Reborn Tycoon Rise

"It seems that the situation is not optimistic!" Xu Zhi said with a helpless smile.

Zhou Xianmao said: "Yes, Land's business is relatively simple. The company's main income comes from two businesses. The first is the rent collection of a large number of office buildings. In this area, the current monthly income is HK$220 million. However, these Some building properties are relatively old and require high maintenance costs.

The other main source of income is the development of residential properties and some commercial properties. However, the current external situation is not good. It is difficult to sell residential properties. Moreover, according to the current housing prices, we will suffer a book loss if we sell the house, but if we do not sell it, we will suffer a loss. No, all the company's funds are deposited in these businesses. Even if it loses money, these properties must be sold! "

Xu Zhi asked: "Are these houses in good locations?"

Anniversary Mao nodded and said: "Yes, when Bao Fuda was in charge of Land, the main direction of investment was the prime location in Xiangjiang, whether it was office buildings or residential buildings."

Xu Zhi flipped through the report on the table again. After reading it carefully, he asked, "How much has this Jianing Center sold?"

The Garden Center is a building built after the demolition of the Hilton Hotel owned by Hutchison Whampoa and the China Land Group two years ago. It has a total area of ​​1.4 million square feet (approximately 140,000 square meters) and is also in a prime location. .

At first, Hutchison Land and Caring were very happy, but now that Land has been acquired, they have to bear this huge debt.

Annian Mao replied: "Almost 1/4 has been sold. Some time ago, in order to recover the funds, Real Estate had to sell it at a low price, which made a lot of people cheaper."

Xu Zhi thought for a while and said: "The location of this Jianing Center is still very good. Let's do this. I will let Evergrande take over the remaining Jianing Center. It just so happens that Evergrande currently lacks a decent headquarters."

Zhou Xianmao smiled and said: "That's not bad. Being able to sell such a building at once can indeed recover a lot of funds. Moreover, Evergrande is also its own company. We are not afraid that we will regret it when the land price rises in the future."

As a top management person in the real estate industry, Nianni Mao also has a ruthless vision. Naturally, he can see that the real estate market will definitely recover in the future.

Xu Zhi went on to say: "Don't let the wealth go to outsiders. I will recommend and encourage all my senior employees to buy residential properties under the Land Group with certain discounts and loan concessions. This can also alleviate Land's current funding problem!"

"Chairman, isn't this good?" Zhou Zhoumao asked hesitantly. Although the chairman meant encouragement, the order would most likely turn into a certain degree of coercion. This is inevitable in the workplace. The problem.

Xu Zhi said: "It's okay. You don't have to worry about the specifics. I will master it to a certain extent. And as long as some time passes, people who are willing to listen will probably be grateful to me even if it's too late."

"Okay, I will work out the best plan based on the location of Land's residential business." Zhou Xianmao could only agree.

"If you have any other requests, just put them forward at once. I will try my best to solve them if I can help Land. Evergrande will also bear a lot of debt pressure when it acquires the Jianing Center. Although I still have some funds here, there are also some Other investments cannot help Land Land endlessly, and you will have to rely on yourselves from now on." Xu Zhi said with a smile.

Anniversary Mao pondered for a moment and said: "Chairman, if we can sell the Jianing Center, Land will be able to obtain at least another 2 billion Hong Kong dollars in funds. At the same time, we will also be able to cash out a lot in the residential sector. This amount of funds will be enough for us to continue to develop the Exchange Plaza." As long as the project can wait until the pre-sale period, more funds can be obtained. In this way, as long as the real estate market does not deteriorate, Land’s debt problem will be well controlled.”

"Is the Exchange Square project mainly for sale?" Xu Zhiwen asked.

Exchange Square is the site for the Central District Bus Terminal launched by the Hong Kong government in early 1982. It is just to the west of the current Connaught Building, with a total area of ​​144,000 square feet (15,000 square meters). Its location is a prime location among prime locations, with the Central Business Center to the south. , and to the north is Victoria Harbour.

