The birth of the Hong Kong Island family

Time flies and we arrive in 1962 in a blink of an eye.

After New Year's Day, Cheung Kong Industries Headquarters (13th to 17th floors of Global Building).

Lin Zhichao was sitting in a spacious office, looking through assets and financial statements.

Cheung Kong Holdings' assets are divided into three parts-development real estate, commercial real estate, and comprehensive business (doll side).

Among them, the commercial real estate assets include (current value is approximately HK$250-300 million):

Central: Yingzhi Building, Poly Building, Universal Building, Midea Building (under construction);

Causeway Bay: Walden Building (Daimaru Department Store), Xintiandi Building (Xintiandi Shopping Center);

Kowloon District: Miramar Hotel, Miramar Shopping Centre, Lai Chi Garden Amusement Park, Kwun Tong Factory Building

Singapore: Daimaru Department Store Center

Among them, the assets for development real estate include (current value 350-370 million):

Properties under construction - Hei Wan Street properties (five buildings sold, two buildings remaining), Ferry Street 'Telford Garden' (8 buildings, 3,000 residential units).

Reserve land - approximately 1.2 million square feet of land in the urban areas of Hong Kong and Kowloon.

In other words, all property assets have reached HKD 600-650 million and have appreciated rapidly.

This is because:

For example, the 200,000 square feet of land in Telford Gardens is worth less than 40 million based on the current land price; but if calculated based on 3,000 residential units, the total value is more than 160 million.

Moreover, all properties and land have experienced great appreciation in value.

In the past year, Cheung Kong Industrial has sold a total of 990 residential units, earning a profit of about 35 million yuan, commercial real estate income of 22 million yuan, stock market income of 10 million yuan, Poly Construction's profit of 5 million yuan (including its own projects), Excluding stone mining enterprises (investment stage), the total profit was HK$72 million.

The funds withdrawn from the land are 4 million (the Xiyun Street land), and the total funds withdrawn are 76 million.

Expenditure:

Generally, only the expenditure on commercial buildings and the purchase of land are calculated. The construction cost of Midea Building is 20 million, and the cost of purchasing land is about 20 million.

As for the construction cost of Telford Gardens, because it adopts the model of "sale of uncompleted property", it is generally directly calculated as profit, and the construction cost is not considered as expenditure (a small amount of loan mode is used in the early stage).

In the end, Cheung Kong had a cash flow of 88 million, of which 10 million Hong Kong dollars received to Liao Chongxing Bank, and the Liao Liewen brothers had already paid off through property sales.

In other words, after Liao Baoshan's death, the Liao Liewen brothers continued to sell part of their properties to repay their debts.

"Boss, it's time for the meeting!"

"Okay, I'll come right away!"

Afterwards, Lin Zhichao withdrew his thoughts and walked towards the conference room.

Almost a dozen senior executives of Cheung Kong Industrial Co., Ltd. gathered together. Everyone was very happy, and it was another bumper year.

The important thing is that after the "Liu Chong Hing bank run", Hong Kong's real estate quickly returned to normal and continued to climb. As if nothing happened, everyone has forgotten, after all, it is not their own bad luck.

"let's start!"

As Lin Zhichao sat down, the high-level executives made speeches and summed up one after another.

If Cheung Kong is listed now, its market value will definitely not lose to Hongkong Land Company, and it is still not counting the reserve land.

After all, although Hongkong Land owns seven or eight buildings in the core area of ​​Central, they are all old-fashioned buildings that have not been rebuilt, so there is nothing to worry about.

Cheung Kong Holdings, on the other hand, controls the retail business in Kowloon and Hong Kong Island. It also owns four buildings, and they are also high-rise residential buildings, not to mention its dominance in the field of real estate development.

Although only 990 residential units were sold last year, only 10,800 residential units (first-hand) were sold in Hong Kong, accounting for about 9%.

Of course, if Cheung Kong was listed in 1972, it would definitely have to exclude office buildings, land reserves and other properties.

Jason, general manager of Miramar Hotel, reported: "Last year, Miramar Hotel's annual occupancy rate was 85%, mainly from tourists visiting Hong Kong, followed by local customers. The current competitors in Kowloon are The Peninsula Hotel and the Ambassador Hotel, of which the Peninsula Hotel only has 220 rooms, is a long-established local luxury hotel and is not a direct competitor; the Ambassador Hotel in Kowloon is a luxury hotel that opened this year. The competition between the two of us is greater, but the Ambassador Hotel is Although there are more than 400 rooms in a four-star hotel, the grade and area are much inferior. This year, the occupancy rate of Miramar Hotel will exceed 90%.”

