Hong Kong's new giants

Chapter 466 [Public Opinion Disturbance]

Tuesday, July 9.

245 Park Avenue, Manhattan, New York.

In the conference room, the management, consultants, and lawyers of New Era Group and Olympia York Company are signing the largest transaction in the history of American real estate.

Outside, reporters from the United States, Xiangjiang and other regions gathered, and they were also very eager to know whether the deal was concluded as soon as possible.

The lawyers were reviewing the details of the contract, and Lin Zuhui and Richman had different expressions. Lin Zuhui smiled confidently, and Richman smiled lonely.

Richman seems to have seen that once Olympia York gets the money, the bond banks will rush in, and they have only one sentence - pay back the money.

Maybe Olympia York can be relieved for a while, but unless European and American commercial real estate is booming immediately, things will turn around; otherwise, this huge amount of 17.5 billion US dollars still cannot save Olympia York.

Therefore, Richman is still not happy.

As for Lin Zuhui, even with 30 billion U.S. dollars, Olympia York could not last for a year and had to go bankrupt.

The debt of 200 billion US dollars is nearly 10 billion US dollars in interest a year.The asset value of Olympia York Company is actually not worth 200 billion, and it is estimated that a [-]% discount is about the same.

"Mr. Richerman, there is an old saying in China that victory or defeat is a common matter in military affairs. I believe that with your courage and leadership in the 'Canary Wharf' project, you will definitely make a comeback in the future."

Naturally, it was the 'Canadian brat' who fooled Richman, and next year, Richman would become their part-time worker.It seems that he will still be the commander-in-chief of the 'Canary Wharf' project in the future, but in fact it has existed in name only. Once the project is successful (completed and the occupancy rate is over 90%), New Times Group can rely on its strong financial strength to purchase other investors. Equity, a little bit to increase the right to speak.

In this world, capital is king!
Richman was deeply moved. He felt that if Lin Zuhui hadn't arrived, the company would have gone bankrupt this year, and next year he would have to woo investors everywhere to redeem the Canary Wharf project and carry out restructuring.

But in that case, because he has no money, the shares must be very small.

And Lin Zuhui promised to lend him 10% of the shares (it needs to be redeemed with money, it was in the hands of New Times Group before), which will be his greatest wealth.

After all, assuming the project is successful, he can easily obtain a loan from the bank and redeem 10% of Lin Zuhui's shares.Then pay dividends with 10% of the shares to repay the bank interest and principal. In the end, he will have a lot of wealth, which is better than complete bankruptcy.

Of course, Richman also knew that the reason why Lin Zuhui gave such good conditions was also because Lin Zuhui hoped that he would make New Times Group the largest shareholder, possibly with 50% of the shares.

But Richman is very curious, can New Era Group still get billions of dollars?

"It's a pleasure to meet a friend like Mr. Lin. Don't worry, Mr. Lin. I will not be defeated. I will definitely complete the Canary Wharf project!" Richman said sternly.

The people in the room are more curious, some people even say that you are going to go bankrupt, what are you so excited about doing.

The Canadian reckless man is famous all over the world.This Canadian family is over!
Lin Zuhui nodded!

After a while, under the witness of the lawyer, Lin Zuhui and Richman signed the name and affixed the official seal.

"Happy cooperation!"

"Happy cooperation!"

For a while, high-level executives from both sides shook hands to celebrate this cooperation.

"Mr. Lin, let's announce the good news to our journalist friends!" Richman said enthusiastically.

It was Richerman's idea to hold a press conference. He had a good calculation, that is, he wanted to use public opinion to cause the rise of commercial real estate in the United States; and he announced that the Olympia York Company had not yet closed down, and got another 17.5 billion Cash flow in dollars.

Lin Zuhui nodded. He couldn't refuse the meeting. After all, for such a large deal, he still wanted to be friends with the American media.

In fact, Americans probably hope that Hong Kong investors will buy their commercial real estate, so as to revitalize the office market.

