Reborn Tycoon Rise

Ma Shimin asked curiously: "What project?"

In a city like Hong Kong, there are few large-scale projects whose total scale can exceed that of a giant pier. Even the construction of skyscrapers in Central cannot compare, except for the subway.

"We have converted the industrial land on the Hung Hom seaside into a commercial and residential property with an area of ​​2 million square feet (200,000 square meters). If we develop it, will it also require a lot of funds?" Xu Zhi said with a smile.

"Developing a large-scale high-end residential community?" Ma Shimin nodded and said thoughtfully: "This does require a lot of funds, but I'm worried that it's not the right time. Once we build the residential complex and the Sino-British negotiations have not ended, then our funds will not be available. Just trapped.”

"There is no need to worry about this, because I have no plans to develop residential properties on this piece of land." Xu Zhi shook his head.

Ma Shimin was stunned for a moment and asked, "What should we build on top of this?"

"I plan to build a complex of large shopping malls, office buildings, hotels, and high-end apartments called Huangpu Plaza. All properties will be held by Hutchison Whampoa itself, with a total construction area of ​​20 million square feet (2 million square meters)." Xu Zhi said with a smile.

"Keep it all by yourself?" Ma Shimin said in surprise: "Chairman, in this case, in terms of funds..."

"The specific amount of funds required depends on the subsequent planning and design, but according to the current average construction cost in Hong Kong, the total investment for this one project is estimated to be more than HK$15 billion." Xu Zhi said: "We will advance 30% of the funds ourselves, and the rest Using a loan would require an investment of almost HK$5 billion, which is no worse than a terminal!"

"But is it too risky to hold it all by yourself?" Ma Shimin worried: "Although Hung Hom is close to the seaside, it has never been the commercial center of Hong Kong. It is close to Kowloon City, and the undersea tunnel can also directly lead to Central. , if this land is used to build residences, our income will never be low. In terms of property holdings, we can also build a shopping mall, in which case the risk will be much smaller."

"So what if it's not a commercial center?" Xu Zhi said with a smile: "As long as I invest in a place, it will be a commercial center in the future. Some time ago, He Guoyuan and Lin Wenzhou had always wondered why I built the headquarters of Midea and Changxing in Hung Hom. Not Central? Do you understand now?"

Ma Shimin said: "The chairman wants to use Midea and Changxing's huge number of employees and surrounding cooperation as a basis to build Hung Hom into a new commercial center along the Xiangjiang River?"

"Yes, Midea's employees have good incomes. At the same time, Midea itself has a series of suppliers and partners. As long as we move to Hung Hom, these people are very likely to follow. Such a large group is enough to form a very strong commercial scale.

The Hung Hom project is based on Hutchison Whampoa, and the Tin Shui Wai town building plan is based on Evergrande. They are the foundation of the century-old foundation of your two companies. As long as this project is successful, then in the future, the buildings on this piece of land in Hung Hom will be Huang's greatest wealth. "Xu Zhi said with a smile: "As for the future problems in Xiangjiang, you don't have to worry, I am fully sure. "

Later Li Jiacheng developed four famous walled village projects in Hong Kong in the 1980s and 1990s, with a total profit of up to HK$20 billion. These funds were the fundamental reason for the Li Group's aggressive internationalization.

Among the four major walled village projects, the first and most famous is the Huangpu Garden project.

The former site of Whampoa Garden was the wharf of Hutchison Whampoa Group. After entering the 1970s, Hutchison Whampoa cooperated with Swire to merge the shipyard and move it to Tsing Yi Island, leaving an area of ​​2 million square feet (200,000 square meters). space.

At that time, Hutchison Whampoa's chief executive Qi Dezun intended to develop this land and build a top-notch residential complex similar to Taikoo Shing. However, he encountered a fatal problem. The land at the wharf was industrial in nature. If he wanted to build a shopping mall and residences, he had to pay a fee. A huge amount of "land compensation".

After the land supplement fee is paid, there is basically no profit from redevelopment. This is the Hong Kong government's strategy. Otherwise, if all companies purchase industrial land for land conversion, which real estate company would still be willing to participate in the land auction?

