The birth of the Hong Kong Island family

Hilton Hotel in Vancouver, Canada.

This is the asset of Cheung Kong Group. That year, Cheung Kong Group acquired two Hilton hotels in Toronto and Vancouver for a total price of HK$600 million. Of course, the two five-star Hilton hotels did not bring much profit to Cheung Kong Group. The return rate was only 6% to 7%, which was only better than the interest rate.

This is a very low rate of return in the Hong Kong hotel industry and the Singapore hotel industry. The rate of return of the Hong Kong hotel industry can generally reach 12%, and the rate of return of the Singapore hotel industry can also be 10%. The rate of return of the European and American hotel industry is generally 12%. It's only 5~8%.

In the hotel's executive conference room, Lin Zhichao, Henrik, Zheng Yutong, and Li Shauji, representing four companies, were looking through the tender documents.

It turned out that Cheung Kong Group, Canadian Imperial Bank of Commerce, New World Development, and Henderson Land were preparing to bid for the development rights of 86 hectares of land at the former site of the Vancouver World Expo.

Four companies formed the Concord Expo Development Corporation of Canada, with Cheung Kong Group holding 62%, New World and Henderson each holding 17%, and Canadian Imperial Bank of Commerce holding 4%.

The general content of the tender document of Canadian Concord Expo Development Corporation is:

In the next 15 to 20 years, the group will spend HK$12.7 billion to build a giant 'neighborhood-style complex'. The entire plan includes 7,650 residential units, 3 million square feet of commercial building area, and a five-star hotel with 400 rooms. A first-class hotel, a parking lot with 21,000 parking spaces, a sheltered marina that can accommodate 650 yachts, an international financial center, a high-tech research center, and a well-equipped park.

This plan will be the largest development plan in Canada’s history!

Of course, Canada Concord Expo Development Company is not without competitors, and its competitor is Vancouver Land Company.

"The bidding plan is very beautiful. If I were the bidding director, I would not hesitate to submit this bid! Mr. Lin, whose masterpiece is this bid?" Henrik said happily.

Lin Zhichao pointed at Zhou Huaian and said: "It was planned by our Vice President Zhou. Once the bid is won, he will also be the manager of this project."

Of course, it is impossible for Zhou Huaian to stay in Canada and keep an eye on this project. He is the head of real estate development of Cheung Kong Group and is very busy with business. In particular, Cheung Kong Group is about to formulate the "Four Major Housing Estates" plan. How can Hong Kong be less? It’s Zhou Huai’an.

Therefore, the direct person in charge of this project is another senior executive of Changshi Group.

Henrik smiled and said: "I know Vice President Zhou, the main person in charge of real estate planning of Changshi Group."

Zhou Huaian responded with a smile: "Mr. Henrik and our boss have been old friends for many years. We have also met and dealt with Mr. Henrik."

"Haha, yes, we are all old friends!"

Next, Henrik said: "The total price of this bidding (land fee) is 320 million Canadian dollars (approximately HK$2.5 billion). In fact, the Vancouver government can allow only 50 million Canadian dollars to be paid in the first phase, and later payment is allowed. It will be paid off within 15 years. Therefore, the bidding competition this time is - whose plan is better, I believe we are on the right side!"

The Concord Expo has invited Canadian Imperial Bank of Commerce as its financial bank to develop this project, which can be regarded as further cooperation. So Henrik also ran back and forth for this project.

Of course, Lin Zhichao is the target of Canadian officials, so his influence is the key to this project.

Lin Zhichao said: "In this regard, I believe that our opponents are far less experienced than us, so please rest assured! In the later stage of this project, our people from the Changshi Group will complete it, and everyone will just pay dividends in the future."

Everyone laughed, and Zheng Yutong said: "Lin Sheng is blooming all over the world. There are large-scale real estate projects in Japan, the United Kingdom, the United States, and Canada!"

When Cheung Kong Group announced its investment in the ‘Canary Wharf Group’ in the UK, the news reached Hong Kong and there was already a lot of commotion. Once Lin Zhichao returns to Hong Kong, he is afraid that he will be surrounded by the media.

After all, US$7 billion in overseas investment is equivalent to the market value of Changshi Group at its peak.

Lin Zhichao said: "There is no way, companies must seek breakthroughs!"

Zheng Yutong and Li Shauji nodded. They are also considering investing overseas and following in the footsteps of Lin Zhichao. Zheng Yutong, in particular, is even more eager to invest in overseas businesses.

Despite this, Zheng Yutong also chose to invest in the mainland.

So it cannot be said that they are engaging in capital-raising. Everyone has only one idea - eggs cannot be put in one basket. What's more, who of us doesn't want to be a successful businessman in the world.

