Today is the day for the auction of the ‘Diamond Hill Land King’. Heads of major real estate companies and reporters from Hong Kong have gone there one after another.
Strictly speaking, today is not a 'Crown Land Auction' because there is only one 'King Land Land'; generally speaking, the Hong Kong government will announce a year's Crown Land Auction plan in a few months each year, and then the curtain will begin.
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The purpose of the Hong Kong government's auction of "king-level" land is actually to raise prices and build momentum for the subsequent official land auction.
This also fully shows that the Hong Kong government is very contradictory. It wants to quell public dissatisfaction and crack down on real estate speculation, but also wants to make a fortune from the auction of official land. After all, 70% of the Hong Kong government's finance depends on real estate!
When it came to the land auction at the level of 'King of Land', Lin Zuhui originally wanted to take part in it personally, but then he thought that if he went there in person, the price would probably be raised.
Because in the past year, New Era Group has given people the impression that it is no longer as aggressive as before in the auction house and is bound to win. Although it is also a big friend of real estate, it is only with Sun Hung Kai, Cheung Kong and the like.
Will you consider whether the price is expensive?
Therefore, if Lin Zuhui personally takes charge at this time, it will inevitably give people a feeling of attaching great importance to the auction, which will not be conducive to the auction.
This land is indeed very good. It is located under the Lion Rock and at the entrance of the tunnel between Kowloon and Shatin, New Territories (Kowloon side). It covers an area of approximately 280,000 square feet. According to a notice from the Planning Department of the Hong Kong Government, five buildings with an area of 1.2 million can be built.
A square foot residential building (about 1,500 residential units) can also be built with a commercial area of 650,000 square feet (low density/low building height), and there can also be a nice landscaped public garden.
Lin Zuhui calculated that the houses could be sold starting in 1995 and sold out in the first half of 1997. The average selling price could reach 6,000 yuan per square foot, and 7.2 billion in cash could be obtained;
If the commercial area is RMB 10,000 per square foot, it is worth RMB 6.5 billion (a simple estimate).
This is a big project totaling 13.7 billion!
The total construction cost is 2 billion, plus interest and taxes, not even 3 billion is needed.
The land cost of 5 billion is worth it, if anyone competes with New Era Group to rob it!
Of course, 5 billion is impossible. The base price of this land is 2.2 billion Hong Kong dollars. The normal premium of 70% is already a sky-high price.
Thinking of this, Lin Zuhui called Liang Zhenxun and said: "This afternoon you lead a team to participate in the auction and just get the land back. As for the price, I should be able to get it with a premium of 70%. Another 30% higher is my reserve price, okay.
Call me, but be careful!"
There are already mobile phones in this era, so you can naturally call and apply outside the auction house.
Liang Zhenxun said: "Well, I know! Speaking of which, what we may have to watch out for this time is Wheelock, Wharf, and Real Estate Trust, that is, the Bao Yugang family. They developed Times Square in Causeway Bay and made a lot of money.
There is no need to pay for the land, and they only spend 2.4 billion Hong Kong dollars in construction costs, and the rent collection this year will be as high as 900 million, so they have been very ambitious recently."
Hearing this, Lin Zuhui said nonchalantly: "They can easily make 900 million, while we can make billions just lying down. Don't worry about it. You just need to use some tricks, but be determined to win!"
Liang Zhenxun laughed. Last year, the U.S. stock market made a billion dollars. What else is it to make money while lying down? And judging from the boss's appearance, he is very optimistic about Microsoft, General Dynamics, and Citibank, and plans to hold them for a long time.
"Okay, I will complete the task!"
Hong Kong government, auction house.
2pm.
Liang Zhenxun walked into the auction with several senior staff, and indeed attracted everyone's attention. When everyone saw that Lin Zuhui did not come, they suddenly felt a lot less pressure.
In fact, although New Era Group has great financial power, it is not invincible. After all, everyone has money;
However, Lin Zuhui himself is a bit "arrogant". If he goes to the scene, he may not care about the price. At that time, everyone is afraid of winning the bid at a high price and also afraid of being absent.
Not easy!
Liang Zhenxun leads the team, which even makes some people think that New Era Group is focusing on overseas and mainland China.
Everyone still said hello one after another. No matter how intense the meeting was, everyone was still in harmony in private. Even if there was competition in the auction, they wouldn't really care afterwards. After all, there are so many auctions every year, and the one with the highest price has to be the eternal truth.
No one will intentionally raise prices.
Today's auction can also be regarded as a "barometer of the Hong Kong property market." If the premium is high, it will also be beneficial to various real estate companies, because it will increase the price of real estate.
Generally speaking, a 40% premium is considered the threshold for a good market, and a 70% premium is a sign of a prosperous market.
The auction officially begins.
Everyone raised placards one after another, and for a while people were encouraged. Xiangjiang real estate may have another year of growth this year.
very competative!
In the end, only Wheelock Group, Cheung Kong Group, New Era Group, New World Group, and Nan Fung Group were left.
