Hong Kong Island's New Rich Era

Chapter 288 New Achievements

The convoy stopped at a building and Liu Zhicheng and his party got out of the car. This time, Hao Qingwen and Huang Zuxu accompanied him on the inspection.

Of course, there is also Liu Zhicheng’s personal advisory team and legal team.

Under the guidance of the staff, the group came to a large conference room where a lot of people were already there.

Richman came up to him warmly and said with a smile: "Mr. Liu, welcome to Canary Wharf!"

Liu Zhicheng shook his hand and responded enthusiastically: "In the past six months, every time I came to London, I would come to see it once. It's not unfamiliar at all!"

"Ha ha"

Then, Liu Zhicheng greeted people from HSBC and Citibank, who were also investors in this project.

In later generations, Canary Wharf had three tall buildings, which were also the three tallest buildings in the UK. They were: Canada Square (also known as the "Canary Wharf Tower"), which was 235.1 meters high, and Eighth Canada Square (also known as the "HSBC Tower"), which was 199.5 meters high, and Citigroup Center, both of which were meters high.

A large number of landmark commercial properties, represented by three super-high-rise buildings, provide strong appeal for the new district.

These two banks are also the largest creditors of the bankrupt Olympia York, so it is natural for them to now invest in the Canary Wharf project.

Also attending the meeting was Clem, chairman of the London Transport Commission and now chairman of the project, while Richman is the actual manager.

The reason for this is that London does not want this project to be left unfinished, as it concerns the government's image.

This close connection also means that the development of Canary Wharf will now be in line with the pace of London's urban transport development.

After everyone sat down, Richman began his speech, introducing the project in detail, and everyone listened attentively.

After all, Richman was the chief planner of this project from the beginning. It can be said that without him, no matter who takes over, it will be difficult to convince the public.

After introducing the project, Richman continued: “The London government decided to complete the extension of the Jubliee Line before the millennium.

And opening an important station in Canary Island and integrating it into the existing Bay Area light rail system, this development plan will activate the commercial value of this area. "

Clem added: "If Canary Wharf is restructured, we hope that Canary Wharf Group will invest £24 million over the next 5 years to develop the transport infrastructure in the area, providing a guarantee for transport construction."

A number of investors were discussing the matter, saying that Canary Wharf was only a part of the area, covering only 0.35 square kilometres.

There is still a lot of undeveloped land around here. In the late 20s, a new phenomenon appeared in major cities on which the sun never sets, led by London: large tracts of blank or semi-blank land characterized by abandoned industrial or warehouse ruins waiting to be redeveloped.

Most of this land is publicly or semi-publicly owned, and local municipalities have plans to use it for housing or road construction but are unable to do so due to budget cuts or public opposition.

In short, even in this inner city of London, there is a large amount of land that is undeveloped and publicly owned.

This makes people think about Hong Kong, a city where every inch of land is valuable. Hong Kong is not short of funds, but of land, of course, on the premise of private development.

Richman then said loudly: “The current restructuring of the Canary Wharf project requires 15 billion pounds of redemption funds.

What we are going to discuss today is who is willing to become his investor. First of all, my good friend Mr. Liu Zhicheng is willing to invest 60% of the equity. "

For a moment, dozens of people in the conference room looked at Liu Zhicheng in disbelief.

Clem immediately questioned, "So when this project is implemented, will Mr. Liu Zhicheng participate?"

He was somewhat skeptical about Liu Zhicheng's ability to plan and undertake this project and thus disrupt the overall layout of London.

Liu Zhicheng immediately said: “I decided to invest in this project because of Mr. Richman, so I only believe that he has the ability to complete this project.

Moreover, I have a proposal that when the time is right, we can list Canary Wharf to raise funds to continue investing in this area and contribute more to London's business."

M, that's a bit against my will. I should say that I will continue to make a lot of money in real estate in London.

In its previous life, this area included 37 high-end office buildings, 4 shopping malls, more than 400 retail stores and more than 300 restaurants, with a population of more than 15 people employed in various industries.

The office and retail area accounts for 140 million square meters, and 60 square meters of office buildings are currently under development.

