Reborn Tycoon Rise

Chen Songqing said: "Carining and Land will provide a principal of HK$300 million, and the rest will require bank financing. As for the collateral, it is naturally the Miramar Hotel and surrounding land.

Xu Sheng also has a real estate company. The rules should be clear. I don’t need to explain it in detail, right? "

"Understood." Xu Zhi nodded. This is actually the normal routine of real estate companies, such as real estate auctions. Before the auction, the real estate company has already contacted the bank to discuss the cooperation plan after winning the bid.

Often, for a piece of land worth 1 billion Hong Kong dollars, the real estate company will only use 100 million or even less of its own funds, and the rest will be bank loans. Subsequent construction funds, material fees, etc. are all delayed by the construction company as long as they can. If you can't delay, you can still take a bank loan. When the construction reaches a certain level and pre-sale of the pre-sale property is completed, when real estate is booming, you can quickly recover the funds, pay off the bank loan, and then start fighting for the next project.

This is also the fundamental reason why many companies with a market value of hundreds of millions of Hong Kong dollars can announce the use of billions of Hong Kong dollars for investment. Everything is done by banks behind the scenes.

From 1976 to 1982, during the real estate bubble, it was not the so-called real estate five tigers that made the most money, but large banks such as HSBC, Standard Chartered, and Hang Seng.

Chen Songqing smiled and said: "So, Xu Sheng agrees?"

Xu Zhi shook his head and said, "I can agree to the loan, but I'm not satisfied with your collateral."

Chen Songqing frowned and said: "Xu Sheng, this is the normal mortgage method in Xiangjiang. Is it possible that Xu Sheng is not optimistic about the Miramar Hotel project?"

Xu Zhi shook his head and smiled: "This has nothing to do with the project itself. Bank of East Asia is currently only a medium-sized bank. HK$3 billion accounts for 1/3 of the entire bank's storage. I cannot be careless with such a large loan."

Chen Songqing asked: "Then what guarantee does Xu Sheng need?"

Xu Zhi thought for a while and said: "If you use other properties to increase the mortgage, I'm afraid it will cause a lot of inconvenience. How about this, you two can use your own company's stocks as collateral?"

"Stocks?" Chen Songqing and Bao Fuda were stunned for a moment, each lost in thought.

Chen Songqing naturally sneered in his heart. Mortgage with stocks was just a common occurrence for him. He had already borrowed more than one billion Hong Kong dollars in this way, and another mortgage was naturally not a problem.

But Bao Fuda has a different idea. Since losing Wharf last year, the entire Jardines Group has been extremely worried that Land Company will follow the footsteps of Wharf. Once Land loses, the entire Jardines will completely decline.

However, over the years, Land has expanded its shares and raised funds many times for various development needs. Jardine Matheson Group only holds 10% of Land's shares. Once it is targeted by large Chinese investors, the consequences will be disastrous.

In August of last year, in order to stabilize its control over Land, Niubijian arranged for Yihe Mutual Control, the most famous company in the history of Hong Kong business. The process was very simple. Land and Yihe each carried out directional share increases in each other. Both parties used Over one billion Hong Kong dollars, Jardine finally controlled 40% of the shares of Land and Land, and Land controlled 38% of the shares of Jardine.

This kind of mutual control basically isolates the possibility of foreign investment, but it does not mean that it is completely safe. Among all the Chinese capital, Xu Zhi is the one the Jardine Group is most worried about because his capital is far away. More than other ordinary Chinese families, now that he heard that the other party asked to use Land shares as collateral, he was naturally even more worried.

After waiting for a while, Xu Zhi asked: "How are you two thinking?"

Chen Songqing smiled naturally and said: "No problem, I can use the same amount of stocks as collateral."

Bao Fuda said: "Land's stocks do not accept mortgages, but I can agree to use other fixed assets as mortgages."

"Other assets are also acceptable, but I don't accept second mortgages." Xu Zhi said.

"Xu Sheng's request is too high!" Bao Fuda frowned. Land's total assets are as high as 30 billion Hong Kong dollars, but its market value is less than 10 billion. The fundamental reason is that almost all of its properties have participated in mortgage financing. This How can you do business in this era without using bank money?

"The second mortgage has no priority, so I have to pay attention to it." Xu Zhi shook his head and said, if the collateral auction is used to repay the loan, in the priority order of repayment, the later the mortgage is, the more final the compensation will be. For companies like Land, , its fixed assets have been mortgaged countless times.

"You two, it seems that the more we discuss, the farther we go." Chen Songqing suddenly laughed loudly: "The real estate market is currently booming, but you two are discussing what will happen if the project fails. Isn't this asking for trouble?"

Xu Zhi smiled and said: "That's not what you are saying. Our bank is just for stability, and whether the project can make money, how can I know if I open a bank? You are the ones handling the project, aren't you?"

Chen Songqing smiled and said: "It doesn't matter. If Xu Sheng is worried, he can also join in. Wouldn't it be better if we cooperate together?"

"If I join, you will no longer be able to borrow money from my bank. Has Chen Sheng thought this through?" Xu Zhi asked with a smile.

"This..." Chen Songqing thought for a while and said: "According to the banking laws and regulations, if Xu Sheng's investment does not exceed 15%, the Hong Kong government will not intervene. A small share means a little less, but Xu Sheng can also start from Get part of the profit from the loan.”

"I will not join your project midway." Xu Zhi shook his head and refused, then asked with a smile: "Since you are so confident in this project, why are you unwilling to accept stock mortgage? Is it possible that Mr. Bao Fuda is not optimistic about this project? After all, as long as the project If you successfully make a profit, any mortgage can be redeemed.”

Chen Songqing asked with a smile: "Xu Sheng, you have so many demands on us, so what kind of preferential interest rates can Bank of East Asia provide?"

"As long as there is enough collateral, I can promise to provide 13% loan interest." Xu Zhi said with a smile. The Hong Kong government has raised deposit interest rates several times in the past two years. Commercial loan interest rates are now generally as high as 16%. However, this kind of Loans worth billions of Hong Kong dollars will inevitably come with discounts, but reaching 13% is unlikely even in big banks like HSBC and Hang Seng, and ordinary medium-sized banks do not have so much funds.

"13%." Chen Songqing's eyes lit up. For large real estate projects, the most important cost is the interest expense on bank loans. Every time it is reduced by one point, the company's profits can increase by several percent.

Seeing that Bao Fuda was also very hesitant, Chen Songqing added: "Mr. Xu, with the Miramar Hotel as the first mortgage, even if we need to mortgage stocks again, based on the actual value, we will not mortgage a lot of stocks."

"Of course, I just pursue the safety of bank loans, as long as there is enough collateral." Xu Zhi nodded and said, he just used the Miramar Hotel itself as an excuse for insufficient mortgage, hoping that Land and Carnegie could use stocks as collateral, but they obtained There certainly won’t be a lot of stock collateral.

"What do you think of Mr. Bao Fuda?" Chen Songqing turned around and asked. Part of his previous series of conversations with Xu Zhi was actually for Bao Fuda.

Bao Fuda thought for a while and asked: "How much value of stocks does Bank of East Asia need as collateral?"

"What does Mr. Bao Fuda think of 5% of Land's shares?" Xu Zhi asked with a smile.