The Industrial Giant Reborn

"There is one more important thing to tell you. This matter will bring the scale of Land to a higher level." Chen Zhiwen said formally: "You know that I acquired Disney in the United States. This time I am planning to let Disney in Hong Kong." Build a smaller Disneyland.”

"Disneyland? With Hong Kong's economy and the number of foreign tourists, can it afford such a large park?" Dong Youwei was shocked after hearing this, and then asked with surprise.

Even if Disneyland is smaller, it is still huge compared to other parks. This is a characteristic of Disneyland. He has also been to two Disneyland parks in the United States and Japan. The area is quite large, and a project like this , the investment is very large, it can be said that it exhausts the funds of a super company. If you want to make a profit, you must have a large number of customers. At present, it must be placed in a country with a very large population. With the local population plus a large number of It only works for out-of-town tourists.

"It's not possible now, but it won't be possible in a few years. It will take three to five years to build Disneyland. If we start the project now, it will take at least one or two years to start construction. In this way, it will be possible to wait until around 1990. Opened." Chen Zhiwen said with a smile: "According to my estimation, Hong Kong's economy will be much stronger than it is now, and because of its relationship with the mainland, it will inevitably become an international business or tourist group. In this way, Feeding a small Disneyland shouldn’t be a problem.”

Hong Kong's economy in 1985 was indeed not doing well. Its per capita income could only be said to be relatively good among developing economies, similar to that of some Eastern European countries. But after the 1990s, when a large amount of mainland and overseas funds entered the market, housing prices soared several times, and per capita income also increased significantly. Although it may not be as good as housing prices, it still successfully raised Hong Kong's income to that of developed regions. The threshold has even reached a high level similar to Europe and the United States by around 1995.

Although for locals, their purchasing power has not significantly improved based on commodity prices and house prices, and may even have declined, for those who do business from outside, they will actually make more profits.

For example, tickets to Disneyland were estimated to cost one and a half months' salary for an adult in 1985. For ordinary people, this was a sky-high price. People who were not rich could not afford to go. But after 1990, then It may only account for 1/3 of a person's monthly salary. A trip for a family only costs one person's monthly salary. In addition to the invisible wealth brought by the skyrocketing housing prices, a normal visit once or twice a year is not enough for many people. There is no problem, and there may even be activities such as annual passes to stimulate local consumption.

As for the number of foreign tourists, it was true that there were few in the 1980s, but there were many more in the 1990s. Because of its unique status, Hong Kong can attract a large number of tourists from the mainland and overseas, because the economy of the mainland has become much better since the 1990s, and there are more wealthy people. There are many, and coming to Hong Kong is the most economical way to experience overseas travel.

Of course, no matter what, it will definitely not be able to compare with Japan. After all, they are two completely different economic levels. Even Japan after the economic bubble burst is not something Hong Kong can compete with.

However, the planning of Hong Kong Disneyland is much smaller, and the investment income ratio is not much different. Not to mention, the most important thing about investing in Hong Kong Disneyland is a large amount of land. In 1985, even if the land was purchased at the original price, ten years later Finally, the ten-fold increase has hit the bottom. Disneyland itself cannot be traded, but the value of a large number of surrounding hotels and commercial places will also double in line with the housing prices.

Moreover, such investment can also be exciting when the real estate market has not yet fully recovered. The Hong Kong government is also happy to see such projects come to fruition, which can significantly increase fiscal revenue and improve real estate confidence. In this case, there will be land price discounts, tax discounts, etc. everywhere in the world.

Even the mainland government definitely hopes that such projects will land in Hong Kong. They also hope that Hong Kong's economy will be better after the return.

"Then Disney's investment partner is my real estate?" Dong Youwei asked, and the boss took the initiative to tell him that it should be inseparable. Although Disney is also an asset owned by the boss, investing in Hong Kong, or anywhere It is unlikely for non-U.S. local investment or sole proprietorship, because it is not just a playground, but a very large project. Cooperation with local companies is inevitable. After all, as a company in the entertainment industry, they cannot understand other places. In the real estate business, some Japanese real estate companies that want to invest in Hong Kong can only directly purchase properties in Hong Kong instead of buying land and building buildings. If they are directly operated by outsiders, they will definitely be cheated. Japanese real estate counterparts are already very good at it. Experienced.