There are also internationally renowned brands such as Four Seasons Hotel, Marriott Hotel, Fraser House Hotel and Ibis Hotel.

Upon hearing this, Clem and other government officials nodded immediately and felt relieved. They were eager to restart the project to avoid any adverse impact on the government.

Although Liu Zhicheng holds a larger stake, he is only an investor after all, and Richman is still the person in charge of the project.

They also knew that Richman must have received some benefits by bringing in Liu Zhicheng to invest.

Citibank and HSBC both agreed with Liu Zhicheng's investment and expressed their willingness to invest 15% of the equity each.

Citibank supported Liu Zhicheng's investment because Liu Zhicheng was the second largest shareholder of Citibank and the two parties had deep cooperation.

As for HSBC, it is the largest creditor bank of the Whampoa Group. Naturally, it also supports the Whampoa Group and lends money to them.

Of course, the most important thing is that Richman insisted on letting Huangpu Group invest the bulk of the money, which puzzled many people and made them guess that there must be some secret deal between the two parties.

The remaining 10% of the shares were subscribed by three American investment institutions and Richman personally.

After the initial consultation, everyone was ready to discuss in detail, starting with the details of redeeming the "Canary Wharf". As for the subsequent development, that would be a matter for the future.

The next day.

Witnessed by the media, Richman led a group of investors to redeem the unfinished "Canary Wharf" project from major creditor banks at a cost of 15 billion pounds.

Of course, what the media is most concerned about is that the Hong Kong-funded "Whampoa Group" has invested 60% of the equity in the entire project.

For a time, European and American journalists were shocked, and Chinese journalists were greatly encouraged.

As the new richest man in the world, he was also chased by reporters for interviews.

The Times: "Mr. Liu, this is your second bargain hunting of commercial real estate in London, following your bargain hunting of eight office buildings in Manhattan, New York.

What made you make such a decision when the economies of Europe and the United States are in recession? "

Liu Zhicheng smiled and said: “I have an investment philosophy, which is – when the market is panicking, I am greedy, and when the market is greedy, I am panicking.

Therefore, with the European and American economies experiencing a continuous decline for several years, I personally believe that there will soon be a turnaround and the European and American economies will bottom out and rebound.

Of course, for the Canary Wharf project, it is worth investing at any time, and I have reason to believe that it will be another commercial CBD in London."

The New York Post, which always likes to dig holes, also asked questions.

"Mr. Liu has invested heavily in European and American industries. Do you have any concerns?"

"Currently, European and American investment only accounts for about 15% of our company, which is a reasonable arrangement."

He quickly declined to continue the interview and asked the reporter to interview Richman, the "Canadian tough guy".

No matter where Liu Zhicheng goes, he is always the most popular among reporters. The most important factor is that he is so young, which makes people feel that he is very legendary.

And now, as a Chinese, he started from a very small city and became the richest man in the world. Naturally, he can be called a "legend among legends".

For this investment in the 'Canary Wharf' project, Whampoa Group needs to invest 9 million pounds, which is approximately 105 billion Hong Kong dollars.

As for the Canary Wharf project, don't expect to make a penny of your investment back before the 21st century.

The eight office buildings (60 square meters) that have been built have an occupancy rate of only 40% and are relatively cheap.

Even if there is any profit, it will be used to restart the project and support the government's infrastructure.

According to Liu Zhicheng's idea, the company would go public in 1999 when the rental collection rate reached 99%, and the funds raised would be used to repay debts and continue investment.

Next, dividends can be distributed every year. Dividends are secondary. Liu Zhicheng can use the opportunity of listing to strengthen his control over the group (increase his stake).

The next step is to continue developing Canary Wharf and surrounding projects.

Liu Zhicheng's every move in London quickly spread to the world through the media here.

He had just been promoted to the world's richest man and was now the largest investor in Canary Wharf, which immediately caused a huge response around the world.

Many media use exaggerated methods such as "the world's richest man bought New York and London" to attract people's attention.

The public opinion in Hong Kong was even more shocked, as if a depth charge had been dropped into the calm waters, causing huge waves.

Of course, it still received rave reviews, and more of it was a sense of Chinese pride.

London, Crocodile Group Division.

