The Industrial Giant Reborn

On December 23, Hutchison Building Headquarters:

Wu Weibing, the person in charge of Watsons, rushed over immediately after Chen Zhiwen arrived at the company, and said to Chen Zhiwen who was just sitting on the hot office chair: "Chen Sheng, we have already discussed the price of Wellcome Supermarket with Landmark. It is 55 million Hong Kong dollars, including 16 properties, 55 leased branches, and another 12 because they are close to our ParknShop supermarket, we did not acquire."

"How much are these 16 properties worth at the current housing prices?" Chen Zhiwen asked casually.

"About 35 million Hong Kong dollars." Wu Weibing replied.

"That's okay, let the legal side confirm it, and sign the contract if there is no problem." Chen Zhiwen nodded and said.

Unless this kind of supermarket chain has developed very well and has a great reputation, otherwise, those leased supermarkets without properties are not worth much. The bulk of the transaction amount this time is still the 16 properties that Landmark has purchased The 55 leased branches with the largest number have a total value of only 20 million Hong Kong dollars. This is the case when the location is good and the long-term cooperation agreement has been signed.

"I have already sent the relevant agreement and data to the legal affairs department, and we can sign the contract only after the confirmation there." Wu Weibing said.

"Okay, with the acquisition of Wellcome, we can sit back and relax for the time being, but we still need to complete the layout in the whole of Hong Kong as soon as possible. Now that housing prices rise once a month, we can acquire properties that can open supermarkets as soon as possible. These properties are in our hands. We will Invincible forever." Chen Zhiwen continued.

Although Jardine has retreated, who knows if other players will enter the market, although it is unlikely, and it is also a very high-quality investment to acquire supermarket properties as soon as possible. A supermarket, most of which are self-sustained, covering 80 to 90% of the people in Hong Kong, coupled with the high cost-effective materials of Galaxy Trading, there is no chance for any opponent to come back.

Moreover, once the scale of the supermarket is large, it will directly collect cash for external business, and there will be a certain payment cycle for suppliers, which will generate a lot of capital flow. Out of risk considerations, it is natural not to use too much, but as long as it is controlled Well, knowing the cyclicality of Hong Kong real estate, there is still a lot of room for profit.

"I have also notified many intermediary companies in Hong Kong and entrusted them to look for similar properties. I think that within three months, I should be able to find suitable shops in all crowded places in Hong Kong." Wu Weibing Said.

"Okay." Chen Zhiwen nodded and said: "HSBC's funds are not in vain. If these supermarkets can't be used up, then buy properties in Central or some shopping malls. You can collect rent and wait for appreciation, and you can also prepare for the future. .”

Most of the properties in Central or shopping malls are controlled by large consortiums, but there are still some small ones. Moreover, even large consortiums may sell their high-quality assets when they are short of funds or need to develop large-scale projects.

"Okay." Wu Weibing nodded and said.

Christmas is approaching again, Chen Zhiwen is actually not interested in this kind of western festival, just live it normally.

A few days later, it was 1977.

After a year of construction, the Xinghe Building, the headquarters of the Xinghe Group, has been completed.

On January 8, Saturday, on this day, the management teams of Midea, Galaxy, and Red Bull officially moved into this 46-storey building, the tallest building in Admiralty.

"This building is really nice." Chen Tianfu walked around his son's office and asked with a smile, "How big is it?"

"About 1,500 feet." Chen Zhiwen replied.

Although the office in Heji Building is also very good, but the area is much smaller than here, and Heji has merged several previous offices. Even though it has been renovated, it still feels a bit nondescript. Now the new building here is natural. It's different. The office is located at the southeast corner of the 42nd floor. The huge floor-to-ceiling windows allow the entire office to see half of Hong Kong and the entire Victoria Harbour.

And this glass is also very special. You can see the outside from the inside, but you can't see the inside from the outside. Even if the outside cleaners clean the glass in the future, they can't see anything.

"It's big enough." Chen Tianfu tried the sofa again, it was completely made of leather, the same as the one on the car.

"I also reserved two floors for Hengyi on the 35th and 36th floors, and you can move here too." Chen Zhiwen continued.

Although Galaxy, Midea, and Red Bull are already very large, most of the employees are located near the factory in Yuen Long, and only the top management and external teams will move into this building. Therefore, he deliberately left 3 floors for Papa's company.

"Alright, I will move here after the next year and work in Hong Kong Island. It's still different. There are too many buildings here." Chen Tianfu said with a smile.

"The decoration downstairs is good, but there is no table. The layout is up to you internally." Chen Zhiwen said.

"Well, good." Chen Tianfu nodded and said.

Chen Zhiwen asked again: "Dad, in a week's time, the Hong Kong MTR Corporation will start bidding. How much money have you raised?"

