Reborn Tycoon Rise

"Of course you are willing to do anything." Xu Zhi secretly laughed in his heart. Chen Songqing was just playing with nothing. Some of his projects used fake huge transactions to raise the stock price and obtain loans.

And if it is a project cooperating with large companies such as Land and Hang Lung, they will desperately use bank loans to complete the project. As long as housing prices continue to rise, the project will be profitable.

Chen Songqing couldn't care less about the mortgage. Banks require mortgages to control risks. But in his opinion, if I make a profit and the loan is paid off, what risks are there?

Many Hong Kong and overseas banks were deceived and bankrupted because of this.

Xu Zhi asked: "What is your budget for this building?"

Chen Songqing said with a smile: "We, Carnegie and Land, plan to build an 80-story high-rise building at the location of the Hilton Hotel, with a salable area of ​​1.4 million square feet. Since the building has not yet formally invited bidding, the construction cost is difficult to say, but it should be between 20-20 years. Between HK$2.5 billion.”

"What a huge plan. I wonder if the two of you are going to hold this tallest building in Xiangjiang or sell it?" Xu Zhi asked with a smile.

"Sell everything." Bao Fuda replied. If the land was purchased a few years ago, they would definitely rather be in debt than leave this super building to slowly collect rent.

But in the past year, Land and several major Chinese-owned groups have joined forces to develop land, and he has discovered that the method of Chinese-owned real estate companies is the real way to make money. Starting with a small amount of capital, and then fully using bank loans, the building has not yet been completed. After the construction is completed, the off-plan property will be sold, and the bank loan will be repaid after the profit is made. Through the effect of leverage, the funds can be replenished several times quickly, and then the next project can be conquered.

This method is easy to get started, and you can change the site after making a little money. After participating a few times, Land will make a lot of profits.

"80 floors, 1.4 million square feet." Xu Zhi silently calculated in his mind that if the plan really succeeds, this will indeed be a super building in Xiangjiang. Currently, the tallest Hopewell Center in Xiangjiang is only 66 floors.

According to the current housing prices in Hong Kong Central, the price per square foot is between HK$4,000 and HK$5,000. For 1.4 million sq ft, the total price is between HK$5.6 and 7 billion, excluding the land price of HK$2.7 billion paid to Hutchison Whampoa, HK$20 billion. With a construction cost of about HK$100 million, the gross profit should be between HK$1 billion and 2 billion.

However, it also involves the demolition of hotels, bank interest payments, taxes, etc. It is estimated that the net profit should be about 1 billion Hong Kong dollars.

It seems that the profit margin is not very high, but it must be understood that whether it is to pay Hutchison Whampoa's low price of 2.6 billion and the construction cost of about 2 billion, it is a loan. The funds that Land and Caring may use are only a few hundred million. With the strength of their two companies Because of his reputation, all the funds come from banks.

For Jianning and Land, the algorithm may be different. They think that housing prices will continue to rise. If housing prices rise by another 20%, their profits will increase by another billion.

This is where the huge profits of the real estate industry lie, with a cost of several hundred million leveraging a profit of 1 billion or even higher.

Xu Zhi added: "The Bank of East Asia can provide guarantee for your construction costs, but because you have no direct collateral, the interest rate can only be 16%!"

Chen Songqing frowned and said: "Xu Sheng, you are also the boss of a real estate company. You know this project very well and there is no possibility of losses. Besides, our three companies are willing to jointly guarantee it. The price of 16% seems too high, right?"

Xu Zhi shook his head and said: "I only look at things from the perspective of a bank. Chen Sheng, if you are not satisfied, you can try other banks to see how much discount they can give? Or take out something that can be used as collateral. ."

Chen Songqing fell silent, took out a pack of cigarettes from his pocket, and said apologetically: "I'm going out to smoke a cigarette."

"Okay, let's take a rest." Xu Zhi said with a smile. He was not worried at all whether Chen Songqing and Bao Fuda would agree.

In Hong Kong at the moment, interest rates are extremely heavy. If it is a loan without any collateral, many banks will not lend easily. Even with the scale of Land and Carnegie Group, if you want to obtain an unsecured loan, the procedures are extremely cumbersome, and the loan interest must be Ridiculously high.

During the final period of the Wharf War between Land and Shipping King last year, Bao Yugang borrowed 2 billion from Shen Bi with a phone call, which became a historical legend. But what countless people didn't know was that the interest rate on this loan was as high as 21%. Bao Yugang After Steel acquired Wharf, its funds had dried up, but the pressure from high interest rates was too great, so it had to sell off many ships in succession and pay off the loan within a few months.

Even with Shen Bi's position at HSBC, he was hit hard because the loan was not approved by the board of directors. Even the Banking Regulatory Commission of Xiangjiang issued a warning order, believing that this loan was extremely risky and would threaten Xiangjiang if something went wrong. Financial security.

This is also because among all bank loan projects, unsecured loans are too risky, especially for real estate companies that are already heavily indebted. Bankruptcy.

Xu Zhi dared to lend this money because he knew that Future Land could survive the real estate crisis of 1983-84. The only risk, Jianing, was also guaranteed by him, passing the responsibility to Land. If it was because of his It would be even better if Land's debt becomes heavier and unsustainable.

As for Land, Jardine could no longer suppress the inflated Bao Fuda. At the same time, he himself was very optimistic about the future real estate market in Xiangjiang. Even in 1982, the low prices in Xiangjiang had fallen. Bao Fuda still thought it was a good time to buy at the bottom. I just took a picture of the huge piece of land in the future trading square.

As for Jianing, it's even simpler. Anyway, it's just a white wolf with empty gloves. If you can, use it.

Ten minutes later, everyone returned to the conference room.

"Xu Sheng, we can accept 16% interest, but we hope that the Bank of East Asia will support us with another 100 million Hong Kong dollars to demolish the current Hilton Hotel." Chen Songqing said with a smile. The cost of demolishing a 20-storey building in this Central area will not be too low. Tens of millions of Hong Kong dollars is the minimum. Just to clean up the garbage, I don’t know how many garbage trucks are needed to transport it.

"Okay." Xu Zhi thought about it for a while, nodded and agreed. He had already borrowed several billions, and he didn't care about an extra 100 million. Obviously, Land and Caring were prepared to make the most of the bank's funds, and they could not afford it themselves. If you have money, use bank money.

"Then I wish us a happy cooperation." Chen Songqing said with a smile, ready to shake hands to celebrate.

"Wait." Xu Zhi suddenly waved his hand.

"What's wrong?" Chen Songqing's hand was frozen in mid-air, and Bao Fuda didn't know why.

Xu Zhi said with a smile: "There is one thing I forgot to mention. The Bank of East Asia has already provided a huge amount of funds to the two of them for the Miramar Hotel project. It has also supported many infrastructure projects in the mainland, so the funds are temporarily insufficient to support the two of them. Bit."

"..." Chen Songqing's face turned green, but he still paid attention to the occasion and asked in a fierce voice: "What does Xu Sheng mean? If the bank has no money, why didn't you tell me earlier? Everyone's time is precious .”

"Don't worry, you two." Xu Zhi said with a smile: "The Bank of East Asia doesn't have money, but I do. I will mobilize funds from Midea's overseas companies. There is just one problem. Midea's funds are in US dollars."

"Isn't it enough to just switch over?" Chen Songqing asked puzzledly.

Xu Zhi shook his head and said: "In exchange, it will only be cheaper for the Hong Kong government, so what I mean is to directly lend US dollars to you two, and then you two will pay back US dollars."