Soon, New World Development was defeated. Zheng Yutong said to himself: "It is still more cost-effective to buy foreign hotels. So many hotels are only 5 billion, and this piece of land is already 3 billion Hong Kong dollars. I can't bear it!"
The subordinates could only smile in agreement. In fact, New World Development has fallen behind because it does not have enough reserved land! Of course, New World Development has the New World Center in Tsim Sha Tsui and the Convention and Exhibition Plaza in Wan Chai (which is starting to expand again), so
It can be considered a large real estate developer, but it cannot be called a 'large development real estate developer'.
There are only four large-scale real estate developers in Xiangjiang, namely New Era, Cheung Kong, Sun Hung Kai, and Henderson, which account for 55% to 70% of the property sales in Xiangjiang every year.
"3.2 billion" Yang Zhenxun calmly held up the sign.
He has never thought about getting it for less than 3.5 billion, because he can see that the biggest competitor may be the Wheelock Group. Since Cheung Kong Group does not like to collect rental properties and has sufficient land reserves, it will definitely consider it.
It’s a question of whether it’s cost-effective or not; Nan Fung Group is not worth mentioning. How many people can afford it?
Only Wheelock Group (including Wharf) is a real estate developer that wants to enter the market. In addition, this land has a commercial area of 650,000 square feet, so it is very eager to acquire it.
"3.21 billion"
Wu Guangzhen's face showed a trace of longing, thinking in his mind that Times Square has been developed so successfully that the five residential buildings in Harbor City are also being rebuilt into five office buildings in phases, adding 4 million square feet of rent-collecting area. Harbor City and Times Center total 950
The rent-collecting area of 10,000 square feet (after reconstruction) provided him with enough courage.
In Wu Guangzhen's opinion, this land will be able to add a very good shopping mall - Hollywood Plaza, so he is determined to win it.
The next competition began to take place in earnest.
For a moment, all the major real estate developers started to watch the excitement. At this time, they were in a particularly relaxed mood, and they were secretly glad that they did not follow. After all, the two families were probably going to be fighting each other today.
"3.5 billion" Liang Zhenxun also lamented in his heart that he was going to lose money today. If the price was 100% higher, he would really have to call and ask.
"3.52 billion" Wu Guangzhen was also very shocked. Is this price a decision that he, a senior executive, can make? Aren't he afraid of being scolded when he goes back?
"3.53 billion" Liang Zhenxun continued to shout calmly. The boss actually had a 100% budget in mind, otherwise he would not have called him with a 100% premium.
It's still early, Liang Zhenxun comforted himself.
"3.82 billion" Wu Guangzhen felt extremely heartbroken, and the 900 million rent he just collected was no longer good.
"3.85 billion" Liang Zhenxun felt that it was a huge increase.
"3.86 billion"
"3.92 billion" Yang Zhenxun shouted again. He had already seen hope.
Sure enough, Wu Guangzhen became silent at first, and when the auctioneer struck the second hammer, he stopped bidding again.
“3.92 billion transaction”
Liang Zhenxun breathed a sigh of relief and clasped his fists at Wu Guangzhen, appearing very sincere.
So when the talents reacted, Lin Zuhui must have explained the minimum price, and it should still be within the minimum price range, otherwise Liang Zhenxun would not be so modest.
Wu Guangzhen forced out a smile and dealt with it.
He wanted to imitate his father-in-law's Shanghai-style style, but found that it was impossible. The land fee of nearly 4 billion, plus construction fees and taxes, may require an investment of more than 6 billion in projects.
How much does this cost!
Times Square only invested 2.4 billion in construction costs and received 2.4 million square feet of first-class rent-collecting properties. The rent in the first year alone was HK$900 million, and it will be more in the second year. After all, renting in the first year requires discounts.
The reconstruction of five super office buildings in Harbor City will yield 4 million square feet of rental property for less than 4 billion in construction costs (the land compensation fee is unknown).
For a moment, Wu Guangzhen couldn't help but sigh. It can only be said that it is not an easy thing to encounter the New Era Group at the auction.
When Lin Zuhui learned that he had won the Diamond Mountain King for 3.92 billion (3.53 billion in his previous life), although he was a little shocked, he still encouraged Liang Zhenxun with satisfaction.
He had a budget of 100%, or even 120%, because he needed to invest after all; a land budget of 120% was also more profitable than European and American investments.
What's more, as long as this kind of project is planned well, the extra land fee can be compensated. For example, by arranging the sales time, for example, signing a long-term lease contract (at a more favorable price) before July 1997, it can be more
Make some money.
As for whether he will be scolded, Lin Zuhui is not afraid at all. People stand in different perspectives. He is the chairman of the board of directors of a listed company and needs to be responsible for the 60,000 to 70,000 shareholders.
It can be said that before the second half of 1997, Lin Zuhui at least asked New Era Group to sell off tens of billions of assets (the current annual property transaction volume is 450 billion) and invest in the European and American markets.
Of course, the core office buildings and shopping malls will not be sold.