Lin Zhichao nodded and then said: "Yi Mao and Peninsula Hotel will not give up. Wharf may usher in changes. Overall, the opportunity for the development of Hong Kong's hotel industry has arrived, and more hotels will appear. Of course. , this is not a bad thing, it shows that the hotel industry market in Hong Kong is huge.”

Everyone listened very carefully.

Although Jason speaks English and can't understand Chinese, everyone can understand English.

For this kind of meeting, Jason only needs to pay attention to the Miramar Hotel he is in charge of, and there is no need to understand the others. Moreover, he usually seldom attends meetings, and rarely attends weekly company meetings. Huang Changhong notifies him of the meeting, and he comes.

The Miramar Hotel is indeed developing well, with an occupancy rate of 85% in the first year. It can be seen that the overall environment is very good, and all the hardware and software facilities of the Miramar Hotel are fully occupied. Therefore, it is estimated that in the five years from 1962 to 1966, an average occupancy rate of 90% can still be maintained.

The hotel industry in Hong Kong can achieve a rate of return of 8-12% when the market is good, while the rate of return for the hotel industry in other countries is only 6-8%. When the market is average, it is even only 5~6%, just collecting interest.

The reason why everyone likes to invest is probably because the cash flow is high and it is easy to borrow. The reason why Lin Zhichao invested was just to save face. Of course, he also knew that Hong Kong's hotel industry has the highest return rate in the world.

"Manager Hu, how does your sales department plan to allocate real estate plans?"

Hu Zhaoxu was a little curious. After all, didn't the boss himself say it?

But he still answered seriously: "Currently, Cheung Kong Industries has two sites under construction - Xiyun Street and Ferry Street, as well as a mid-level mansion in Causeway Bay that is under planning. Xiyun Street and Ferry Street have a total of 3,360 residential units. It is planned to be sold in three years, which means the average annual sales will be about 1,120. As for the mid-level luxury homes in Causeway Bay, each unit can sell almost HK$150,000, and it is expected to be 128 residential units."

This real estate in Causeway Bay has an area of ​​39,000 square feet and uses caisson technology to build a luxury residential building. Each unit is about 1,500 to 1,800 square feet, which can be considered a mid-level luxury home, with swimming pools, clubs and other facilities.

Lin Zhichao said: "This property in Mid-Levels in Causeway Bay will be used for rent in the future! Then the plan to sell 1,100 residential units every year is similar. However, this year will definitely be the year of real estate explosion. The Hong Kong government will put up a lot of land for auction. We can get two more It is a small site that can be developed immediately as a supplement. It is still necessary to sell 1,500 houses a year."

If we did not acquire land during these three years from 1962 to 1964, it would not be justified at all. Therefore, we would simply acquire two small sites every year and develop them as soon as they are acquired. Although the profit is not as high as hoarding land, it should still be more than 35% a year.

Hu Zhaoxu nodded and said, "Okay, I'll write it down!"

If Lin Zhichao is not in Hong Kong, Huang Changhong and Hu Zhaoxu may jointly go to shoot the land. He is very decentralized now. On the other hand, if there is a high-quality commercial building land in Central, Lin Zhichao may want to compete for it.

As for the annual supply of 1,500 residential units, it is not a lot. According to last year's standards, it was only 15%; and Lin Zhichao predicted that in the years from 1962 to 1965, Hong Kong's supply of residential units will gradually increase to nearly 30,000 in 1965.

This is because this year the Hong Kong government will propose to reduce the plot ratio by 20%, which means that the same land must be built on 20% less area. It will be officially implemented in 1966.

Because of this, property developers with land began to rush to complete the construction before 1966, and banks also desperately invested funds in real estate.

After a meeting, all the senior management had a common idea - that is, the boss is really stable!

Plans for the next three years have been basically formulated.

John Keswick, the senior manager of Jardine He, once again took his son Henry Keswick to Miramar Shopping Center for inspection and visit. Since the listing of Jardine Matheson last year, the Keswick family has completely controlled Jardine Matheson Group. Before that, it was more like a multi-family Hopewell Company.

Because other families and shareholders were not optimistic about Hong Kong's prospects, the Keswick family, with the support of three commercial banks in London, acquired part of other people's equity and completely became the controlling family of the Jardine Matheson family.

