Hong Kong's new giants

Chapter 487 [Another big project]

Friday, April 2.

Today is the auction day for the 'Diamond Mountain Land King', and the heads of major real estate companies and journalists from Hong Kong went there one after another.

Strictly speaking, today is not an "official land auction" because there is only one piece of "land king land"; generally speaking, the Hong Kong government will announce the official land auction plan for a year in a few months every year, and then it will be considered as the beginning .

The purpose of the Hong Kong government's auction of land of "Land King" is actually to increase the price and create momentum for the next official land auction.

This also fully shows that the Hong Kong government is very contradictory. It not only wants to quell public grievances and crack down on real estate speculation, but also wants to make a fortune in the auction of government land.After all, [-]% of the Hong Kong government's finances depend on real estate!
When it comes to the land auction of the "Land King" level, Lin Zuhui originally wanted to sit in the township in person, but after thinking about it, if he went in person, the price would likely be raised.

Because in the past year, the New Era Group has given people the feeling that in the auction field, it is no longer as aggressive and bound to win as before.Although he is also a big friend of real estate, but it is only with Sun Hung Kai, Cheung Kong and the like. Will the price be considered expensive?

Therefore, if Lin Zuhui sits in person at this time, it will inevitably give people a feeling that he attaches great importance to it, which is not conducive to the auction.

This piece of land is indeed very good. It is located at the foot of the Lion Rock, at the tunnel entrance (on the Kowloon side) between Kowloon and Sha Tin in the New Territories, with an area of ​​about 28 square feet. According to the announcement of the Hong Kong Government Planning Department, five buildings with an area of ​​120 million square feet can be built. A residential building (about 1500 residential units) of square feet can also be built into a commercial area of ​​65 square feet (low density/low building), and there can also be a nice landscaped public garden.

Lin Zuhui calculated that the house could be sold in 1995 and sold out in the first half of 1997. The average selling price can reach 6000 yuan per square foot, and you can get 72 billion in cash;

The commercial area is 1 per square foot, which is also worth 65 billion (simple estimate).

This is a big project with a total of 137 billion!
The total construction cost is 20 billion, plus interest and taxes, even 30 billion is not needed.

The land cost of 50 billion is worth it, if anyone competes with the New Era Group!

Of course, 50 billion is impossible. The base price of this land is 22 billion Hong Kong dollars, and the general premium of 7% is already sky-high.

Thinking of this, Lin Zuhui called Liang Zhenxun and said, "Lead the team to participate in the auction this afternoon, and just get the land back. As for the price, I should be able to win the [-]% premium. If it is [-]% higher, it will be my reserve price. Call me, but be careful!"

There are already mobile phones in this era, so naturally you can call and apply outside the auction house.

Liang Zhenxun said: "Well, I see! Speaking of which, this time we may have to be wary of Wheelock, Wharf, and Real Estate Trust, that is, the Bao Yugang family. They developed Times Square in Causeway Bay and made a lot of money. There is no need to pay land premiums, only spending 24 billion Hong Kong dollars in construction costs, and the annual rent collection this year is as high as 9 million, so they are also ambitious recently."

Hearing this, Lin Zuhui said indifferently: "They easily make 9 million yuan, but we make billions lying down, don't care. You just need to use some small tricks, but you must win!"

Liang Zhenxun laughed. Last year, the U.S. stock market made a billion dollars. What is it if you don’t lie down and make money!And looking at the boss, he is very optimistic about Microsoft, General Dynamics, and Citibank, and intends to hold them for a long time.

"Okay, I'll get the job done!"

Hong Kong government, auction house.

2 pm.

Liang Zhenxun brought several senior staff into the auction, and it really attracted everyone's attention. Seeing that Lin Zuhui didn't come, everyone felt a lot less pressure.

In fact, although the New Era Group has great wealth, it is not invincible. After all, everyone has money;
However, Lin Zuhui himself is a little "arrogant". If he arrives at the scene, he may not care about the price. At that time, everyone is afraid of winning the bid with a high price, but also afraid of being absent.

Not easy!
Liang Zhenxun led the team, which even made some people feel that New Era Group is focusing on overseas and mainland China.

Everyone still greeted each other one after another. No matter how intense the wait was, everyone was still in harmony in private.Even if there is competition in the auction, you won't really care about it afterwards. After all, there are so many auctions every year, and the one with the highest price has to be the ancient truth, and no one will deliberately raise the price.

Today's auction can also be regarded as a "barometer of the Hong Kong property market". If the premium is high, it will also be beneficial to various real estate companies, because it will promote real estate premiums.

Generally speaking, a premium of [-]% is the threshold for a good market, and a premium of [-]% is a sign of a prosperous market.

The auction officially begins.

Everyone raised their placards one after another, and it was very encouraging for a while. Heung Kong Properties may see another year of growth this year.

very competative!
In the end, there were only Wheelock, Changshi, New Era Group, New World, and Nan Fung.