"No, it's not a joint venture, but a sole proprietorship of Land. I will adopt an investment model similar to Disney's in Japan, that is, Land is responsible for all the funds, and Disney authorizes and collects a certain commission on tickets, which is about 10%. How exactly? You can discuss it yourself in the future, and the licensing fees for many entertainment toys and brand names also need to be paid to Disney." Chen Zhiwen said: "Disney will once again adopt an asset-light model. You also know that their current financial situation is not It’s ideal.”

Although a previous movie was considered a success, it only alleviated the "loss" trend, or at most made a small profit. No matter how capable Eisner was, he could not take over a large company whose liabilities almost exceeded its assets. It may be possible to completely turn around in about two years, even with Chen Zhiwen's golden finger, it is unlikely. Even Chrysler's Lee Iacocca would not have been able to make large profits so easily if it had not been for the plummeting oil prices.

Huge debts. Even if "The Lion King" is as successful as it was in history, it will not be able to cover the previous debt losses. It would normally take three to five years to succeed.

Of course, Chen Zhiwen can also inject capital into Disney, but it is not necessary, because the tax in the United States is much heavier than that in Hong Kong, and Disney will need to be listed in the future. Therefore, Chen Zhiwen naturally prefers to cooperate with Land.

Historically, Disney parks in Europe have been loss-making. Although there may be some tricks such as profit transfer, in general, pure parks are not considered high-quality investments. Of course, Hong Kong is not actually a good project either. The current real estate market in Hong Kong is at its lowest point. The cost of acquiring a large piece of land at this time is so low that even if the future park itself loses money, it doesn't matter.

One year ago, the future of Hong Kong was uncertain. Although Chen Zhiwen knew the future, coming to Hong Kong to invest in such a big project at that time would only be regarded as a fool, and it would even have uncontrollable effects. In the next year, Hong Kong real estate speculators It will be difficult to obtain discounts with this big project. This is why Chen Zhiwen chose this time.

You must know that at this time in history, Li Jiacheng saw that the Hong Kong government needed to use large-scale projects to stimulate employment and Hong Kong real estate, and then successfully "converted industrial to commercial" the original Hung Hom Huangpu Plaza under Hutchison Whampoa at almost zero cost. , now, this land has been developed by Chen Zhiwen in the 1970s, so he wants to take over the Disney project again and come to talk to the Hong Kong government. You know, the Disney project is much larger than a Whampoa Garden, and the subsequent impact can be Lasts for a long, long time.

Therefore, the opportunity cannot be missed. In Hong Kong, just let Land take responsibility. Disneyland has actually been built, and its main income is from rent collection.

"Chen Sheng, Disney has been preparing for this project for some time, right?" Dong Youwei asked. Although he didn't have much formal contact with the boss, he also knew that such a successful person must make a decision before taking action. , now I tell myself, it is obvious that I am preparing to start this project, and before that, Disney, as the brand operator, should have started long ago.

"Yes, when I went to the United States six months ago, I told Disney CEO Eisner that in the past six months, he has also asked many of his subordinates to come to Hong Kong for secret inspections in the name of tourism, to investigate Hong Kong's economic data, and to choose investments. Location." Chen Zhiwen nodded and said.

Although Disney has its own say, even ancient emperors often had to listen to the opinions of their ministers. Therefore, even if they had an order, their subordinates still needed to investigate and find out detailed information. To put it bluntly, even if their subordinates thought that the project would be a loss. Regarding money, they also need to know how much they will lose before they can be prepared.

Of course, this is a project that does not require any money from the United States. Disney only authorizes it. However, such a large company will also examine "franchise" partners. If it is really an inappropriate investment, they will also object. After all, it may Smashed the sign.

"Where is the place to choose?" Dong Youwei asked.

