Started from Hong Kong Island

Chapter 421 419 [End of Crisis]

In mid-October, Wendy Lee had negotiated with the Hong Kong government on the land premiums for five plots of land, including a 10 square feet plot in Hung Hom, Tsim Sha Tsui East, a tram repair shop in Causeway Bay, and an old power plant in North Point. The total price was HK$90 million, with an average land premium of HK$5 million per plot of land.

You have to know that at the peak in 81, the land in Tsim Sha Tsui and Hung Hom alone was priced at 9.4 million yuan. Now the area of ​​these five plots of land is more than 5 million square feet, with an average price of 200 yuan per square foot, and there are also land in Hong Kong Island such as Causeway Bay and North Point.

Hilton Central Hotel

Li Wendi met with Li Jiacheng of Cheung Kong Group here to discuss the land in Hung Hom and Whampoa in the east of Tsim Sha Tsui.

"Mr. Li, your Daxin Company is amazing. It has managed to regain a lot of market share through this crisis." Li Jiacheng said with a faint smile. He admired Li Wendi's sense of smell. Who could have expected that Li Wendi was so courageous and so optimistic about the prospects of Hong Kong.

"It's still not as good as ParknShop owned by Hutchison Whampoa. Dah Sing has only returned to the position it was in the 60s. It will take a long time to catch up with ParknShop and Watsons," said Li Wendi.

"Regarding the acquisition of Hutchison Whampoa that we talked about last time, when do you think it would be appropriate to fully launch it?" Li Jiacheng was very impatient. After all, the new company had tied up a lot of cash flow from Cheung Kong Holdings.

"I think we need to hold at least 30% of the shares before we can take action. The 35% stake issued by the Hong Kong government last year triggered the legal document for a full acquisition, which is very unfavorable for us. I think Mr. Li is not willing to make a full acquisition of the Hong Kong Land Company." said Li Wendi.

The current market value of the land company is more than 100 billion yuan, and this is during the downturn in the real estate market. Now, the currency crisis has just passed. No company can come up with more than 40 billion yuan in cash (equally divided among four companies), not even Li Wendi is willing to do so.

"This is the only way. I guess we can launch the acquisition by early next year. What do you think, Mr. Li?" said Li Jiacheng.

"It's almost done. It should be ready in January." Li Wendi nodded and said, "I have a big project that I want to cooperate with Hutchison Whampoa."

"What big project?" Li Jiacheng asked in shock.

Li Wendi smiled and said, "My Starlight Real Estate Company has a piece of land in the Hung Hom area in the east of Tsim Sha Tsui, covering an area of ​​90 square feet. It is adjacent to Hutchison Whampoa's dockland land in Hung Hom. If we can work together to build a comprehensive plaza like Harbour City, I think it will be in the interests of both parties."

Li Jiacheng frowned upon hearing this and said, "If we change the land to commercial and residential use, I'm afraid it will require a huge amount of land compensation fees."

Li Wendi smiled and said, "Now is a critical period for the Hong Kong government. The land premium will naturally be much cheaper. Hutchison Whampoa can take this opportunity to negotiate."

Li Jiacheng asked, "How much land premium did Mr. Li pay for the Hung Hom land?"

"1.3 million yuan!" Li Wendi said with a proud smile.

Li Jiacheng's eyes widened, his heart beating, "Thank you Mr. Li for reminding me! But the construction fee is probably not a small amount."

"If Mr. Li plans to hold all of them, he will naturally need a lot of funds. If he adopts the strategy of Shatin First City, the urgency of funds will be greatly reduced," said Li Wendi.

"Mr. Li, do you plan to hold it or sell it?" asked Li Jiacheng.

Li Wendi said honestly, "All residential properties are sold, and all commercial properties are kept."

Li Jiacheng thought about it for a long time, and Li Wendi did not rush him, but waited quietly for Li Jiacheng's answer. Even without the blessing of the Whampoa Shipping land, the Hung Hom land could be built into a large integrated community, adding bricks and tiles to the Li Wendi family.

"Since Mr. Li has made a plan, I don't think there will be any problem. I agree with the suggestion of jointly building a comprehensive business district, but we need to sign an agreement to avoid any changes in the middle that affect the interests of the other party." "OK! Mr. Li's suggestion is exactly what I want!" Li Wendi laughed.

"Mr. Li, how much funding do you estimate is needed for the entire project?" Li Jiacheng asked.

"It is estimated to be more than 150 billion yuan. The initial investment requires 30 billion yuan, you need to invest 22.5 billion yuan, we will invest 7.5 million yuan, and the remaining funds can be loaned. The total funds required for the initial investment are about 44 billion yuan." Li Wendi replied.

"Okay!" Li Jiacheng still looked unhappy, as if he was not very confident about this project.

10月15日，港府正式宣布：从10月17日起，香江将实施美元兑香江币联系汇率制度，汇价定为1：7.8。

The Hong Kong dollar exchange rate storm has officially ended.

The difference between 7.8 and 10.1 is so huge that it is definitely not acceptable to most people.

After this exchange rate was set, countless people suffered heavy losses and countless people made huge profits. The difference between the two was 40% of the funds.

Some of those who sold their houses to exchange for US dollars or wanted to take advantage of the Hong Kong Coin crisis to short the Hong Kong Coin lost everything they had and had no choice but to jump off the building.

Wheelock Corporate Office
Ye Wenjian and Wang Tichuan are reporting on the company's operating issues during the crisis.

"Since the prices of the goods we stockpiled have not increased, our profits are very stable. The goods in nearly 10 warehouses have been sold out, and we are now using the channels of Hebao Company to purchase large quantities of goods." Ye Wenjian reported.

"With the current exchange rate rising, the prices of our goods must also rise accordingly, otherwise there will be considerable losses." Ye Wenjian continued as he looked through the documents.

"Then put up a notice to explain the price increase to customers." Li Wendi nodded and said.

"We made a profit of 2.7 million yuan during the crisis, with a net profit of nearly 2.4 million yuan. If the remaining goods are added, the profit can reach 3.2 million yuan, with a net profit of 2.8 million yuan," said Ye Wenjian.

"How many cheap properties did you buy with this profit?" Li Wendi turned to look at Wang Tichuan.

"Only the department store properties that were purchased with profits include 31 stores, all in Hong Kong Island and Kowloon urban areas, 11 high-end residential units, concentrated in the Mid-Levels and Fu Bak Lam areas, and 9-storey commercial buildings, mostly in Wan Chai. The total area is 20.15 square feet, involving 1.1 million yuan in funds, and there is still 1.6 million yuan that has not been purchased." Wang Tichuan replied, "The company's other funds have been used to purchase a large number of properties, with an area of ​​40.3 square feet, consuming 2.2 million yuan in funds."

Li Wendi took the report and looked at it. It contained very detailed records, including the location and value of the store.

"The currency crisis is over, but other crises are still continuing. Wheelock will continue to acquire cheap and high-quality properties to increase the company's asset base." Li Wendi said, with his fingers clasped together on the table.

"Yes!" Wang Tichuan responded.

“Department stores can also buy some shopping malls as support points, so that they can expand their scale in the future.” Li Wendi explained to Ye Wenjian.

(End of this chapter)