Started from Hong Kong Island

Chapter 338 336 [Multiple Projects]

Li Wendi had some understanding of the Li family's concerns, which was one of the reasons why he was not worried about the Li family's counterattack.

In such a small place as Hong Kong, Causeway Bay is one of the future prosperous places. Li Wendi felt that he would definitely run into the Li family. It was only a matter of sooner or later.

Li Wendi is not afraid of the Li family. He controls the Qinian Newspaper Company and can create momentum at any time. The fact that the Li family made their fortune by selling opium in their early years is a thorn in the side of the Li family. Moreover, once it becomes public, the people of Hong Kong will certainly criticize it. Ambitious people will not miss such an opportunity to stand out, and the Li family will inevitably fall into a situation of being "besieged on all sides".

Li Wendi had studied Li Xiaohe and Li Mingze and knew they were not reckless people. Even though Li Mingze was extremely furious just now, he had never underestimated Li Mingze. To be able to develop the difficult Li family into the Li family of today in those crisis-ridden times, he was not an ordinary person.

The bigger the person, the better at acting!

This is the truth summed up by Li Wendi: life is like a play.

“We must speed up our development in Causeway Bay and match the strength of Hysan Development Company,” Li Wendi said firmly.

Chen Yanhua of Nan Fung Group has made great moves in the New Territories land exchange rights agreement, even surpassing Sun Hung Kai Properties. On the contrary, he has shown little interest in some government land, old buildings and urban land.

Li Wendi had no intention of staring at Chen Yanhua, but the two companies were competing for the land exchange rights book, so he had to understand the situation of his opponent, even if there would be cooperation in the future.

According to Li Wendi's understanding, Nan Fung Group already has 32 square feet of land exchange rights and 12.8 square feet of agricultural land on hand. It also plans to adopt the strategy of Chinachem Property Company and operate the mortgage business on its own, which can earn higher interest, but the speed of recovering funds will be very slow.

It seems that Nan Fung Group has made up its mind to develop in the residential sector.

Li Wendi certainly does not regret cooperating with Nan Fung Investment Company to develop the land. After all, if Li Wendi did not cooperate with them, other tycoons such as Li Jiacheng would have cooperated with them. It can be said that Nan Fung Textile Company's development towards the real estate industry is unstoppable.

However, in the New Territories areas such as Tsuen Wan and Kwai Chung, the Cheung Hsin Group has gained a powerful competitor.

Of course, the current strong competitor of Changxin Group is not Nan Fung Group, but Chinachem Property Company, which is equal to Sun Hung Kai Properties in strength.

The citizens of Hong Kong are somewhat unfamiliar with Chinachem Property Company. It only made a brilliant appearance in the battle for the purchase of real estate in Hong Kong, but unfortunately it was as short-lived as a flash in the pan. However, it is a well-known company in the real estate industry.

By the time of the Niu War in 72, Chinachem Real Estate Company already owned more than 40 development sites and more than 30 subsidiaries. In 71, the company's net profit reached 2500 million yuan, and in 75, the net profit increased to 7000 million yuan. It is now not much different from the "Five Tigers of Chinese Capital".

Chinachem Property mainly occupies the low- to mid-range market. Its previous properties were mostly located in labor-intensive areas on the outskirts of the city, selling small and medium-sized residential units. However, Chinachem Property inherited Wang Dehui's "stinginess", using simple materials and was often criticized by the outside world.

Residential buildings are now being built in the new towns. Most of the citizens in the new towns are workers and petty bourgeoisie, who can only buy and sell small and medium-sized residential units. Chinachem Real Estate Company is an expert in this area, so the Changxin Group is inevitably at a disadvantage.

"Chinachem Real Estate Company is an old hand in this field and can grasp the psychology of customers better than us. Our current residential sales are lagging behind by more than half." Zhang Wentao said worriedly.

Hearing this, Li Wendi frowned slightly. Although the Changxin Group had not developed many real estate projects in new towns (except Shatin) and did not have a great reputation, it seemed a bit troublesome to have fallen into so many projects.

At this time, there are not many real estate companies entering the new town development, and they cannot seize the market now, let alone in the future.

Suddenly, Li Wendi remembered Wang Dehui's stinginess, so he felt that Chinachem Real Estate would not give up its existing profits, so he said to Zhang Wentao, "We are holding a promotion. Anyone who buys our residential units within a week will get a discount of 95% off, and there will be a lottery. The first prize will be 100 grams of gold, and the special prize will be a car. You can arrange the other prizes."

Zhang Wentao was a little worried, and asked, "Isn't this too generous?"

