Reborn Tycoon Rise

Xiangjiang, Hang Lung Group Headquarters:

"Brother, how was the discussion? Did Xu Zhi agree?" As soon as Chen Zengxi returned to the office, Chen Zengtao and his nephew hurried over and asked.

Chen Zengxi did not answer directly, lit a cigar, sat on the sofa and started smoking.

Seeing that his expression was wrong, Chen Zengtao did not ask further questions, but waited for the answer.

After a while, Chen Zengxi said: "Xu Zhi didn't agree to the loan, but he gave us another option?"

Chen Zengtao asked: "Does he want to buy shares?"

Chen Zengxi shook his head and said: "It would be good if he took a stake. He wants to completely swallow up our project."

"Sure enough, he is ambitious enough. He has carried out several large-scale projects such as No. 7 Berth Terminal and Huangpu Plaza at the same time, and he even took a fancy to our Hang Lung subway station project." Chen Zengtao sat opposite, feeling depressed too. The subway station project It has been tied to Henglong. It has invested too much energy and resources before, and it is too reluctant to let go now.

Chen Zengxi said: "But Xu Zhi promised me that Henglong would not lose money on this. In other words, we can recover all the previous investment."

"The previous losses are nothing. What we value is future profits!" Chen Zengtao said: "This means that Hang Lung did not take pictures of this subway business in the first place. Is this what you mean?"

Chen Zengxi nodded and said: "Absolutely!"

"Daddy." Chen Qizong, who had been silent next to him, suddenly said: "Did Xu Zhi only say that he would bear our investment?"

"Did you see it too?" Chen Zengxi looked at his son.

Chen Qizong said: "The request made by Xu Zhi will on the surface bear the investment of Hang Lung, but it does not allow us to recover the previous investment.

The start-up funds for the subway property project came from commercial loans, and the interest was very heavy. Obviously, Xu Zhi would not count the interest loss. "

"Yes, that's what I mean, but I can't say anything. After all, the current land price has been too low. It would be good to stop the loss appropriately." Chen Zengxi nodded and said.

Chen Zengtao asked: "Brother, do you mean to agree to him?"

"Do you have any other options?" Chen Zengxi said.

Chen Zengtao said solemnly: "Brother, now the Sino-British negotiations have begun. The British side has given up the management rights of Hong Kong, and the mainland has proposed the policy of 'one country, two systems, Hong Kong people governing Hong Kong'. Judging from the current rumors, as long as the two sides reach an agreement There is a consensus that the real estate market in Xiangjiang will inevitably recover. By then, the properties next to the subway stations will be the highest quality assets, right?"

"You are very discerning." Chen Zengxi smiled and said: "Unfortunately, we at Hang Lung cannot wait any longer. In half a month, we must hand over the second tranche of HK$1.82 billion of funds stipulated in the agreement to the Hong Kong government, and Sumitomo Bank has defaulted again. Withdrawing the loan, let alone HK$18.2, now we Hang Lung cannot even withdraw HK$820 million. If it really comes to that point, the consequences will be..."

"This little Japan is so disgusting. They have already signed the contract, but they actually withdrew the loan." Chen Zengtao slammed the table angrily. This feeling was like finding a treasure in the desert, and he was about to go out and enjoy the blessing. But because his mouth was so dry, he had to take out the treasure and exchange it for a bottle of mineral water.

"It makes no sense to say this now. Sumitomo Bank has also compensated liquidated damages according to the contract, and you can't hold you responsible." Chen Zengxi shook his head and asked his son: "Qizong, what do you think?"

"No matter how good the future of Xiangjiang is, we must have the ability to survive until then." Chen Qizong said to Chen Zengtao: "Uncle, the current situation is not our turn to choose. Once we can't come up with 1.82 billion in half a month, If we use Hong Kong dollars, the Hong Kong government will forcibly take back the entire project. At that time, our losses will be huge. Now if we sell this project to Xu Zhi, even if we lose some money, it will not hurt our vitality too much. As long as the real estate industry recovers, There are still opportunities in the future for us as Hang Lung to rise again."