"The several properties we cooperated with Hutchison before are all pre-sold, and we have cooperated in 6 more projects, which need to invest a certain amount of funds. At present, Heng Yi has about 110 million Hong Kong dollars in his account." Chen Tianfu paused Said: "However, we have raised funds together, and now I have 600 million Hong Kong dollars in my hands. During this time, I have been using this money to buy stocks in real estate companies in Hong Kong, and some properties with good locations , Industrial office buildings, and Class B official letters, from the book point of view, they have increased by an average of 30% last year, and if they are all sold now, they will earn almost 180 million Hong Kong dollars."

"This is much more profitable than your hard work developing so many properties." Chen Zhiwen said with a smile.

As early as the beginning of 1975, Chen Zhiwen asked his old man to raise funds from the private sector, and offered higher interest rates than banks. The initial effect was mediocre, but after Chen Zhiwen acquired Hutchison, his reputation soared, and many people came to save money.

However, with the scale of Hengyi back then, there was no way to accommodate such a large amount of funds. Therefore, knowing that the local market and the stock market would inevitably start to rise, Chen Zhiwen asked Chen Tianfu to invest all the funds in real estate companies and real estate-related companies. Listed companies, industrial office buildings with less intense competition, and Type B official letter exchange land certificates.

These investments will make money with your eyes closed, even if the interest rate is high, it is still blood money.

"Yeah, I'm beginning to doubt my life. I've worked so hard to manage so many real estate projects, but it's still not as good as this simplest investment." Chen Tianfu said with emotion.

"So, making money with other people's money is the fastest way." Chen Zhiwen said with a smile.

Finance is really profitable, not to mention other things, so many countries in Europe and the United States have begun to de-industrialize after decades, and the transformation to finance is the best proof.

If there is no accident, Chen Songqing, a Hong Kong giant scammer a few years later, should have started his legendary life. He also started his business with finance. Real estate is just his tool, although there are also deceptions in it.

"For the bidding of the MTR, I estimated that the starting capital of this project is at least 300 million Hong Kong dollars. I am now thinking whether to sell these assets to raise cash." Chen Tianfu said.

"No, let's remortgage these assets and borrow money from the bank." Chen Zhiwen said.

"It's okay to operate in this way, but the risk is multiplied." Chen Tianfu said with a frown. As a real estate developer, he had naturally thought of operating in this way before, but these assets themselves were purchased with borrowed money. Borrowing money is equivalent to double the risk.

"It doesn't matter. Hong Kong's real estate market used to have a cycle of at least five or six years. This cycle has just begun, and it has not yet returned to its peak in 1973." Chen Zhiwen explained with a light smile.

"The housing prices and stock market in 1973 were so crazy, are you sure this cycle can exceed 73 years?" Chen Tianfu asked.

"I'm sure." Chen Zhiwen nodded and said, the bubble in 1973 was actually very big, but in this cycle, the real estate market rose to the level of 73 years in early 1979. No one could have imagined that it would more than double in the future.

The real estate in Hong Kong is so crazy. The housing prices in 1981 were already shocking, but compared to 1997, they were just a drop in the bucket.

"Okay, then I'll play with the big one." Chen Tianfu said with a smile. If he is really confident, the bigger the leverage, the better. Over the years, he has believed in his son's judgment, because every time before , on every mistake.

"Find some small banks, and the higher the interest rate, the higher the interest rate. Your assets are purchased with raised funds. Big banks such as HSBC, Standard Chartered, and Hang Seng may not accept this kind of mortgage." Chen Zhiwen added.

"Don't worry, I already know a good Chinese-funded bank, and it shouldn't be a problem to get funds from him." Chen Tianfu said with a smile.

"Oh, which one?" Chen Zhiwen asked.

"Bank of East Asia." Chen Tianfu said.

"I've heard that the scale is fine, so we need to establish a good relationship." Chen Zhiwen nodded and said.

There are many banks in Hong Kong, the small ones may only have a few branches, similar to the credit unions in the villages and towns of later generations, and the large ones are naturally HSBC and Standard Chartered. Among them, there are also many medium-sized banks, and the Bank of East Asia is one of the leaders. .

"Of course." Chen Tianfu said with a smile. The most important thing for a real estate company is to have a bank relationship. Hong Kong's five real estate tigers all have the support of the bank. Of course, from the bank's point of view, they also need the bank's support. Cooperate with real estate companies with strong strength and high security.

"Since there is a bank with a good relationship, it will be much more convenient." Chen Zhiwen continued: "The two lands of the MTR are in Central and Admiralty, which can be said to be the best land auctions in Hong Kong since the real estate crisis in 1973. As far as I know, 30 real estate companies or consortiums have signed up to participate in the auction, including Hongkong Land, Swire, Cheung Kong, Hehe, New World, and some consortia from Japan and South Asia.

If we want to win in it, we absolutely need to be prepared, otherwise, in terms of funds, we will not be able to compete with Landmark. "

"Didn't you force Landmark to sell Wellcome Supermarket?" Chen Tianfu asked with a smile.