"Wentao, we are in the real estate business, and the most important thing is the speed of capital recovery. There are so many plots of land out there. As long as we are fast enough, we can make more money. This little money is nothing. Moreover, this will be very beneficial for us to build a reputation in the new town. It can be regarded as spending money on advertising." Li Wendi said earnestly. Zhang Wentao was a little short-sighted. This little money was nothing to the Changxin Group and could not do anything.

"Yes! I'll arrange it right away." Zhang Wentao received the order and left the office.

Zhao Lekai set up multiple traps for Chen Xingting, and Chen Xingting fell into them one by one. Although he was extremely cautious at first, after the first transaction was completed, his vigilance disappeared completely and he didn't even bother to do an investigation.

Of course, Zhao Lekai would not relax just because Chen Xingting was no longer vigilant. He would continue to clear up all traces and make things more perfect.

Li Wendi looked at the report submitted by Zhao Lekai, smiled and said, "Very good! Chen Xingting has pledged 17% of his shares to obtain a loan of 1700 million. If we continue, we can get more than 20% of the shares pledged."

"This is just the result of a commercial building in the urban area of ​​Kowloon. As long as the company continues to work hard, I think it is possible to get 30%." Zhao Lekai took the opportunity to take credit.

"Well! Continue to execute according to the plan. We have plenty of time. There is no rush." ​​Li Wendi waved his hand. "What is the current situation of Chen's Jewelry Company and Junfu Jewelry?"

"Since Chen Fenben fell ill, Chen Xingting has cleared out many of the old officials at Chen Jewelry Company and replaced them with his own trusted men. The management seems to be a bit chaotic, but overall it's still okay." Zhao Lekai continued to report, "Junfu Jewelry is the same as before, with no major changes. The turnover has also returned to its peak, and we have a large amount of gold reserves."

"Do you think Junfu Jewelry should acquire a few companies to expand its scale?" Li Wendi asked casually.

Zhao Lekai thought about it carefully and seemed to have guessed what Li Wendi meant. The boss has always relied on acquisitions to expand his power. When faced with an acquisition, he is unlikely to ask for the opinions of his subordinates. Now that he is asking, he will naturally tend to not acquire.

So Zhao Lekai said, "I don't think it's appropriate to acquire jewelry companies, because acquiring these companies only means getting more stores, reserves, and a small number of old customers, but the price we have to pay is not small. It's better to just open a few more stores, do more promotional activities, and occupy the market in the area."

Li Wendi remembered that in his previous life, there were very few jewelry companies listed in Hong Kong. Chow Tai Fook Jewelry, a company of such a scale, had never thought about going public. He believed that Zheng Yutong would not fail to see the benefits of going public. Most of the time, it was because going public had little effect on jewelry companies, and the same was true for acquisitions.

Therefore, Li Wendi firmly believes that Zheng Yutong's approach is correct.

"Okay, let's do it according to this idea." Li Wendi thought for a while, "Try to arrange some of our people at Chen's Jewelry Company so that we can know what the other party is doing." "Yes!" Zhao Lekai nodded.

Li Wendi also asked about other situations of Xingguang Real Estate Company, and the United Junfu Jewelry Company had purchased gold worth 7000 million yuan.
The battle with Hysan Development Company on Yung Ping Road in Causeway Bay is gradually coming to an end. Hysan Development Company is indeed the "big bull" in Causeway Bay. It has acquired 4 properties under such a disadvantage and doubled the property area on Yung Ping Road.

Li Wendi is a man who keeps his promises, so he fulfilled the equity share of the building according to the proportion of area. After calculation and negotiation, Changxin Group owned 70% of the equity, Hysan Development Company owned 30% of the equity, and the management rights belonged to Hysan Development Company for a period of 3 years.

If Hysan Development has any problems within three years, Changxin Group has the right to take back the management rights and Hysan Development shall not have any objection.

Three years later, the two companies were negotiating the ownership of management rights, with Hysan Development given priority.

As for the construction costs, they will naturally be contributed according to the respective equity ratios.

It’s not that Li Wendi cannot defeat the Li family, but he does not want to spend a lot of energy on this matter, because he has another way to make the Li family withdraw from this building and return the rights and interests to Changxin Group.

Our main focus now is to strengthen the urban areas of Central, Causeway Bay and Kowloon to pave the way for the future.

In fact, Li Wendi is currently raising funds to bid for the development rights of properties above the Central and Admiralty subway stations. This is nearly one million square feet of rentable area. Even if calculated based on the current rent, the annual rental income is at least 1.3 million yuan, which can basically be recovered within 8 years.

