Rebirth: The Era of Hong Kong Tycoon

Chapter 281 [Magician]

In fact, since the beginning of this year, Evergrande Real Estate has purchased a small amount of land and buildings.However, even if Evergrande Real Estate purchases a small amount of land and buildings, for some medium-sized real estate companies, it can be regarded as a big investment. Evergrande has spent a total of about 2.5 million Hong Kong dollars in the past nine months.

And Evergrande Real Estate's current company's net assets have already surpassed No. 2 Landmark Real Estate by more than [-]%.

Land reserve of Evergrande Real Estate: The total area is 1400 million square feet, with a total value of about 80 billion Hong Kong dollars (more than 6% of the land in the New Territories), and the average cost is less than 200 Hong Kong dollars per square foot.

Evergrande real estate rental properties: 14 commercial buildings, 1 shopping center, and multiple shops, with a total value of about 95 billion Hong Kong dollars.

Evergrande real estate properties under construction: 22 properties are under construction and on sale, and it is estimated that they can be sold for about 36 billion Hong Kong dollars.

Liabilities of Evergrande Real Estate: about 15 billion Hong Kong dollars, mainly loans for real estate under construction.

After some calculations, the net assets of Evergrande Real Estate are about 195 billion Hong Kong dollars, while the net assets of Hongkong Land are only about 110 billion Hong Kong dollars.

Since the loss of Wharf, Hongkong Land has changed its investment strategy from conservative to aggressive, and is very active in investing in real estate.

Wu Hao asked: "The construction of the real estate?"

Lin Rongheng said seriously: "Although real estate is saturated, it will not plummet after all! Moreover, we have become larger now, we can't live on rent, and we have less debt and strong ability to resist risks, so let's stick to the current supply. !"

At this time, Evergrande Real Estate has actually reduced its volume by [-]% compared with the peak period of the previous two years. Even if it decreases again, it will be in the second half of next year.

Evergrande Real Estate was the largest supplier of residential buildings in Hong Kong even if it had less supply of residential buildings during the Sino-British negotiations. This must be guaranteed.

Lin Rongheng added: "In this way, we have sufficient cash flow, and now the company still has a cash flow of 7 million Hong Kong dollars lying in the account! So, I decided to spend 5 million Hong Kong dollars to invest in gold futures! Moreover, we also have To invest [-] million Hong Kong dollars in properties in Tokyo, Japan."

Anyway, the funds could be withdrawn soon, so Lin Rongheng decided to consume the cash of Evergrande Real Estate.

As for the short selling of gold futures, Heung Kong can operate the funds at present without too much trouble; Lin Rongheng’s family funds are generally invested in London, Zurich, and New York, and the gold futures market in Heung Kong is not large.

Evergrande Real Estate should be able to have a cash flow of 50 billion before the Sino-British negotiations. Although it seems a lot, in fact, the land of the Exchange Square alone may cost 50 billion Hong Kong dollars, and Evergrande Real Estate will also participate in the takeover of Admiralty Station, Section [-] of the subway Building properties, as well as developing the construction of the trade center, requires a lot of money.

The land and construction costs of the three Grade A office buildings in Exchange Square will need about 80 billion Hong Kong dollars; the land and construction costs of the Admiralty Station on the second section of the subway will also need about 25 billion Hong Kong dollars. The construction cost is about 30 billion Hong Kong dollars.

From 1982 to 1985, for these three major projects alone, Evergrande Real Estate needed about 135 billion Hong Kong dollars.

Of course, it is basically based on loans. After all, Evergrande Real Estate had a very high debt ratio before the Sino-British negotiations, so banks were naturally willing to lend.

As for bargain-hunting real estate, Evergrande Real Estate and Lin Rongheng can both enter the venue and strive for another full meal.

After eating enough this time, Evergrande Real Estate will lie flat in the future. It is also the absolute boss of Hong Kong real estate. After all, where is the strength of land reserves and rental properties.

Evergrande Real Estate did not choose a loan for its gold futures investment. After all, Lin Rongheng's original intention was not to make a lot of money, but not to let the funds lie in the account.

In November, Xiaomi Electronics went public, raising 11 million Hong Kong dollars (7.5% public shares), becoming the technology stock with the largest market value in Hong Kong.

With this money, Xiaomi Electronics immediately started to acquire the color picture tube business under RCA. It seems that everything in this business has come to fruition, but in fact there are still a few places to go in the middle.

The first is the U.S. Department of Commerce, such an acquisition must be reviewed; the second is the official side of Taiwan Island, which needs to be communicated.

Although there are many difficulties, Xiaomi Electronics will not pay the huge purchase price of about 5 million Hong Kong dollars before all conditions are met.

In the early 70s, the U.S. TV industry was decimated by several major Japanese manufacturers. In 1974, Panasonic bought Motorola’s TV business for US$1 million, which brought down the last dignity of the U.S. TV industry.

Because of this, it will make this acquisition a lot easier, after all, this industry has declined in the United States.

For Taiwan Island, it was not convenient for Lin Rongheng to come forward, but General Electric personally resolved it; moreover, once the deal was reached, all equipment on Taiwan Island would be disassembled and shipped to Hong Kong for storage.

Xiaomi Electronics has established a joint venture factory in Shekou, which is expected to be officially put into production in two years.

At the end of the year, Evergrande Real Estate released the news of its intention to sell the Federal Building and the International Building, which immediately spread throughout the Hong Kong and Kowloon business circles.

There was an endless stream of door-to-door buyers, but the asking price of Evergrande Real Estate was relatively high, directly reaching 23 billion Hong Kong dollars, so many consortiums were scared away.

Lin Rongheng is not in a hurry to sell, even if it cannot be sold, Evergrande Real Estate will not lose money; the total floor area of ​​Federal Building and International Building is 70 square feet, and the monthly rent can reach 1400 million Hong Kong dollars.

Although properties in Hong Kong are calculated based on the monthly rent multiplied by 100, this is obviously not suitable for real estate madness.

Golden Gate Building can rise from 10 billion Hong Kong dollars to 17.6 billion Hong Kong dollars in eight months, while Federal Building and International Building are obviously more suitable for those who venture into real estate.

Surprisingly, the two buildings were finally bought by a Japanese consortium at a transaction price of 22.8 billion Hong Kong dollars, which shocked Hong Kong and Kowloon for a while.

Evergrande Real Estate spent only 11 billion Hong Kong dollars on the purchase of two buildings 11 months ago, and now they have sold 22.8 billion Hong Kong dollars as soon as they changed hands. This profit alone can make Evergrande Real Estate the third most profitable company in Hong Kong. It is second only to HSBC and Hang Seng.

Of course, since this transaction was concluded in 1980, Evergrande Real Estate added the original real estate net profit, and the annual net profit in 1980 was as high as 25.2 billion Hong Kong dollars, surpassing HSBC Bank by 5 million Hong Kong dollars.

As the chairman of the board of directors of Evergrande Real Estate, Lin Rongheng showed this trick, and was dubbed a "magician" by Hong Kong people, because everyone did not believe that this transaction could really be so profitable.

Naturally, Lin Rongheng was also very happy, mainly because the Daily Consortium took over the deal.

For a long time, Lin Rongheng was curious. In history, Li Chaoren sold the two buildings at a price of 22.3 billion Hong Kong dollars. Who was the target of?

Among foreign consortiums in Hong Kong, Japanese, American, and Australian investors prefer to invest in Hong Kong.

Of course, it cannot be said that the Japanese-funded consortium has lost money. If they insist on holding it, it is expected that they will return to this price in seven years; if they collect rent, there should be no problem in recovering the cost in 10 years.

(End of this chapter)