Rebirth: The Era of Hong Kong Tycoon

Chapter 260 [Tian Shui Wai]

At the beginning of 1979, Lin Rongheng, through two mainland uncles, proposed the idea of ​​donating to a first-class university in Guangdong Province; at this time, Lin Rongheng's two uncles were all reused.

These are all Lin Rongheng's capital in the mainland. Of course, Lin Rongheng himself plans to make crazy capital in the past two years, investing in hotels, highways, power plants, etc. in Guangdong Province; some commercial cooperation.

Lin Rongheng earns commercial capital, not political capital, so he naturally won't participate in those sensitive matters, so he doesn't have to worry about being suppressed by the Hong Kong government.

In the office of Evergrande Real Estate, Lin Rongheng held a financial statement with a big smile on his face. Last year, Evergrande Real Estate's net profit exceeded 9 million Hong Kong dollars, and its profit was tightly biting HSBC.After Evergrande Real Estate annexed Hutchison Whampoa, it was not much different from HSBC in terms of scale.

He Rui came to Lin Rongheng's office and reported: "Boss, Huarun Company wants to acquire most of the land in Tianshuiwei from us. It seems that they want to make a big splash in real estate."

Tin Shui Wai covers an area of ​​about 5200 million square feet and is located in the New Territories of Hong Kong, across the sea from Shekou in Shenzhen.There is now a piece of farmland, a pond, and some dilapidated houses. Some farmers farm here, and some fishermen raise fish here.Since the beginning of this century, the land in Tin Shui Wai has been owned by people surnamed Chao in the name of Luen Tak Company, and it is one of the largest single-owner-owned lots in Hong Kong.Legend has it that this member of the Zhao family was a descendant of Zhu Yuanzhang who fled to Hong Kong after the fall of the Ming Dynasty.

As early as 1976, Lin Rongheng asked Evergrande Real Estate to purchase the shares of Liande Company. Of course, this does not mean that the 5200 million square feet of land really belong to Evergrande Real Estate.

If you want to develop Tin Shui Wai, you must report to the Hong Kong government, and the Hong Kong government generally takes back all these lands first. After all, according to colonial laws, these lands belong to the British royal family. dominate.After the Hong Kong government takes back all the land, it will generally make a unified plan, and then allocate a part of the land to the developer for real estate development. Of course, there are many conditions.

Lin Rongheng asked Evergrande to acquire the equity of Liande Company, not because he wanted to develop Tianshuiwei now, but as a bureaucracy.

No, the fish just took the bait, right?
If Evergrande Real Estate wants to develop Tianshuiwei, there are many difficulties. First of all, it will not be established in terms of legal effects.The New Territories is different from Kowloon and Hong Kong Island, and there are even greater disputes; therefore, in the 70s and [-]s, few real estate developers dared to develop in the New Territories.

Lin Rongheng said with a smile: "Then sell most of the shares to Huarun, and we will be the second shareholder!"

With this approach, not only can we make good friends with Huarun Company, but Lin Rongheng knows that the Hong Kong government will take back 1982 hectares (7 million square feet, 488 Taikoo Shing) of land in Tin Shui Wai in July 5200, and transfer 25 hectares (40 million yuan) square feet, 430 Taikoo Shing) land was granted to Weicheng Company (a real estate company established by Huarun) for 2 million Hong Kong dollars.It is also required to complete the construction worth 8 billion Hong Kong dollars within 12 years, and is responsible for clearing 14.58 hectares of land as the land reserve of the Hong Kong government.If the target is not met, the land purchased for HK$318 million will be confiscated.

In addition, in 1983, the Hong Kong government announced plans to invest 40 billion Hong Kong dollars in municipal construction projects, of which 16.2 billion Hong Kong dollars was used for site consolidation and 9.6 million Hong Kong dollars for infrastructure projects.The total of the two amounted to 25.8 billion Hong Kong dollars and was distributed to Weicheng Company, and it was required to guarantee more than 15% of the profits.Such a stringent requirement is like a basin of cold water for China Resources.

