Rebirth: The Era of Hong Kong Tycoon

Chapter 81 [Little Fan Brother] (Ask for a monthly ticket! Ask for a recommendation ticket!)
Evergrande Real Estate.

Lin Rongheng is looking through the company's property information and is in a very good mood!

Evergrande Real Estate purchased another commercial building in Central, Wanxing Building, with a rental area of ​​8.5 square feet and an annual rent of 190 million Hong Kong dollars (in 1970). This property cost Evergrande Real Estate a total of 2200 million. Hong Kong dollars.

At this time, Evergrande Real Estate has:
Rental properties: Lai Ching Building (Queen's Road), Universal Building (Des Voeux Road), Zhongliancheng Building (Queen's Road), Wanxing Building (Wen Yin Street, Central), Zhonghui Building (Kwun Tong, Kowloon), a total of five The current asset value is 1 million Hong Kong dollars (the cost is 8000 million Hong Kong dollars); the area of ​​five rental properties is 39.5 square feet, the annual rent this year (1970) is 790 million Hong Kong dollars, and the annual rent next year can reach 1100 million yuan around Hong Kong dollars.

The commercial project under construction, Galaxy Center, has a total investment of 8000 million Hong Kong dollars, and the current investment is 3000 million Hong Kong dollars; Galaxy Center is a joint venture project of Evergrande Real Estate, accounting for 50% of the shares (Evergrande has invested 1500 million Hong Kong dollars); After the completion of the Galaxy Center project, the office building area will be 50 square feet and the shopping center will be 18 square feet.

Commercial land - Litai Building (old site), covers an area of ​​more than 4 square feet. If it is rebuilt, it can get more than 40 square feet of rental properties. This land cost a total of 2300 million Hong Kong dollars from Evergrande Real Estate; All things considered, the land is expected to be 'pickled' and possibly sold at a premium to boost share prices or reduce debt.

Residential properties - 18 small residential properties (8 projects started, 1 completed), 2 medium-sized properties (not yet started), the land for these properties is expected to cost 6000 million Hong Kong dollars, and the premium is also quite high at this time. It is estimated that only the land The value is worth more than 7000 million Hong Kong dollars; plus the funds that have been invested, the value is probably already 8000 million Hong Kong dollars.

Evergrande Real Estate also holds 2000 million Hong Kong dollars in cash.

In addition to property assets, the total assets of Evergrande Real Estate are close to 2.4 million Hong Kong dollars;
恒大地产的成本应该是1.9亿港币（贷款1亿、集资0.7亿、自有0.2亿），半年的回报率已经高达25%，远远高于银行的半年利息8%，更何况恒大地产的平均贷款半年利息只有6%。

Although the rate of return is high, it is only reflected in the appreciation of property and land, and the company's net profit may not be too bright.

For example, Evergrande's current rental property is expected to be worth 1971 million in 1100, but this amount is not enough to repay the current loan interest of 1200 million Hong Kong dollars.

As for the sale of off-plan properties, the Hong Kong government stipulates that the sale can only be started 9 months before the completion of the project. According to the progress of Evergrande’s site, the proportion of off-plan property sales in 1971 will not be too high; but if it came to 1972, Evergrande Real Estate The finances will be very bright.

Therefore, Evergrande Real Estate's residential buildings are the foundation of profitability, and commercial buildings are only an important indicator of the company's assets.

In the end, Lin Rongheng decided that the status quo could not be satisfied. In the remaining month and a half of 1970, Evergrande Real Estate had to at least raise funds from the stock market and bank loans to obtain no less than 1 million Hong Kong dollars.

According to Lin Rongheng's analysis, the situation of Evergrande Real Estate in the early 70s was different from that of the Carrian Group in the early 80s; in the early 70s, housing prices and land prices rose until March 1973, and were only killed after the stock market crash; In the early 3s, housing prices and people actually began to weaken or even fall within the next year of 80, and the Sino-British negotiation just broke through; the collapse of real estate and the unfavorable overseas investment of the Carrian Group led to the development of Carrian. The capsize of the group.

Through these analyses, Lin Rongheng became more and more aware of the crazy pumping and loans. Before March 1973, Evergrande Real Estate had to pump at least 3 million Hong Kong dollars through the stock market, and at least 5 million Hong Kong dollars through bank loans. million Hong Kong dollars.

Lin Rongheng convened a meeting of the main executives of Evergrande Real Estate.

"Send people from the marketing department. Evergrande Real Estate needs to purchase two more rental properties with a total of no less than 15 square feet. The required funds will be raised by issuing new shares!"

Lin Rongheng's words reached everyone's ears, and it was not enough to surprise everyone. Evergrande Real Estate is now equivalent to a starting engine, and there is no reason to stop it.

In October and the first half of November, the stock market is hot now, and the Hang Seng Index has climbed above 10 points, which is a good time for the stock market to pump water!

Wu Hao said: "By raising funds in the stock market, the debt ratio of Evergrande Real Estate will drop. Should we continue to take out loans and use the loans to continue to purchase old buildings and land?"

Lin Rongheng nodded, the money raised in the stock market is equivalent to Evergrande Real Estate's own funds, and there is no need to consider repayment and interest.