After finishing work, he handed over the work to his subordinates, and the four of them met to play golf and have dinner together. This is the boss's job.

After playing golf with Zheng Yutong and Li Shauji for two days, Lin Zhichao continued to work in Canada.

Arriving at Husky's headquarters, Ma Shimin and Huo Jianning had already arrived first.

Together with Husky President Blair and other senior executives, everyone sat down in the conference room.

Blair reported: "Canterra Petroleum's offer is CAD 375 million, and we will assume all of its debt. Once the acquisition is successful, Husky's asset value will double from the original CAD 2 billion and become the top five oil and gas companies in North America." The leader of the company. Of course, Husky's series of acquisitions and expansion have caused debt to increase sharply and earnings to plummet."

In short, the money earned is basically used to pay bank interest.

But it will be after 1994 that the real rise will occur and profits will increase significantly.

Lin Zhichao nodded, thought for a moment, and said: "Acquisitions must be acquired. After all, opportunities are rare. As for the issue of sharp increase in debt, we will consider it later based on the situation!"

Either we have to wait until 1994. Of course, in this case, we will not only consume a large amount of crude oil reserves, but also continue to pay a large amount of bank interest.

In any case, Nova Corp still holds 43% of the shares. Lin Zhichao hopes that after they hand over their shares, Hutchison Whampoa will consider injecting capital.

Blair said: "Okay, let's continue the negotiations."

Lin Zhichao then said: "Jianning, you must make good financial and technical arrangements and don't let the company fall into default and difficulty."

Huo Jianning nodded and said, "Okay"

He is now a popular figure in the Cheung Kong Group. He is also the person in charge of financial and technical arrangements for Cheung Kong, Hutchison, and Husky, and he is very busy.

As a close associate of Lin Zhichao, Huo Jianning also understands Lin Zhichao's thinking, that is, it doesn't matter if Husky's debt is higher, the main thing is that it can force Nova Corp to hand over its equity.

Otherwise, with Hutchison Whampoa's strength, it would not be so embarrassed.

Back in Hong Kong, it was already late January.

However, the news that Cheung Kong Group invested US$7 billion in Canary Wharf, London, has still become the focus of the Hong Kong media and citizens.

Of course, investors continue to believe in Lin Zhichao. Since the official announcement of the news, the share price of Cheung Kong Group has risen by 15% in half a month, breaking through the HK$50 billion mark again.

Lin Zhichao also said this in front of a reporter from the financial channel of his own media "Oriental Daily":

"For this US$7 billion project, there is no financial pressure, and Cheung Kong Group does not need to transfer funds from Hong Kong to London."

"Cheung Kong Group established an investment company in London in the early years, specializing in investing in financial products. Today, this part of the assets has approximately 2 billion US dollars. Nowadays, the risks of financial products have increased, so it is a normal business arrangement to shift to real estate investment, and there is no need to overdo it. Interpretation.”

"Cheung Kong Group's overseas investments are all long-term investments, and it does not care about short-term returns. Of course, the investment in Japan is indeed very surprising, and it has achieved a greater return than investment in Hong Kong."

His remarks quickly dispelled some people's worries and tensions, and public opinion calmed down.

Of course, the rich in Hong Kong are not stupid, and it has become a trend to invest overseas.

Cheung Kong Group.

Tang Zhongyuan came to Lin Zhichao's office, and the two of them were drinking tea on the sofa.

"My father-in-law is 82 years old. He is still energetic and active in the business world. I admire him very much!" Lin Zhichao put down his teacup and said easily.

The relationship between him and his father-in-law is not a simple relationship between elder and junior, but a 'comrade-in-arms relationship'. At that time, the two of them were working hard in Hong Kong at about the same time, and they had many contacts along the way. Of course, it was Lin Zhichao who supported Tang's family.

Tang Zhongyuan said: "I always don't let go of small company matters. Although your two brothers-in-law have been able to stand alone, and your nephews have also started working, I always feel..." At the end of the sentence, he didn't know what to do. How to say it.

Lin Zhichao said: "But what about the division of labor between Xian Qian and You Qian?"

Tang Zhongyuan immediately nodded and said: "You understand me best. Xianqian is the eldest son. He helped the company a lot back then. The cause of Africa is thanks to his hard work there. But now, textiles and garments are considered a sunset industry. As the eldest son, he , I started to suffer a bit.”

Lin Zhichao said: "Brothers Xianqian and Youqian have a harmonious relationship, and my nephews are now in management positions, and my father-in-law is in good health, so why do you have to worry about this!"