As a trading group based in Hong Kong, China Resources has no experience in real estate development, nor is it familiar with the rules of the game in Hong Kong's real estate industry.As a result, it failed as soon as it entered the market, and other shareholders saw that the situation was not good, and began to withdraw their capital one after another.

Since it was calculated that Huarun would lack confidence, why didn't Lin Rongheng make friends with Huarun now, take the initiative to hand over Tianshuiwei to Huarun, and be a second shareholder with peace of mind.

When the time comes, when Huarun lacks confidence, Evergrande Real Estate will come out to play the role of savior, which will not only make a lot of money, but also allow Huarun to make money, which makes Huarun grateful.

Wu Hao didn't ask the reason. In his opinion, Tianshuiwei is not worthy of Evergrande's real estate development, and too much money needs to be invested; moreover, the boss serves as the director of many Chinese-funded companies, which is obviously an act of making friends with the mainland.

Then, Lin Rongheng said: "With the current scale and profitability of Evergrande Real Estate, if we put all our funds in Hong Kong, it will undoubtedly be difficult for the market to accommodate such a huge amount of funds. Therefore, Evergrande Real Estate can be located in Singapore, Canada, Japan and other places develop commercial building projects; of course, we need to grasp a certain degree, so that people can’t think that we are investing money.”

Evergrande Real Estate’s net profit last year was as high as 9 million Hong Kong dollars, which cannot be distributed as dividends, which will affect the development of Evergrande Real Estate; for Lin Rongheng himself, it is better to cash out at the peak of the stock market than to pay dividends of several hundred million Hong Kong dollars a year. Buy back when the stock market is low.

Of course, Evergrande Real Estate's annual dividends are still the largest among all real estate companies!

Wu Hao said: "Singapore is a good direction. I will pay attention to some good projects recently! The real estate industry in Japan is also good. Their economy is growing fast. It is a good investment and development direction for us to develop office buildings and hotels. .Toronto side, the rate of return is not very high”

What Wu Hao said was very pertinent, and Lin Rongheng said with a smile: "Step by step, overseas investment is not our main trend, but a strategy to control risks."

The two chatted for a while about the development of Evergrande Real Estate, and Wu Hao got up and left.

The rise of Evergrande Real Estate is equivalent to cutting a layer of meat from hundreds of real estate companies in Hong Kong. Based on the calculation of the rental properties of Evergrande Real Estate this year, it will reach 450 million square feet, which may provide Hong Kong Island with about 5 million office buildings. %above.

The rent of office buildings in Xiangjiang reached its peak in 1981, and the monthly rent of Grade A office buildings in Central was as high as 28 Hong Kong dollars per square foot; although not all the commercial buildings of Evergrande Real Estate are located in Central, they cannot all reach the monthly level of 28 Hong Kong dollars per square foot. However, based on the calculation of 18 Hong Kong dollars per square foot per month, the rental income of Evergrande Real Estate in 1981 will be as high as 10 billion Hong Kong dollars, and the net profit will also be as high as [-] billion.

Even during the Sino-British negotiation period, Evergrande’s net rental profit was five to six billion Hong Kong dollars per year.

It can be said that the batch of commercial buildings invested by Evergrande Real Estate is at least a quarter of the value of Harbor City.

Since the 80s, it will be very difficult to sell this kind of building. In the 80s, the buildings in the business district of Hong Kong Island often cost more than 10 billion Hong Kong dollars, and they were speculated here and there.

The floor area of ​​the Jinmen Building is about 42, and its value was 1981 billion Hong Kong dollars in 17. The value of the Federal Building was also 10 billion Hong Kong dollars. Thinking about the investment in commercial buildings like Evergrande Real Estate, it is very cost-effective. When buying the old buildings, it was only about 2000 million Hong Kong dollars. , The reconstruction cost is only about seven or eight thousand Hong Kong dollars, but the value is probably worth about [-] million Hong Kong dollars now.

The main reason is that in the two waves of gains in real estate, the increase has been a full six or seven times.

(End of this chapter)