Hong Kong's new giants

Chapter 452 [Practice Black First]

Tuesday, July 5.

Today is the day for the delivery of the May index futures (three trading days are reserved for delivery), and it is also the day for Lin Zuhui to harvest;

At the beginning of the year, Hengjin Investment bought 10000 May futures contracts, and the average value of buying the Hang Seng Index was 4400 points, and today's opening is 6100 points.

In other words, he invested about 4.4 million yuan. After the market closes today, he may make a net profit of about 8.5 million yuan and withdraw 13 billion yuan.

The funds came in a timely manner, because he had no money left!

It was unbelievable, he felt like he was always short of money.

年初还有60多亿的现金，结果购买海外信托银行花了25亿、沽空美元日元花掉15亿的保证金（20倍杠杆，均点132.8点）、供股集资/认购债券花掉25亿、支付仙女7亿用于购置海外资产。

If it weren't for the dividends of over 10 billion (multiple listed companies) and the rental income of Hengjin Real Estate in the hundreds of millions, I'm afraid he would have been 'bankrupt'!

Lin Zuhui is used to this kind of life where he earns a lot and spends a lot.

If he has tens of billions of cash in his hands but no investment projects, he will feel uncomfortable instead.

USD/JPY, which was short-sold this year, has now fallen to more than 129 points, which is considered to be the beginning of a decline. I don’t know if it will rebound;
The point is, if it falls to around 120 points this year, he may not close his position. After all, he is looking forward to falling to around 100 points next year.

Therefore, if you buy gold futures at the end of the year, you have to borrow a little in advance.

Now he doesn't need to think about the risk of taking out loans for finance. After all, his US stock market value, Hong Kong real estate, and shares in listed companies are all very rich.

It is also impossible to go bankrupt at a loss.

"Dong Dong" knocked on the door.

Secretary Li Ke walked in with Chen Bin.

"Boss, the project with HSBC has signed a formal contract. Before the end of this year, we will complete the demolition work and start the superstructure project early next year." Liang Zhenxun sat on the sofa and reported.

Lin Zuhui was a little bit satisfied. This was the first real estate cooperation between New Era Group and HSBC.

HSBC is located at the old site of staff quarters at No. 23 Pokfield Road, Hong Kong. It plans to redevelop two 35-storey residential buildings.The total buildable floor area of ​​the site is approximately 5 square feet.The "New Era Group" is responsible for the entire development, and the New Era Group plans to invest HK$1995 million as land premium and construction costs.The two parties each hold approximately [-]% of the equity in the entire development, and it is planned to complete the occupancy in [-].

It won't make too much, at most 30% of the annual income, but after all, it is a project that was snatched from Cheung Kong Industrial, which is still very happy.

It turned out that in April this year, Li Chaoren officially resigned as the director of HSBC Bank, and also announced that the honeymoon period between HSBC Bank and Li Chaoren was over.Although it cannot be said that there are conflicts, at least they will not be as close as before.

Of course, Lin Zuhui naturally didn't mean to go up to the top. He and HSBC are limited to loan cooperation and real estate cooperation. The relationship between Li Chaoren and HSBC is far from good, even now.

He doesn't need to have a good relationship with HSBC either!Both parties have interests in this cooperation - HSBC Bank is eager to continue to cooperate with New Times Group (loans), and also hopes that Lin Zuhui's relationship will help them return to the mainland.

Lin Zuhui said: "Well, try to sell them all by the end of next year and the beginning of the next year."

Chen Bin nodded and said, "Okay, I'll make a note later!"

Lin Zuhui also said: "Next year we will strive to sell 300 million square feet of residential area, and we must make full preparations and schedules."

In fact, this is his careful calculation.

He knows that this wave of Hong Kong government's suppression of real estate speculation, the low-to-medium-end housing market can only be said to have risen slightly, not a big rise; this indicates that there will be another big market next year, so more houses should be sold.

And in 1994, the Hong Kong government may have to crack down on real estate speculators more severely. In addition, Xiangjiang Real Estate will enter a "adjustment period" by then, and it is possible that it will fall by [-] to [-] percent.

In the Maanshan duel between Li Chaoren and Lee Shau Kee in the previous life, the property price ranged from more than 5600 Hong Kong dollars to 3950 Hong Kong dollars in the end.

Therefore, for a better benefit ratio, Lin Zuhui usually makes careful calculations, that is, the supply fluctuates.

For example, if the supply was 1993 million square feet in 300, it would be sufficient to supply 1994 million square feet in 280.

