Rebirth: The Era of Hong Kong Tycoon

Chapter 217 [Large Housing Village]

After Evergrande Real Estate acquired Kai Tak Real Estate, Lin Rongheng fell into a kind of thinking:
Evergrande Real Estate has many medium-sized sites (can provide more than 500 residential units), and two large-scale sites (can provide more than 2000 residential units).

However, Evergrande Real Estate still lacks a large-scale housing project. Although Lin Rongheng has made up his mind: Qingzhou Yingni and Hongkong Electric will be handed over to Evergrande Real Estate for acquisition, and even Hutchison Whampoa will become a subsidiary of Evergrande Holdings Group. All of the companies own land in large housing estates, but they can't quench their thirst far away.

Therefore, Evergrande Real Estate had to acquire a large housing estate recently, and then began to sell it in 1977, and sold it out in 1982; after all, large housing estate projects are generally divided into several phases of construction.

Soon, a choice appeared in front of Lin Rongheng.

Taohua Datong has a soy sauce factory in Ngau Tau Kok, Kwun Tong District, Kowloon, with an area of ​​about 22.2 square feet. It was purchased by Hang Lung at a price of 1977 million Hong Kong dollars in 2 during the boom in real estate in the previous life, and it was later built with 4800 residences. Large estate projects with units and shopping malls.

Amoy is a Chinese sauce brand, which was founded in 1908. It has more than [-] years of soy sauce brewing experience. Amoy soy sauce and quick-frozen snacks have a leading market share in Hong Kong (both are one of the "duopoly" in the Hong Kong market), Amoy's products are also sold overseas.

But what makes soy sauce is what makes soy sauce, how can it be compared with the strength of real estate developers!
What's more, soy sauce is easy to make there, and they have established a new factory in the New Territories long ago, so the Ngau Tau Kok factory in Kowloon is actually ready to transfer, and they plan to sell the land for a price.

If Evergrande Real Estate intervenes, with Lin Rongheng's planning, this land will bring a lot of profits to Evergrande Real Estate.

The problem now is that real estate has not yet turned prosperous, and Taoda may not be willing to sell this land at a low price.

The price of land is not only related to the prosperity of the market, but also related to the volume ratio of the surrounding areas. For example, the land of Taoda has a large park in the north, so the residential buildings can be very dense. Therefore, in the previous life, it was only 22 square feet of land. 4800 residential units have been built, and the density is low, but this is also the norm in the residential areas of Xiangjiang. Residential buildings are connected one by one, and even a dozen houses are almost connected together. For example, the Saixi Lake Community in the previous life , almost a line shape.

According to the current market situation, the land of Amoy University is only worth 1 million Hong Kong dollars. As long as the owner of Amoy University is not stupid, he will wait for the property to appreciate.

However, this is also an opportunity!
Because Lin Rongheng knows the market trend and the psychologically low price of Taoda, if he intervenes at a price of 1.3 million Hong Kong dollars, which is nearly 3% higher than the market price to contact Taoda, the chances will be much greater.

A price that is 1972% higher is equivalent to negotiating the price at the peak of the market in [-]. The boss of Taoda does not know the future real estate trend, so he will naturally be tempted.

Lin Rongheng raised the upper limit to 1.5 million Hong Kong dollars, that is, no more than 1.5 million Hong Kong dollars, which can be negotiated this year; as for this year, if the negotiation is not successful, then no matter how good the project is, Lin Rongheng will not continue to ink.Because, there are still many large lands to choose from.

Half of the land in large housing estates is factory land. During the boom in real estate in the late 70s, many factories owned a lot of land, so some real estate developers followed them.

Factory owners don’t pay a penny, they only need to take out the land; while real estate developers only need to take out a small amount of money as start-up capital, and then use loans to sell off-plan houses to start a big project.

Therefore, Evergrande Real Estate also needs to actively seek cooperation in the later stage. I believe that due to the reputation of Evergrande Real Estate, there are still many people willing to cooperate.

Thinking of this, Lin Rongheng summoned the Three Musketeers and told them about this matter.

Zhang Ruohuai said cautiously: "Boss, this real estate has not yet warmed up. Are you overestimating the growth rate of real estate? Besides, there are still a lot of cheap land in the market. We can get more cheap land and win by quantity! "

Lin Rongheng said confidently: "I'm definitely not overestimating. Xiangjiang has increased its population in recent years, and there are a large number of post-war newborns. Now it's time to buy real estate. The next wave of market prices will increase by three times! As for you It’s not that we don’t buy cheap land. The company still has 3 million Hong Kong dollars to continue to buy this kind of land. Large-scale housing projects are a symbol of the strength of a real estate company and a symbol of reputation, which is of great significance. And if we take With this piece of land, the profit will be at least 5000 million Hong Kong dollars, so why bother paying tens of millions more Hong Kong dollars.”

Evergrande Real Estate has no funds to buy bottoms, and Lin Rongheng still has some, so Lin Rongheng has no worries at all.

He Rui suddenly said: "Then why doesn't the boss buy it with personal funds, and when the market turns prosperous, sell it to Evergrande Real Estate at a high price?"

Lin Rongheng shook his head and said, "According to my analysis, the real estate market will pick up in the second half of the year. We must start construction on this project next year. After all, such a large site needs to be completed in at least three phases, and the time required will also have to be completed." Five or six years. If the real estate peak period is missed, there will be additional risks.”

Why don't I want to operate like this, buy the land, and sell it to Evergrande Real Estate when the real estate booms, so that I can make a lot of money, and Evergrande has stockholders to pay for it; All completed and sold out; in this case, it is time to consider.

In one year, even if the value of the land appreciates, the increase is limited. Lin Rongheng disdains such trouble.

The Three Musketeers knew at this time that the boss had all the chances of winning, so the three of them naturally readily agreed, and Zhang Ruohuai went to contact Amoy University.

Regardless of whether the deal is successful or not, Evergrande Real Estate still needs to continue to buy land. If the funds are spent by then, they can naturally borrow money.

Finally, Lin Rongheng said with a final word: "From now on, we will open two real estate projects a month, and everyone will start working hard again!"

In 1974, Sun Hung Kai’s profit from real estate development was almost equal to that of Evergrande Real Estate; but this year (1975), according to Lin Rongheng’s analysis, Sun Hung Kai is estimated to be slightly better than Evergrande Real Estate, only in the profit of real estate development.

Of course, if the rent of Evergrande Real Estate is added, Sun Hung Kai is far behind; but the rent of Evergrande Real Estate needs to be used for the reconstruction of commercial buildings, so it is generally not a net profit.

With the warming up of the real estate market, rents have started to boom first, and Evergrande Real Estate’s first new building, Li Jing Building, is about to be completed; the new Li Jing Building has a floor area of ​​35 square feet, and the annual rent can reach more than 1500 million Hong Kong dollars ; By the early 80s, the annual rent of this building could be 4000 million Hong Kong dollars, and the construction cost and the funds for buying the building could be earned in more than two years (the old Lijing Building has been purchased for 5 years, and the building itself has appreciated in value. several times).

This is the rate of return of Heung Kong Real Estate. For example, the previous Sun Hung Kai Center purchased land in 1977 and completed construction in 1980. The floor area was 86 square feet, and the rent was 8000 million Hong Kong dollars that year. It almost paid back in six years.

No matter how you say it, Lijing Building is located in Central, and Sun Hung Kai Center is still in Wanchai. The unit price is definitely better than Lijing Building.

That's why Lin Rongheng wants to rebuild the building, because the rent in Xiangjiang is too high!
(End of this chapter)