Rebirth: The Era of Hong Kong Tycoon

Chapter 226 [Reserved Land]

In the office of Evergrande Real Estate, Lin Rongheng couldn't help showing a smile after looking through the land reserve information of Evergrande Real Estate; Evergrande Real Estate currently has a land reserve of 720 million square feet. It is enough to beat the five tigers of China-owned real estate.

Among them, the land reserves or land exchange rights in the New Territories accounted for 430 million square feet of land reserves, and the land reserves of Kowloon and the island reached 290 million square feet.

The land in the New Territories has a special feature, that is, the plot ratio is high, and the number of houses built on the same size land is half less; Kowloon and the main island have relatively large plot ratio due to the small amount of land, so buildings are often seen in these two districts It is one building after another.

What kind of concept is a land bank of 720 million square feet? Take Sun Hung Kai, which has always been the top land bank in the previous life, as an example. In 1984, his land bank was 1140 million square feet, and the average land price was less than 200 square feet. occupies more than half of the land.

Such a huge land reserve of Evergrande Real Estate does not mean that it will no longer buy land in the past few years from 1976 to 1979. On the contrary, it will still buy a large amount of land; The land bank negotiated by the UK will reach 3000 million square feet of land bank, which is an important plan planned by Lim Rong Heng.

The so-called land reserve does not mean that there has been no development, but the total of all land that has not been developed for the time being.

In the second half of 1975, Evergrande Real Estate will suddenly double its number of real estate properties. It is estimated that the building area sold throughout the year will reach 100 million square feet (about 1800 sets), and the sales volume will reach more than 2 million Hong Kong dollars. The net profit is about 9000 million Hong Kong dollars.In 1979, Evergrande Real Estate wanted to achieve a net profit of more than 10 billion Hong Kong dollars in real estate for the whole year.

The reason why Lin Rongheng is so confident is because he understands the trend of real estate. At present, the housing price of this island is only a little more than 200 Hong Kong dollars, but in the peak period of real estate in 1981, the housing price of this island will rise to 1300 Hong Kong dollars. This increase is Lin Rongheng's confidence .

The Three Musketeers of Evergrande Real Estate came to Lin Rongheng's office. Seeing what Lin Rongheng was writing, they drank tea and waited in peace.

After a long time, Lin Rongheng raised his head and handed the manuscript to the three of them.

Lin Rongheng said: "The land supplement price of Taoda Garden is 1.1 million Hong Kong dollars, and the land price is 1.38 million Hong Kong dollars. We have already invested 2.5 million Hong Kong dollars in this project. I estimated the construction cost in the later stage, and it will cost about 6 million Hong Kong dollars. So I thought I think it should be completed in four phases. The first phase is Block AF, the second phase is Block GK, the third phase is Block LP, and the fourth phase is Block QS. The entire project will be completed in 1982, which lasted eight years. "

Amoy Garden intends to build a high-density housing estate, which is divided into blocks A to S, with a total of 4850 units, and the building area of ​​the units ranges from 400 square feet to 700 square feet.There is a housing shortage in Hong Kong and Kowloon, and the density of construction is naturally low. This is allowed by the Hong Kong government. It is impossible for Lin Rongheng to ignore the interests of the company's shareholders and be a good person.Of course, high density means low housing prices, and low density means high housing prices. This is also for the sake of customers.

Zhang Ruohuai said: "The parking lot and the resting place for residents can only be solved by building a platform!"

Lin Rongheng nodded and said, "The commercial part is also solved by building a platform."

Everyone discussed the design plan of this real estate and came up with a preliminary plan, which will be completed by designers in the later stage; it is only May now, and it is expected that the first phase of the project will start early next year, and occupancy will be possible in 1977.

The entire Amoy Garden is expected to provide 300 million square feet, with an estimated average selling price of HK$600 per square foot and a total sales of HK$18 billion. Evergrande Real Estate can earn a net profit of HK$7 million from this project alone.

In the current wave of Evergrande real estate market, in addition to Taoda Garden, there is also a plot of Saixi Lake and No. 1 plot of Taikoo Valley, which need to be developed.

A high-end residential area will be built on the Saixi Lake plot. Although the total area is as high as 86 square feet, in order to integrate into the scenic area and the mountains, the Hong Kong government cannot allow you to build a high-density community; therefore, Lin Rongheng’s plan is to build 10 buildings The 24-storey residential building has a total floor area of ​​more than 130 million square feet, and each residential unit has an area of ​​800 square feet to 1200 square feet, about 1500 residential units.