Chen Bin naturally knew that the boss was good at careful calculation and good timing, so he firmly believed in it.

"Well, there is no problem with planning supply!"

Lin Zuhui thought for a while and said: "Recently, due to the opening up of the mainland, the prices of industrial buildings in Xiangjiang have not risen but have fallen. You can ask people to search for some industrial property land and old buildings that can be rebuilt in Kwun Tong and buy them. These old buildings on rebuilt land , can be used as a land reserve, and can be rebuilt into a complex in the future, which is quite cost-effective!"

Because Hong Kong's factories have all been relocated to the mainland, the Hong Kong government has already allowed industrial land to build comprehensive buildings, that is, office buildings and factory buildings.

Now the Hong Kong, Hong Kong and Kowloon areas have less and less land, so if you want to reserve more land, you need to be more flexible.

Chen Bin asked: "It's easy to find a suitable one, but how much do we plan to invest?"

Lin Zuhui said: "Less than 8 million!"

"Okay, I know!"

The net profit of New Era Group for one month is nothing.

And it's a semi-commercial building, so it's a very good thing to be able to pick up a bargain.

In Lin Zuhui's view, the New Era Group makes money quickly, so it must also spend it quickly, and it cannot keep too much money in its hands.

After a while, Liang Zhenxun also walked into his office to report on his work.

First of all, the acquisition of Miramar Hotel is officially launched, with an estimated cost of 29.5 billion Hong Kong dollars and a 34.5% stake in Miramar Hotel;

Secondly, the United States sent back news that it had purchased Microsoft's stock worth about 2.5 million U.S. dollars.

Lin Zuhui is very satisfied with these two investments.

The Miramar Hotel has no debts, but has a cash flow of 5.2 million yuan in its account. This money can start the Miramar Plaza project (which has already been approved); in addition, it can also make loans and invest in the mainland.

The cost of US stocks invested by New Times Group has reached 3.5 million US dollars, and the current profit is 1500 million US dollars; according to Lin Zuhui's prediction, the rate of return will maintain more than 35% every year in the future, and until the beginning of 2000, it can earn more than 8 billion US dollars in 80 years .

The money can be used as a "guarantee" for New Times Group's investment in commercial real estate from 1993 to 1994. It is like the egg philosophy. If a project generates losses and low profits, another high-return industry can increase the overall return on investment.

Of course, Lin Zuhui is also full of confidence in investing in commercial real estate in the United States, and he will definitely be able to succeed in bargain hunting.

At the end of May, Lin Zuhui came to Beijing.

He signed three consecutive contracts with Beijing officials, and won the three major projects negotiated at the beginning of the year in one fell swoop, namely:
The reconstruction project of Dong'an Market on Wangfujing Street, after the entire project is renovated, the business area will reach 150 million square feet; the highest building has 10 floors and two underground floors, and it is composed of multiple buildings; one of them is used as "Dong'an Market" The department store model is based on the central cashier model, and the rest are modern rent-collecting shopping center models.The cooperation model between the two parties is: Dong'an Market takes the land as a shareholder, accounting for 35% of the shares; New Times Group bears all construction costs, taxes and fees, accounting for 65% of the shares.The entire 'New Dong'an Market' project is expected to be completed in the first half of 1997 and put into operation.

The 'Wangfujing Hilton Hotel' (Xiaowei Hutong) project adjacent to Dong'an Market covers an area of ​​20 square feet. This project is purchased by New Times Group and is solely owned by it.

The Central Plaza in Sanlitun covers an area of ​​70 square feet. It is a modern shopping center composed of 19 low-density buildings (10 floors), and creates a fashionable, trendy, and artistic style block. This project is wholly-owned by Hong Kong.

The three projects went very smoothly, and the negotiation time was less than three months, which is closely related to Lin Zuhui's personal connections and influence.Lin Zuhui himself is not just a real estate businessman. His garment factories in the Mainland employ thousands of workers, and he is a representative of the manufacturing industry among foreign capital.

After winning three projects, Lin Zuhui did not leave the capital, but continued to negotiate with officials in the capital.

In a conference room, Lin Zuhui expressed his thoughts: "The capital city is the capital of China. Foreign tourists who come to China will basically come to the capital city. In recent years, there have been many new buildings in the capital city, but if the city center is low and dilapidated, The rotten houses really hinder the appearance of the city. Therefore, I want to discuss with the leaders to carry out a comprehensive renovation of the old city of Chongwen and build new modern urban buildings."

A Beijing official said: "The old city of Chongwen is about 200 million square meters (2200 million square feet). For such a huge project, just relocation is a big problem. People must live and work in peace, otherwise there will be chaos."

