The birth of the Hong Kong Island family

Wharf Group.

Lin Ruihai reported to Lin Zhichaohui: "We have decided to divide the reconstruction project of the five residential buildings into two phases; the first is the two 36-story commercial buildings that will start this year and are expected to be completed in 1994, providing the group with 1.15 million square feet of buildings. The second phase of the project started in 1992 and will be rebuilt into three office buildings, providing 2.7 million square feet of floor space. It is expected to be completed in early 1997. Once these five office buildings are completed, the Wharf Group will have 9.5 million square feet in Hong Kong. of rent-collecting properties.”

Lin Zhichao nodded. Wharf Group's development in Hong Kong is quite satisfactory, mainly in commercial real estate; however, its overseas assets are relatively rich.

Lin Ruihai continued to report: "Our real estate investments in Thailand and Malaysia have a rate of return of about 40% per year. The total assets there have now reached tens of billions, and the liabilities are HK$2.8 billion (principal of HK$2 billion). In Singapore, , Lane Crawford Plaza is under construction smoothly and will add 490,000 square feet of commercial area upon completion in 1992."

There is good news one after another. According to Lin Zhichao's estimation, real estate in Thailand, Malaysia, Indonesia, and Singapore can triple from 1988 to 1992; by 1995, it can increase by another 50%.

In other words, when the Wharf Group begins to withdraw in 1994, the net assets of Southeast Asia (excluding Singapore) will reach more than 30 billion Hong Kong dollars.

This rate of return is a great one!

In Singapore, in addition to owning a 51% stake in Singapore Land, the Wharf Group also has two shopping mall projects on Orchard Road (Lane Crawford Plaza and the future Paragon Shopping Center to be redeveloped), as well as a listed company. ——Marco Polo Hotel, Singapore.

After listening to the report, Lin Zhichao said: "How is the progress in developing real estate?"

Since the Wharf Group's debt once reached HK$9 billion, which was not conducive to the development of the company, Lin Ruihai took the initiative to develop real estate. After the stock market crash in 19****, he began to purchase properties in Argyle Street, King's Park Road, and Shatin, Kowloon. Land, investment.

Lin Ruihai said: "Well, everything is going well. Wharf, a large low-density housing estate in Kowloon Tong, is going to bid for it next month. We plan to join forces with Sino Properties and Sun Hung Kai to invest. My elder brother said that Cheung Kong Group has no interest in this land. Not much interest."

Lin Zhichao said: "Huang Tingfang and Huang Zhixiang and his son are famous real estate friends. Joining forces with them can avoid malicious competition in the auction house."

Although Cheung Kong Group has sufficient cash flow, it still owns several large housing estates, so it will not compete with others.

In fact, almost since 1984, Cheung Kong Group has not been a high roller at the auction. After all, Changshi Group has a large number of construction projects through acquisitions and cooperation.

Lin Ruihai said: "I think so too. As long as there is money to be made, there is no problem for everyone to cooperate and invest."

The Wharf Group is not trying to develop its residential real estate business, it is just trying to reduce debt. Today, Wharf still has debts of about HK$8 billion; There is also ample cash flow (more than a billion), so the situation is good.

Lin Zhichao said: "There is no need to worry about the debt now, just pay it back slowly!"

Lin Ruihai nodded and said: "The debt ratio is still relatively healthy, and with the current low interest rates, the remaining HK$8 billion in debt is not a problem."

At this time, Lin Zhichao said: "When the time is right, Wharf will go to the mainland to develop commercial real estate. The market there is big enough!"

After all, the family's focus is on the long-term relationship. Even if Lin Ruihai has thoughts in his heart, he should understand that Lin Zhichao's decision cannot be changed. Of course, the second round of investment in Southeast Asia has also increased the strength of Wharf Group.

In the later stage, Wharf Group can flex its muscles by investing in commercial real estate projects in the Mainland. It just so happens that the real estate markets in Southeast Asia and Hong Kong are about to reach their harvest season, and there is ample funding.

Lin Ruihai said: "Father, I am afraid that there must be a clear signal of improvement in the situation in the mainland before commercial real estate can be invested. After all, commercial real estate has a long cycle and funds cannot be withdrawn in a short time."