For the residential part of the entire project, it can be said that Evergrande Real Estate has brought a profit of 2 million Hong Kong dollars, and Evergrande Real Estate has harvested a long-term large-scale event venue integrating leisure, sports and play (fee charges).This piece of land only cost more than 8000 million Hong Kong dollars, which is very cost-effective.The Saixi Lake plot is expected to start groundbreaking in 1977 and start selling in 1978.

太古山谷1号地块，总面积约20万平方尺，靠近太古城；林荣亨的计划是修建12幢28层至32层的住宅大厦，可提供约170万平方尺的住宅楼宇；总计约2800个住宅单元，每个单元在500平方尺至700平方尺。预计售价均价在700港币左右，总销售额可达12亿港币，利润也有个4亿港币的样子。

These three projects can be said to have brought short-term profits of 13 billion Hong Kong dollars to Evergrande Real Estate, and long-term profits are also a very valuable asset.

A simple comparison: in the previous life, Sun Hung Kai’s net profit in 1981 was only HK$5.5 million.

Just three projects are almost the sum of the total profits of Sun Hung Kai in the three years from 1979 to 1981.

mid-December.

The first building of Evergrande Real Estate's "commercial building reconstruction plan" - Li Jing Building officially opened, with a full occupancy rate of 98%; Li Jing Building is located at 88 Queen's Road Central, with a height of 28 floors and a floor area of ​​36 million square feet.

The original Lijing Building was purchased by Evergrande Real Estate before its listing in August 1970. The old building cost only 8 million Hong Kong dollars; if it was at the peak of real estate in 1600, the value of this building would be as high as 1973 million Hong Kong dollars; the rebuilt Lijing Building The construction cost is 4500 million Hong Kong dollars. Due to the oil crisis broke out during the construction process, some prices in Xiangjiang skyrocketed by about 8000%, resulting in a construction cost of 20 million Hong Kong dollars higher than the tone.

That is to say, Evergrande Real Estate's "Commercial Building Reconstruction Plan" was originally planned at a construction cost of 8 million Hong Kong dollars (11 buildings), which may eventually be as high as 10 billion Hong Kong dollars.

However, while the construction cost is rising, the rent is also rising. The rent of Li Jing Building in the first year is 1700 million Hong Kong dollars, throwing out management fees, etc., and the annual profit is about 1500 million Hong Kong dollars; The rent can reach more than 1980 million Hong Kong dollars, and the annual net profit can reach 4000 million Hong Kong dollars.

Because it is a loan construction, the loan fund is 6000 million Hong Kong dollars, and the two-year interest is as high as 1500 million Hong Kong dollars.Based on the calculation of the value of the old building at 4500 million Hong Kong dollars, the total cost should be 1.4 million Hong Kong dollars; during the period of crazy real estate growth, it will take five to six years to pay back.

It is twice as slow as the development property in two to three years; however, rental property is a long-term investment. If the funds allow, most companies will choose to invest about 20% of the investment; if it is higher, it will be very difficult. It is easy to cause the freezing of funds and the uncertainty of risks.

The reason why Lin Rongheng dared to invest so much was because he knew the future trend of real estate. If it were other real estate companies, they would definitely not dare to make such a rash move.

The major tenants are happily moving to new office buildings, which is a kind of self-confidence. Most of them are powerful companies that can lease Grade A office buildings in Central, which is a symbol of strength.

Lin Rongheng said to Zhang Ruohuai beside him: "This wave of real estate growth seems to be on the rise. You have to pay attention to the rent. They are signed once a year, and there are some preferential ratios for high-quality customers."

Zhang Ruohuai nodded and said, "Well, the Lease Department has already regarded your original words as the department's rules and regulations, and there will be no more mistakes."

Only then did Lin Rongheng feel relieved. With the commercial buildings of Evergrande Real Estate entering the market, it is necessary to strengthen the management of the lease department.

Evergrande Real Estate invested 10 billion in construction costs for the reconstruction plan of the commercial building, plus the cost of the original building, this is almost the total investment of their company for Huazi Real Estate, within the same period.

According to Lin Rongheng, during the peak period of real estate in 1981, the monthly rent of Grade A office buildings in Central was about 28 Hong Kong dollars; and Evergrande Real Estate had a full 400 million square feet of commercial buildings at that time, even if calculated on an average of 18 Hong Kong dollars (Central only 5 buildings), the annual rent can reach 8 million Hong Kong dollars.

(End of this chapter)