Started from Hong Kong Island

Chapter 357 355 [Golden Gate Building]

Cooperating with other real estate developers to bid for this Golden Bell land king is still very beneficial to Changxin Group. After the funds are turned around in the future, they can completely take over this commercial building and collect rent.

With more than 30 square feet of rentable area, based on current rents in Central, the building's monthly rent is close to $400 million, and its annual rental income is more than $4000 million, with a net profit of at least $3700 million.

The rent of commercial buildings entering the 80s will definitely double. The payback period for commercial buildings that originally took nearly 10 years can now be shortened to 5 or 6 years.

And this is just the rental aspect. Such high-quality property is an investment for the group's market value, share offering and fundraising, and the value of the shopping mall itself, and the profits are huge.

Unfortunately, Changxin Group is heavily in debt. Now the group's debt is close to 50% of its market value. As a flagship group, Li Wendi certainly does not want the debt ratio to be so high.

Now he tends to follow the conservative management principles of Zheng Yutong and others, and tries to reduce the debt ratio to around 3%.

It is April now and the temperature is very comfortable, neither too cold nor too hot.

The full moon banquet for the eldest son Li Hong has been held. Those who attended the banquet were all Li Wendi's relatives and friends. It was not as grand as the wedding banquet. It was not because Li Wendi was stingy, but because she did not want Li Hong to receive too much attention.

The banquet was held at the Repulse Bay Villa, but many reporters were waiting not far from the entrance of the villa. Of course, they took pictures of many big shots' vehicles or directly took pictures of themselves.

So, gossip magazines began to speculate, such as the relationship between Li Wendi and her partners Li Jiacheng and Guo Desheng. As for Zheng Yutong and Zhang Yan, they were naturally also discussed.

Some magazines bluntly pointed out that Zhang Yan was Li Wendi's henchman, but he was the most important henchman.

Those who know him well know that although Zhang Yan got started with the help of Li Wendi, he is not Li Wendi's henchman. He is more of a brother in distress, but Li Wendi is the one who developed the Supersonics.

Changxin Group Office

Zhang Yan was holding a magazine, looking sulky. How could he look like a lackey? He was the chairman of the board of directors of a listed company after all. Have you ever seen a boss of a listed company being a lackey?
"Okay! Gossip magazines have always been like this, otherwise where would the sales come from?" Li Wendi said with a smile, "If we send them a lawyer's letter, do you believe they will jump even higher?"

Zhang Yan naturally understood the reason. If the magazine owner was not an idiot, he would directly challenge him to attract more readers and fans and make the newspaper famous.

This is free advertising, so even if I lose, what's the loss? At most I can just give up the magazine's profits.

Zhang Yan sighed, "No wonder these people are so arrogant, and no wonder you want to run a newspaper. It seems that I also need to run a newspaper, so that my reputation will not be so bad in the future."

Li Wendi smiled but said nothing. Zhang Yan certainly had the ability to start a newspaper, but it would still take a lot of effort to run the newspaper well. Moreover, Zhang Yan was involved in so many romantic scandals, and it was not known whether the newspaper could withstand it.

"Have you heard? The Hong Kong government is preparing to issue a batch of banking licenses. The banking industry is very profitable. Are you interested in cooperating to open a bank?" Zhang Yan suddenly used a big move, catching Li Wendi off guard.

This is a change made by the Hong Kong government in order to completely transform Hong Kong into the world's third largest financial center (after New York and London). Since the announcement of this policy, many international banks have begun to enter Hong Kong.

With the entry of these banks, commercial buildings in Central, Hong Kong, and luxury homes in Hong Kong Island and the city center will be in short supply, especially stimulating the rents of commercial buildings in Central.

However, it is a challenge for local banks, and even HSBC will feel a sense of crisis.

Therefore, Li Wendi did not think this was an opportunity to enter the banking industry, but rather it could become a big pit.

The most important thing is that Li Wendi knows nothing about banking operations.

"I have no interest in banks. We are brothers. But I also want to remind you to avoid banks. You are in real estate. Now that you have a bank, will other banks readily lend money to your real estate company?" Li Wendi said seriously.

"." Zhang Yan's face looked a little ugly. He didn't think about this aspect. He only saw the profits brought by the bank's loans, deposits and some financial services.

"Did anyone tell you that working in banking is very profitable? Why haven't you seen how many bankers have gone bankrupt since the 60s?" Li Wendi continued to speak mercilessly.

There was a trace of embarrassment on Zhang Yan's face, obviously someone instigated him.

Good guy!
After working in the business world for so many years, you are still so easily instigated.

Li Wendi shook his head and smiled bitterly, "You should have less contact with friends like this, otherwise you will have a hard time in the future."

In fact, Li Wendi already has a candidate in mind, but he has not confirmed it completely.

Zhang Yan thought for a moment and changed the subject, saying, "I heard that the Golden Gate Construction Company plans to sell the Golden Gate Building in Central to the Landmark Company for 7.15 million yuan. Commercial buildings in Central are really valuable. A building is more valuable than the market value of most listed companies." Li Wendi sneered, "Golden Gate Construction Company is a wholly-owned subsidiary of the Landmark Company. The Golden Gate Building was sold to the Landmark Company just for show. A Grade A commercial building in Central is worth more than 7 million yuan. I think the Golden Gate Building will be sold again. This time it is just to test the market's reaction."

