Rebirth: The Era of Hong Kong Tycoon

Chapter 103 [Fat and water do not flow to outsiders' fields]

Back at Evergrande Real Estate, Lin Rongheng summoned Evergrande's "Three Musketeers" to his office.

Lin Rongheng flipped through the site information and said, "The number of sites under construction has reached 18. It seems that the speed at which we open sites is likened to making dumplings. It's very vivid!"

The three of them laughed one after another, as long as the boss is satisfied!

Wu Hao said with a smile: "However, this speed is far from the boss's requirement of starting 36 construction sites in the first half of the year. There is still a certain gap, and it may not be completed!"

Lin Rongheng waved his hand and said, "I didn't think carefully! There are four and a half months left in the first half of the year, so it's impossible to finish, and we have to pay attention to quality. I don't want Evergrande Real Estate to be crowned as 'Chinachem Real Estate's second place' by others." '."

Lin Rongheng's words made the Three Musketeers smile knowingly again.

The quality of buildings built by Chinachem Real Estate is notoriously poor, and Chinachem Real Estate has more than a dozen lawsuits every year, and in all likelihood, Wang Dehui lost the case.

Both Wang Dehui and his wife like to inspect the site, and they do "private visits in micro-services" without the company of subordinates or contractors;The two dressed plainly, and the site worker didn't know the boss (temporary employment), so Wang Dehui and his wife often found out the fault; therefore, Wang Dehui deducted the site worker's salary on the grounds of 'cutting corners'.

This practice of Wang Dehui and his wife often aroused the dissatisfaction of the contractor. The judge accused Wang Dehui of submitting too low-quality materials, but demanded high quality; the contractor and Wang Dehui quarreled from the site to the company, and finally to the court.

As a result, Wang Dehui couldn't stand it anymore, so he pulled out the material supplier as a scapegoat; the material supplier was not a vegetarian, and Li Se accused Wang Dehui of "specially buying the worst materials and keeping the price unimaginably low."

Therefore, in such lawsuits, Wang Dehui and his wife will lose in all likelihood.

Wang Dehui and his wife had no children, lived very frugally, and were stingy with employees, so they left the money to the kidnappers and Wang Dehui's brother-in-law.

I really don't know what to say about this kind of person!

Lin Rongheng has always had high requirements for building materials and construction safety since he started his real estate business. His most important purpose is to establish a long-term reputation.

Wu Hao only felt that the tense pressure on his body was loosened, and he relaxed a lot, so he said: "In this case, why don't we concentrate on preparing two medium-sized sites first, and try to start construction in the first half of the year. As for the remaining 2 small sites , then start work this year!"

The two medium-sized sites cover an area of ​​2 square feet, and the remaining 26 small sites add up to about the same size.

As for the standards of large-scale housing estates, at least 2000 residential units can be provided; real estate with more than 5000 residential units is called a large-scale housing estate.

After thinking about it, Lin Rongheng thought it made sense, so he nodded in agreement.

Although there was a wave of crisis in 1973, it did not mean that the price of residential units fell to the price of cabbage. It probably fell by less than 15%. In 1974, it may have fallen by about 10%.

What really fell in price was real estate raw materials such as old buildings and land. At that time, as long as you had money, you could hoard them.

Lin Rongheng continued: "As the saying goes, 'Fat and water don't flow to outsiders' fields', Evergrande Real Estate will eventually operate in the form of consortiums and groups; therefore, Evergrande Real Estate will slowly start to form: architectural design institutes, construction companies , building materials company, property management company and many other subsidiaries!"

In terms of the difficulty of these subsidiaries, it is natural that construction companies are the most difficult to establish, followed by architectural design institutes, and the rest of the subsidiaries are easy to establish.

In fact, there is a ready-made top construction company - Golden Gate Construction, which can be chosen; however, the risk is too great.