When everyone came to the press conference, the American reporters were in a mess for a while, and the organizers worked hard to rectify the order.

There were all kinds of questions, and everyone was obviously more interested in Lin Zuhui, and few questions were asked of Richman.

Lin Zuhui naturally answered some questions very cautiously. In summary, this project is a long-term investment project, and there is no short-term preparation for profit.

After Lin Zuhui explained to the management of Fuli Real Estate Investment Management Company, he set off to return to Hong Kong. He was worried that the local public opinion would be unfavorable, so he wanted to go back to sit in charge.

As for Futura Real Estate Investment Management, the current asset value is already very high: office buildings of 136 billion Hong Kong dollars in New York, commercial real estate projects of 30 billion Hong Kong dollars in California, and US stocks worth about 43 billion Hong Kong dollars (at a cost of 35 billion Hong Kong dollars).

A full asset value of 210 billion is also huge enough.

Moreover, the value of the eight office buildings is actually more than 136 billion.

Futura Real Estate's asset value has doubled suddenly, and the management personnel naturally need to be strengthened accordingly, so Lin Zuhui asked people to directly recruit some "foreign management" from Olympia York Company to form a mixed management model.

September 9th, Xiangjiang.

Lin Zuhui returned to Xiangjiang and found that the local public opinion was extremely fierce.

Some people said that Lin Zuhui was transferring capital, and some even made small reports to Xinshe;
Most public opinion is very optimistic about this investment, after all, the price is cheap!
Lin Zuhui approached Gao Yi, the president of Chinese Real Estate and director of New Era Group, and ordered: "You hold a press conference and explain the advantages of this investment. In addition, you must also disclose the US stocks we invested in. There have been nearly 10 billion book profits."

Gao Yi nodded and said, "Okay, I will hold a press conference this evening to officially announce the transaction and explain the reasons and advantages of the investment."

He is Lin Zuhui's core executive, so he naturally knows how cost-effective this investment is, because Lin Zuhui has analyzed it.

For an office building of 1180 million square feet, even if the vacancy rate is 20%, the rent is US$30 per square foot per year, and the annual rental income is US$2.8 million.

Because of high taxes, high wages, and high maintenance costs in the United States, there is no net interest rate of about [-]% for Xiangjiang office buildings, and it should be only [-]% to [-]%.

Calculated in this way, the minimum net profit income is 1.4 million US dollars (maybe more than that, but if there is a major maintenance, it will be a bit low).

Not counting interest, rent increases and other factors, the payback is 12.5 years.

Xiangjiang generally considers paying back the capital in ten years, regardless of other factors.

So this transaction is not very bad on the books.

After all, it’s so cheap to buy!
Although Lin Zuhui did not attend the press conference, his friends called one after another to inquire about the situation.

Zheng Yutong: "Zu Hui, what is the situation of commercial real estate in the United States? How can you buy so many office buildings at such a low price?"

Lin Zuhui: "Uncle Tong, this transaction is a bit complicated. I didn't buy it at the normal price, so I bought it at a low price."

Zheng Yutong: "Well, let me just say, you bought it at a price of about [-] to [-]%. Even if the office buildings over there are sluggish, a discount of [-]% is very rare."

Lin Zuhui: "This is almost the case. The Olympia York Company is about to go bankrupt, and Richman has nowhere to go."

Zheng Yutong: "Haha, you have the ability to pick up this bargain! By the way, do you still have the real estate fund you mentioned?"

Lin Zuhui: "Yes, but I must find the best time and the best opportunity. Otherwise, if I let shareholders make less money, won't it affect my reputation."

Zheng Yutong: "You are amazing!" There is no possibility of losing money, this is self-confidence.

In addition to Zheng Yutong, Lee Shau Kee, He Sheng and other wealthy people came to congratulate and inquire one after another.

The person in charge of the news agency also called. He did not ask about investing in the United States, but only welcomed Lin Zuhui to invest in the mainland.