"Father, this Lin Zhichao has a lot of money and a very smart mind. Now he actually owns the retail business hegemony in Hong Kong and Kowloon. He even owns such a luxurious hotel in Kowloon. It can be said that he has a lot of money." Henry Keswick praised.

John has two sons - Henry and Simon. Henry Keswick has just returned to Hong Kong from Australia to serve as a director of Jardine Matheson.

"Although he has a good mind and financial situation, it is a pity that he does not have a good piece of land. We own Wharf, and the location is better than here in all aspects. Therefore, investing in a shopping mall at Wharf 1 Pier 1 can Cut off the passenger flow here." There was a hint of contempt in John Keswick's tone, but also a bit of pride.

Wharf's Pier 1 is very large, and cruise ships arriving in Hong Kong will disembark passengers there. At the same time, it is surrounded by the sea on three sides and has a unique location. It is indeed a good place to build a shopping mall.

Henry Keswick said: "I'm afraid Wharf's funds cannot spend tens of millions of Hong Kong dollars to build large shopping malls. However, this kind of thing is great for Hong Kong's economy and the scenery on both sides of Victoria Harbor. We can ask the Hong Kong government for help."

John Keswick's eyes lit up and he said: "Okay, it's up to you to plan this matter. Raise funds and come up with plans as soon as possible to build a shopping mall that is larger and more expensive than Miramar Shopping Center. And you said That’s right, we can ask the Hong Kong government to help with this matter, and they won’t refuse, because this is the landmark building of Victoria Harbour.”

He is very satisfied with his son's idea. Recently, he has been worried about funds. Although the Jardine Matheson Group has two flagships and Hong Kong real estate is also very prosperous, Wharf and Land are not very profitable at this time.

Although Jardine has just raised more than 400 million yuan, more of these funds will be invested overseas. The Keswick family wants to build Jardine Matheson into a global group, not a large foreign company in the Far East.

Thirty million pounds was confiscated that year, which was a disadvantage because the assets were too concentrated in the Far East.

Henry Keswick said: "No problem!" Then he added: "The Miramar Hotel is also doing very well, and Wharf will also develop the hotel industry there in the future."

John said: "Step by step! The Mandarin Hotel in Central will open next year, and Kowloon will be temporarily delayed."

Henry Keswick nodded and said, "I see!"

After discussing work matters, Henry Keswick said: "Lin Zhichao, a Chinese, has strong financial strength and rapid development. It is really incredible!"

After all, John Keswick has experienced many things, including the confiscation of Jardine's assets, etc., and has seen too many glories, so he said: "It may not be a good thing for him to develop too fast, and the debt ratio must be very high. Once shipping has The big risk is that you will lose everything.”

After all, it is not listed, how do these people know how much assets Lin Zhichao has.

To put it simply, no one knows whether the Yangtze River Industrial Group will make money or whether it will lose money. The same is true for shipping companies. No one knows how much money Lin Zhichao has, let alone how much debt he has.

When Henry Keswick heard his father say this, he soon dismissed Huazi as well. The model of Jardine Matheson Group with Wharf and Land as its two wings has been established. All three companies have the strength far beyond that of Chinese capital, and they are also listed companies. Funds can be raised through various channels.

At this time, Lin Zhichao also guessed that once the Miramar Shopping Center opened, it would soon cause a reaction from Wharf. The Ocean Terminal could be built more than a year earlier, putting pressure on the Miramar Mall.

Of course, Hong Kong's economy and tourism are also developing, so there is room for competition. The impact is there, but not too big.

The time to really work with British capital was in the 1970s.

Mid January.

"Lisheng, how about the Paterson Street we plan to build?" Lin Zhichao showed off to Li Mingze in a friendly tone.

The two got acquainted in the early 1950s through the sale and purchase of the Embassy Building. Later, Li Zeming took the initiative to sell the former site of the Huaxin Building at 2 Hysan Avenue to Lin Zhichao.

Li Mingze looked at the prosperous Paterson Street and said with admiration: "I never thought that Causeway Bay would be as prosperous as it is today. There is no doubt that Changjiang Real Estate is the biggest changer. Paterson Street, Xiyun Street, and Huaxin Building are all It drives the development of the surrounding area. Especially here on Paterson Street, the traffic flow of Daimaru department store shows me the development prospect of Causeway Bay.”

