I want to be a giant of Hong Kong Island

Chapter 597 [Guangyao and Guangzheng]

In an office building in Harbor City, Huaxin Real Estate, a joint venture between Cheung Kong and the Bao family, was officially established;

Cheung Kong Holdings invested in four pieces of Tsim Sha Tsui East land, accounting for 50% of the shares;

The Bao family took out 7.5 million Hong Kong dollars in cash to invest in shares, accounting for 50% of the shares;

In the conference room, the two parties signed a cooperation agreement under the witness of lawyers.

Cheung Kong spent 5.5 million Hong Kong dollars to buy these four pieces of land two years ago. Now, in less than two years, the value of these four pieces of land has risen by more than 40%. Of course, by 1980, the value of these four pieces of land will reach 18 billion Hong Kong dollars. above.

Two commercial buildings with shopping centers and two hotel buildings will be built on the four plots of land, and the construction cost is estimated to be more than 10 billion Hong Kong dollars;
The 7.5 million Hong Kong dollars that Pao took out will be used for other real estate projects in addition to the start-up capital of the four lands in East Tsim Sha Tsui.

After the contract is signed, the Bao family is equivalent to booking two high-quality properties;

You know, in the previous life, when acquiring Wharf, Jardine Matheson proposed to exchange Hongkong Land’s high-quality properties for Bao Yugang’s shares;
Bao Yugang did not refuse at that time, but made a tentative proposal to exchange the land with the three buildings of Golden Gate Building, Chater Building and Prince Edward Building in Central;

It's a pity that Jardine is only willing to exchange Jinmen Building, Xingguanghang, and a dozen high-quality small bungalows in the middle of the mountain.

If Jardine had agreed to Bao Yugang's request at that time, maybe Wharf would have saved it!

The value of Wharf is definitely higher than the three buildings!
"Guangyao, President Li, please ask me more in the future!" Bao Yugang said humbly.

The chairman of Huaxin Real Estate was Bao Yugang, and Cheung Kong sent some management teams to assist the Bao family, and at the same time charged a certain amount of management fees for Huaxin Real Estate.

Support the Bao family in a disguised form and lead them into the industry!

Wu Guangyao said: "What are you being polite about, we are a win-win cooperation!"

Cooperative development of real estate projects is a very common practice on Hong Kong Island. At present, all large projects are jointly developed by several real estate companies.

Recently, although the Wu family and its companies have made a lot of money, their investments are even better;

The investment in gold futures/spot is 50 billion U.S. dollars, and there are also a large number of investment projects abroad, with funds as high as 20 billion U.S. dollars;

In Hong Kong, just one Tin Shui Wai requires continuous investment of 200 billion Hong Kong dollars (35 billion U.S. dollars).

That's why Wu Guangyao planned to take out these four pieces of land, let Bao Yugang pay for it, and the two sides will jointly develop it.

It doesn't mean that there is no money to develop these four lands, but Wu Guangyao also has to ensure his own cash flow, and he just happens to be a favor.

Looking at Wu Guangzheng beside Bao Yugang, Wu Guangyao said, "Old Bao, you are planning to let Guangzheng take over the real estate business!"

Wu Guangyao and Wu Guangzheng are both Wu's "Guang" generation. In the past, Bao Yugang asked Wu Guangzheng to call Wu Guangyao "Wu Uncle", but Wu Guangyao strictly refused; what a joke, although he and Bao Yugang are of the same generation However, he and Wu Guang are descendants of the Wu family in Jiangsu, Zhejiang and Shanghai, so they must not mess up their seniority.

Bao Yugang said with a smile: "I plan to let him study in Huaxin Real Estate, what position do you think is good for him?"

Wu Guangyao looked at Li Xing and asked for his opinion!
Li Xing thought for a while and said, "Let's just be the vice president! Cheung Kong will quit Huaxin Real Estate after completing the Tsim Sha Tsui East Project and the Wanchai Tobacco Land Project, and the handover will happen at that time!"

Cheung Kong's management team does not work in Huaxin Real Estate for free, and Huaxin Real Estate needs to pay a management fee.

Bao Yugang and Wu Guangzheng expressed their gratitude one after another. The Bao family not only acquired three properties (two in East Tsim Sha Tsui and one in Wan Chai), but also a real estate company. There is no reason for them to be unhappy.

The real estate in Hong Kong is booming. All major real estate developers are attacking the city, and the companies under Wu Guangyao are not far behind.

On this day, on a whim, Wu Guangyao decided to inspect a large project developed by his own real estate company.

First, Wu Guangyao, accompanied by Wei Li, came to Aberdeen.

Aberdeen is located on the south side of the island, opposite to Ap Lei Chau, which originally belonged to the warehouse wharf of Kwan Yick Warehouse;
After Hutchison Whampoa privatized Junyi Warehouse, it was preparing to turn it into a large housing estate.

Aberdeen is a well-known fish wholesale terminal. Walking here, there is a faint smell of seafood in the air.

"According to the current progress, the fourth phase of the project is expected to be completed within six years!" Wei Lihui reported.

Wu Guangyao nodded. The fourth phase of the project has a total of 3500 residences and two shopping plazas. There is no need to worry about the profits of Hutchison Whampoa in the past few years!
The Aberdeen project was approved in the second half of 1975 and is divided into four phases. The first phase will be sold at the end of this year, and the price is expected to be around HK$400 per square foot;

And when the second phase of the project is sold, it will reach 700 Hong Kong dollars per square foot;

The third phase is expected to be 900 Hong Kong dollars, and the fourth phase is expected to be 1200 Hong Kong dollars;

Calculated in this way, the average selling price is HK$800 per square foot;

There are 3500 residential units with a total area of ​​200 million square feet. This project is expected to generate a profit of about 8 million Hong Kong dollars.

This is just one project. There are as many as a dozen large and small projects of Hutchison Real Estate, and the total investment of these projects exceeds that of Aberdeen.

The real estate profit ratio of Hutchison Whampoa does not exceed 50%, and other industries perform very well;

Thinking of this, Wu Guangyao finally breathed a sigh of relief!

Although Hutchison is not his own, but if Hutchison is not developed well, gossip will still spread on Hong Kong Island!
Of course, if Hutchison did not enter new fields in the 80s;

Then, the achievements of Hutchison Whampoa in this life may not be higher than that of Hutchison Whampoa in the previous life.

After all, there were 3.5 Hutchison Whampoa Kwai Chung Container Terminals in the previous life, and only 1.3 in this life;
Moreover, Hutchison Whampoa acquired HK Electric Group in the last generation, and this generation HK Electric Group is in the personal hands of Wu Guangyao.

In this regard, Wu Guangyao planned to spread Hutchison Whampoa's investment overseas and inland in the 80s.

On the same day, Wu Guangyao also visited the former site of North Point Power Plant, a project developed by Jiahong Real Estate under HK Electric Group.

This land can also be developed into a large housing estate with 4000 residential units, as well as hotels and shopping plazas.

Wu Guangyao named this project City Garden Project, the hotel is called City Hotel, and the square is called City Square.

Naturally, the city hotel is handed over to Shining Star Hotel for management, that is, the city hotel pays a management fee to Shining Star Hotel every year, and the remaining profits go to HK Electric Group;
Wu Guangyao has no intention of taking the city square into his private arms, and it will be the property of Hong Kong Electric Group in the future, collecting rent every year.

There are so many real estate projects under Wu Guangyao, there are five or six big projects and dozens of small projects in one island, so that one day is not enough time for inspection;

So Wu Guangyao ended his whim of the day with still unfinished business!

(End of this chapter)