Rebirth: The Era of Hong Kong Tycoon

Chapter 73 [Halfway Tribulation]

During the banquet, Lin Rongheng got up and went to the bathroom. When he came back and passed the hall, he suddenly heard someone discussing: the owner of the Litai Building in Causeway Bay intends to give up the land.

Lin Rongheng immediately pricked up his ears, paused for a few seconds, and grasped a few key words.

Lai Tai Building is an old building in the 20s. It covers an area of ​​nearly [-] square feet. The current owner sells it locally. It seems that he is in urgent need of cash.

Lin Rongheng speeded up, and after returning to his seat, he immediately said to Liao Liewen and Xu Shixun, "Both of you, do you know the owner of Li Tai Building in Causeway Bay?"

Xiangjiang is so small, so it is easy to meet acquaintances. Liao Liewen said with a smile: "The owner of Litai Building is Zheng Zongze. I know him well. Why are you interested in that piece of land?"

It seems that the Litai Building has become an old and dangerous building. Everyone knows that the land is still valuable.

Lin Rongheng nodded and asked, "Sheng Liao, please introduce it for me. I'm really interested in this piece of land!"

Xu Shixun said next to him: "I've also heard about this piece of land. The price may be more than 2000 million Hong Kong dollars. After all, its area is large enough; if the commercial building is rebuilt, there will almost be 50 square feet of rental property, but the construction The cost is about 5000 million Hong Kong dollars or more!"

Such a large investment, even China Construction, rarely makes such an investment, and all of them are joint ventures, such as Wharf's Ocean Center.

How dare Evergrande Real Estate, a real estate company established less than a year ago, be so crazy?
Lin Rongheng said with a smile: "Buy the land first, then develop it yourself if you have the strength, and sell it if you don't have the strength. Our Evergrande Real Estate loan interest is only 10%. This kind of investment is definitely profitable!" Lin Rongheng said this In my heart, before the stock market crash, I must sell some properties to reduce debt. Whether it is a building, land or old building, the absolute annual return is more than 30%.

Xu Shixun almost didn't roll his eyes out, 10% interest, China State Construction has never had an interest rate lower than 15%.

Liao Liewen quickly changed the subject. After all, he was the banker and the creditor of Xu Shixun and Lin Rongheng.

"I'll help you inquire about the situation this afternoon!"

In the afternoon, Lin Rongheng waited for Liao Liewen's call in the office.

Lin Rongheng's strategy for the next two and a half years is to borrow money and raise funds like crazy, even if Evergrande's debt ratio reaches [-]%, it doesn't matter.

As for how to safely land in the stock market crash and oil crisis, Lin Rongheng's answer is to use gold investment; of course, Evergrande Real Estate must also go through a "big crisis" before Lin Rongheng can take the opportunity to increase its shareholding at a low price.

At 3 o'clock in the afternoon, Liao Liewen called: "Rong Heng! This piece of land is no longer for you. Zheng Zongze has already agreed to sell it to someone else at a price of 2100 Hong Kong dollars."

Lin Rongheng reacted very quickly, and said, "Have you signed a formal contract?"

Liao Liewen was taken aback, and then said: "According to Zheng Zongze, the contract will be formally signed in the lawyer's office tomorrow morning!"

If an ordinary person heard this news, he would probably sigh that he was Liang Shanbo who came three days late, so let it be a little bit of a shallow fate; but Lin Rongheng is different, he always likes to take the lead with his sword.

Moreover, Lin Rongheng is a "real estate fanatic" at this time, especially for high-quality properties, for more than 2000 million Hong Kong dollars, you can buy a 4-square-foot commercial land in Causeway Bay, like a cat smelling the scent of fish, How can you give up so easily!
Therefore, Lin Rongheng immediately said: "Liao Sheng, since I haven't signed a formal contract, it means that I still have a chance for half a day. And you are familiar with Zheng Zongze, so I would like to ask you, within the price of 2400 million Hong Kong dollars, you Make up your mind for me! Your commission will not be less than a penny, if you don’t like the commission, I can also pledge 300 million shares of Evergrande Real Estate and loan you 2000 million Hong Kong dollars, I believe you will be interested!"

In Lin Rongheng's heart, he naturally hoped that Liao Liewen would choose the latter, so that he would not have to pay any commission!

Sure enough, upon hearing that Lin Rongheng agreed to pledge the stock again, Liao Liewen said without thinking, "I'll go talk to you, wait for my news!"