Soon, New World Development was defeated. Zheng Yutong said to himself: "It's more cost-effective to buy foreign hotels, so many hotels are only 50 billion, and this piece of land is already 30 billion Hong Kong dollars, I can't stand it!"

The subordinates could only smile in agreement. In fact, New World Development has fallen behind because it does not have enough reserve land!Of course, New World Development can also be considered a large-scale real estate developer because it has the New World Center in Tsim Sha Tsui and the Convention Plaza in Wanchai (it is expanding again), but it cannot be called a "large-scale development real estate developer".

There are only four large-scale development real estate developers in Xiangjiang, namely New Era, Cheung Kong, Sun Hung Kai, and Henderson, which account for 55% to 70% of the real estate sales in Xiangjiang every year.

"32 billion" Liang Zhenxun raised his placard calmly.

He didn't think about getting it for less than 35 billion, because he could see that the biggest competitor might be Wheelock.Since Cheung Kong Group does not like to collect rented properties and has enough land reserves, it will definitely consider whether it is cost-effective; Nan Fung Group is not worth mentioning, and it has a few dollars that can stand up to it.

Only the Wheelock family (including Wharf) is delusional to enter the development of real estate developers. In addition, this land has a commercial area of ​​65 square feet, so it is very desirable.

"32.1 billion"

Wu Guangzhen's face showed a hint of longing, and he thought to himself that the development of Times Square was so successful that the five residential buildings in Harbor City were also rebuilt into five office buildings in stages, increasing the rent-collecting area by 400 million square feet.Harbor City and Times Center have a total rental area of ​​950 million square feet (after redevelopment), which provides him with enough courage.

In Wu Guangzhen's view, this land will be able to add another very good shopping center - Plaza Hollywood, so it is also determined to win.

The next competition began to be officially staged.

For a while, the major real estate developers seemed to be lively. At this time, they were very relaxed, and they were secretly glad that they didn't follow. After all, the two families might be fighting each other today.

"35 billion" Liang Zhenxun also lamented in his heart that he might lose his fortune today. If the price is a [-]% premium, he might really have to call and ask.

"35.2 billion" Wu Guangzhen was also very shocked. Is this price a decision he can make as an executive?Aren't you afraid to go back and be scolded?

"35.3 billion" Liang Zhenxun continued to shout calmly.The boss actually has a [-]% budget in mind, otherwise he wouldn't call him with a [-]% premium.

It's still early, Liang Zhenxun comforted himself.

"38.2 billion" Wu Guangzhen felt very heartbroken, and the 9 million rent just received was not good.

"38.5 billion" Liang Zhenxun felt that it was a sudden increase.

"38.6 billion"

"39.2 billion" Liang Zhenxun shouted again, he had already seen hope.

Sure enough, Wu Guangzhen became silent, and as the auctioneer dropped the hammer for the second time, he didn't bid again.

"39.2 billion transactions"

Liang Zhenxun breathed a sigh of relief, and gestured to Wu Guangzhen with his hands clasped, appearing very sincere.

That's why people realized that Lin Zuhui must have explained the reserve price, and it should still be within the reserve price range, otherwise Liang Zhenxun would not be so modest.

Wu Guangzhen squeezed out a smile and dealt with it.

He wanted to imitate his father-in-law's style of Shanghai style, but found that it didn't work at all.Nearly 40 billion land fees, plus construction fees and taxes, may require investment in projects of more than 60 billion.

How much does this cost!

Times Square only invested 24 billion in construction costs, and obtained 240 million square feet of first-class rental properties. The rent in the first year alone is 9 million Hong Kong dollars, and it will be even more in the second year. After all, the rent in the first year requires a discount.

Harbor City rebuilds 5 super office buildings, and can obtain 400 million square feet of rental property, with a construction cost of less than 40 billion (the land supplement fee is unknown).

For a moment, Wu Guangzhen couldn't help but sigh, it can only be said that it is not an easy thing to meet New Era Group in the auction.

When Lin Zuhui learned that 39.2 billion won the auction of the King of Diamond Mountain (35.3 billion in his previous life), although he was a little surprised, he still encouraged Liang Zhenxun with satisfaction.

He had [-]% of the budget in mind, or even [-]% of the budget, after all he needed investment; [-]% of the land budget was more profitable than investing in Europe and the United States.

What's more, as long as this kind of project is planned, the extra land fee can be compensated.For example, the sales schedule, such as before July [-], signing a long-term lease contract (with a little discount), can earn a little more.

As for whether he will be scolded, Lin Zuhui is not afraid at all. He has a different perspective. He is the chairman of the board of directors of a listed company and needs to be responsible for [-] to [-] shareholders.

It can be said that before the second half of 4500, Lin Zuhui would at least let the New Times Group sell tens of billions of assets (the current annual property transaction volume is [-] billion), and invest in the European and American markets.

Of course, the core office buildings and shopping malls will not be sold.

(End of this chapter)