When Tang Zhongyuan thought about it, he suddenly realized that he now also values ​​the cultivation of his grandchildren. In the second generation, the two brothers had a division of labor, but in the third generation, there was no division of labor, but a mixture. For example, Tang Xianqian's eldest son entered Hong Kong Industrial and engaged in real estate development.

Tang Xianqian and Tang Youqian had never divided the family property, but each was in charge of a business in the Oriental Group.

"Well, when you say that, my heart suddenly becomes clear."

Lin Zhichao said: "Actually, there is another solution. That is, after the mainland is developed and it is suitable for investment in the real estate industry, Xian Qian Yimai can go to the Mainland to invest in real estate and be in charge of the mainland real estate business in the future; You Qian Yimai can be in charge of it. Hong Kong real estate business.”

This model is the model of the Lee Shau Kee family in its previous life.

Moreover, Tang Xianqian often travels to the mainland for business, invests in textile and garment businesses, and is very familiar with the mainland.

Tang Zhongyuan said excitedly: "When will mainland real estate be suitable for investment?"

Lin Zhichao shook his head and said: "I don't know yet, but I believe that after these years of exploration, the mainland will definitely open up completely. My father-in-law just waits patiently. I believe there should be hope within five years."

Tang Zhongyuan nodded and said, "Fortunately, I can still wait!"

Lin Zhichao smiled and said: "My father-in-law's body will be fine if he lives for another 20 years!"

There are too many rich people in Hong Kong who live long lives. 90 years old can only be considered a barely long life, 95 years old is a real longevity, and 100 years old is not impossible (Shao Run Run).

After talking in detail for a while, Tang Zhongyuan asked, "Why did you invite me to your office?"

Lin Zhichao nodded and said: "Land is planning to sell two buildings, namely the Harcourt Building in Wan Chai and the Royal Building in Causeway Bay. Would my father-in-law want to go and negotiate?"

After he heard the news about the land for sale, he was not particularly interested, but he thought of his old father-in-law.

Oriental Group has been going downhill in recent years, mainly focusing on the construction of the old factory sites in Discovery Bay and Tsuen Wan, and has fallen behind in the field of real estate development. In addition, the textile and garments have declined, so the market value of Oriental Group Not high.

If this situation continues, I am afraid that even the top ten chaebols will not be included in the list (originally tenth).

Lin Zhichao likes to take care of his father-in-law and his family, because in this way, his two wives will be grateful to him in their hearts, and Lin Zhichao can have a romantic relationship outside without any problem.

Tang Zhongyuan immediately asked: "Are you optimistic about the prospects of these two buildings?"

Lin Zhichao said: "Of course, they are all good rental properties. Each building can actually be used as a core asset of the family. Oriental Group's commercial real estate project only has one building in Tsim Sha Tsui and Central, which can exactly double its strength. . If my father-in-law is interested, he can go to Hang Lung Bank to seek a loan at that time."

Tang Zhongyuan nodded and said, "Okay, I'll arrange negotiations right away!"

He had no doubts about his son-in-law.

After seeing Tang Zhongyuan off, Lin Zhichao returned to his seat and thought about things.

Because he had some "opinions" on Liu Luanxiong, Liu Luanxiong's trajectory in this life also changed a lot:

First of all, when Aimigao introduced fans to North America, it was beaten by Midea, so its fan business may only be half of its previous life; Aimigao wins because of its low price, and Midea wins because of its wide channels.

Secondly, after Amigao went public, its market value was definitely not as high as in its previous life. It was only a small listed company. Although Liu Luanxiong still targeted companies to make profits, he could only get involved in small businesses and missed out on Huazhi and China Entertainment. , won by the joint consortium of the Feng family and Wei Li.

In short, although Liu Luanxiong targeted about ten listed companies before the 1987 stock market crash, he only made some money and won a small real estate company, but lost the most valuable Huazhi and China Entertainment.

Today, Liu Luanxiong does not have the funds to purchase Harcourt Building and Royal Building, so when Lin Zhichao heard that Land was interested in selling them, he told his father-in-law the news.

If Tang Zhongyuan acquires it, the Tang family will be able to firmly rank among the top ten plutocrats in the future. Moreover, the Tang family also has a large number of assets in Africa and overseas, which are not among the listed assets.

On the eve of the Spring Festival, Changshi Group held a management meeting.

Lin Zhichao sat in the chairman's seat, looking at the smooth transition of the second generation of management, and he recognized it in his heart.