Anniversary Mao nodded: "In the land purchase plan back then, the entire Exchange Plaza was divided into three phases, with a total construction area of ​​2 million square feet (200,000 square meters). About half of the area was held, and the other half was sold for recycling. funds.

The transaction price of this land that year was HK$5.3 billion. Together with the investment in construction, it was enough to account for 1/3 of Land's current external debt. It was impossible not to sell part of the property. "

"It's a pity, this location..." Xu Zhi couldn't help but feel a little pity. The property held by Land and Land was in such a good location that anyone in power wanted to hold it for a long time. The same should be true for the former Jardine House. Otherwise, we would not owe so much huge debt.

"Chairman, if you want to hold all of Exchange Plaza, it is not impossible." Zhou Xianmao naturally knows the chairman's personality. When he was at Evergrande, he was responsible for the company's business from the Federal and International Buildings under Wheelock. Before the real estate crisis broke out, an overseas consortium intended to acquire Dongzhonghuan Property at a high price, but was directly rejected without even a chance to negotiate. This business style is different from the business methods of some other Chinese giants who cash out quickly.

Of course, it may also be due to the difference in capital size. Although the current scale of Chinese-funded consortiums is getting larger and larger, it is still not as large as Land and Evergrande. It also depends on the location of the property held. The current Chinese-funded enterprise companies, Even if you own a property, it is in a remote location. Naturally, you won't feel bad if you sell it in such a location. And if it were to be located in Central, 80% of the time it would be the same. For example, the current Hehe Center is also located in Central, and Hehe Group is also prepared to hold it for a long time.

Xu Zhi asked: "What method? Don't tell me to inject another amount of capital?"

Niannian Mao shook his head and smiled: "Of course not. The main reason why Bao Fuda decided to sell half of the business of Exchange Square is that the debt of this project is too heavy, and the interest rate is as high as 25%."

"25%?" Xu Zhi was a little surprised: "Why is it so high? Which bank is the loan from?"

After the two oil crises, global money shrank, and the United States began to implement a high-interest policy in order to bring global funds back to the country. In the early 1980s, the deposit interest rate in the United States was as high as 5%, which was extremely rare in the entire history of American banking.

Deposit interest rates are high, and naturally loan interest rates are even higher. Although President Reagan intends to relax finance, it is impossible to do it all at once.

As the world's largest economic power, the United States is far more influential in this era than in the 21st century. Countries including Europe and Asia are forced to follow the policies of the United States and implement high-interest financial policies. Otherwise, large amounts of funds will will flow into the United States.

The same is true in Hong Kong. Even the most favorable loan interest rate in the individual house purchase policy is as high as 13-15%, and the commercial interest rate is even higher. For example, in 1980, Bao Yugang asked HSBC over the phone to borrow 2 billion Hong Kong dollars, which became a major trend in the business community. It's a good story, but the loan interest rate is as high as 21%, and Bao Yugang had to pay it off quickly to reduce financial pressure when he acquired Wharf.

It's just that no matter how high the interest rate is, this 25% is too exaggerated. If you borrow one billion yuan, the interest will be 250 million yuan a year.

Annian Mao smiled bitterly and said: "This is the interest rate set with HSBC when Bao Fuda was in office. I asked the person who handled it at the time. This was also the condition that Land had to agree to in order to win the land at Exchange Square. Bao Fuda and the others think As long as the real estate market can prosper in the long term, 25% interest is affordable!"

"What a fucking idiot..." Xu Zhi couldn't help but was speechless. No wonder the Yihe department was severely damaged by this group of people. It was just that they had no vision, and they desperately increased the risks of their own business: "Let's do this, I will Arrange for Standard Chartered or other overseas banks to lend a sum of funds with normal interest to Land, and then return the money to HSBC."

Niannian Mao shook his head and said: "Chairman, this method won't work. I have also thought about this method, but the loan contract between HSBC Bank and Land has liquidated damages and does not allow early repayment of the debt!"

…