"That's different. Supermarkets are just an industry that Hongkong Land wants to invest in in their spare time. It's normal for them to give up after encountering strong competitors. But this type of property is different. Hongkong Land's favorite is to hoard high-quality office buildings. I will definitely do my best." Chen Zhiwen explained.

In the field of supermarkets, if the Jardine Department is really determined to fight, even if Chen Zhiwen does not lose, he will pay a high price, and the time will be in years. It was not cost-effective to reconcile and finally quit.

However, the land in Central is still at the location of the subway station, which is too attractive for a real estate company like Landmark, which has been obsessed with real estate for nearly a century.

"Then what should we do?" Chen Tianfu asked.

"The MTR auction this time is not about raising placards, but for each company to write their own conditions into an envelope and hand it in. This is our opportunity, and we don't have to fight head-to-head with Landmark." Chen Zhiwen said with a smile.

"I know that." Chen Tianfu said.

Chen Zhiwen continued: "Dad, have you ever thought about what the current MTR company lacks?"

"Funds? They need a lot of money to dig subway tunnels." Chen Tianfu replied.

"Yes, it's funds, but it's not just that." Chen Zhiwen said.

The Hong Kong MTR Corporation is different from the subway companies in other places. The Hong Kong government does not provide subsidies, but it has given a lot of land near the subway stations to the subway company to raise money by auctioning itself.

In the absence of initial capital, the subway company's auction naturally needs to focus on raising money.

"What else?" Chen Tianfu asked.

"The money still needs to be paid, but we need to change the model." Chen Zhiwen said: "We will give half of the money first, and then after the subsequent subway station properties are built, we will sell them and share part of the profits with the MTR Corporation."

"Did you learn this method from the cooperation model between Li Jiacheng and Hutchison?" Chen Tianfu asked.

"Yes, it has a certain enlightening effect. The MTR Corporation is not a fool. Naturally, it knows that the land it sells will definitely make huge profits in the future. However, they are restricted by the laws of the Hong Kong government and cannot develop it themselves, so I need Give them part of the benefits." Chen Zhiwen nodded and said.

In fact, in the original history, the bidding for the subway station this time was won by Cheung Kong and defeated Landmark, using a similar method.

Li Jiacheng knows that companies like Hongkong only like to hold properties for themselves and will not share them with others. Hong Kong auctions are basically a one-price transaction, and no one will share profits with the auctioneer. This is unprecedented. .

But Li Jiacheng has insight into people's hearts. He knows that the MTR Corporation is also jealous of these real estate profits. Therefore, he proposed a plan to share profits with the MTR Corporation after the completion of the later development. You can not only get cash to start the subway, but also get the benefits of rising real estate market one year later.

For Li Ka-shing, this is the first time that he has defeated Hong Kong Land head-on. At the same time, even if a part of the profit is given to the MTR company, he still makes a lot of money. The land price has been rising, and the special value of the land next to the subway station makes the Yangtze River Industry easily earned huge profits.

However, now, Chen Zhiwen naturally wouldn't give him this chance.

"Seeing that you bought the Federal and International Building, I thought you would find a way to own these properties?" Chen Tianfu said with a smile.

"Hold it when you should hold it, and sell it when you shouldn't." Chen Zhiwen said indifferently. The office building next to the subway station is naturally a high-quality long-term holding object, but if you hold it yourself, all your funds will be trapped. Stay, it's not worth it. Anyway, the subway company will continue to expand in the next ten years. If you want to own the property next to the subway station, there are plenty of opportunities.

Even if you wait until 1983, when the housing price plummets, and if you have the money to buy it, you can easily receive it.

Friday, January 14.

The sky began to drizzle, and Chen Zhiwen and Chen Tianfu came to the most famous hotel in Hong Kong, which was the one that the later generation Liu attacked.

The owner is the Kadoorie family. This family has been acting in a low-key manner in Hong Kong, but the scale is no less than that of other foreign firms. In addition to this big hotel, as an ancient British capital, it also owns a large number of high-quality land properties , and the Kadoorie family's greatest wealth is the power company that controls the entire Kowloon Peninsula -- CLP Power.

"Li Sheng, long time no see." Chen Zhiwen just walked into the conference room when he saw an acquaintance.

Li Jiacheng was still wearing a pair of black-rimmed glasses, and said with a smile: "Hello, Chen Sheng, I haven't seen you for more than half a year, and I can only watch Chen Sheng dominate the shopping malls in Hong Kong."

"I'm overwhelmed." Chen Zhiwen said with a smile. During this period of time, he didn't actually do any major things, but bought two buildings of Wheelock and drove Jardine out of the retail supermarket market. However, for ordinary Chinese-funded companies, any one of them is indeed not small.

"Chen Sheng came here, it seems that Landmark has encountered a strong enemy." Li Jiacheng continued.

"I actually think that Li Sheng is my biggest enemy." Chen Zhiwen said with a smile. Many big companies came to the scene today, which also attracted a lot of media attention. It is speculated that Hongkong Land has the greatest possibility of winning this auction After all, he is the land king in Central. If he is determined, how many companies are his opponents?