In the conference room, Liu Zhicheng was meeting with some senior executives of Crocodile Shirt Group, including Ian, Vice President of Crocodile Shirt Group, and Joseph, CEO of Harvey Nichols Department Store. Crocodile Shirt Group is now internationalized, with many foreign designers and some foreign senior executives, because this is conducive to the internationalization of the company.

Of course, 90% of Crocodile Group’s business is in Asia, which is the result of Liu Zhicheng’s insistence on development in Asia.

Perhaps after the millennium, Liu Zhicheng will open a flagship store for the fast-selling brand "Jeanswest" on Fifth Avenue.

It’s not about making money, but about increasing one’s own value and being the first to receive and release trends.

Liu Zhicheng asked, "How is the situation at Harvey's Department Store?"

Joseph reported earnestly: "The business is going very well. The current turnover ranks second among the three largest boutique department stores in the world, and the annual profit can reach 800 million pounds."

It cost 5200 million pounds to buy it, and it looks like it will pay off in 7 years, which is still very good.

If bank interest is taken into account, it may take longer to recover the investment.

However, we must also consider that the European and American economies are booming, which will drive consumption levels to increase, and profits will also increase.

To achieve such impressive results, the department store must have changed its business strategy, otherwise it would have been making a loss.

Liu Zhicheng nodded and said, "The situation is very good. We will continue to optimize our business, improve our services, and strive to achieve better results."

"Okay, BOSS!"

It is not Liu Zhicheng's style to expect normal profits to recover the investment.

The right way would be to wait another three or four years, take advantage of the booming economies in Europe and the United States, list it, and then cash out part of it.

It is inevitable that department stores will be completely replaced by shopping malls in the 21st century.

…………

Thursday, March 3th.

Whampoa Plaza in Tin Shui Wai, headquarters of Whampoa Group.

Liu Zhicheng stood in front of the office window, overlooking Deep Bay and the entire Tin Shui Wai project.

Just standing at this height can inspire people's enterprising spirit.

Regarding the development of Huangpu Group, if the total score is 100 points, he would give Huangpu Group 110 points.

Too strong!

The Maple Leaf Country, the Beautiful Country, the British Empire, Malaysia, Singapore, Thailand, China, and Hong Kong (China) all have huge real estate businesses of the Whampoa Group.

Non-real estate business involves a wider range, almost dozens of countries.

Today, the Whampoa Group is the absolute trump card in Liu Zhicheng's hand, with a market value of HK$1400 billion (Hang Seng Index 6000 points).

Of course, the Liu Zhicheng family’s other trump cards include: Asia Television Group, City Culture Group, Crocodile Garment Group, Octopus Financial Group, Chigo Industry, and Orange Technology.

Liu Zhicheng's investment in the Canary Wharf project was seen by Hong Kong media and investors as another victory in going global, and it had a huge impact.

Many more investors followed Liu Zhicheng.

"Dong dong."

"Come in."

Liu Zhicheng returned to his office and sat down.

Hao Qingwen walked into the office and sat on the sofa to report: "Boss, the funds invested in the Canary Project have been transferred to the HSBC bank account."

Liu Zhicheng asked: "How much liquid cash is left in the account?"

Hao Qingwen replied: "More than 40 billion Hong Kong dollars, but the mainland needs to inject 20 billion Hong Kong dollars immediately!"

The Shanghai Stock Exchange has already agreed that Huangpu Group (Huaxia) will undertake the construction of the "Magic City Global Financial Center". Together with the initial investment in other mainland projects, an injection of 20 billion Hong Kong dollars is indeed required.

After the capital injection, the total cash expenditure is HK$50 billion, and the total investment in recent times is nearly HK$400 billion.

Although there was little money in the account, Liu Zhicheng said indifferently: "Well, there are no big projects for the time being, and we can withdraw an average of 15 billion Hong Kong dollars in cash every month, so we can continue to save money."

Although the predicted annual profit is HK$150 billion, the actual amount of funds recovered, including the investment principal, is more than that.

"Okay, I will definitely manage my finances well."

Then, Hao Qingwen said: “Boss, Huaying has restarted the negotiations for the new airport, and it seems that there is hope of reaching an agreement.