"I know these truths, I just don't want to accept them. These banks are all idiots and have no vision at all." Chen Zengtao said angrily.

"It's not that they have no vision. There are many people who can see the future. We can see it, and of course others can see it, but can you tell me exactly when the Sino-British negotiations will end? When will the real estate market start to recover? "Chen Zengxi asked continuously.

"This..." Chen Zengtao pondered for a moment, shook his head and said, "I don't know."

"Yes, no one knows this, so these banks don't dare to bet. If it takes three to five years, even if Hang Lung borrows money to develop the entire project, what if we can't sell it? These will still be the unlucky ones. Banks, several banks have gone bankrupt this year because they were unable to recover their loans. Who is willing to take risks at this time? In this situation, unless you have a large amount of money, you can only get through it safely. "

Selling high and buying low is a recognized trading rule in the real estate market, but in the operation process, there is an extremely important factor, and that is time, because all people who play real estate will not use their own funds, whether it is real estate project development , real estate speculation, will make full use of bank loans, and this will involve interest issues.

If leveraged financing enters the market when land prices are low, but the market does not recover for a long time, leading to a collapse of the capital chain, or if entry is at the wrong time and housing prices continue to fall, it will lead to insufficient collateral and the property will be forcibly repossessed by the bank.

Therefore, during this period, most people with vision, even if they know the future prospects, are unable to enter the market on a large scale. Only those with extra money or courage dare to play. If they win, their future assets will be It's easy to double your score, but if you lose, you'll be doomed.

Chen Zengxi took a sip of tea to soothe his throat, and then continued: "Everyone is optimistic about this subway project, but except for Hutchison Whampoa, which currently holds huge sums of money, who has the ability to take over it?"

Chen Zengtao said helplessly: "Since eldest brother has decided, I won't say anything more!"

Chen Zengxi nodded and said: "Okay, let's convene the board of directors. Qizong, you sort out the ins and outs of this matter, and you will be the one to hold the board of directors then!"

Chen Qizong agreed: "Okay, I'll do it right away."

…

Three days later:

Hutchison Building:

"Chairman, there is news from Hang Lung. The Hang Lung board of directors has agreed to transfer the subway project to Hutchison Whampoa. In a few days, people will be officially sent to Hutchison Whampoa for negotiations and handover." Ma Shiminhui reported.

Xu Zhi nodded and said: "Okay, although I promise not to let Henglong lose money, you must also control the specific details."

The biggest cost of Hang Lung Group's property projects along the subway is actually the transaction with the Hong Kong government, which is the land auction price. This cannot be changed. Hang Lung cannot do it, and Hutchison Whampoa cannot do it either. This has already been auctioned. As for price, the Hong Kong government cannot make concessions just because land prices have fallen.

As for Hang Lung’s investment, which is the first payment to the Hong Kong government and the first phase of the construction investment project, Hutchison Whampoa can directly take over this area. In fact, Hang Lung will not lose much on this investment. For Hang Lung The biggest problem is the rupture of the capital chain caused by the failure to sell the first-phase properties. At the same time, they have to face the upcoming second payment to the Hong Kong government. The bank interest cannot be paid. If you have a bright future, you have to go bankrupt now.

However, this is not a problem at all for Hutchison Whampoa, which holds huge sums of money. If the first phase of the properties cannot be sold, then all of them will be held. The subsequent development projects will all be next to the subway station in the commercial district of Hong Kong Island. This kind of location is extremely rare in the entire Xiangjiang. When the subway network is completed, these properties will be unavailable even if you have money.

Ma Shimin said: "I have arranged for the best accounting and legal teams to go to Hang Lung headquarters, and I hope to take over the entire project soon."

Xu Zhi nodded and said, "Okay, let's do that. I'm going to the mainland soon. If you have any information, feel free to contact me via telegram."