In Liao Liewen's heart, the market value of Evergrande Real Estate at this time is close to 4 million Hong Kong dollars, and it has become a top 20 listed company in Hong Kong. Naturally, it is willing to lend; based on the calculation of an annual interest rate of 15%, the annual interest of a 2000 million Hong Kong dollar loan has already reached 300. Ten thousand Hong Kong dollars, it can be described as a big deal.

As for the risk of Evergrande Real Estate, Liao Liewen also conducted an investigation and found that except for 10 small sites, the rest of Evergrande Real Estate’s investments are all in rental properties. This shows that Lin Rongheng knows how to control risks, or that Evergrande Real Estate knows My own shortcoming - lack of experience in property development, so try to avoid it.

In addition, the stock of Evergrande Real Estate is sought after by the market, and the company's popularity is very high.

Therefore, Liao Liewen felt that Evergrande Real Estate was worth the loan!

The next day, Lin Rongheng rushed to the lawyer's office with Wu Hao and the lawyer.

Under Liao Liewen's lobbying, Zheng Zongze still couldn't resist the temptation to earn an extra 150 million Hong Kong dollars. After all, he didn't sign a contract and the other party didn't pay a deposit in advance, so naturally he didn't need to feel too much guilt.

And Lin Rongheng was also quite pleasantly surprised. Liao Liewen actually saved himself 150 million Hong Kong dollars. It seems that this time he has to thank others - the commission will be paid (3 points, 65 Hong Kong dollars), and the loan will also be negotiated.

The three parties are all happy in the lawyer's office. Zheng Zongze feels that he has earned 150 million Hong Kong dollars more; Liao Liewen feels that he has won an extra loan, and the pledged Evergrande stock in his hand has reached 500 million shares, which can be called Evergrande's small gold owner; Naturally, one party is also very happy. People with vision have already begun to plan for Causeway Bay, because the subsea tunnel connecting Hong Kong and Kowloon is expected to open to traffic in two years, and Causeway Bay will become the second commercial center of Hong Kong Island.

Back at the company, Lin Rongheng held another high-level meeting.

Lin Rongheng first said: "At present, we are already developing the commercial project on Hennessy Road, and our energy and financial resources can't take care of the land in Causeway Bay, so I plan to marinate the land in Causeway Bay."

Since Litai Building has been identified as a dangerous building by the Hong Kong Government Works Bureau, it is currently not allowed to lease, so this is a very large loss, at least 150 million Hong Kong dollars per year.

However, this piece of land is large enough, a full 50 square feet, and at least one commercial building of 3 square feet can be built in the future; while other commercial buildings of Evergrande Real Estate do not cover an area of ​​more than 30 square feet, even if it is rebuilt Only [-] square feet of commercial buildings can be developed.

Wu Hao made some calculations and said, "At present, according to the boss's idea, we can have a fund of 1 million Hong Kong dollars in the near future. This time, we spent more than 2000 million Hong Kong dollars, and the remaining funds are almost [-]-[-] for rent collection and property management. development property."

The move of Evergrande Real Estate this time will be very big, and I am afraid it will set off a huge wave in Hong Kong Island. How exaggerated is the fund of 1 million Hong Kong dollars. For example: the funds pumped from the stock market for the whole year in 1970 are currently less than 5 million Hong Kong dollars. billion Hong Kong dollars, this year is expected to exceed 6 million Hong Kong dollars.

Of course, the loan of Evergrande Real Estate this time is 2000 million Hong Kong dollars each from the three banks (Citibank, Liao Chongxing Bank, HSBC Bank), plus 4000 million Hong Kong dollars pumped from the stock market.

Lin Rongheng nodded and said: "The Hong Kong stock market has begun to recover in October, and our stock has been fluctuating above 9 Hong Kong dollars; therefore, I plan to announce the news of the fundraising on the 10th. As for HSBC, after the fundraising is completed, we will continue Let's talk about the loan."

Evergrande Real Estate's ability to raise funds is already 'Arabian Nights', and exaggeration makes people numb!
However, Lin Rongheng would not be satisfied in 1970, and he could do two waves of raising funds by issuing new shares; using his properties to obtain loans from various banks is also a very good choice.

For Lin Rongheng, the more debts he owes and the greater the leverage, the more Evergrande Real Estate can survive the stock market crash and oil crisis safely, because he can predict the future.

And Lin Rongheng is not worried about the bank rejecting Evergrande Real Estate's loan, because Evergrande Real Estate's stock is so dazzling that all the banks in Xiangjiang believe that Evergrande Real Estate's strength is already the best among Chinese real estate companies.

(End of this chapter)