Hong Kong's new giants

Chapter 447 [Fry real estate to make a lot of money]

In mid-April, Lin Zuhui went to New York to investigate the office market in Manhattan, New York.

During this period, he listened to the advice of the investment consultant of the family office, and he was not optimistic about the prospects of the Manhattan office market, mainly because many institutions and large companies had already withdrawn from Manhattan, and the office buildings there would not perform well in a short time.

Then he had another meal with Buffett and heard a relatively insider news that the New York government was going to set up a company RTC to collect bad assets from bankrupt banks, and then sell assets to repay debts.

Then he met with John Reed, chairman of the board of directors of Citibank, and learned that Citibank is still cautious about lending commercial real estate.

For a while, Lin Zuhui soon came to his senses!

The office buildings in Manhattan must not be invested in the last two or three years, otherwise I will be ashamed!
First of all, he recalled the basis for investing in commercial real estate in Manhattan: Buffett invested in a commercial property around New York University in 1993 in his previous life, with a five-year return of 150%.Maybe, the return on investment is because he bought a discount (distressed asset auction), and because it is a commercial property around New York University, because the university can't move it.

Secondly, if there is a follow-up boom in office buildings in Manhattan, there must be a reason. The biggest possibility is the development of the Internet and the financial industry.As far as Lin Zuhui knows, before 1995, the U.S. banking industry was in the process of merger and reorganization. In the following five years, the S&P 500 Bank Index soared by more than 250%. will thrive.Comprehensive consideration, New York office buildings may have to wait until after 1994 before they are likely to flourish, and lasted until 1994. Although they experienced 2007% during the period, they recovered within a year.

Finally, the return rate of 150% in five years seems to be only 20% per year.Although it is good, the timing of all aspects is very important, and more importantly, the risk is too great.

Combining the three reasons, Lin Zuhui decided to suspend investment in Manhattan office buildings, or a small amount of investment in the future is enough.

fortunately!

Without the Japanese capital and a certain company from the previous life, it would not only be a loss, but also embarrassing!
This is also one of the main reasons why Lin Zuhui invests cautiously:
In the previous life, Japan’s Mitsubishi Land invested in the Rockefeller Center in Manhattan. In 1989, it spent US$14 billion to buy 15 office buildings. In 1996, it sold only US$11 billion; The deal Mitsubishi Land lost 880 billion yen (more than 8 million U.S. dollars).Like Mitsubishi Land, the American real estate purchased by Japanese capital in the late 80s was almost out at a loss.

In the previous life, in the 21st century, some companies went to Manhattan to buy buildings one after another, but they also lost money.

Therefore, not only the US dollar can harvest the wealth of various countries, but even the buildings of the United States can purchase the wealth of various countries.

Lin Zuhui secretly regretted that he shouldn't blow NB in ​​front of Zheng Yutong and others;

But fortunately he didn't take action, otherwise he would really fall from the altar in the future.

Monday, May 4.

When Lin Zuhui came to his Huazhi Center office, he felt a lot more at ease.He also warned himself that in recent years, the New World Group has to be cautious in investing overseas to prevent the big ship from tilting;

After a while, Liang Zhenxun came to his office and said, "Boss, the preparations for the rights issue and fundraising are ready!"

Fundraising still needs to be raised, and money is still useful!

Therefore, Lin Zuhui said: "Then make an announcement!"

"Ok!"

Then, Lin Zuhui said: "I am going to spend 2.5 million US dollars, and I want to invest in a US stock!"

Liang Zhenxun immediately asked: "How much do you need to prepare for the investment in the Manhattan office building?"

Lin Zuhui said: "It's not a good time for now. I went to investigate and it's not optimistic. So let's invest in securities, and the rest of the funds will be used to develop the real estate industry in Hong Kong and the mainland!"

"Okay, I know!"

After Liang Zhenxun left, Lin Zuhui relaxed a bit.As the saying goes, the geese have plucked their feathers, and this trip to New York is more or less rewarding.

Therefore, he intends to arrange for New Era Group to invest in Microsoft's stock.

At present, the market value of Microsoft has risen to 230 billion U.S. dollars, and the average annual return rate in the later period is more than 30%. By 2000, there will be an increase of more than 20 times, which is very worth investing in.

However, Lin Zuhui's Hengjin Investment holds only 2% of the shares, and it is handled offshore and decentralized, which is not very eye-catching.

And the New Era Group invested more than 1%, which is naturally an aboveboard investment.

In this way, New Times Group invests in Citibank and Microsoft stocks, and then invests in commercial real estate in the United States. The combined rate of return is a stable investment.

In the morning, Gao Yi from Chinese Real Estate brought Shi Yadi, chairman of Swire Group, and Jian Jifu of Swire Properties, to Lin Zuhui's office.

Lin Zuhui was quite surprised to be able to come to the door so quickly.

But no matter what, the door is a guest, not to mention Lin Zuhui and Shi Yadi have many friends.

He stretched out his hand politely, and said with a smile: "What kind of wind sent you two distinguished guests to my office!"

Shi Yadi responded with a smile: "Naturally, it was Mr. Lin's wind that brought us into your office."

While inviting a few people to sit down, Lin Zuhui pretended not to know and said, "Why?"

Shi Yadi said seriously: "That's right, we want to buy the two buildings in Quarry Bay that Chinese Land purchased last year!"

Lin Zuhui suddenly became embarrassed, and picked up the teacup to drink tea.

Shi Yadi immediately continued: "I know this is a bit abrupt, after all, from Mr. Lin's perspective, he must have seen the prospects of the Xiangjiang office building. Therefore, we are willing to buy it at a premium of [-]%!"