"This has not yet been decided. Disney has several options, but you still have to discuss the specific options with the Hong Kong government." Chen Zhiwen said.

Historically, Disney was located on Lantau Island in the New Territories. In fact, in the 1980s, the location was not very good. There were also relatively few people there. It was far inferior to the Kowloon Peninsula, Hong Kong Island, or even Yuen Long and North District. After the 1990s, the new Hong Kong International Airport was placed on Lantau Island, followed by Disneyland, and the bridges and subway connecting to other parts of Hong Kong were opened, which made it popular.

Nowadays, Disneyland has plans to invest in Hong Kong more than ten years in advance. Naturally, it is impossible to choose such a place. Taking advantage of the low land prices, even if it costs a little more, it is necessary to build this project in a more suitable location.

Of course, don't even think about Hong Kong Island. That's impossible, not even in the well-developed urban suburbs of the Kowloon Peninsula. There are too many people involved in demolition, and it's not just a matter of money.

The best location is near these towns, but places that are not very densely populated yet.

The original Disney Park in history had an area of ​​1.25 square kilometers, which is almost 6 times the size of Whampoa Gardens, the largest community in Hong Kong, and less than 2 times the size of Ocean Park. Although this is the total area of ​​several phases, Chen Zhiwen still wants to do it all at once. Otherwise, if you want to expand in a few years, the cost will be too high. This is also a disadvantage of not choosing a remote place. If you are in Lantau Island, it will be much more convenient.

Of course, it’s okay not to expand. As long as Disneyland is built in Shanghai earlier than in the original history, that’s the same. It’s all yours anyway.

In this life, the area is not yet certain, but it should be about the same. If you choose the Kowloon Peninsula, such a large land is not easy to find. Even if it is available, the demolition cost is not expected to be low. However, compared to the benefits that can be obtained in the future, Still worth it.

"Sheng Chen, with the current financial situation of Real Estate, we cannot afford such a large amount of money." Dong Youwei thought for a while and said, although the specific cost is still uncertain, but thinking about it, he knows that it must be a very huge number.

"You don't have to worry about this. I want Land to operate normally. I mean to maintain the previous property projects, or find some ways to acquire some of the properties I'm interested in. But for large-scale projects like joint ventures with Disney, I will pay for them separately. In addition, This project will also use loans on a large scale. After this matter is exposed, large banks will come to you, but by choosing HSBC first, you can win it over." Chen Zhiwen said with a smile.

Historically, Hong Kong Disney invested US$3.5 billion in the first phase, of which the land purchase price was almost half. That was the land price in 1998. Although it was a little lower than the peak in 1997, it was still about ten times the price in 1985. Even if I choose a place that is not very remote now, it is far less than this price.

At the same time, the construction cost will be much smaller. The salary of workers alone is estimated to be ten times different. Coupled with inflation, Chen Zhiwen estimates that the total budget of the Disneyland project in Hong Kong will be higher even if taking into account the choice of a better location. US$1-1.5 billion is enough.

If you really think about it, it is only worth the value of a Diwang Building in Exchange Square, and it may even be less than that in the future. The land price in Central, Hong Kong is really outrageous.

In the 1970s, Japanese Disney spent 1.5 billion U.S. dollars. Of course, their first phase was not very large. Historically, large European parks cost more than 5 billion U.S. dollars. There are many variables, and Chen Zhiwen can only make a rough estimate. Take a look, and a lot of Hong Kong Disney's investment may also be used to buy land.

"Choose HSBC? Okay, I understand." Dong Youwei nodded and said. This is equivalent to the boss injecting capital into Land, which is also of great benefit to him. Owning a Disneyland property is comparable to just acquiring office buildings. Or maybe mall rent makes a lot more sense.

"I will arrange for Eisner to come to Hong Kong. Then you will have an internal conversation first. When it is almost done, you will secretly release the news. It is best to mix it up with the truth." Chen Zhiwen said with a smile.

"Understood." Dong Youwei nodded and said. Only gossip can make many people more interested. (End of chapter)