The Industrial Giant Reborn

"Mutual benefit is what I value most, and I will not attack Chinese real estate companies." Chen Zhiwen said with a smile.

In fact, he also knew that many Chinese real estate companies had concerns about this matter, but he didn't care before. These people's worries were none of his business!

However, now that his scale is large enough, he has acquired Land, Wharf and Hutchison Whampoa. He is not only the land king in Hong Kong, but also controls the most high-quality real estate. Under such circumstances, he will go to the trouble of forcibly acquiring Chinese real estate companies. , it is not necessary. The benefits are not many, but it is very troublesome, because most of the Chinese-owned companies are of the founder generation, and they also control more than 30% of the equity of their own companies. Even if the forced acquisition is successful, the cost will be very high.

It would be better to adopt a moderate model and use investment methods to buy the stocks of these companies at low prices during the real estate crisis, and then let them make money for themselves. In this way, you can get part of the profits of the entire real estate market in Hong Kong out of thin air without doing anything, and you don't need to look too ugly.

As for the acquisition of only 15.99%, it is naturally for the convenience of Hisense Bank to cooperate with these future real estate giants. In this way, it can also earn a lot of profits through financial means, even ten percentage points higher.

And if the shares really increase to more than 25%, then even if you don't have that idea, others will not rest assured. They will definitely find a way to establish another company and then transfer the business. This is what any normal person would do, said Chen Zhiwen. This will also be done in this case.

Therefore, the current model is the most stable. Through investment and bank financing, while obtaining maximum benefits, it can also stabilize real estate business elites such as Li Jiacheng, Chen Zangxi, and Li Shauji, killing multiple birds with one stone.

Hello, I am well, everyone is well.

"If it can all be like this, that would be really good." Li Jiacheng nodded and said.

"Okay, that's it." Chen Zhiwen smiled and said: "By the way, there is one more thing. If Yangtze River Industrial develops some commercial office buildings in good locations and you don't want to keep it yourself, you can find real estate. If the price is right, If so, Land may be able to buy it directly.”

Land is not very involved in the development of general office buildings, because developing a property itself consumes a lot of energy and time. Land itself is not very good at this. This is the specialty of Chinese Real Estate Company. Although Land has been acquired, it is still relatively good in this aspect. Vulnerable.

But if you just acquire a property, it’s simple. Just spend money to buy it, rent it out, and then collect the rent. As for the various service-oriented problems that the rental business will encounter, Land Land itself is very experienced.

Of course, land is not required for any small property. It must at least be in a good location and the area must not be small.

"Okay, no problem, this is also a good choice for me." Li Jiacheng readily agreed.

The scale of Yangtze River Industrial is not small, but it is not too big either. At present, the main way of expansion is to constantly buy land, develop it, and sell it to raise funds to make profits. As for self-sustainment, you can have it if you have it, but you can't do it if you have too much. It affects the operation of funds. Only very large companies like Land and Resources, whose Hong Kong market is too small to make large-scale profits by developing new properties, will give priority to purchasing properties to collect rents.

He actually envied this model. Before the real estate crisis, Land Land's annual rental income was more than one billion. Although it was heavily in debt, it still had profits of several hundred million a year. This was comparable to those of the five real estate giants. It was too strong. Cheung Kong Industrial worked hard for a whole year, and before the real estate crisis, its net profit barely exceeded 100 million.

It is the ultimate goal of Hong Kong real estate developers to become like Land Land, where they can collect rent while lying down.

"Okay, let's talk about it later." Chen Zhiwen nodded and said, "If you have any overseas projects, you can show them to me. If appropriate, I will also allow Hisense to lend."

"There was one recently." Li Jiacheng paused and said, "What does Mr. Chen think of the oil industry?"

"You want to enter the oil industry?" Chen Zhiwen asked in surprise.

In the original history, Li Jiacheng acquired a Canadian Husky Energy Company. This company subsequently became one of Li Jiacheng's five major businesses, with a market value of tens of billions of dollars.

However, this was because Hutchison Whampoa, owned by Li Ka-shing, acquired Hong Kong Electric, which had heavy oil power plants. Therefore, Li Ka-shing passed Hong Kong Electric and invested in the Canadian energy industry. Subsequently, due to oil prices, The value of Husky Energy skyrocketed, and it was privatized by Li Jiacheng again.

But now, Hong Kong Electric is in his hands, and he did not expect that Li Jiacheng actually wanted to invest in the energy industry.

"Yes, I have this idea." Li Jiacheng nodded and said: "Sheng Chen, although I have not communicated with you in depth, I have analyzed your fortune history and have made many investments that benefited from international events, so if If you don’t mind, could you tell me your opinion on whether the oil price will be as high as before again?”

"You want to invest in the oil industry. It seems that you think the price of oil will rise again in the future?" Chen Zhiwen said with a smile.

