Hong Kong's new giants

Chapter 445 [The Opportunity Comes]

After finishing the investigation in Jiangcheng, Lin Zuhui returned to Xiangjiang, and did not go to Zhejiang Province to inspect Qiandao Lake.

Nongfu Spring is the investment plan for the second half of the year or early next year, so there is no need to worry, because firstly, the domestic mineral water market is immature, and secondly, Nongfu Spring was launched in 1996 in the previous life of the richest man Zhong, so there is plenty of time.

Wednesday, April 4.

Xiangjiang, Huazhi Center.

Lin Zuhui was in his office, thinking about the problem seriously.

Today, the investment consultant of the family office sent a message from America, which made him smell the smell of 'money'.

The news is: Canada's Olympia & York Corporation, which has a high reputation in the international financial circle and has a stable business style, announced yesterday that it has asked 91 large commercial banks to postpone the repayment of tens of billions of dollars in debt owed, and to grant New jumbo loans to weather the storm.As soon as the news came out, it immediately caused panic and anxiety among creditors.

According to this news, Lin Zuhui knew that the time for bargain hunting in commercial real estate in Europe and America was coming soon.

Absolutely no banks are lending money to Olympia & York, which is expected to file for 'Bankruptcy Protection' in May.

The so-called "bankruptcy protection" means that regardless of whether the debtor is solvent or not, when the debtor voluntarily submits to the court or the creditor compulsorily submits a bankruptcy reorganization application to the court, the debtor must propose a bankruptcy reorganization plan, and the debt repayment period, method and possibility Arrangements to prejudice the interests of certain creditors and shareholders.This plan should be given a certain amount of time to propose, and then approved by the creditor and confirmed by the court, the debtor can continue to operate.This is the concept of reorganization, which is also called bankruptcy protection in Chinese.

However, with so many banks involved, this bankruptcy protection will not pass, leaving Olympia & York to go bankrupt.

Historically, the company declared bankruptcy at the end of the year.

Olympia & York Corporation, owned by the Canadian billionaire Paul Richman family, owns numerous office buildings and high-rise buildings in the United States, the United Kingdom, and Canada itself.The commercial real estate in New York City alone is equivalent to the size of 8 Empire State Buildings, and it is this company that is currently developing the famous London 'Canary Wharf' financial CBD (Wall Street in Europe).

2% of the real estate tax of the New York municipality is provided by this company. The company's total assets are about 200 billion US dollars. Because it is not listed, it has long been the leader of the world's private real estate companies.

Economic booms and busts are often mirrored in the real estate industry, where construction sites boom with cranes, hard hats, workers sweat... during booms, and empty office buildings during recessions , the outside is covered with auction posters.

At this time, the new high-rise buildings could not find tenants, and the landlords did not receive any income. Disastrous results occurred one after another. Not only construction workers lost their jobs, but the demand for cement, masonry, steel and glass was greatly reduced, and the banking industry was soon implicated. .

Western economies have generally stagnated in recent years.Affected by it, the commercial real estate in the United States, Canada, the United Kingdom, Japan and other countries has a surplus, land prices have plummeted, and commercial real estate markets have collapsed one after another.

Famous American real estate tycoons like Donald Trump and John Portman were forced to sell their real estate to pay off their debts.

In general, vacant square footage in office buildings is a barometer of the rise and fall of the commercial real estate industry.At present, the vacant area of ​​office buildings in the United States is unprecedented in history, and almost 5 square meter of every 1 square meters is vacant.

As a rule of thumb, when a building is 17 percent vacant, homeowners lose money.However, in 1991, the average vacancy rate of office buildings in Los Angeles, USA was as high as 25.2%, and the vacancy rates of buildings in the bustling commercial districts of Houston, Chicago, and New York City were also around 20%.

In this way, of course no one is willing to buy those skyscrapers, the decline of the real estate industry cannot be avoided, and the unemployment of workers will increase accordingly.

The signal is coming!

What should I do?

Lin Zuhui has always wanted to be the overlord of the world's commercial real estate, now is the opportunity, and the best opportunity to buy the bottom.

He called Liang Zhenxun and planned to make financial arrangements. This kind of commercial real estate investment must be based on the New Times Group as the flagship, and personal funds can also participate appropriately.

No matter how high the rate of return on real estate is, it is not as profitable as speculation in gold at the end of the year.

Lin Zuhui knew that in September this year, Soros shorted the pound a lot.The British pound depreciated all the way. Even though the British government used a large amount of foreign exchange reserves to defend the pound, it failed miserably in the end and was forced to withdraw from the European exchange rate system.And Soros became the biggest winner, with a profit of nearly 10 billion US dollars.

After the United Kingdom withdrew from the European Exchange Mechanism, in 1993, gold experienced a sharp rise, with an increase of nearly [-]%.

To do gold futures, there must be high leverage. If you have 20 times leverage, you can get six times the profit.As long as the amount of funds is sufficient, the risk of leverage is small enough. For example, if he invests 20 billion Hong Kong dollars, he may still have 60 billion reserves to cover his positions at any time.

"Boss!" Liang Zhenxun walked in and greeted respectfully.

Lin Zuhui nodded and motioned him to sit down.

"At the end of this month, we will arrange a rights issue to raise funds of 30 billion yuan; we will issue convertible bonds to raise funds of 20 billion yuan. We will strive to complete the fundraising of 50 billion yuan in April and May."

"The boss plans to invest in commercial real estate in New York?"

Lin Zuhui nodded, and said: "Olympia York, the largest commercial real estate company in Canada, is on the verge of bankruptcy. It means that the office buildings in Europe and the United States have almost fallen to the bottom. And our New Times Group is now fully funded, and the property is booming , the situation is very good; in addition, Xiangjiang is too small, we only need to develop step by step, and we will be firmly seated in the first real estate group."

Liang Zhenxun said worriedly: "However, the rate of return in Europe and the United States has always been poor, and now you are preparing to enter the mainland."

Lin Zuhui liked the questioning and advice of his subordinates very much, although he would not listen.

"The rate of return is poor because there is no bottom-buying! In the past few years, European and American office buildings have fallen like this. I don't believe that European and American technology is so advanced. Could it be that office buildings will fall to the price of cabbage?"

"That's impossible! In any country with a stable political situation and a small real estate bubble, investing in real estate must make money. But how much does the boss plan to invest?"

Lin Zuhui thought for a while and said, "It depends on the situation. You are right in reminding me that if I can't buy cheap products, I will definitely not invest."

He did know the real estate investment direction of Buffett in his previous life. That was the only time he invested in real estate. He emphasized that he only invested in properties around New York University.

In fact, Lin Zuhui also has an idea, that is, whether it is possible to partially purchase the 1600 million-square-foot building of Olympia York Company in New York.

The promise is, it's cheap enough!
In short, we have to prepare for a trip to New York!
"Okay, I'm going to raise funds right away. But we have more than 60 billion in cash in our account, which is very rich."

"It's okay to raise more funds. I have prepared 15 to 20 billion funds to subscribe for stocks and bonds. Go ahead and do it!"

Liang Zhenxun was surprised in his heart, how much money this boss made!

Just spent 75 billion Hong Kong dollars in the bank, and the annual rights issue is also billions of billions of supply, which is simply unimaginable.

"Ok!"

(End of this chapter)