Started from Hong Kong Island

Chapter 358 356 [Property Property]

Li Wendi thought for a moment and said, "The business district in Causeway Bay is not big, concentrated around Hennessy Road and Leighton Road. Other places are only suitable for building residential buildings and some small shops, which will not play a big role in strengthening our strength. If we spend a lot of money to acquire those old buildings, our current funds will not be able to keep up."

“I heard that some companies are short of funds for acquiring land and properties in Causeway Bay. They should be quite anxious. The real estate market is about to become hot. We can cooperate with them and just pay some construction costs.” Zhang Wentao said cunningly.

It was hard for Li Wendi to refuse such a good plan, so he nodded and said, "Then you can do it. If the other party is unwilling to sell the rights, don't force it. We can just keep half of the rights."

"Okay, boss!" Zhang Wentao said again, "The Kwong Sang Hong Building that we built together with Kwong Sang Hong Company in Wan Chai will soon be renovated. Should we take over this building or sell it directly?"

"How does Guangshenghang Company plan to deal with their rights and interests?" Li Wendi asked.

"Guangshenghang Company is planning to sell. They now need funds to develop the cosmetics industry." Zhang Wentao explained.

The Kwong Sang Hong Building in Wan Chai is 25 stories high, with a floor area of ​​30 square feet, of which 28 square feet are available for rent. Based on the current rental and selling prices in Wan Chai, the Cheung Hsin Group will need to pay Kwong Sang Hong Company around HK$5200 million to acquire the Kwong Sang Hong Building. The monthly rent is around HK$200 million, and it will take five years to recoup the investment.

But in reality, with the soaring prices in the city, it would take nearly four years to recover the investment just by rent, or even make a small profit.

"Do you mean that we should take over this building? Can the group squeeze out the funds?" Li Wendi thought about it and felt that Changxin Group's influence in the Wan Chai area was too weak and should be strengthened.

Moreover, the Guangshenghang Building is a high-quality property. If it had been sold at the peak of the real estate market in 81, the selling price might have been close to 3 million yuan, and the Changxin Group could have made a profit of more than 1.5 times.

"We can squeeze out this money. With the increase in land prices, the group's debt ratio will immediately drop back to 45%. After delivering the down payment, we can mortgage the Guangshenghang Building to the bank. Borrowing 6000 million yuan will not be a problem." Zhang Wentao said complacently.

According to Zhang Wentao, Li Wendi's plan to reduce the group's debt ratio is unlikely to be realized, but it is a good choice to increase the group's asset value.

"Let's do as you say. How is the cooperation project with Xiangjiang Property Company going?" Li Wendi thought of the huge plan. Changxin Group has already invested 5000 million yuan for it, and may need another 5000 million yuan next.

"Construction officially started before the Spring Festival. Now the project is more than halfway completed and is expected to be sold by the end of the year." Zhang Wentao replied. This is one of the major projects of Changxin Group and he is paying close attention to the progress of the project.

"The Global Building in Central is expected to be sold next month. How is the 2.5 million yuan of funds prepared?" Li Wendi continued to ask.

"We raised 2.3 million yuan through share offering, plus the funds returned from other projects, we have raised 2000 million yuan. We are only million yuan short, and we will be able to raise all of it next week," said Zhang Wentao.

"The speed of fund raising is too slow. Will it be impossible to raise the 8 million yuan for the twin towers of Haifu Center in August?" Li Wendi frowned and said that these three shopping malls must be in the hands of Changxin Group.

Hearing the boss's stern voice, Zhang Wentao's heart tightened and he said, "I will deal with it as soon as possible and will never delay the payment of these sums." "If it doesn't work, you can sell some high-quality properties. Except for the commercial buildings, hotels, high-quality shops in Central, Wan Chai, Causeway Bay, Kowloon City, and the Grade A commercial buildings in Sheung Wan, you can choose to sell the others." Li Wendi said with some heartache. These things were accumulated by him bit by bit. He was reluctant to sell them in large quantities now, but the Admiralty Twin Towers were really of high quality.

It can be said that the entire Changxin Group has no better properties than these three buildings. The Changxin Group can remain invincible relying on these three Grade A commercial buildings in Central.

"I understand!" Zhang Wentao was also a little shocked. The boss was actually willing to sell those high-quality properties. The group could have many villas and residential buildings.

After Zhang Wentao left, Gao Yi also came in to report on his work.

"Boss, we already control 35% of the shares of Meifeng Fiber Company, which is not much different from the shareholding of Cai Chang's family. Moreover, the Cai Chang's family has begun to run short of funds. Although Jardine Matheson Company continues to contact Dah Sing Company, its attitude is getting worse and worse, and it seems that the negotiations are about to break down." Gao Yi reported.

"Didn't the Cai Chang family say they wanted to talk to us?" Li Wendi asked after pondering for a moment.

"Several core members have approached me, but I refused and said they didn't want to acquire Daxin Company anymore." Gao Yi looked at Li Wendi. He didn't think his boss would let him continue to contact Daxin Company and encourage the arrogance of the Cai Chang family.

"You did the right thing! The members of the Cai Chang family know that Jardine Matheson has no interest in acquiring their Dah Sing Company. They just want to retaliate against us. Now they want to flirt with us to stimulate Jardine Matheson and use us as a backup." Li Wendi smiled slightly and said, "Then we will continue to increase our investment in acquiring Meifeng Fiber Company. Anyway, we will not suffer any loss. It will only take a little effort and time."

"Yes! I know!" Gao Yi changed the subject and said, "The restructuring of the assets and personnel structure of the Golden Pavilion Hotel has been completed. This is the report I compiled. Please take a look first."

"I have used the funds on the books of the Golden Court Development Company to acquire the small properties next to the two hotels in downtown Kowloon. Once the financial situation of the Golden Court Hotel improves a little, I would like to immediately demolish and rebuild the hotel and turn the two hotels into a 4-star and 5-star hotel." Gao Yi said seriously.

"As a wholly-owned subsidiary of the Golden Pavilion Hotel, the Golden Pavilion Development Company should contribute to the development and growth of the Golden Pavilion Hotel. It should announce the news that the Golden Pavilion Hotel will be demolished and rebuilt into a star-rated hotel, and also release the news that the Golden Pavilion Development Company will cooperate with Mingcheng Real Estate Company to develop small residential land." Li Wendi said.

Gao Yi thought about it and immediately understood what Li Wendi meant. "Boss, do you want the Golden Pavilion Hotel to raise funds and issue shares to complete the demolition and reconstruction of these two star-rated hotels?"

Li Wendi nodded, "Yes! So, you have to publicize the good news about Golden Pavilion Hotel from time to time to deepen the shareholders' impression of Golden Pavilion Hotel, so that Golden Pavilion Hotel can better raise funds for share offering."

"I understand!" Gao Yi said happily. It seemed that the boss finally paid attention to the Golden Pavilion Hotel, and it was just a matter of time before the Golden Pavilion Hotel stood out.

Gao Yi was a little worried because the two five-star hotels under the Wharf Group had already started operations and were popular with many tourists and white-collar elites. Li Wendi might not want to spend a lot of effort on developing the Golden Pavilion Hotel.

(End of this chapter)