In the previous life, Jardines began to purchase a small amount of shares in Jinmen Construction (unlisted shares) in 1969. In 1970, Jinmen Construction was listed. In May 1975, Jardine announced that every nine shares of Jardine shares with a face value of 5 yuan were exchanged for ten shares. Golden Gate Construction shares with a face value of five yuan were privatized.

There is a very famous property in Jinmen Building, that is Jinmen Building, which is regarded by Chen Songqing as the Golden Gate Building relying on the sword of heaven.

It is not difficult for Evergrande Real Estate to acquire Jinmen Construction. The market value of the two companies is now five times different, and in a few years there will be a difference of nearly ten times; if Evergrande Real Estate wants to acquire it, there is no problem at all.

But Golden Gate Construction is a British company after all, and Lin Rongheng didn't want to challenge British capital too early, at least after 1975.

Evergrande's "Three Musketeers" were not too surprised when they heard the words. Evergrande is already the largest Chinese-owned real estate company in terms of size, so these subsidiaries can naturally be considered.

Zhang Ruohuai said seriously: "Let me assist the boss to complete the formation of these companies!"

Including Lin Rongheng, everyone naturally took it for granted that it should be like this!

Zhang Ruohuai was originally a technical officer of the Department of Public Works, and he is very familiar with businesses such as design institutes, construction companies, and building materials companies!
If Evergrande Real Estate hadn't been listed, Zhang Ruohuai would never have quit!

After the meeting broke up, Lin Rongheng continued to study the properties and sites of Evergrande Real Estate.

目前，恒大地产有在建和筹建地盘36个，以及一些储备地皮（乙种换地和旧楼）；其中36个地盘总占地面积为65万平方尺，可建楼宇面积为450万平方尺，预计销售额为8亿港币（皆是中低档楼盘）；可为恒大地产在1971年至1974年带来大量的利润，林荣亨分别预估为：0.3亿港币、1.2亿港币、1.1亿港币、0.6亿港币（不包括收租物业）。

Excluding 36 development sites and reserve land, the two companies, Evergrande Real Estate and Evergrande Holdings Group, already own 10 commercial buildings; nine of them are located on the island, and one is located in Kwun Tong, Kowloon.

There are nine buildings on the island, and the distribution is as follows: five buildings in Central, two buildings in Wan Chai, and two buildings in Causeway Bay.

Of course, the floor area of ​​these buildings is generally less than 4 square feet, all of which were built before the 50s, and the highest floor is only nine floors.

If these buildings are all rebuilt now, the capital required may be as high as 5 million Hong Kong dollars; but if the reconstruction is really completed, the total rental properties of Evergrande Real Estate will be as high as about 400 million square feet.

It's a pity that Evergrande Real Estate can't afford to rebuild even one!

After 1973, these buildings will slowly start the reconstruction plan. At that time, the total construction cost is expected to double, labor and materials will increase; more importantly, people's requirements and vision will also increase.

Evergrande’s assets seem to be huge, but its debts and interest are also huge. At present, the debts of Evergrande Real Estate and Evergrande Holdings are as high as 2 million Hong Kong dollars. In addition to some project loans, the total debt is close to 2.5 million Hong Kong dollars. about HK$[-] million.

Such a huge debt requires 3000 million Hong Kong dollars per year in interest alone.

What is the concept of 3000 million Hong Kong dollars?
In the previous life, Li Chaoren's Changjiang Industrial made a profit of 1973 million Hong Kong dollars in the first year (4700) after its listing!
债务虽然庞大，林荣亨也不急，如果按照恒大地产现有的收租物业计算：1971年至1973年的租金分别为：1900万港币、2600万港币、 3500万港币。

In fact, a loan of 2 million yuan is equivalent to buying 10 rental properties, and the annual rent of these 10 rental properties can only pay interest (in the past three years); It is the income, the rent is just the interest on the loan.

As for the development properties of Evergrande Real Estate, most of the sources of funds are: stock market pumps, Lin Rongheng's own funds, and a small amount of loans.

(End of this chapter)