Rebirth: The Era of Hong Kong Tycoon

Chapter 198 [Investment]

7 month.

Galaxy Center was completed and delivered. Galaxy Shopping Center is the first shopping center of Evergrande Real Estate, which is of great significance. Lin Rongheng brought a group of Evergrande executives to Galaxy Center. They visited and talked about investment promotion issues.

The entire Galaxy Center, including the office building, is managed by the 'Galaxy Management Office', which is a subsidiary of Evergrande Property Management Company and a grandson of Evergrande Real Estate.

The rent of the office building needs to be handed over to the business, and the rent of the store needs to be handed over to the lease department of Evergrande; in addition, the company that leases the office building, and the merchant that rents the store also needs to pay a property management fee every year.

The total area of ​​Galaxy Shopping Center is 18.5 square feet, the shop area is 12.8 square feet, and there are 112 shops in total; the first floor is jewelry stores and specialty stores, the second floor is clothing stores, toy stores, etc. There are clothing stores, tea shops, etc., the fourth floor is a gourmet store, and the fifth floor is entertainment facilities (cinema, billiard room, etc.).

The Galaxy Management Office was established 3 months ago, and the investment promotion work was also carried out 2 months ago, and the investment promotion work has come to an end; the rent for the first year is only 920 million Hong Kong dollars, after all, the discount is huge.

Of course, the decoration of the entire shopping center will take about three months, and it is expected to open in October.

Lin Rongheng is not worried about the impact of the oil crisis. After all, there are no strong competitors here in Wanchai. They are all shops formed on the lower floors of some buildings. The competitiveness is definitely not as strong as this kind of shopping center; The border economy is getting more and more prosperous.

It is believed that the rent of Galaxy Center in the second year will exceed 1000 million Hong Kong dollars. Before the 80s, there will be no problem in recovering the cost, and it may be achieved one year in advance.

In the previous life in the 90s, according to statistics by economists, Xiangjiang’s annual investment income was 18%, ranking first in the world!

The rent in Xiangjiang has risen faster than the real estate. The prices of many shops are calculated at 100 times the monthly rent, which means that the cost can be recovered in 8 years; but in fact, it is far more than this efficiency.

This rule determines that many rich people are very happy to buy shops and office buildings for investment!
Then someone will ask, who is paying for the property with such a high rate of return?It's not the locals in Xiangjiang who pay the bill, right?
Of course not, Hong Kong’s geographical location extends in all directions and is a place where China and the West meet. Naturally, many foreign companies come to Hong Kong to set up branches, offices, and branches. They are naturally the ones who pay part of the rent for office buildings and shops.

"The management office has a lot of work, attracting investment is just the basic work, promoting the entire Galaxy Center, regularly holding some promotional activities to drive popularity, providing high-quality services for the business, and providing convenience for the customers who come, you have to think about it! This kind of Shopping malls are projects that we will often invest in in the future, investment is simple, but management is difficult; otherwise, a good and popular shopping mall may be ruined!"

Chen Xuemin, the general manager of Evergrande Property Management, quickly said: "The boss is right, we will definitely learn from the strengths of all parties and do better!"

He Rui also said: "I will keep an eye on this business and communicate with you in time!"

Only then did Lin Rongheng nod his head in satisfaction. The Three Musketeers are his assistants who manage the entire department of Evergrande Real Estate; Lin Rongheng's command and management will indeed be delegated to the heads of subsidiaries such as Evergrande Property Management, but it is not a common thing after all.

In later generations of Xiangjiang, shopping malls with the size of Galaxy Center are actually not ranked high; as a shopping city, Xiangjiang has more than 50 large shopping malls, all of which have an area of ​​more than 18 square feet; There are almost 100 shopping malls of [-] square feet in the center.

Causeway Bay, former site of Lai Tai Building.

This high-quality commercial land covering an area of ​​4 sq. The largest investment in the 36 buildings in the Commercial Building Redevelopment Programme.

Of course, the 11 buildings in Evergrande's "Commercial Building Reconstruction Plan" are all too small. Compared with Landmark's buildings, they are generally [-] to [-] square feet smaller.

In the previous life, Hongkong Land launched the "Central Redevelopment Project" in 1974. A large number of high-quality buildings were rebuilt. Each building can provide more than 50 square feet of leasable area, and they are all in the heart of Central. Others.

Naturally, Lin Rongheng was also very envious, so he decided to work hard to catch up. In the 70s, there were still many opportunities to obtain high-quality commercial buildings (old buildings) and commercial land. At that time, he would try to win as many as possible. Take it in the name, and use it as a channel for hiding your wealth in the future.

After the foundation stone laying ceremony of Li Tai Building, Lin Rongheng said happily: "This year's second building has already broken ground, and the third rebuilding commercial building - Global Building, strives to complete the foundation laying by the end of the year!"

The reconstruction of a building, from preparation to drawing design, to approval by the Hong Kong government, can take half a year at the fastest, or a year at the longest; Then it depends on the ability; for example, the Hopewell Center in the previous life was delayed by the Hong Kong government for four years before it passed the approval.

Zhang Ruohuai said: "The first draft of the drawing is already being produced, and the approval from the Hong Kong government should be very fast. I believe that work can start around November."

Lin Rongheng nodded in satisfaction. The task of rebuilding the three commercial buildings in the first year was still somewhat arduous.

The reconstruction of 11 commercial buildings was completed in six years. This is undoubtedly a fantasy in the eyes of many real estate companies; and the reconstruction plan of Landmark in the previous life took a full ten years, and there were only six buildings.

Technically, there must be no problem, and funds are the only problem; for example, within six years, Evergrande Real Estate needs nearly 8 million Hong Kong dollars to pay for the reconstruction plan. So much money is invested in rental properties. The speed at which a real estate company returns funds is undoubtedly equivalent to a snail race.

The funds are all invested in rental properties, so the development of properties is naturally ignored, so Evergrande Real Estate's recent "commercial building reconstruction plan" is still discussed by some colleagues.

Lin Rongheng has also thought about this problem. Although the reconstruction funds of these buildings can be solved by loans; but once the loans are large, the annual interest alone will eat up a large amount of net profits, so it will also have a big impact on Evergrande Real Estate.

If Lin Rongheng does not solve this problem, even if he has a cash flow of close to 6 million Hong Kong dollars, Evergrande Real Estate will be in trouble in the future.

Of course, Lin Rongheng has a solution. The reason why Evergrande Real Estate increased its debts is actually to let Evergrande Real Estate's stock fall a little bit more, so that he can increase his holdings!
After Lin Rongheng finished increasing his holdings, at worst, let Evergrande Real Estate go to the gold market to make another fortune.

(End of this chapter)