The birth of the Hong Kong Island family

Hong Kong media first reported that the Hong Kong government was preparing to auction 144,000 pieces of land at the Central Bus Terminal. Of course, the local consortiums in Hong Kong that have the strength to covet this land include Cheung Kong Holdings, Land Corporation, Sun Hung Kai Properties, Hang Lung, Henderson Land Development and New World. As for overseas consortiums, it is generally difficult to compete with local consortiums.

Since Hang Lung and New World have jointly invested in the property development rights above nine subway stations, with a total investment of 7 billion (excluding land costs), the two consortiums have little hope; as for Henderson, Lee Shau Kee is not too keen on investing in rent collection. property.

In fact, there are only three promising consortiums in Hong Kong - Cheung Kong, Land and Sun Hung Kai.

After the news came out, Lin Zhichao immediately arranged a rights issue to raise funds regardless of whether the matter was 'true or false'. He invited the two staff officers Du Huilian and Li Yeguang, plus Chang Shi Lin Ruihuan, Zhou Fuzhao, and Huo Jianning, to come to the conference table in the office.

Huo Jianning did not expect that as an accounting director, he could participate in such a high-level meeting, and he immediately felt valued.

"The purpose of inviting everyone here this time is to discuss raising funds for Cheung Kong Group through rights issues. In view of the fact that the news about the land king in Central has leaked out, I personally think that this land should be worth more than 8 billion. Therefore, I plan to let Cheung Kong Group '10 The stock rights issue is "1 share", raising over 2 billion yuan, but I personally give up the rights issue, or a small amount of rights issue."

The Hang Seng Index reached its highest on July 17. The highest market value of Cheung Kong was in August, reaching HK$26 billion, surpassing HSBC by HK$1 billion. Although it has fallen back now, it still has a market value of more than 24 billion, still exceeding HSBC by HK$500 million. .

To Huilian is the Hong Kong person in charge of the British securities company Goldman Sachs. Lin Zhichao invited him here not because of business contacts, but because he has become a securities consultant and private consultant for many of Lin Zhichao's companies.

Du Huilian said: "It should be completed sooner rather than later, and try to complete it within a month! Currently, Cheung Kong Group has an excellent reputation. As far as I know, many overseas financial institutions want to invest in Cheung Kong Group. I can contact them."

Lin Zhichao nodded and said: "This is entrusted to Gaowida Securities, which is considered business."

Asking him for help, Du Huilian personally did not charge a penny and worked very hard. But Lin Zhichao doesn't want to owe anyone a favor, so he always hopes to give back in the form of business.

Of course, the favor is still owed. If they start their own business in the future, they will naturally get the support of the tycoon Lin Zhichao. Lin Zhichao does not plan to issue a rights issue this time, and his shareholding is expected to drop to about 62% (currently 68.8%).

Afterwards, everyone made suggestions and discussions.

In the end, Lin Zhicheng made the final decision: "What Du Huilian just said is right, sooner rather than later. The real estate industry is currently undergoing adjustments and the stock market has also fallen from its high point. Therefore, we will try our best to provide some preferential discounts for this rights issue in order to complete it smoothly."

Generally, rights issues will be discounted. The preferential discount Lin Zhichao mentioned at this time is naturally stronger. His goal is a rights issue of just over 2 billion.

"no problem!"

Everyone replied confidently.

Cheung Kong Group has a very low debt ratio, a lot of non-recurring profits, and a very low debt ratio, so it has a very good reputation.

After the meeting dispersed.

Lin Zhichao sat in his seat, thinking about the problem.

This month, the bank union raised the prime interest rate to 20% and the mortgage interest rate to 21%, which can be called usury. A loan of 100 million yuan will require 20 million yuan in interest a year, and the house mortgage is even higher.

In this case, those who want to buy a house are deterred.

Why is this so?

It was obviously a decision made by banks because they were short of money or worried about risks.

A large amount of wealth has flowed into the stock market and local markets, so banks are also short of money.

Ten days later, Cheung Kong Group officially announced the news of a "rights issue to raise funds", which caused a huge sensation. After all, it raised 2.1 billion Hong Kong dollars in one go, setting a record for the highest amount of funds raised from a rights issue in Hong Kong.

The success of the rights issue depends on the credibility of the company, and Cheung Kong Group has a very good reputation. Since its listing, the market value has increased more than tenfold, and it has paid out considerable dividends every year.