Lin Zhichao nodded and said: "So just wait patiently. If you don't change it, you will only be hungry and poor. I believe the people above will adjust."

The heart-to-heart talk between father and son also gave Lin Ruihai some motivation and direction.

Time flies and it’s August in a blink of an eye.

The Cheung Kong Group Center was officially put into use. The headquarters of Cheung Kong Group moved into this "world famous building", and Lin Zhichao's office was also moved to the 62nd floor of the Cheung Kong Group Center, occupying more than 2,000 square feet.

"Lin Shengzao"

The Changshi employees greeted each other with happy expressions on their faces.

For a long time, Cheung Kong Group, as the largest real estate company in Hong Kong, did not have a headquarters building named after "Cheung Kong". Companies such as Sun Hung Kai, Hang Lung, and Hopewell Properties all have their own headquarters buildings in Wan Chai, and New World also has its own New World Center in Central.

Therefore, many people are guessing that Cheung Kong Group must be looking for the best Feng Shui land. Sure enough, the Hilton Hotel in Central District was demolished and the surrounding buildings were acquired by Cheung Kong, and everything was revealed.

Nowadays, HSBC, Bank of China, and Cheung Kong Corporation have all built their headquarters buildings together, which can be described as "full of gunpowder"!

"You guys go to work this morning. Do you feel that the elevator is crowded?" Lin Zhichao said to several employees.

It has a 'dedicated elevator' that goes directly to the 62nd floor, so there is no need to worry about crowded elevators.

"It's not particularly crowded. The Yangtze River Group Center has 28 lifts!" a female employee said first.

"Yes, yes, we arrived at the office one day faster than going to work at Victoria Harbor Centre." Another employee was not willing to lag behind.

Lin Zhichao smiled and said: "Okay, you guys get busy first!"

He briefly visited the 62nd floor, which is the power center of the group headquarters. The layout is very grand and neat, giving people a solemn feeling. It is a sense of honor to work in such a company.

Back in the office, Lin Zhichao turned around and had an unobstructed view of Victoria Harbor through the large glass curtain wall. The Hong Kong Congress Building, Furama Hotel (AIA Financial Center), and Hutchison Building in front look particularly small, while the Bank of China Building on the east side is majestic, while the HSBC Building on the west side looks a bit more expensive.

"I heard that HSBC's performance this year may not be good!" Lin Zhichao laughed to himself.

Starting from 1989, Bank of America entered a downturn. Coupled with the launch of real estate in Hong Kong and the decline of the stock market, HSBC's performance decline was inevitable; however, HSBC was still acquiring a bank in the United Kingdom with the intention of slowly transferring assets to Europe and the United States. , buy an insurance.

This kind of behavior is understandable. Even Lin Zhichao is buying insurance everywhere!

After a while, Lin Ruihuan came to the office.

"Dad, the financial and real estate situation in the United States is very bad. Especially the banks with heavy real estate loans have encountered big problems, such as IWC and Wells Fargo. It seems that the U.S. economy has once again entered a downturn. The U.S. economy is weak , the global economy is weak, but the U.S. economy is even weaker, so the dollar and commodities fall together."

Lin Zhichao nodded, and he specifically asked Lin Ruihuan to inspect the financial and real estate markets in the United States.

This year he has invested a lot in the United States. Husky is purchasing natural gas resources in the United States; Victoria Harbor Investment and Three Lovers are gradually buying bank stocks at the bottom.

And now, he is preparing to let Changshi Group enter the real estate industry in the United States.

"According to this trend, commercial real estate may hit the bottom next year, but it is expected to take another three or four years to rise. This time Changshi Group invested in the United States, it mainly consumed some funds withdrawn from Japan, so the investment direction is shopping malls, Outlets and metropolitan shopping malls are three types of commercial real estate. However, we lack local business experience, so my idea is to acquire companies, but with one core idea - acquire if you can, and cooperate if you can't. Do you understand?"

In fact, commercial real estate is divided into several models, including: shopping malls, outlets (discounts), metropolitan areas (a type of shopping mall with different models), logistics real estate, comprehensive commercial office buildings, etc.

Therefore, when investing in commercial real estate, it is also necessary to distinguish the classification of industries.

Lin Ruihuan said: "I understand and must invest cautiously."