"Yes, I think so." Li Jiacheng nodded and said, "Absorbing at low prices is a principle in the real estate industry or the financial industry, but I think it is also suitable for other industries."

"This sentence is true, but acquiring an oil company is not like a house or a stock. Just leave it alone after acquiring it. You still need to put it into operation. Otherwise, if there are problems with the operation, even if the oil price rises in the future, That would still be a loss," Chen Zhiwen said.

This is also the reason why many companies switch careers to real estate after becoming successful in their own industry. In fact, the latter makes more money, has more practical management, and is much more comfortable than the real estate industry.

"In terms of operation and management, the original team can continue to be responsible, just like the Disney acquired by Chen Sheng." Li Jiacheng said: "I just need to wait for the oil price to rebound. However, I am not sure when the oil price will rebound. That’s the biggest risk.”

"I don't know about this. There are too many factors that affect it, including the global economy, OPEC's mood, local wars, and major waterway issues. I don't know when the previous high oil prices will be restored." Chen Zhiwen shook his head and said.

He actually knew that throughout the next five years of the 1980s, oil prices would not be high, because the United States needed oil prices to remain low, so that it could not only make its own economy better, but also hit the backbone of the polar bear's export economy. In this era, countries in the Middle East The relationship with the United States is also relatively good, and it is relatively obedient. It will not take until the third oil crisis for a big rise.

However, he cannot tell anyone this, not even the results of price predictions. Anyway, Li Jiacheng was able to survive the sharp rise in oil prices in history, so he should be able to do so now.

"Also, the price of oil cannot be predicted even by the royal family of the Middle East or the President of the United States." Li Jiacheng said helplessly.

"In the long run, I am still optimistic about the price of oil." Chen Zhiwen thought for a while and said: "The first is that the countries in the Middle East made hundreds of billions of dollars during the previous oil crisis. It is also because of having so much money that they can Cooperating with the United States in its low oil price strategy is not possible in the long term, and good relations are temporary. Unless there is a stable alliance of interests between countries, it is impossible for relations to continue to be good. The United States and the Middle East are the world's largest Oil-importing nations, one of the largest exporting organizations, have themselves a fundamental conflict of interest.

The second is that the economies of Asian countries, including mainland and Southeast Asian countries, will inevitably develop rapidly in the next ten years due to globalization. Although they will not reach the level of Western countries, the population here is too large. Once the economy As it develops, the demand for oil will increase rapidly. The rate of increase in oil field production or the rate of discovery of new oil fields will definitely not be able to match the new needs of these billions of people. "

Chen Zhiwen is not sure whether Li Jiacheng will definitely invest in the oil industry. From his own interests, it is better to give him some encouragement.

"Chen Sheng's analysis is the same as what I thought." Li Jiacheng nodded and said.

"I wonder which oil company Li Sheng wants to invest in?" Chen Zhiwen asked. Even though I knew it, I still had to ask.

"It's an energy company in Canada that specializes in oil sand extraction, called Husky Energy." Li Jiacheng said, this is not a big secret. Don't mention the acquisition by yourself. As long as you have contact, you may not be able to hide it from interested people. .

"Oil sands? This thing is indeed high-cost oil. Only when the oil price is high can we make money." Chen Zhiwen said.

In a normal oil field, the oil in it is liquid. The purpose of drilling is to "pump" the oil out. But oil sand is different. Like coal, it is dug out. Similar to sand, there is a lot of oil mixed in it, which is a relatively low-grade oil. The resources are mainly mined to extract heavy oil and asphalt. The cost of this model is naturally high, and the refining price is not low.

However, although it is a low-grade energy, it is also a kind of oil. Before the oil crisis, the price of oil in the Middle East was two or three dollars a barrel. Naturally, no one exploited this waste energy. But after the price of oil increased tenfold, these are treasures.

At the height of the first oil crisis, France was eager to find oil in the center of Paris. Oil sands were a ready source of energy, which was much better than nothing.

But now, the price of oil has plummeted. It is estimated that the energy companies he once invested in have all lost money. Otherwise, Li Jiacheng, a Chinese, would not have the opportunity to acquire such an energy company.

"Yes, it is no longer cost-effective to extract oil sands. Husky Energy is also a large energy company in Canada. However, due to excessive investment in oil sands mining in the 1970s, it is now suffering serious losses. The Canadian Imperial Bank asked me if I have any No interest." Li Jiacheng said: "Within Husky, all the technology and management are still good. The only problem is that the oil price has plummeted."

"This is indeed a good opportunity." Chen Zhiwen nodded and said, "Once the price of oil rises, we can immediately stop losses and turn profits."

"The risk is just too great. Even to maintain its basic operations, a lot of money needs to be invested every year. If the oil price does not rise for a long time, it will be over if I can't bear it." Li Jiacheng shook his head and said.

"How about we work together?" Chen Zhiwen asked.