Lin Zuhui said with a smile on the phone: "President, don't worry, we must invest heavily in the mainland. In less than half a year this year, we have already invested nearly 300 billion. We will continue to look for suitable projects in the future."

Immediately, they were very polite, and then congratulated Lin Zuhui for displaying his prestige as a Chinese and becoming a world-class businessman.

Many people called one after another, but Lin Zuhui couldn't answer and explain one by one.

The influence is indeed great!

But then again, Li Chaoren also encountered this situation when he invested nearly 100 billion in Canadian Husky (purchasing all the shares separately in 86 and 91).

However, Li Chaoren said that when Li Chaoren learned that Lin Zuhui had obtained 8 Manhattan office buildings at a low price from Olympia York Company;

Suddenly, he was very angry.

why?

因为在1991年10月，他以4.48亿港币购买奥林匹亚约克公司的一幢曼哈顿写字楼50%股权；而这幢写字楼的面积只有60多万平方尺，单价合到了180美元每平方尺。

At that time, he thought he had picked up a bargain, but in comparison now, Richman is simply cheating himself.

The outside media will definitely compare these two transactions, and then, he will lose again!
You know, at that time, Richman vowed that the cooperation between the two strengthened the relationship between the two parties, and there will be more opportunities for cooperation in the future.

In fact, with such a good business this time, what I remembered was not his old friend, but a deal with someone else.

Li Chaoren really couldn't figure it out, what did Richman think?
Of course, the Cheung Kong Group will definitely not be able to spend that much money, and it is impossible for Lin Zuhui to have the courage to risk the stock price falling.

But Li Chaoren was thinking, if this price is the price, it is not unacceptable for him to add two listed companies to complete the project together, after all, the price is too cheap.

So the more he thought about it, the more angry Li Chaoren made a phone call overseas, hoping that Richman would give him comfort and sell a few buildings to himself at a low price.

Richman said directly over there: "Mr. Li, to be honest, this transaction is very complicated, and Mr. Lin has helped me a lot. Although I have a deeper friendship with you, it is now impossible for Olympia York Company to sell properties at a low price. Yes. If you really want to invest in Manhattan office buildings, we can give you a [-]% discount!"

Li Chaoren was speechless for a moment, and offered a [-]% discount, and he was not scolded to death by the shareholders, so he quickly dealt with it a few words, and then hung up the phone.

Richman on the other side shook his head unhappily, he really thought he was a sheep, and everyone came to gather the wool!

Mr. Lin's bargaining chip - Canary Wharf, he had to agree, this is the basis of this deal.

The next day.

The interview with Gao Yi, director of New Era Group, ignited the public opinion of Xiangjiang, which is very positive.

"Gao, Mr. Lin Zuhui is indeed the 'God of Investment'! It is also [-]% cheaper than Li Chaoren's to buy a Manhattan building."

"That's right! Mr. Lin said some time ago that Xiangjiang was too small to accommodate the New Times Group, and now he immediately spent huge sums of money to buy eight skyscrapers in Manhattan. It's amazing!"

"The stock god is showing off his power. He has invested in US stocks for less than a year and has made a book profit of 10 billion Hong Kong dollars. That is to say, if the eight buildings in Manhattan are not handled properly, it will be 'given away' to New Era Group."

"That's right! The money earned in the stock market is used to repay the loan and interest on the purchase of office buildings. Only Mr. Lin Zuhui can achieve such a perfect investment."

It received rave reviews for a while, especially those fans of Lin Zuhui, who wished that the stock market would open immediately and rush to buy shares of New Era Group.

Although, the stock of New Times Group has fluctuated around 1000 billion, which is frighteningly high, almost the sum of Cheung Kong Group, Hutchison Whampoa, and HK Electric, accounting for 7.2% of the total market value of Hong Kong.

However, everyone still feels that the market value of New Era Group has risen to 1100 billion to be reasonable.

Monday, ready to go!
(End of this chapter)