Started from Hong Kong Island

Chapter 385: 383 [Sixth Uncle Admits Defeat]

Changxin Group Office

"Boss, we have already reached an agreement with the Hong Kong government. Both auction amounts of 2.1 million yuan and 6.2 million yuan will be settled in three months. 3% will be paid in the first month, and 4% in the second and third months. Interest of 3 million yuan will be generated. However, we can earn about 600 million yuan in profits from the stock market and securities market." Zhang Wentao reported.

"How long will it take for Xia Liwen Development Company to complete the 33-story Far East Financial Building (16 Harcourt Road, Admiralty)?" asked Li Wendi.

It is now July of 80. If the construction period is one year, the building can still collect rent of about 7 million yuan a year during the city's peak period.

Just based on the current rents of commercial buildings in Central, it will take 16 years to get your money back. However, rents are rising every year (except for periods of sharp declines). After 85, the rent will be as high as 20 yuan per square foot, which will greatly shorten the time to get your money back.

"The estimated construction period is 9 months, but it may actually take 10 months. We will definitely be able to move in before June next year," Zhang Wentao replied.

Metropolitan Properties (a wholly owned subsidiary of the Changxin Group) already controls three Grade A commercial buildings and three small commercial buildings in Central, with a rental area of ​​more than 140 million square feet, a monthly rent of up to HK$1600 million, and an annual income of more than HK$1.9 million.

Wheelock and its subsidiaries control five large commercial buildings in Central, namely Wheelock House, Marden House, Lane Crawford Building, Federal Building and International Building, with a total floor area of ​​160 million square feet.

Therefore, the Cheung Kong Group directly or indirectly controls 11 commercial buildings in Central, with a total floor area of ​​more than 300 million square feet, which is almost as large as the position of the Hong Kong Land Development in Central. The only drawback is that these commercial buildings are very scattered and cannot form a small business district with a strong influence.

"Yeah!" Li Wendi nodded. "How is the land search going in Tsim Sha Tsui East and Hung Hom?"

Zhang Wentao said, "It's not ideal. The areas near the sea are all owned by some large companies. When they heard that our Changxin Group wanted to acquire it, they all offered high prices. Some even thought that the price should be the same as the reclamation land in Tsim Sha Tsui East."

"We have acquired quite a bit of land in the inland area of ​​Tsim Sha Tsui East, about 44 square feet, and it is connected. However, if we want to build commercial buildings or residential buildings, we will need a large land premium."

Li Wendi smiled and said, "Of course the land premium is expensive now. If it were like in 73, we could slowly negotiate with the Hong Kong government. HK$100 per square foot would be a good price."

Zhang Wentao suddenly felt that his boss was being too idealistic. The land compensation fee for 44 square feet of land in today's years is close to 1000 yuan per square foot, and the total price is 4.4 million yuan. How could it become 4400 million by then?

"Just hold on to it for now and don't rush to develop it." Li Wendi saw through Zhang Wentao's thoughts. Zhang Wentao could not imagine how severe the land price crash was in 83. Even the Hong Kong government lacked confidence.

By then, we will negotiate for all the land under our control that requires land compensation, change the nature of the land at the lowest cost, and earn the greatest profit.

The beginning of April

Run Run Shaw used many channels and finally got Li Wendi out again.

This time he was not so arrogant and put himself in the right position. Run Run Shaw said, "Mr. Li, Mr. Li Xiaohe has passed away. I hope you can support me in taking charge of TVB. Please set some conditions."

"Mr. Shao, my conditions have always been very harsh. I think you will think I am threatening you like I did the last two times." Li Wendi said sarcastically.

Run Run Shaw calmed down and said, "The last two times were my fault. Mr. Li, please talk about it."

"Sell 6% of your theaters to the Changxin Group at 9% of the market price, and let the Changxin Group manage the remaining 4% at 2000 million per year for 5 years." Li Wendi proposed a more demanding condition than last time. Run Run Shaw clenched his fingers and said, "Okay! But we have to sign an agreement. The Changxin Group will support me in managing TVB for the next 20 years, and the theaters sold to the Changxin Group cannot cooperate with Golden Harvest Entertainment."

"Sure!" Li Wendi added, "But Changxin Group only supports Mr. Shao in managing TVB. Changxin Group will handle other decisions impartially."

"Okay! I hope the Cheung Hsin Group can truly handle things impartially. We are all working towards the development of TVB." Run Run Shaw was worried that Wendi Lee would embarrass him with other loopholes.

"Don't worry, Mr. Shao. I always follow the principle of 'I won't offend others unless they offend me'. As long as Mr. Shao keeps his promise, I won't take any action against him." Li Wendi said bluntly.

Soon, the Changxin Group conducted a thorough investigation of the theaters under Shaw Brothers Films. After Run Run Shaw's sales in recent years, there were still 83 theaters. Based on a 6% calculation, the Changxin Group could take over 50 theaters with an area of ​​50478 square feet. The average price reached 903 yuan per square foot, and the total price was 4558 million yuan.

"Boss, what should we do with these theaters? Should we set up a theater chain? Or?" Gao Yi asked.

The theater is a property owned by the Capital Real Estate Company, so Gao Yi is naturally in charge of it.

"I have read the information. Some theaters are in good locations. Some theaters are not far from theaters previously acquired by Changxin Group and have overlapping functions. So I want to turn these theaters into shops and sell them when the property prices are higher," said Li Wendi.

"Yes! I will immediately arrange for staff to follow up and submit the plan as soon as possible." Gao Yi said, "The price of industrial buildings has been rising slowly recently, and it seems that there is a possibility of adjustment. The group has many high-quality industrial buildings. Can we choose to sell them?"

Li Wendi remembered that in the fourth quarter of 80 in his previous life, the prices of industrial buildings stagnated. Then in early 81, the prices of industrial buildings began to decline. Although the decline was not large, it was almost difficult to sell them at a good price.

The reason is naturally that the demand for industrial buildings is saturated, while the supply of industrial buildings exceeds demand, so the price cannot be sustained.

What made Li Wendi happy was that Gao Yi actually noticed the abnormality and suggested selling it. This kind of vision is very rare.

"Sell it, except for the industrial buildings that are in urgent need." Li Wendi nodded.

"We also have a lot of industrial land on hand. Should we find buyers to sell them?" Gao Yida is even bolder and wants to directly withdraw from the industrial building field.

"Mingcheng Real Estate specializes in building industrial buildings. Now it has withdrawn. Have you chosen the development direction for Mingcheng Real Estate?" Li Wendi asked.

Gao Yi handed a document to Li Wendi and began to explain the plan. "Nowadays, commercial shops make as much money as residential development. Metropolitan Real Estate is relatively weak in the commercial shop sector. It would be better to hand over the commercial shop properties to Mingcheng Real Estate, or even let its subsidiary Jinge Development Company hype the commercial shops."

This plan reminded Li Wendi of Liu Luanxiong's title of "Shop King". The shops in Causeway Bay and Kowloon city are very valuable properties, not inferior to the commercial buildings in Causeway Bay, and even have a slight advantage.

It has to be said that Gao Yi's proposal surprised Li Wendi. If Mingcheng Real Estate Company becomes the "shop king" of Hong Kong, its strength will be equivalent to one-third of Liu Luanxiong.

"Okay! Let's hand over those theaters to Mingcheng Real Estate Company. As for the excess funds of Ducheng Real Estate Company, I will arrange to invest them in securities and stocks. The returns will not be bad." Li Wendi decided.

(End of this chapter)