"The loan thing is very simple. Now many banks are begging to cooperate with us! Next, of course, we will use the loan to buy some old residential buildings and land. We set a goal for everyone. We will end in the first half of 1971. Evergrande Real Estate needs to own 30 sites.”

Loans are used for investment in residential projects, and the stock market is used for investment in commercial projects. This combination will form a virtuous circle; commercial projects can support the stock of Evergrande Real Estate in the early stage, and residential projects can allow Evergrande Real Estate to reach the market in 1971. 1974's performance was stellar.

Baotong.com.

The cooperation between Lin Rongheng and Wanguo Baotong has always been in a state of absolute secrecy, with a loan of a full 1000 million US dollars (5000 million Hong Kong dollars) without any collateral.

Its purpose is very simple, that is, to make Evergrande Real Estate give the entire media, investment and business circles a 'strong capital' and 'reputable' image.

The meeting between Lin Rongheng and Moyoke has always been in Moyoke's office.

Lin Rongheng leaned comfortably on the sofa in Moyoke's office. Moyoke said with a smile, "How much do you want to borrow this time?"

Lin Rongheng sat up straight and said, "This time I personally borrowed from your bank. Of course, I can accept stock mortgages, but I still cannot register the mortgaged stocks."

Of course, it can't be registered. Once registered, Lin Rongheng will have no mystery at all!
Moyok didn't even think about it, he said, "No problem, how much do you want to borrow?"

If there is a mortgage, it is better to have no mortgage. The registration of the mortgage does not harm Wanguo Baotong. Because there is a contract and a lawyer to witness it, I am not afraid that Lin Rongheng will personally deny the account.

As for the two loans of Evergrande Real Estate, they are purely credit-worthy loans. After all, Evergrande has that strength (Mojok also has a handle on Lin Rongheng)
Lin Rongheng said: "For a loan of 1000 million US dollars, I will use 500 million shares of Evergrande Real Estate as collateral."

After the 500 million shares were mortgaged, Lin Rongheng has mortgaged 1000 million shares of Evergrande Real Estate, 200 million shares of Liao Chongxing Bank, 300 million shares of HSBC, and 500 million shares of Citibank; and Lin Rongheng and Evergrande Real Estate can There are still 2000 million shares mortgaged, but it doesn't matter, even if the shares are mortgaged, they can still be mortgaged with properties, and the funds can be supplied indefinitely.

And you can also use bank loans to repay the previous loans and untie the previously mortgaged stocks.

There is only one premise for all this, that is, the myth of Evergrande cannot be broken!Evergrande's stock must be dazzling!
Moyok nodded, then asked, "What kind of investment is Mr. Lin going to make?"

Lin Rongheng said: "I plan to form another real estate company, and all the funds of 1000 million US dollars will be used to acquire properties and land! Of course, the role of this real estate company is not only to invest, but to give the outside world an impression that it is me The company has strong financial strength and excellent reputation. In this way, Evergrande's stock will naturally rise."

Lin Rongheng and Moyoke have no secrets. He clearly knows how Evergrande Real Estate is developed, and Lin Rongheng also needs to borrow continuously from Wanguo Baotong.

It's hard to catch a sheep, it's going to kill the wool!

Chen Songqing in the previous life was like this. He borrowed more than 40 billion Hong Kong dollars from Yumin Finance Company alone, and the total debt of Carrian was more than 100 billion Hong Kong dollars.

Moyoke understood Lin Rongheng's strategy in seconds, and he couldn't help but give his thumbs up and said with admiration: "Everyone in Hong Kong knows that you have a lot of money, so you are naturally full of confidence in Evergrande Real Estate. The more convenient the water is. The stock market fund raising and bank loans will jointly push up the strength of Evergrande Real Estate. As long as the real estate in Heungkong continues to flourish, then your profits will always exceed the loan interest. , after all, the people of Hong Kong can be said to be in the elementary school stage for the stock market!"

Moyoke has fallen into the dream of the Evergrande Empire at this time, because the 50 shares in his hands have not been sold. After all, he is involved in the Evergrande plan, so he is very confident.

Lin Rongheng echoed Moyoke with a few words and fooled him into his own little fanboy, which was one of Lin Rongheng's tactics!
"I don't know if the real estate will continue to prosper; but when the time is right, we must diversify our investments to increase our ability to resist risks."

In fact, as long as Evergrande does not have an accident, Moyoke's status in Citigroup will only get higher and higher.

Before the 80s, the Hong Kong government restricted foreign-funded banks (not registered in Hong Kong). Foreign-funded banks were not allowed to open branches, so they could only conduct business in Hong Kong through financial companies and offices.

Although Citibank is a big US-funded bank, it still has to abide by the laws of Hong Kong. Of course, they hope to have more loan business in Hong Kong; therefore, if Moyoke relies on the performance of supporting Evergrande Real Estate, it will not be a problem for him to be promoted in the future.

Let alone 10% of the loan, by 1972, it was 9%. Wanguo Baotong also asked for a loan from Lin Rongheng; and Wanguo Baotong’s headquarters saw that the Hong Kong branch cooperated with a real estate company with a market value of several billion Hong Kong dollars, and it was even more impossible to find a loan. Moyok was troublesome, but he valued it even more.

(End of this chapter)