Swire Group did not dare to play tricks in front of Lin Zuhui, so the offer was reasonable.Of course, this is only plausible, but it is far from fulfilling Lin Zuhui's appetite.

At the beginning, he bought these two buildings with two thoughts:

First, speculate in buildings; second, invest in buildings.

They are all guaranteed profits, but in fact, they are more interested in speculating in buildings, and the development prospects of Quarry Bay are still limited.

Lin Zuhui put down his teacup and said, "Mr. Shi Yadi, why don't we Chinese buyers buy your three buildings in Quarry Bay. To be honest, there are a total of eight buildings there that can be rebuilt. My original intention is to rebuild them all. And connected together, as a long-term development plan. At that time, some tenants can’t afford Central and Wanchai, so they can open up there as a second office space.”

Shi Yadi and Jian Jifu's faces suddenly changed, because Lin Zuhui's thoughts coincided with theirs.There are two reasons why Swire Properties has the cheek to come to the door to buy: first, the rise of office buildings in Xiangjiang is a trend; second, Quarry Bay is the old nest of Swire Properties. Reconstruction of high-rise buildings one by one, and overall planning, can become a commercial center.

But now, Lin Zuhui put forward this point of view, which shows that the value here is not cheap.

Shi Yadi immediately said: "Mr. Lin, we have three buildings, and you only have two buildings. Moreover, Quarry Bay has a different meaning for us at Swire Properties. We are willing to continue to negotiate on the price!"

Lin Zuhui thought for a while, and then said: "Thirty percent is impossible. I will pay this price by the end of the year, and the long-term investment is even more profitable. If it is not possible, we can jointly develop the commercial center here, and the property rights of the building will be independent. But unified planning and reconstruction. In this way, not only can it be more efficient, but it can also have the best of both worlds."

Shi Yadi didn't want to cooperate, but just wanted to buy it back. He gritted his teeth and said, "We are willing to pay [-]% of the price!"

When the matter came to this point, Lin Zuhui also counter-offered: "If you really want it, we can also have adult beauty, but the price is 16.5 billion, which can't be less. Or, you can come and talk to me about the price after two years!"

Two years later, 16.5 billion may not be able to buy these two buildings, and they can still collect two years of rent.

Seeing that Lin Zuhui was so determined, Shi Yadi also knew that others knew the market very well and would not hand over the two buildings easily.As for two years later, I might need to pay more.

"16.5 billion, deal! But we want to keep the price of this transaction secret, so as not to cause too much impact on the market!"

He is not worried about the impact of the market, but worried about the acquisition negotiations that are not conducive to other buildings.

Lin Zuhui said with a smile: "Next year, our company's annual report will definitely be made public."

"There's no problem with this!"

"Alright then! Since the cooperation failed this time, I hope we can cooperate next time!"

Shi Yadi responded: "I am very happy! This time is considered a cooperation, but we want to use this Quarry Bay as the company's long-term development plan in the future. With the strength of New Times Group, we may not agree to the long-term plan of 20 years and [-] years!"

Lin Zuhui said generously: "It's really too long, it doesn't fit my style of work!"

Gao Yi of Chinese Real Estate could not help admiring his boss. It is obvious that his subjective consciousness is speculating in real estate, and he said it so grandiosely.In less than half a year, he earned over [-]% of his income, a total of more than [-] million yuan. This money is too easy.

The South China Morning Post Building and the Toppan Building spent a total of less than 11 billion, and now they have made a net profit of more than 5 million, which is indeed a big profit.

In fact, Lin Zuhui is not a cruel person. If the price is 18 billion, Swire may agree to it at the end of the year.The two buildings themselves are not worth that much premium, but in terms of the overall plan, they can appreciate another [-] to [-] percent.

After Shi Yadi and Jian Jifu left, Lin Zuhui said to Gao Yi: "Central Plaza and Citicorp Center will be leased in July, and management must be done well. Enterprises with good reputation can enjoy appropriate discounts in rent and prepare for long-term investment. Beware Straw sandal companies, so as not to cause reputation loss. The lease period should not be too long, and the rent has been on the rise in recent years."

Chinese Real Estate is not a simple rent collection company, but an excellent commercial real estate management company.Shopping mall management is an advanced industry. How to attract world-renowned brands, how to allocate the shopping mall structure, and how to manage all these are very challenging for the management.

Over the years, Huaren Real Estate has accumulated a lot of experience in this area, and has conducted long-term inspections of shopping centers in Europe, America, and Japan to maximize its strengths and avoid weaknesses, and further strengthen its management strength in this area.

In this way, not only the shopping mall network in Xiangjiang can be well managed, but also the shopping mall network in the mainland can be well managed.

Gao Yi nodded and said: "Well, we must check it out. Especially the Central Plaza, which is the flagship commercial center of our New Times Group, will definitely be managed into the world's best commercial center. As for Wanguobaotong Center, there are We will also cooperate with Citigroup to build an Asian financial core district."

Lin Zuhui said with satisfaction: "The Wanguobaotong Center can be regarded as accumulating experience in financial buildings for our team. Later in Shanghai, I will invest in a World Financial Center, so the team needs to learn more."

"Ok!"

Lin Zuhui is an important shareholder of Citibank. Although he has no right to participate in management, it does not affect the relationship between Lin Zuhui and Citibank in the slightest.In addition, Lin Zuhui himself is the boss of the bank, and he has the reputation of a stock god.

Therefore, New Era Group will definitely not miss the Shanghai Global Financial Center.

(End of this chapter)