Vice Chairman and President Lin Ruihuan, in charge of all affairs of Cheung Kong Group;

Vice Chairman and Executive Director Mai Lisi, the chief steward of Cheung Kong Group;

Executive Director and Vice President Zhou Huaian is responsible for the real estate business of Changshi Group;

Executive Director and Vice President Huo Jianning is responsible for the financial and technical arrangements of Changshi Group;

Director and Vice President Li Minghui (female) is responsible for the marketing and sales departments of Changshi Group;

Other senior executives are also heads of certain important fields, including heads of Yangtze Commercial Real Estate Management, Yangtze Beverage and Food, Yangtze Infrastructure, Poly Construction, Yangtze Financial Investment and other businesses.

At the meeting, Lin Zhichao asked: "How are you doing on forming a consortium with CITIC Group?"

Lin Ruihuan immediately said: "We are ready, everyone attaches great importance to this cooperation!"

Lin Zhichao nodded. The purpose of forming a consortium with CITIC is to bid for the "development rights above the Lantian Metro Station" that will be tendered in April. This is a large-scale housing estate project that can build about 20 residential buildings of about 30 floors, providing a total of more than 4,000 residential units.

"If this bid is won by us, our Cheung Kong estate will have a huge plan for four major housing estates in the 1990s. They are Kingswood Villas in Tin Shui Wai, Grand View Garden above Lam Tin MTR station, and two other large housing estates. The plans are Hutchison Whampoa's Cha Kwo Ling Laguna City, Hutchison Whampoa's and Hong Kong Electric's Ap Lei Chau Harbor Plaza. Therefore, large-scale housing estates will be our focus next, and of course other real estate projects should not be lowered. "

Everyone had happy expressions on their faces. These big projects are not easy.

Cheung Kong Group's current supply is 20% every year, which means it accounts for 20% of Hong Kong's property development. It has always been the leader of Hong Kong's real estate industry.

Sun Hung Kai is second with a supply of 18%; Henderson is third with a supply of 16%; CK Hutchison Properties is fourth with a supply of 10%; Hang Lung is fifth with a supply of 8%; New World's supply Sixth, about less than 5%.

The six major developers account for nearly 80% of property development in Hong Kong, forming a super monopoly group.

Of course, this is Hong Kong real estate development (residential) data.

In fact, there are thousands of real estate companies in Hong Kong. Some of these real estate companies are 'commercial real estate management', some are 'real estate speculation', and some are 'property investment'.

Once implemented, Cheung Kong's four major housing estate plans will form a greater monopoly and increase the housing supply to 25%.

Therefore, companies such as CK Hutchison, Hang Lung and New World also want to reduce their share. Hang Lung, for example, has begun to invest in commercial real estate and has reduced real estate development; not to mention New World, Li Jiacheng's CK Hutchison has also begun to increase its burden due to the acquisition of Wheelock and is developing towards diversification.

Only Sun Hung Kai and Henderson have the strength to keep up. Eventually, Cheung Kong, Sun Hung Kai and Henderson may monopolize nearly 70% of Hong Kong's residential supply; the remaining real estate developers may highly monopolize the remaining 30%.

As a result, there are very few real estate companies that can open up the development of real estate projects.

Currently, Cheung Kong Group's four major housing estate plans actually have not yet obtained the development rights for the buildings above Lam Tin MTR station.

Lin Zhichao has negotiated with Hua Yun regarding the development rights of Tian Shui Wai, guaranteeing Hua Yun a profit of HK$750 million. If the price exceeds the average price of 1,750 yuan, Cheung Kong Group's profit share will be increased to 75% (if the price does not exceed 50%). This project can provide more than 15,000 residences.

The Laguna City project in Cha Kwo Ling was obtained from the exchange of Hutchison Whampoa's shipyard land on Tsing Yi Island (the shipyard business in the early years) for the oil depot in Cha Kwo Ling by CMC Oil. This project can provide more than 8,000 residences.

The Harborside Peninsula on Ap Lei Chau is also the oil depot on Ap Lei Chau that Hutchison Whampoa exchanged for the shipyard land on Tsing Yi Island for the Panker Oil, and the Hong Kong Electric Group moved the Ap Lei Chau power plant to Lamma Island. This project can provide about 12,000 residential units.

The four major housing estate plans cover a total area of ​​7.5 million square feet, with a built-up floor area of ​​30 million square feet, including 40,000 residences, and a total investment of approximately HK$18 to 20 billion.

Of course, the current plans for the four major housing estates have not been made public.

Lin Zhichao’s idea is to wait until the development of the Lam Tin subway station is completed, and then when the real estate market is at a trough next year, he will make a high-profile announcement.

The purpose of this is, of course, to make good friends with the mainland government, and to represent that the Lin Chichao family is still optimistic about Hong Kong and the mainland. (End of chapter)