Lin Zuhui immediately expressed his thoughts and said: "Naturally, we will consider everything carefully. Our New Times Group is willing to cooperate with the government to develop and adopt the method of demolition and construction. Such a huge project can be constructed in multiple phases. We can cooperate to establish The company carries out. In the entire project, build residences, hotels, commercial buildings, etc., and make overall plans.”

For a renovation project of 200 million square meters, and it is in the center of the capital, it is unrealistic to buy land and build it solely as a sole proprietorship.

Not to mention other factors, just a relocation project, without the government to handle it, I don't know how many things will happen.

And this project is so huge that New Era Group's construction and investment in phases is equivalent to reserving land in disguise.

New Times Group's investment in the mainland must also adopt the method of "emphasizing land reserves", so as to slightly increase the rate of return.But he knows that the rate of return of mainland projects is only in the range of 8-15%, and he cannot make quick money.But if the quantity is large, it is still very worthwhile.

This time he came to the Mainland, in addition to signing six contracts, he also had to invest in 'property development' (residential projects).

Because the return period of rental properties (shopping malls, office buildings) is too long; therefore, we must work together to collect rental properties and develop properties in the Mainland.

After two years of developing the property, you can start selling off-plan houses and withdraw funds;

The money earned just makes up for the investment in rental properties.

The officials in the capital immediately attached great importance to this project, and the two sides conducted preliminary negotiations.

And considering the situation in the capital, Lin Zuhui also tried his best to show sincerity and truly win-win cooperation.

In the end, the two parties reached a preliminary intention, and they were quite satisfied with the cooperation.

Of course, this project can't be approved immediately, and has to pass the approval of the above, but Lin Zuhui believes that the problem is not serious.

This is very beneficial to the development of the city!
To start such a project, New Era Group (Huaxia) actually does not need to invest too much, as it will be carried out in stages after all.

Lin Zuhui's trip to the mainland was very fast, and he signed three contracts in Shanghai very quickly. By the way, he successfully negotiated a large residential land (300 million square feet).

After returning to Guangdong Province, he won another 800 million square feet in Yangcheng, planning to develop a residential project in ten years.

On the Go board, it is an established rule to hold the black first, and it is also a subtle winning rate.Skilled chess players strategize when playing chess, but shrewd chess players have penetrated the rules of promotion points before the start of the game.It's not about winning or losing a game, but about taking the lead every step of the way.

New Times Group's project investment in the Mainland is laid out in this way, and it grabs the projects with the best locations.

Moreover, land reserves are very important for real estate development in the Mainland, because housing prices are rising rapidly, and the cheaper the land cost, the higher the return rate of the project.

Therefore, when Lin Zuhui left the mainland, he said to Lu Dong: "Your team will continue to inspect the residential land in Beijing, Shanghai, Yangcheng, Pengcheng, Foshan and other places. If you have a good project, report it to me so that I can come and inspect it!" "

Although all projects in the mainland need Lin Zuhui's affirmation, Lu Donglai's team must do the preliminary work well.

"Well, we will keep an eye on the land market in these cities at any time, and strive to have better and more projects in the second half of this year."

Lin Zuhui nodded in satisfaction. The mainland project seems to have a large investment, but in fact the investment is very small.For example, a project worth 600 billion actually only needs to pay about 120 billion Hong Kong dollars, and there is no need to pay it all at once.

At this time, the total investment of New Era Group in the mainland has reached a scale of more than 200 billion.

For example, Shanghai Metro Port, the cooperation agreement between the two parties is that in the future they will invest 60 billion yuan for renovation and upgrading, and the two parties will share it 10-[-]. New Times Group will inject HK$[-] billion in cash, and Shanghai Metro Port will inject assets.As for the follow-up investment, New Times Group does not need to pay, because the port itself is operating normally, has revenue, and can also make loans.

The start-up capital for some residential projects is even lower. Now the land in the mainland is very cheap. After the land is acquired, it only needs to be developed in stages.Take out a small amount of funds to start the first phase of the project, and then you can borrow money and sell off-plan houses for development.

In short, this year's New Times Group intends to allocate 30 billion Hong Kong dollars in funds to the Mainland, and there is no problem in talking about 300 billion Hong Kong dollars in projects.After all, for several central plazas, only the land needs to be purchased first, and only [-]% of the shares will be held.

In the second half of the year, Lin Zuhui will come to the mainland to discuss more projects. The earlier the investment, the higher the rate of return in the future.

(End of this chapter)