Started from Hong Kong Island

Chapter 400 398 [Spend sparingly]

Li Wendi was slightly stunned. This was the most beautiful land in Hong Kong. Not only was it located in the center of the core commercial area of ​​Central, Hong Kong Island, but the land was also large enough. 14.4 square feet was equivalent to a small community.

Such a piece of land is hard to come by and is extremely rare in the entire history of Hong Kong.

This piece of land was leased by the Hong Kong government to China Motor Bus Company for use, rather than being sold to China Motor Bus Company in whole or in part.

It is strange to say that the real estate adjustment was initiated by the Hong Kong government, which is equivalent to pouring a basin of cold water on a raging fire and then trying to fuel the fire. The Hong Kong government was planning to launch this piece of land to stimulate the market and move the Hong Kong Stock Exchange to a newly built commercial building.

The exchange is the financial core of Hong Kong. As long as the exchange moves here, the three commercial buildings will not lack tenants, and it will even drive up the rents of the nearby commercial buildings.

Although this project requires an investment of billions or even more than 200 billion, the 180 million square feet of floor area has a rentable area of ​​at least 4 million square feet. Based on the current rent in Central, the annual rental income is as high as 27 million yuan, and it will take at least years to recover the investment.

However, this is just an arithmetic calculation. Li Wendi feels that 15 years is enough to make back the investment. Moreover, after entering the 90s, the rent in Hong Kong has increased significantly. The annual rent of these three buildings is probably tens of billions of yuan.

Li Wendi was still hesitating. He wanted to use this piece of land to weaken the finances of the real estate company. But now he thought that even if he weakened the finances of the real estate company, it would be difficult for him to make the real estate company give up this crucial piece of land.

So, he couldn't let the Jardine Matheson take it over.

"Go ahead and sign up. Changxin Group is participating in the bidding for this piece of land." Li Wendi responded, "You need to start raising funds for this. Let's set the initial amount at 70 billion yuan."

Zhang Wentao hesitated for a moment, "Boss, it's hard for the group to come up with such a large amount of funds. Even if it does, it will affect the company's operations. It's better to ask its subsidiaries and brother companies to help, and the group can redeem the rights from them later."

Li Wendi thought so too. Such a large amount of funds was enough to overwhelm any company. "How much money can the group provide? What proportion can it account for?"

"Raising 20 billion yuan is not a problem. If the asking price is 70 billion yuan, the group can raise 35 billion yuan and strive to obtain a 50% equity interest." Zhang Wentao stated his plan.

"Let's raise 30 billion yuan first, on the premise that it will not affect the normal operation of the group and the development of important projects. For example, for Kapok Tower, we need about 5 million yuan to redeem 50% of the equity from Hang Lung Group." Li Wendi reminded that one should not pick up watermelons and lose sesame seeds, as he wants both kinds of food.

"Yes! I'll do it right away." Zhang Wentao had already guessed that the price in his boss' mind was 60 billion yuan.

"There is one more thing. The Hong Kong government has launched a bidding for the residential land in Garden Road, Mid-Levels. The land area is 10.3 square feet and can be used to build three 50-storey high-end residential buildings. The estimated market value is 28 billion yuan."

Li Wendi had heard of this piece of land a long time ago, and Chen Zengxi of Hang Lung Company had proposed cooperation at the dinner at the Governor's Mansion. If it really didn't work out, he could join forces with his family company to take it over.

"Regarding the bidding for this piece of land, I have discussed with Chen Zengxi of Hang Lung, and we have reached a preliminary verbal agreement on cooperation. The Changxin Group probably cannot come up with so much money, so my family company will take the lead, and the group will hold about 10% of the shares." said Li Wendi.

"Yes! Do you want me to talk to Hang Lung Company on behalf of the group?" Zhang Wentao asked.

"You should go and talk to Hu Jian from Starlight Real Estate Company." Li Wendi instructed. Although the land king on Garden Road in the Mid-Levels is rare, it is definitely not as good as the land at the bus terminal.

Although he had some foresight in his previous life, Li Wendi was still a little nervous. He had to do his homework. "Okay, I'll contact Mr. Hu from Xingguang Real Estate Company later." Zhang Wentao had dealt with Hu Jian before. After all, Changxin Group and Xingguang Real Estate Company had many land development cooperation projects.

After Zhang Wentao left the office, Li Wendi began to recall the information about the Central Bus Terminal land. In the previous life, Swire Properties acquired the land for HK$47.55 billion, while Cheung Kong Holdings and Sun Hung Kai Properties lost for HK$43 billion and HK$38 billion respectively.

Compared with the estimated price of 75 billion yuan, the price of 47.55 billion yuan is certainly a bargain, and the investment in the entire project is just over 80 billion yuan.

Even if calculated based on the current commercial building rents in Central, it will only take 21 years to recoup the investment.

Of course, Li Wendi cannot measure the price of this life according to the winning bid price in his previous life, but the difference will not be too big. He feels that 55 billion yuan is already safe.

Because according to the current debt situation of the land company, the total debt has exceeded 100 billion yuan, and the debt ratio exceeds 6%. If the loan for this piece of land is added, there will be no problem for the debt ratio to reach 8%.

Originally, Li Wendi planned to buy all of the properties in Causeway Bay from the Hong Kong Land Development at a low price, and also to sell the 14.4 square feet of land at the Central Bus Terminal. However, thinking of the Hong Kong Land Development's obsession with properties in the core area of ​​Central, he was reluctant to take the risk.

After all, he didn't dare to say that he would have a 100% chance of successfully acquiring the Hong Kong Land Development. HSBC would definitely block it, and the Hong Kong government might also intervene to stop it, so Li Wendi was unwilling to take the risk.

Then Li Wendi went to Henderson Land Development and Wharf Holdings and asked Wang Tichuan and Mai Lisi to prepare the funds and divide the remaining 50% equity equally.

Upon hearing that there was such a good project to participate in, Mai Lisi and Wang Tichuan immediately guaranteed that they would be able to raise 15 billion yuan in cash and would not affect the bidding progress of the project.

At the same time, Li Wendi and Li Jiacheng raised 1 million yuan in start-up capital for Asia Television, and Zhou Liang Shuyi was also in place. Li Jiacheng was quite satisfied with Zhou Liang Shuyi as a manager.

Zhou Liang Shuyi's family background is very unusual. Even ordinary British people have to give her face, which makes it easier for her to deal with other problems. Her ability is certainly beyond doubt.

However, what made Li Jiacheng wary was that Zhou Liang Suk-yee was very good at spending money. He knew that when she was at ATV, Zhou Liang Suk-yee was a well-known "big spender" (a big spender). He was worried that before the outcome of the battle with TVB was decided, Asia Television would fall into financial crisis first.

In fact, Li Wendi was also afraid, but his personal strength was much stronger than Li Jiacheng. Even if Zhou Liang Shuk-yee spent 10 billion yuan every year, he could afford it, but it would be a bit painful.

"Ms. Zhou Liang, we only have 1 million yuan in funding, so make good use of it!" Li Wendi reminded with a smile.

Zhou Liang Shuyi nodded and said, "I will pay attention and try not to be like when I was at Jiayi TV Station."

Li Wendi continued, "I don't mind, but Asia Television has other shareholders. They will have opinions, and it will also have some impact on your work."

"Yes!" Zhou Liang Shuyi knew that this was a well-intentioned "warning".

(End of this chapter)