Lin Zhichao nodded. Lin Ruihuan was both steady and decisive. Now that he has the support of his father, I believe there will be no big problem when entering commercial real estate in the United States.

"In terms of office buildings, I estimate that it is more reasonable to wait two years to start investing. Of course, although we will have more than 30 billion in cash flow and 50 billion in financial strength (loans) in the next three years, U.S. investment cannot exceed 40%. "

"Well, the scale of 20 billion in three years is also very large, and there may not be enough suitable projects."

"Yes, if there is no suitable project, we would rather not do it!"

Cheung Kong Group is positioned as a comprehensive real estate group. Real estate has always been its core business. Overseas, of course, commercial real estate is the main business.

Starting to invest at this time is much smarter than mainland companies investing in the United States in 2015. With a massive purchase of US$100 billion a year, they are simply a "takeover man".

In addition to real estate, Cheung Kong Group's infrastructure projects, beverages and food are also the focus of future development.

Asia Satellite TV launched a trial broadcast in early August, which attracted much attention from Hong Kong citizens.

Asia Satellite TV has a total of 5 channels, which can be received by more than 50 countries. It can be said that the broadcast range is wide. Once developed, the prospects are very good.

During the pilot period, most of the programs were purchased, including a large number of "outdated programs" purchased from ATV, and most of the self-produced programs were news. After all, the media group has very strong news capabilities; when it was officially broadcast, the number of self-produced programs gradually increased.

At the same time, SM Entertainment's 'H.O.T boy group' officially debuted on Asia TV's 'Music Bank'. Due to a lot of publicity in advance, it attracted much attention as soon as they debuted.

Unlike Taiwan’s Little Tigers, H.O.T’s style is rebellious, flamboyant, and passionate, but their debut song is “Against All Violence.” The Little Tigers, which debuted in Taiwan at the end of last year, are three well-behaved children.

The strong contrast also made the media pay attention to the development of the two combinations.

ATV Building.

In the square of the building, there were nearly a hundred fans of H.O.T. They waved their arms crazily to pay tribute to the idols who participated in "Music Bank" for the third time.

The fanatical expression shows that a 'revolution' is brewing in the entertainment industry - stupid fans are wrong, fans are online!

Although the HOT group debuted only two weeks ago, they have a very full schedule of promotional activities every day, including road shows, commercial performances, magazine shoots, and programs. In the shortest possible time, they created a different kind of music in Hong Kong - H-POP (Hong Kong music).

"HOT, HOT"

"Tony Li"

Various voices of support made the scene lively. There is a support room separated by security, which allows some fans to watch the idols working. It is also an area for reporters.

Reporters filmed this scene and it soon became news material - H.O.T VS Little Tigers.

In the office.

Lin Zhichao listened to Lin Ruikai's work report: ""Talent Show" is scheduled to be broadcast on Asia Satellite TV Entertainment Channel in December, and "Blue Life and Death" will be broadcast on ATV in December, and will be rebroadcast by Asia Satellite TV later."

The work situation he reported was all about the progress of "Hong Kong Streaming Culture", which is what his father is most concerned about now.

Lin Zhichao said with satisfaction: "I have watched the performance of HOT group several times, and it is in line with my idea of ​​Hong Kong music. Of course, this kind of Hong Kong music is diverse, and creativity is very important. For example, in the future we can develop electronic music, hip-hop ."

Lin Ruikai nodded and said: "The media group has trained many young talents over the years. They are all very creative. With my father's overall plan, I believe Hong Kong Culture will be a great success!"

Indeed, media groups have attached great importance to talents in the "media field" in recent years. Now directors, screenwriters, writers, lyricists, composers and other professional talents are all gathered in media groups because they have "more money" and are highly respected.

In the past, top-notch composers and lyricists might only be paid 3,000 Hong Kong dollars for a song, but since the media group intervened, especially in the past two or three years, the media group has given copyright dividends (ATV has a record company). Today, SM Entertainment has more than 20 composers and lyricists on staff, and everyone is very motivated. After all, income is affected by records.

Lin Zhichao said: "Remember to explore more overseas markets in Japan, South Korea, Southeast Asia, and Taiwan, and the mainland market must also gradually penetrate. Only after forming enough influence in Asia can we establish a foothold in Europe and the United States. Just like Bruce Lee back then!"