The Changxin Group will be able to acquire three Grade A commercial buildings in Central, with rental income exceeding 3 million yuan. This is a terrifying number. The assets of a medium-sized real estate company can be obtained in rent alone every year.

In front of this, the Grandview Center building is indeed not good enough, but after all, it has a rental area of ​​60 square feet, and Li Wendi is reluctant to give it up.

Changxin Group
Zhang Wentao came to report that due to a shortage of funds, Henglong Real Estate Company wanted to cooperate with other companies to develop residential land in Shouson Hill near Deep Water Bay on Hong Kong Island. The cooperation plan was in line with market practice.

"The land area is 16 square feet. Henglong Real Estate Company plans to build 15 villas, including 10 townhouses and 5 single-family villas. If it wins this project, it is estimated that it can earn at least 6000 million yuan."

"However, many companies have already set their sights on this project, with the strongest competitors being Cheung Kong Holdings, Hang Lung Holdings and Hopewell Holdings."

Li Wendi had heard of this project a long time ago. It is a very promising project. Although it is not as good as the villas and luxury houses in the central area, this land is close to the sea and is the first choice for the wealthy. There is certainly no need to worry about sales.

"What conditions do you plan to use to attract Henglong Real Estate Company?" Li Wendi asked with interest, crossing his fingers.

"I plan to start with the profit share. We can take 45% of the total profit, and 55% will be given to Henglong Real Estate Company. I think it should be very sincere." Zhang Wentao said a little timidly.

Li Wendi shook his head. "These conditions are quite standard. Don't those people think of this?"

Zhang Wentao knew that the boss wanted him to continue to come up with ideas, but he could not think of any other solution except giving up profits.

"We signed a bet agreement with Henglong Real Estate Company. We guarantee that the company can make a profit of 8500 million yuan on this project. If it fails to do so, Changxin Group is willing to pay Henglong Real Estate Company three times the difference." Li Wendi said calmly, "There should be few companies that can offer such conditions. As for the profit share, we only want 48%."

Zhang Wentao widened his eyes and thought that his boss was a little crazy. There was no need to take such a risk for a project. If the profit of 8500 million yuan could not be made, wouldn't Changxin Group suffer a loss on the project?
"It's settled now. If anything goes wrong, it's my responsibility." Li Wendi said with a smile.

As long as it is sold in 78, the price of the villa will at least double, and making 8500 million yuan will be a piece of cake.

Zhang Wentao nodded and brought up another issue. "The subway company has been making losses for many years, and the Hong Kong government has not provided any assistance or subsidies. Now the subway company wants to rely on the property development rights above the subway stations to build subway lines and operate normally in the future. Can we start from this aspect?"

"Well! Since the subway company lacks funds, we can also adopt the model of making concessions. We only need to take 45% of the profits, and forget about the gambling agreement. We can let the group pay the subway company a sum of profits in advance so that the subway company can resume normal operations." Li Wendi said.

"Boss, how much funding do you think is appropriate?" Zhang Wentao asked.

"5000 million, we can afford this number. Then we can take out a bank loan for this project. We just have to pay more interest." Li Wendi's plan is mainly aimed at the situation where Li Jiacheng and the subway company ask for money.

"Okay. Then I'll go write a plan." Zhang Wentao said.

Li Wendi pressed his hand, "Don't worry! The plan should still be written according to the strategy of 48% to 52% and all construction costs included to prevent anyone from leaking our plan. We can modify it based on this plan when the time comes. It won't delay any time."

Zhang Wentao is very good at collecting information. Of course he knows the tricks involved. He will take precautions, but he cannot guarantee that the plan will not be leaked. After all, some things cannot be kept completely confidential.

"Understood! I will keep it confidential." Zhang Wentao knew the importance of this project. This was the first time the boss had asked for confidentiality, which showed how important these two projects were.

Zhang Wentao thought for a moment and said, "There is a rumor that the MTR Corporation will launch the development rights of the property above the Kowloon Bay Vehicle Maintenance Depot in the near future. The launch time is likely to be not far from the Central and Admiralty MTR station projects. Should we participate?"

Li Wendi understood what Zhang Wentao meant. It was simply that the financial pressure was too great, but the Kowloon Bay project could make a lot of profit and he didn't want to give up easily.

“We can only form a new company with other companies to bid. We probably won’t have much money to invest by then,” Li Wendi said decisively.

Zhang Wentao nodded slightly. This was the only option. If he could earn less, then he would earn less.

(End of this chapter)