Of course, there are also some investors who can only sell a part of their stocks for the rights issue, and the proceeds are used for the rights issue, causing some fluctuations in Cheung Kong Group's stock. Fortunately, the problem is not serious.

This time, three financial securities companies were hired, namely Gaowida Securities, Sun Hung Kai Securities, and Hudoli Financial Company.

Cheung Kong Group's large-scale rights issue has also caused concern to Jardine Matheson Land.

Newbijian came to the Land Company to discuss with Bao Fuda.

"Now it seems that the Cheung Kong Group is selling the old Miramar wing and is now raising funds via rights issue in order to invest in this land king in Central. He is bound to win it!" Niubijian said worriedly.

Since the listing of Cheung Kong Holdings, Land has been no longer the largest real estate company in Hong Kong. This change was already a fact when the Keswick family was in power.

Over the years, the gap between the two companies has grown. At its peak, Cheung Kong Group had a market value of 26 billion, while Land was only 16 billion.

Bao Fuda said confidently: "The Cheung Kong Group has a weakness, that is, it is conservative and they are unwilling to borrow money to solve problems. In this regard, Land has a huge advantage, so we are bound to win this land. After all, the Cheung Kong Group's Experience tells us that the rate of return on investment in commercial projects is very objective. Take the Victoria Harbor Center land as an example. If the Keswick family had been more resolute back then, they would have made a lot of money now."

Newbijian's ideas were somewhat similar to those of Bao Fuda. He opposed the Keswick family's transfer of funds overseas for development because the rate of return was too poor.

"How much do you think this land is worth?"

"More than 7.5 billion, plus more than 2 billion in construction costs, the total investment is 10 billion Hong Kong dollars. Although the investment is huge, it is a real gold ingot. After the construction is completed, it can provide about 2 million square feet of commercial floor space. , based on the current rent, the annual rental income is more than 700 million. Considering the possibility of rent increase, it is still very cost-effective."

Newbijian suddenly said with fear: "It's just that the current prime interest rate is already 20%. If the debt is too high, it will have a big impact."

Bao Fuda said: "The prime interest rate cannot be 20% for a long time and will drop in the future. The important thing is that if we lose this land, there will be no possibility of defeating the Cheung Kong Group. Our profit this year can reach more than HK$500 million. It fully proves that investing in Hong Kong real estate is a very smart decision.”

Although most of the HK$500 million profit was due to the "Central Redevelopment" that year, under his leadership, Land also invested in many large projects (Baibishan Villa Group, Miramar Old Wing), once it arrived During the harvest period, profits will increase greatly.

Niubijian finally agreed with Bao Fuda's idea, which was to win the Central Land King with all his strength and recover the losses caused by the loss of Wharf.

Another ten days later.

Due to the increase in prime interest rates and housing mortgage interest rates, Hong Kong's real estate industry is entering a period of adjustment. This has been noticed by many smart people. Even the Hong Kong government knows that real estate adjustments are inevitable.

So in early November, the Hong Kong government announced that it would sell "144,000 square feet of land for the minibus and minibus terminal" through public tendering.

Obviously, the reason for not selling this land at auction is because it is worried that the price will be low. Public bidding will be more conducive to price increases.

Cheung Kong Group.

After Lin Zhichao heard the news, he immediately frowned. The public bidding was not good for him!

Because he doesn't know how much his opponent bids, he can't steadily outbid him.

If he bids too high, he will definitely be laughed at. This is a very unwanted reputation for him as the 'god of management'. At his level, reputation is sometimes more important than making money. Of course, the reputation he is talking about is not the reputation on the Internet in later generations, but the reputation in business.

If his bid is too low, he will miss out on this land. After all, it can build more than 2 million square feet of commercial land, and it is on the west side of the Victoria Harbor Center.

After thinking for a while, Lin Zhichao decided not to take things too seriously. With his current career layout and wealth level, there was no need to worry about three buildings.

This is not about buying antiques, it must be sold.

Of course, it was not that he chose to give up, but that he would not make such a joke when others offered 5 billion, while he offered 6 billion.

"Boss" Zhou Huaian came to the office and said respectfully.

"Recently, if the media interviews you and asks for your opinion on the Land King in Central, you will say that the value of this land will be more than HK$8 billion." Lin Zhichao said.

Zhou Huaian was puzzled and asked: "Wouldn't this make our competitors bid higher, and then we would be in trouble?"