"I see!"

After communicating for a while, Lin Zhichao felt relieved.

Hong Kong culture is a great gift he gave to Hong Kong. As long as this industry is expanded, the situation in Hong Kong will not be too bad in the future. If the cultural industry can account for 20% of the local economy, it will be a real "big killer", because the cultural industry will also affect local tourism and retail.

On the waters of Jeddah Port in the Middle East, the Rising Sun superyacht welcomed a 'rich man' - Walid bin Talal Al Saud. Of course, Walid at this time was not the ‘Middle East stock god’ at all, but a wealthy prince in Riyadh (the capital of Saudi Arabia) who had not yet made any astonishing achievements.

However, this time when Iraq invaded Kuwait, the land of Saudi capital Riyadh plummeted, which was the key battle for Walid's real rise.

"Mr. Lin, it's an honor to receive your invitation!" Walid said respectfully as he looked at Lin Zhichao, a world businessman who is highly regarded by Americans.

Lin Zhichao said politely: "Prince Walid, I am also very happy to have you participate in my invitation!"

Afterwards, everyone sat on the deck and talked.

Accompanying Lin Zhichao is his sister Lin Xiner.

After everyone had a brief exchange, Lin Zhichao got to the point: "Prince Walid, my Shangri-La Hotel wants to invest in a five-star hotel in Riyadh, and I specially invite you to join. I wonder if you are interested?"

Shangri-La Hotels has now developed into three hotels - Singapore, Hong Kong, and Tokyo, all of which have achieved great success; even the Shangri-La Hotel in Tokyo, which opened this year, is crowded with guests, and the return rate is expected to be 10%.

This is why Lin Zhichao carefully chose the location of the Shangri-La Hotel, because he had to consider the rate of return.

Walid said: "I know the Shangri-La Hotel. It is the most profitable, famous and luxurious five-star hotel in Singapore and Hong Kong. I heard that it is also a huge success in Japan. But, doesn't Mr. Lin know that Saudi Arabia People are worried about Iraq and are selling their land and fleeing?"

Lin Zhichao smiled and said, "Did you run away?"

Walid shook his head!

Lin Zhichao said again: "Then you must have taken the opportunity to buy the bottom?"

Walid said in surprise: "Mr. Lin is really keen! I have heard many stories about you and know that you are also a bargain hunter!"

Lin Zhichao said with a smile: "After all, it is more profitable that way!"

Walid immediately found a confidant and immediately asked Lin Zhichao for advice. He was very humble. In front of Lin Zhichao, he was a rising star after all.

Lin Zhichao went to find Walid not because he had lowered his status, but because Lin Xiner and Lin Huizhu, the aunt and nephew, were both girls, so it was not safe to come to the Middle East.

Therefore, it was more convenient for Lin Zhichao to approach Walid to discuss cooperation.

This time Shangri-La Hotel entered Riyadh, the capital of Saudi Arabia, and naturally planned to take advantage of the cheap land prices to invest in a five-star hotel in Saudi Arabia.

However, things changed quickly. Walid seemed to feel Lin Zhichao's offer of an olive branch, and immediately reported back: "Mr. Lin, since you are optimistic about the land and properties in Riyadh, why don't we also set up an investment company to speculate in Riyadh's properties?" land."

His idea is to use Lin Zhichao's funds to buy more properties at bargain prices.

Lin Zhichao readily agreed, and then the two sides began to talk in detail.

The Shangri-La Hotel in Riyadh gave up 30% of its equity to Al-Waleed; and both parties spent another US$50 million each, for a total of US$100 million, to buy land and commercial properties in Riyadh.

Of course, Lin Zhichao bought shares in the name of Shangri-La Hotel.

Shangri-La Hotel has made a lot of money in Japan in recent years. Not only did it get a five-star hotel for free, it also made a profit of 300 million US dollars.

Coupled with hotel profits in recent years, Shangri-La Hotels and Resorts has a cash flow of more than US$400 million.

Therefore, Lin Zhichao plans to direct Lin Xin'er and Lin Huizhu's aunt and nephew to develop Shangri-La Hotels in Europe, North America, and the Mainland. To invest in 10 five-star luxury hotels before the turn of the millennium.