If this is the case, then the construction of the airport railway station will have to be put out to tender, and our funds may not be safe.”

Liu Zhicheng smiled and said, "Don't worry. The airport plan won't come out this year, so it's still too early to bid for the property above the airport railway station."

The properties above the Airport Railway Station can be said to be a super large project. The area of ​​the properties above the Airport Railway Central Station alone is as high as 43 square feet (the area of ​​the New World Centre in Tsim Sha Tsui is the same), and commercial buildings of more than 400 million square feet can be built.

There are more than 400 million square feet of commercial building area in Central. This is the current rental area of ​​Hutchison Whampoa in Central. You can imagine how huge it is.

In the past, this project was jointly won by Henderson Land and Sun Hung Kai Properties, with a total investment of HK$400 billion.

Naturally, they have no share in this life, and the Whampoa Group will definitely take it over.

Of course, if Li Ka-shing of Henderson Land Development is interested in joining, Liu Zhicheng would also welcome it and he could give up up to 30% of his shares.

As for Cheng Yu Tung, he doesn't like to bid the highest price, which means that as long as everyone is competing fiercely, he will take the initiative to withdraw. The competition in Central Station is so fierce that he is unlikely to participate.

The Airport Railway is a railway from Central Station to Lantau Island. There are many stations along the line where the development rights will be put up for tender - Central Station, Kowloon Station, Tai Kok Tsui Station, Tsing Yi Station, and Tung Chung Station. The most important of course is Central Station.

After listening to Liu Zhicheng's analysis, Hao Qingwen immediately felt reassured and said, "Okay, this will make things very easy financially."

Liu Zhicheng added: "According to the intelligence I have received, General Dynamics will release the excess funds in its account through dividends. Conservative estimates suggest that the recent dividends from General Dynamics will be $20."

Hao Qingwen said in surprise: "So generous? That's great. We own 141 million shares and can get more than 2800 million US dollars."

Liu Zhicheng nodded and said, "So I'll remind you that if General Dynamics distributes dividends, all funds should continue to be used to purchase Microsoft shares."

"Okay, I'll keep an eye on it."

In fact, as far as Liu Zhicheng knows, General Dynamics' abnormal dividend throughout 1993 was US$50 per share.

The normal dividend is US$2.6 per share, which means that the dividend per share this year is US$52.6. Whampoa Group can receive a dividend of US$7400 million.

In addition, Huangpu Group's average cost of reducing its holdings is US$68 per share, and General Dynamics' stock price will soar to around US$112 by the end of this year.

This means that Huangpu Group will make another profit of US$6200 million.

The return rate of this investment will be as high as 120% in one and a half years, which is extremely generous.

Only after discussing the company's finances with Hao Qingwen did Liu Zhicheng let him leave.

A company's financial arrangements are very important, and superb financial skills can even enable a company to achieve leapfrog development.

Tseung Kwan O, ATV Building.

In the spacious conference room, Liu Zhicheng was holding a meeting on "Hong Kong Culture" with a group of middle and senior executives of Asia Television Group.

Compared with South Korea's "culture-based nation" in the previous life, Hong Kong's "culture-based port" in this life has Liu Zhicheng as the chief designer.

The effect is no less than that of South Korea's national mobilization, and may even be better, because Liu Zhicheng has huge resources at his disposal and is well aware of the complete development plan.

His personal power is stronger than that of the entire Korean country because he can mobilize everyone's strength. The most important thing, of course, is that he is supporting Hong Kong culture by standing on the Korean country.

The management team reported to Liu Zhicheng one by one on their achievements and new plans.

Liu Zhicheng quickly understood the progress of Hong Kong culture and how to continue to develop it.

Shi Nansheng reported on the export of Hong Kong dramas: "Currently, the mainland has imported four of our Hong Kong dramas. Taiwan has imported five. South Korea is negotiating with us and also wants to import "Autumn in My Heart", "Stairway to Heaven" and "Tan Yunxian".

Liu Zhicheng immediately interrupted and asked, "What's the problem with the negotiations with the Korean country?"

Shi Nansheng replied: "They have some concerns about the price of $5000 per episode."

(End of this chapter)