Zhang Yan nodded. "Many people think so too. I just don't know when the Landmark Company will release the news."

"What? You want to take over this Grade A shopping mall?" Li Wendi asked with a faint smile. He had already guessed Zhang Yan's purpose and even the specific plan.

It seems that Zhang Yan was still persuaded by Chen Songqing and Zhan Peizhong, and was not aware of this huge scam at all.

In his previous life, Li Wendi guessed why Zhan Pei Zhong was able to remain unscathed in this huge scam. It seems that he had noticed the problem and launched this huge plan very early.

Later, Zhan Pei Zhong said that Chen Songqing was his benefactor. In Li Wendi's opinion, Zhan Pei Zhong was the biggest behind-the-scenes manipulator and winner.

Zhang Yan nodded without hesitation, "But this building is too expensive, Luckin Real Estate Company can't afford it."

"I think you'd better forget about this Golden Gate Building. I don't think the land company will sell it for less than 9 million yuan," said Li Wendi.

The Golden Gate Building has a floor area of ​​more than 42.5 square feet, with an annual rent of more than 6000 million yuan. The net profit is probably around 5000 million yuan, and it will take 10 years to recover the investment (taking into account the rent increase).

“How about the Swire Properties Duluzhi Building in Wan Chai? I think it’s very suitable for Luckin Coffee,” suggested Li Wendi.

Zhang Yan pursed his lips and said awkwardly, "How can a commercial building in Wan Chai worth tens of millions be comparable to a Grade A commercial building in Central worth hundreds of millions?"

Li Wendi sneered and said, "There are a lot of good things, it depends on whether you have the strength to get them. I dare say that if you insist on acquiring the Golden Gate Building, I guarantee that you will become a pauper and even go to Stanley Prison."

Seeing that Li Wendi said it so seriously, Zhang Yan was a little scared, "It can't be that serious, right? It's just a building."

"If you don't believe me, you can try it. Don't say that I didn't save you then." Li Wendi said with a straight face.

In fact, Li Wendi did not want to be audited by the ICAC in the next few years. After all, if Zhang Yan got involved, the ICAC would definitely not let him go based on their relationship.

Li Wendi really didn't know what kind of magic pill Chen Songqing gave Zhang Yan. He told him that it was a trap, but he had to step into it and give it a try.

Zhang Yan left Changxin Group with a heavy face, but he still wanted to swallow up the Golden Gate Building. After all, it was something that could allow Luckin Coffee to undergo a qualitative change.

Not long after, Zhang Wentao knocked on the door and came in with a happy look on his face.

"Boss, the Grand Orchard Centre building on Yun Ping Road in Causeway Bay has been completed and is now ready for rent."

The floor area of ​​Gloria Centre is 64 square feet, with two levels of parking and three levels of shopping mall, of which the shopping mall area is as much as 8 square feet. It is a high-quality Grade A commercial building. The Cheung Hsin Group holds a 70% stake, while Hysan Development Company only holds 30%, but has the management rights of Gloria Centre.

According to the current rental rates of shopping malls and commercial buildings in Causeway Bay, if the Grand Court is fully rented, the monthly rent will be HK$400 million, and the annual rent will be around HK$4800 million, which is comparable to the Golden Gate Building in Central.

"Okay! Let Hysan Development Company handle the matter, and we will just supervise from the side." said Li Wendi.

"Yes!" Zhang Wentao nodded. "Hysan Development's Lipton Center and Hysan Place are also looking for tenants. I'm worried they may not be able to manage it."

Hysan Development Company owns a large number of properties in Causeway Bay, including 6 commercial buildings with monthly rental income of more than HK$800 million. This is also one of the reasons why the Li family is confident.

In its old nests at Yung Ping Road, Leighton Road and Hoi Ping Road, Hysan Development Company owns a number of properties, nearly half of which are shops.

The Cheung Kong Group has been developing and acquiring properties in Causeway Bay for many years, but it only owns four commercial buildings, three of which are small commercial buildings with a floor area of ​​about 4 square feet and a shopping mall area of ​​no more than 3 square feet. The monthly rent is only more than 9 million yuan, which is far less than that of Hysan Development Company.

"Let them do it. If anything goes wrong, we can just take back the management rights of the Jialan Center Building." Li Wendi instructed.

Zhang Wentao no longer had any evil thoughts. "Should we strengthen our presence in Causeway Bay? The commercial buildings and shops we own are no longer very competitive."

With the development of Wan Chai area, the land in Wan Chai is becoming more and more expensive. Many real estate developers have begun to focus all their attention on Causeway Bay, hoping to take advantage of the opportunity to make a fortune.

There are many powerful companies among these real estate developers, such as Hongkong Land and Sun Hung Kai Properties. They all want to show their strength in Causeway Bay. Although the Cheung Kong Group entered Causeway Bay a few years ago and began to acquire land on a large scale, funds have recently been continuously invested in Central, Kowloon City and Sheung Wan. The investment in Causeway Bay has weakened, resulting in the current weak situation.

(End of this chapter)