others are crazy. That's about it! In fact, I didn't want to get involved in European and American commercial real estate this year because the market is not panic enough.
!”
Richman smiled bitterly and said: "Mr. Lin means that if Olympia collapses, it will lead to a real panic in the European and American office market! But I respect your philosophical motto - I am crazy when others are panicking, and I am crazy when others are crazy.
I was horrified and very impressed."
That’s right!
Next year and the year after that should be the best time to buy at the bottom.
However, if Olympia goes bankrupt, its assets will definitely be in the hands of creditor banks, and they may not be able to buy them cheaply. You must know that in the previous life, Olympia’s 12 million square feet of Manhattan office building was only sold by bond banks in 1996. Citibank, Li
Superman and the Bank of Canada have joined forces to fight for it. As for whether they will succeed, Lin Zuhui doesn’t know.
Probably not!
Lin Zuhui comforted Richman and said: "Mr. Richman, I have no intention of rubbing salt into your wounds. Speaking of which, I am not very eager to invest in the Manhattan office building in Olympia. In our Xiangjiang, the office building projects I invest in can have
With a return rate of 30%, there is no such good soil in the world.”
Richman was surprised and sighed in his mind, what kind of market is ZTM? The rate of return is so high!
The two had a very speculative chat, especially on the Canary Wharf project. Lin Zuhui made it clear that he could invest even if there was no cooperation in the Manhattan office building project.
Of course, the two investment methods are different. If Richman can sell eight buildings in Manhattan to himself at a low price, he promises that in the Canary Wharf project, Lin Zuhui can first buy 10% of the equity for him, and he can
If you redeem within a certain period, you only need to pay the principal and interest.
In other words, even if the price of this project appreciates a lot, he only needs to borrow money from the bank and pay Lin Zuhui the principal and interest.
Richman's heart suddenly became hot, this condition is simply too good!
Once Olympia goes bankrupt, all the assets will not belong to him, so why should he care about Manhattan office buildings selling cheaply?
What's more, the current price of Manhattan office buildings is so cheap that they can be sold!
........
The deal with Richman will not be concluded immediately, and the procedures are somewhat complicated. First, Richman must make a decision; secondly, these eight buildings have been targeted by bond banks, and they must be negotiated if they want to be sold.
; Finally, there is the formal negotiation between the two parties.
The eight buildings that Joe Lam wants to buy do not include the World Trade Center in Olympia, nor do they include all of Olympia's commercial properties in Manhattan.
The total rental area of these eight buildings is 11.8 million square feet (including the 245 Park Avenue Building). The psychological price given by Lin Zuhui is US$140 per square foot, totaling US$1.65 billion, which amounts to HK$12.88 billion.
Taking the 245 Park Avenue building as an example, it can be sold to HNA for US$2.2 billion and appreciate 10 times in value in 15 years. Of course, this part of the income does not include the rent during the period.
In terms of appreciation space, it is actually higher than the appreciation of office buildings in Xiangjiang. For example, the current price of Central Plaza should be HKD 8 to 10 billion, but at its peak in 2015, it would only be worth HKD 50 billion at most, and the space for appreciation is only HKD 50 billion.
~6 times.
But taking into account the rent levels, maintenance costs, and taxes, the office buildings in Xiangjiang are extremely profitable.
And if this deal is completed, Lin Zuhui will spend HK$1.51 billion to buy the next 1.5 million square meter building, which is much cheaper than the price that Li Chaoren purchased a year ago.
By then, it will be clear to Xiangjiang investors who will buy the bottom.
As for the source of funds of 12.88 billion Hong Kong dollars (maybe more than 13.8 billion is acceptable), Lin Zuhui plans to use properties in Xiangjiang as collateral to borrow 8 billion Hong Kong dollars from commercial banks such as HSBC and Citigroup.
In this way, there is no need to worry that these banks will refuse to lend, because the properties in Xiangjiang are too valuable. Moreover, New Era Group has wiped out all of its debts, and there is no need to worry about no one borrowing money.
In the afternoon, Lin Zuhui came to the New York office of Fuli Real Estate Investment Management.
Since the beginning of this year, Lin Zuhui has begun to reform Fuli Real Estate, because he knows that he will invest a large amount of American commercial real estate in the next two years. Therefore, the group has strengthened its management capabilities here, dispatched senior staff, and recruited many
We have assembled a strong management team with a small number of American real estate talents (Chinese are preferred).
At present, Fuli Real Estate owns about HK$3 billion in properties in the United States, mainly concentrated in Los Angeles and San Francisco, but now, it is clear that the center is starting to move towards New York.
"boss"
In the conference room, some senior executives of the group and senior executives of Fuli Real Estate sat on both sides of the conference table, stood up and said respectfully.
This chapter is not finished yet, please click on the next page to continue reading the exciting content! Liang Zhenxun, Gao Yi and other group managers are accompanying Lin Zuhui on this inspection trip; in addition, there are Chen Mingzhi, president of Fuli Real Estate, and Fu Li
Senior staff of Lee Real Estate Investment Management.
Lin Zuhui nodded, sat on the main seat, and motioned for everyone to sit down.
"When I come to New York this time, you probably understand my idea, which is to buy 8 skyscrapers from Olympia York Company at a low price. Although even if you invest at a low price, the rate of return will not be high, but if you consider it in the long term
, it should still be very worthwhile. Of course, this investment may not be successful, but you must be prepared!"
"Yes, boss!"
Lin Zuhui said to Chen Mingzhi: "In terms of office building management, you must do a good job. Excellent managers can reduce the vacancy rate! For tenants, we are their waiters and we must be ready to solve their problems at any time! For property
, we must maintain it carefully.”
Chen Mingzhi is an executive from Hong Kong, but he has been working in the United States for four years and is already quite familiar with it.
"Don't worry, boss, we will manage our properties well and learn from Chinese Real Estate."
Lin Zuhui nodded and continued: "Even if the eight-building transaction does not succeed, I will buy a considerable number of high-quality rental properties in Manhattan next year as a long-term investment. And Fuli Real Estate, as a subsidiary of New Era Group, invests in the United States.
Flagship must develop into a team with high efficiency and high quality."
When everyone saw that Lin Zuhui attached so much importance, they also knew that this boss was going to buy bargains in the United States!
Xiangjiang is too small and cannot accommodate the New Era Group.
Then, Lin Zuhui listened to everyone’s work reports.
The commercial real estate in Los Angeles is a bit miserable, with a vacancy rate of 22%. Of course, this is known to the general environment. The "Business Center" project in Los Angeles encountered a trough in European and American office buildings before it was completed. In addition, that year (1988)
The investment in land, construction fees, etc. is also huge, so it is not optimistic at the moment.
It's just a long-term investment. As long as the debt is reasonable, you will always make money.
Lin Zuhui thought for a while and said to Liang Zhenxun: "Put another $100 million into Fuli Real Estate Investment Management Company, and then buy General Dynamics shares as soon as possible."
Liang Zhenxun said quickly: "Okay, I will arrange it right away!"
A total of US$450 million has been invested in US stocks, but General Dynamics' stock is expected to be released at the end of next year. The investment strategy is because Lin Zuhui has read Buffett's investment experience.
After spending HK$3 billion each on the acquisition of Miramar Hotel and Mainland Investment, New Era Group still has more than HK$6 billion on its books. The net profit and return in the second half of the year will not be less than HK$6 billion. In short, even if it invests HK$50
Billion in office buildings in the United States (re-loans of 8 billion plus), New Era Group still has stable cash flow.
Therefore, there is no need to worry about insufficient cash flow.