"Could it be that Xu Sheng wants to develop this project alone?" Chen Songqing didn't seem to care about what Xu Zhi said, but said with a smile.

Xu Zhi nodded and said, "Does Chen Sheng think that Hutchison Whampoa Company doesn't have this strength?"

"Haha, of course I know that Hutchison has this strength, not to mention that Xu Sheng himself has enough financial resources to complete this project. Chen Songqing said with a smile: "But now Xiangjiang, everyone is making quick money, and being able to make a quick profit is the most important thing, and Hutchison raised 3 billion Hong Kong dollars in the stock market some time ago to invest overseas, and now if you undertake this project again, the debt is extremely heavy."

As long as we sign an agreement, Hongkong Land and Jianing will borrow from the bank in advance, part of which will be given to Hutchison as a deposit, and the other part will be used as the start-up capital of the project.

Xu Sheng, whether his company's high-debt operation obtains all the profits, or can get most of it by doing nothing, I Xu Sheng should be very clear about the gains and losses.

What's more, Xu Sheng's vision is much stronger than those of us, and he is also calling for wind and rain in the international market, and he can use the first-earned funds to invest and profit in the world, which is completely killing two birds with one stone. ”

"Chen Sheng is really thoughtful, I have to think about it carefully. Xu Zhi smiled and said, what Chen Songqing said is indeed reasonable.

In Xiangjiang, it is not impossible to develop your own land and property, in fact, although it is the most profitable, but in terms of efficiency, it is the slowest, because the law of Xiangjiang stipulates that the sale of off-plan properties must be 8 months before the capping of the real estate, which does not have much impact on the residence, because the residential buildings are built quickly.

However, for large office buildings, the construction time can be as high as 2-4 years, and too much capital will be deposited in the process, which is not cost-effective in terms of return on investment.

At the end of the 70s, Hopewell Industrial was the strongest among the five real estate tigers, but too much money was deposited in the construction of the tallest building in Hong Kong, the Hopewell Center, and it lost the golden time for development.

Therefore, in this era, many companies that own land will quickly sell the land in their hands, and then use the funds to grow and develop, rather than holding on to a piece of land and eating alone.

The fundamental reason for this approach is to give up a part of the profits and a large amount of risk, and at the same time obtain funds to develop other projects, which is a relatively stable method of investment, and the takeover party is to use bank leverage to accept the project at almost zero cost, but bear great risks.

The risk is relative, as long as there is confidence in the house price, the risk does not exist, and most of the four major families in later generations used this trick to obtain land from British-funded companies during this time period, so as to obtain development opportunities.

Of course, these cooperation is aimed at medium-sized companies, if the company is large enough, the debt is not heavy, and there is confidence in housing prices, in the absence of too many quick profit projects, it is also suitable for them to develop large-scale properties, such as Li Jiacheng after 85 years, with assets of more than tens of billions of Hong Kong dollars, such a large company can no longer bloom and speculate like a small company, and the four walled villages that have been opened steadily have become the most profitable projects.

Some time ago, Whampoa Company publicly absorbed 3 billion Hong Kong dollars in the stock market through Standard Chartered Bank, which is almost half of Hutchison's market value, Chen Songqing must think that Hutchison has large-scale project investment overseas and needs to mobilize funds from Xiangjiang, and also judged that Hutchison is extremely indebted at the moment and will not develop large-scale projects on its own, so he has the idea of hitting the Hilton Hotel with Hongkong Land.

Chen Songqing said with a smile: "Okay, I hope to get good news from Chen Sheng as soon as possible." ”

......

A week later, Xu Zhi convened Wang Liming, Ma Shimin, and Yuan Tianfan for a small meeting.

"You've read all these materials, what do you think?" Xu Zhi asked at the main conference table.

Ma Shimin was the first to say: "Chen Songqing is actually right, the management of the Hilton Hotel is not in our hands, although it can make a profit every year, but it is far less than the development of large office buildings."

However, if we are responsible for the development ourselves, it will put a lot of pressure on the company's funds. ”

Xu Zhi asked, "You mean you can consider selling the entire hotel property directly to Hongkong Land and Jianing Group?"

"Yes, although the current Hilton hotel is in a prime location, but if you want to get the best profit, you have to first take back the management rights from the hotel, and then dissolve the hotel, and then demolish the building and build a high-rise building, instead of being so troublesome, it is better for us to get a sum of money to build a building elsewhere, the Hong Kong government has been reclaiming land for many years, and it is much easier to participate in the auction. Ma Shimin said succinctly.

"If it can be sold for a high price, I will not object to it in principle. Xu Zhi nodded in agreement, he has always asked the company to hold the gold property in Central for a long time, but Ma Shimin is also very reasonable in this regard, after all, the current profit of the hotel property is too low, and it will take a long time to reclaim it and then demolish and rebuild. And there is no such thing as a property that will never be sold, it's just a matter of timing and price.

If you can sell it at a high price now, wait until the real estate crisis in 83, the Hong Kong government will launch a large number of prime location land, although it is difficult to come across a land with such a location as the Hilton Hotel, but in terms of profits, it will always be a lot more cost-effective to arbitrage at a high price now, and then buy at a land price in the future.

And now, if you develop the whole project yourself, it will involve the conflict with the international hotel like Hilton, the design of the building, the construction of the building, and the advance of funds to build, so that a set of down, at least 83 years before the sale of the pre-sale, and at that time the real estate crisis has formed, even in Central, the house price will fall by three or four percent, not to mention that the Hong Kong dollar will plummet, and whoever develops the project will lose money.

Now Hongkong Land has begun to enter a state of crazy expansion because its equity is no longer threatened by Chinese capital, and it is gradually breaking away from the control of Jardine Matheson, although there are many differences from the original history, such as HK Electric has long been acquired by Xu Zhi.

However, Hongkong Land will not save some money because it did not buy HK Electric, as long as it has money and collateral in hand, Hongkong Land will desperately use bank financing to expand, and it is now the middle of 81, when real estate prices are at their highest, and the sale of Hilton Hotel is enough to make Hongkong Land saddled with billions of Hong Kong dollars in debt.

Xu Zhi then asked, "What does the Bank of East Asia say here?"

"For the Miramar Hotel project, Hongkong Land and Jianing intend to lend us HK$2.5 billion, which the Bank of East Asia can afford independently.

But if Hutchison agrees to sell the Hilton property, then Hongkong Land and Jianing will apply for a loan of another HK$3 billion, which is beyond the capacity of our BEA, but I can work with Standard Chartered Bank to co-finance. Yuan Tianfan was the first to report, he still hopes that the Bank of East Asia can win these two large-scale projects this time, so that the deposits increased due to the advertising effect during this period will also find an outlet at one time.

However, the funds of the two loans are too much, so they can only seek the cooperation of other banks, and real estate companies can form a joint consortium to jointly develop large-scale projects, and banks can naturally cooperate with each other to form a bank group, which is actually a measure to share risks.

Xu Zhi shook his head and refused: "The Miramar Hotel project, the Bank of East Asia can directly lend money, but the Hilton Hotel project cannot go from the Bank of East Asia, the major shareholder of Hutchison and the boss of the Bank of East Asia are all me, although the bank's funds are loaned to Landmark and Jianing, but some of them will go to Hutchison's hands, although there is no violation of the Banking Law, but if something goes wrong in the future, it is likely to be suspected of insider trading, and this kind of thing can be avoided." ”