The land compensation fee trapped Qi Dezun and the subsequent Wei Li. When Li Jiacheng took over Hutchison Whampoa, the land price at that time was almost at its peak. The land compensation fee required 2.8 billion Hong Kong dollars, and Li Jiacheng naturally refused to accept it.

By 1984, although Sino-British negotiations had improved, the real estate market had been sluggish. In order to stimulate the real estate industry in Hong Kong, the Hong Kong government agreed to Li Jiacheng's conditions and modified the land with a land compensation fee of HK$390 million. The land use nature of the land is only HK$90 million more than the HK$300 million currently discussed by Xu Zhi.

By the beginning of 1985, the Sino-British negotiations ended, the future of Xiangjiang was decided, and housing prices began to rise steadily. Li Jiacheng immediately arranged the construction of the Huangpu Garden surrounded village project.

Huangpu Garden includes a total of 7.6 million square feet (760,000 square meters) of residences and a 1.9 million square feet (190,000 square meters) of shopping malls. The entire project started in 1985 and ended in 1989. During the sale process, Xiangjiang real estate had just picked up, and housing prices The price has increased significantly, and the premium for the entire project is very high.

The land of Huangpu Garden is held by itself, and it only paid HK$390 million in land conversion fees. The construction cost of the entire project was HK$4 billion. In the next four years, the total income was as high as HK$9 billion. Just building a house would be a waste. Easily earned 5 billion, and also got a 170-foot shopping mall for free.

This profit could be said to be the most profitable business case in Hong Kong at that time, but Xu Zhi looked down upon it.

Although the housing prices in the late 1980s were not low, the gap was still very large compared to the extreme levels in the 1990s. You must know that housing prices in Xiangjiang increased fourfold from 1991 to 1997, and rents also increased significantly. For properties purchased in the 1980s at market prices at that time, after 1990 to 1997, the cost could be recovered by rising rents alone.

Historically, Li Jiacheng built residential properties because he wanted to mobilize assets, and residential projects are extremely suitable for this.

But at present, Hutchison Whampoa does not need to rush to cash out its land. On the contrary, when there is too much money to spend, investing in properties is the last resort. In the current Hong Kong market, it is difficult to invest tens of billions of Hong Kong dollars to purchase properties. Therefore, large-scale construction on your own land has become the best choice.

Therefore, the planned construction of a large-scale commercial complex is currently Hutchison Whampoa's final plan, involving a large shopping mall, dozens of office buildings for rental, several high-end apartments, hotels, etc.

Later Li Jiacheng's Whampoa Garden had a total construction area of ​​only 9.5 million square feet. This was because Hong Kong's laws had many restrictions on residential buildings, and the floor area ratio could not increase indefinitely.

However, the requirements for commercial office buildings are much lower. Therefore, for the same land area, the area ratio for building residential buildings and building office buildings is much different.

Therefore, Xu Zhi plans to turn the entire land into a large-scale office building complex with a floor area ratio of 10.

As for whether anyone will come to rent here in the future, Xu Zhi is not worried at all. First, the relocation of Midea and Changxing headquarters companies will definitely bring a large number of people with stable incomes. Second, after the Sino-British negotiations, Xiangjiang’s The skyrocketing real estate prices and rents will force a large number of companies to leave Central and other places. Now, Hutchison Whampoa will prepare enough commercial facilities in Hung Hom to attract this group of people.

"Since the chairman said so, I will do a market survey first, and after the results come out, we will discuss the details." Ma Shimin also secretly analyzed in his mind that although this project will consume a lot of money, it will not It will be a one-time investment but construction in phases, so that Hutchison Whampoa can carry out so many large-scale projects at the same time.

"Okay, then you first arrange the preliminary land leveling, and then let the designers design the building style according to my data." Xu Zhi also knew that this kind of project is not a large residential complex. After all, it needs to be held by his company for a long time. , it cannot be accomplished overnight. The preliminary bidding alone may take several months. There is no need to rush, just follow the procedures step by step.