He knew that his boss was already taking precautions against real estate risks. In this case, acquiring land at a high price was obviously not in line with the strategy of the Cheung Kong Group.

Lin Zhichao said: "It doesn't matter, I know what to do, just do it!"

Zhou Huaian nodded and said, "Okay."

He is the spokesperson of Changshi Group. The prince currently does not like to speak frequently in the media and keeps a low profile. So generally in Cheung Kong Group, apart from the boss, he has the most contact with the media.

As for the boss, whenever the media blocks his way, he will almost always chat for a few words before leaving, which is quite amicable. Of course, it’s true that bosses rarely give interviews.

When Zhou Huaian left, Lin Zhichao smiled.

He has actually prepared a price bid, which is HK$5.5 billion.

Since the bidding will be opened in February next year, the price is reasonable. If Land is considering real estate adjustments, their bid should not exceed this price, then Cheung Kong Group will win.

In this way, even if it is HK$500 million higher than Land, it will not be a joke.

But if Land's Bao Fuda intends to defeat Cheung Kong Group, it will raise the price to 6 billion. Because it may be affected by Cheung Kong's valuation of this land, this price is not impossible.

Then, Land will pay more than 1 billion more than in the previous life to win this land.

This will be a fatal blow to Landmark, because Landmark has already lost Victoria Harbor Center and Starlight Plaza, and has lost at least 20% of its strength. But their investments during this period were numerous - Baibishan Villas, the old Miramar Wing, and the Exchange Building.

In the future, if Land suffers a disaster, it will not be left to the control of Cheung Kong Group.

In mid-November, Lin Zhichao came to FS City again to select a site for ‘Foshan University’.

Since the central government approved the establishment of Foshan University in June, Lin Zhichao has come to Foshan several times to select a location. His request is very simple, that is, it should be built in Shunde County.

Shunde County is not far from the FS city center and across the river from the main urban area. The former headquarters of Midea was located in Shunde District, driving the economic development of Shunde as a whole.

Now, with Lin Zhichao driving the development of Shunde, it will definitely become the richest county-level city/district in the country in the future.

The people who accompanied Lin Zhichao during his inspections were all very respectful. Even though Lin Zhichao had always had very high requirements for site selection, they accompanied him every time without bothering.

"Mr. Lin, this is Dongping Town, Shunde District. It's a long way from the city government, in a straight line from north to south, and only separated by the Tanzhou Waterway!"

"It's a good location! I only need to donate a Dongping Bridge to connect directly to the FS City Hall. Moreover, the scenery here is very good and the water area is developed. It is a good address to build a university. If you have no problem, we will choose the site here. .how?"

The place where Lin Zhichao was located was the Foshan China-Europe Center, Foshan New City Plaza, Foshan Stadium Center, Foshan Park and other gathering places in later generations. Now that Dongping Town has been chosen, this area will undergo earth-shaking changes in a short period of time.

"We think it's very good, we have already surveyed it beforehand!" Wu Sheng said.

Lin Zhichao said: "Okay, we have to implement it as soon as possible. I can give you an explanation. Donating to Foshan University is one of my wishes. For this wish, I can make great efforts, so I also ask you to contribute more to this school." With some green light and less cumbersome procedures, we can build a top university in the country as soon as possible. I don’t want to trouble the country about funding issues, but I hope Foshan University can be taken care of when it comes to teacher resources. And once Foshan University is completed, all All students are free of charge.”

With his financial strength, it is obvious that he is aiming to run one of the top universities in the country.

Lin Zhichao will not only provide money, but also strive for resources. In the future, world-class teachers will come here to teach.

Wu Sheng said: "Mr. Lin, please rest assured that we attach great importance to your donation to Foshan University. What's more, this is a good thing that benefits the country and the people. How can we not pay."

Foshan University is a matter of three-party cooperation. Of course, the payment is Lin Zhichao's business. He has already said this.

Lin Zhichao nodded and said: "After I returned to Hong Kong, I immediately sent a planning and construction team here to carry out architectural planning. The first phase of my donation is set at 50 million US dollars. I will continue to support in the future. As long as I live one day, Foshan University will not be short of funds."

Including this US$50 million, Lin Zhichao has donated US$100 million in the mainland.

This time he came to the mainland to support the development of Shunde County, invest in the construction of Guangfo Expressway, open factories in Shunde County, etc. Of course, the nature of these investments is to make money, otherwise Lin Zhichao would not be able to explain to his shareholders.