Hysan Land owns a large number of properties in Causeway Bay. If Causeway Bay can develop, they will be the happiest. And Li Mingze, who is in charge of Hysan Real Estate, naturally understands this very well. When he sold the site at 2 Hysan Road, he hoped that Lin Zhichao could come to Causeway Bay for development.

Lin Zhichao said with a smile: "I did not expect the passenger flow of Daimaru Department Store. Now the pressure on my Xintiandi shopping mall has increased greatly. Fortunately, the two shopping models can promote each other. I believe that this summer vacation will be able to It’s a double shot here.”

Walden Building and Xintiandi Building are even connected by sky bridges, that is to say, after visiting Daimaru Department Store, you can also come to Xintiandi Shopping Center.

And the pedestrian bridge of this kind of building is the only one in Hong Kong, which is a pioneering design.

Li Mingze nodded and said, "I admire Mr. Lin's innovative methods, and his contribution to Hong Kong real estate is definitely the greatest."

Lin Zhichao said modestly: "Haha, I dare not say that, I was forced out."

It can indeed be understood that they were forced out, because after the Hong Kong government allowed the construction of high-rise buildings, real estate companies had to solve various troublesome problems if they wanted to sell high-rise buildings, otherwise buyers would have doubts.

Many innovations are produced when certain problems need to be solved.

Later, Lin Zhichao took Li Zeming around Paterson Street. He didn't show off on purpose, but had a reason.

"Lisheng, if Causeway Bay is to become a retail area in Hong Kong, or if Causeway Bay is to really develop, there is a project that must be done."

Upon hearing this, Li Mingze immediately said modestly: "Sheng Lin, please speak!"

Lin Zhichao then came up with a shocking thing. He said seriously: "That is to build an undersea tunnel connecting Hong Kong Island and Kowloon. As for the entrance and exit on Hong Kong Island, it is better to choose Causeway Bay. In this way, , Causeway Bay will also become more prosperous because of this tunnel.”

Li Mingze was shocked and said: "The project of building the undersea tunnel is too huge, and the Hong Kong government may not be willing to invest. Could it be that what Mr. Lin said is that you are willing to take the lead in investing in this project?"

Lin Zhichao nodded and said calmly: "This project seems huge, maybe the investment is 200 million to 300 million Hong Kong dollars, but with the development of Hong Kong's economy, Hong Kong and Kowloon urgently need to have closer economic ties. This tunnel can easily pay for itself. It is a very A good infrastructure investment. My idea is to gather Chinese and British capital, form a team, collect funds, and make full use of bank loans to complete this project."

After thinking for a while, Li Mingze said: "This project is indeed beneficial to Hong Kong. Hong Kong Island and Kowloon should be closely connected. I am willing to join this project!"

Lin Zhichao was not just promoting investment, but also promoting popularity, so he said: "Later, after we contact a group of interested investment groups, you can propose to the Legislative Council that the Hong Kong government undertake the construction first. If the Hong Kong government does not intend to undertake the construction, then it will be handed over to the Legislative Council." Private teams will undertake the construction. If it is built by private parties, you can still ask for the 40-year charging rights."

Li Mingze nodded and said, "Indeed! This matter is a good investment from all aspects."

Afterwards, the two had a serious conversation about detailed planning, and finally hit it off.

Lin Chi-chao's investment in the Hung Hom Cross-Harbour Tunnel was not for profit. He might recover the cost and make a little profit, and then hand it over to the Hong Kong government in the 1990s.

After all, if this charging model is too greedy, it will be scolded.

Of course, he is not doing a loss-making business. Maybe he can recover the cost in 10 years, make some profits, and return it to the Hong Kong government in 20 years.

Although it is said that 300 million yuan will be invested, 70% can be borrowed and the rest will be shared by various consortiums; the investment start-up capital of 90 million yuan cannot be provided in one year, nor can it be provided by a consortium.

As for finding those consortiums, Lin Zhichao felt that Wheelock and HSBC should have no problem. Chinese capital plus Lin Zhichao and Li Mingze were almost enough.

It's not a problem for Lin Zhichao to take the majority by himself. He invested in the name of the Yangtze River Industry Group for a mere tens of millions. Anyway, there is money there.

As for the time, Lin Zhichao felt that the project was established, planned, and designed in 1962~1964, and built in 1965~1968; in this way, it was four years earlier than in the previous life.

This is of great benefit to Hong Kong!