Chapter one hundred and ninety-six rich and powerful
"Congratulations to Hang Lung Group for bidding on this piece of land for HK$560 million. The next piece of land to be auctioned is a 1.1372 million square foot commercial land east of Hong Kong University of Science and Technology and Hong Kong City University. The starting price is still HK$100 million. Please
Companies interested in the land made bids."
Although this land is not in a central and prosperous place like Yau Tsim Mong in Central, its commercial value is quite high because it is close to two universities. Whether it is building a commercial complex or residential buildings, it will have very good prospects.
Therefore, the auction of this land also attracted the participation of many real estate companies, and Li Jianhui also participated on behalf of Xinjian Real Estate.
Companies including Hang Lung that have a major presence in Shatin do not want Xinjian Real Estate to succeed. In the real estate industry in Xiangjiang, Wheelock develops commercial complexes, and the impact is not too great. Hutchison Land takes a high-end route and has no influence on prices.
There will be too big an impact.
Only Xinjian Real Estate is regarded as a price butcher by the real estate industry. Although the residential communities built by Xinjian Real Estate have a high floor area ratio and poor comfort, the prices are definitely the lowest in the surrounding market.
At present, the vast majority of ordinary citizens in Xiangjiang don't care at all about how comfortable they can live, they just want a home that can protect them from wind and rain.
Once Xinjian Real Estate acquires this land, it will inevitably develop it like Fai Hung City in Tseung Kwan O. It will provide thousands of housing units at a time, and the price will be lower than the market price, which will inevitably hit the housing prices in the entire Sha Tin District.
So every time Li Jianhui made a quotation, a company would immediately bid for it, and his attitude towards blocking the Xin Jian group from entering Shatin was quite firm.
The reason why many real estate companies like to acquire companies and factories that own large amounts of land can be seen from this. The land price in this auction has soared to 500 million Hong Kong dollars.
Taoda Company's factory covers an area less than this, less than one hectare. Adding the company's branded production lines, etc., it only costs over HK$300 million.
Even if you have to pay a land price difference in the future when converting industry to business, it will still be far more cost-effective than buying land at auction.
In Li Jianhui's plan, several major real estate companies under the Xin Jian Group will investigate and look for opportunities to acquire factories that are about to be relocated or go bankrupt. This is the main means of hoarding land. Especially after the 50-hectare limit is lifted in a few years, the auctioned land will not only
It’s expensive, and there are very few, so it’s far less cost-effective than buying a factory.
When the price climbed to HK$500 million, Li Jianhui directly increased the price by HK$100 million and quoted HK$600 million.
Li Jianhui can be said to be quite ruthless this time. In the past, Xiangjiang real estate companies acquired land at relatively low prices and then slowly developed it phase by phase. One project took more than ten or twenty years to develop.
But now that Li Jianhui has set the land price too high, they must increase the amount of development in order to quickly withdraw funds, otherwise their corporate funds will have problems.
The happiest person today is undoubtedly the Xiangjiang government. The auction prices of these lands today can be said to be beyond their expectations. They very much hope that this situation can be maintained for a long time.
Chen Zengxi really wanted to continue to increase the price, but the last round of auctions had already cost HK$560 million. The funds in Hang Lung Group's hands were not endless, and he could not put the group at risk of a break in the capital chain just to gain momentum.
However, Jardine Matheson obviously did not want Li Jianhui to win this land so easily, and he did not want the existence of Xinjian Real Estate in Shatin District, a company that destroyed the market price, so Newbigian directly added 10 million Hong Kong dollars.
Li Jianhui was so wealthy that he directly raised the price to HK$650 million without waiting for others to quote.
Seeing that no one quoted again, Chris said loudly: "HKD 650 million for the first time, HKD 650 million for the second time, and HKD 650 million for the third time.
Congratulations to Xinjian Real Estate for successfully acquiring the A2 land in Shatin for HK$650 million.
Below is the last piece of land in our auction today, which is also the piece of land that everyone is most concerned about. It is located in Yiu Tung Estate, East District, Hong Kong Island. It covers an area of 728,600 square feet. The starting price is also HK$100 million. Companies interested in this land are invited to bid.
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The land auction by the Xiangjiang government is quite interesting. The more important the land, the lower the price relative to the value of the land. On the contrary, for the less important, the price will basically not be lower than 80% of the market price of the land.
This piece of land is located in the Eastern District of Hong Kong Island, and its value is much greater than that of Yau Ma Tei. This piece of land is used to build a small business complex, and there is absolutely no need to worry about renting it out.
No matter how prosperous Kowloon is or how powerful Yau Tsim Mong is, the center of Hong Kong is still Hong Kong Island, and most of the group headquarters are also on Hong Kong Island, especially the top 20 companies in Hong Kong by market capitalization. Without exception, all of their headquarters are on Hong Kong Island.
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Even the Fai Hung Group, which was previously located in Kowloon, moved to the International Building under the Wheelock Group in January. Most of Hong Kong's upper class people also live on Hong Kong Island.
As a result, housing prices on Hong Kong Island are the highest in Hong Kong, and land prices are naturally rising. This time, the first quote for a home worth 10 million to 10 million dollars was HK$500 million.
And this time, unlike the land in Yau Ma Tei, Hutchison Real Estate was bound to win it. As long as someone raised the price, Mairis immediately raised the price, and the price of this land exceeded 800 million Hong Kong dollars in a short period of time.
However, such a price did not deter Jardine Matheson, Swire, Wharf, Henderson, New World, Cheung Kong, etc. Under the competition of several companies, the price exceeded 900 million Hong Kong dollars in less than a minute.
"Xinjian Real Estate has offered HK$960 million. Is there any other company that will increase the price?"
"Okay, Jardine Land is offering HK$970 million. Is there any increase in price?"
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The price was driven up by several companies until it reached HK$1.25 billion. At this time, only Jardine Land and Hutchison Land were left.
Nubigian did not dare to increase the price at will at this time. The price was already quite high. If it were in the Central and Western District, he would definitely increase it even more.
It's just that it's located in the East District, and it's more suitable for building office buildings. A lot of money needs to be invested in the early stage, and the cost recovery cycle is much longer than that of residential buildings. If a large amount of money is invested in Yihe, it will be detrimental to the overall development of Yihe.
When Maires quoted a price of HK$1.32 billion, Nubigian completely chose to give up. Faced with the wealth of the Xin Jian Department, he could only choose to give in.
He didn't understand why the Xinjian Department could still have such a huge amount of funds when there were big projects everywhere and the payback time was quite long.
Not counting the funds from the previous auctions, for the last two pieces of land alone, the Xinjian Department needed nearly 2 billion Hong Kong dollars in cash, and it needed to be handed over to the government within three days. How could the Xinjian Department have the confidence to do so?
Newbigian felt it was necessary to unite some allies to find out the bottom line of Xinjian Bank and even its allied banks to see if they had lent all bank depositors' funds to several major real estate companies.
Not to mention Xinjian Real Estate, Hutchison Real Estate has invested a lot this year. This time it spent more than one billion to acquire land. Where did the money come from? He wanted to see if Xinjian Real Estate was really not short of money.