It seems that the form is not optimistic!" Xu Zhi smiled helplessly.

"Yes, Hongkong Land's business is relatively simple, the company's main income comes from two businesses, the first is the collection of rent from a large number of office buildings, this piece, the current monthly income is 220 million Hong Kong dollars, but some of these building properties are relatively old, and the maintenance costs are also very high."

Another major income is the real estate development of residential and some commercial real estate, but the current situation outside is not good, it is difficult to sell residences, and according to the current house prices, we will have a book loss if we sell the house, but it is not possible to sell it, the company's funds are all precipitated in these businesses, even if it is a loss, these properties must be sold!"

Xu Zhi asked, "The location of these residences is good, right?"

Nian Mao nodded and said: "Yes, when Bao Fuda was in charge of Land, the main direction of investment was the prime location of Xiangjiang, whether it was an office building or a residential building. ”

Xu Zhi flipped through the report on the table again, and after reading it carefully, he asked, "How much has this Jianing Center sold?"

Jianing Center is a building built after the demolition of the Hilton Hotel under Hutchison two years ago jointly purchased by Jianing and Hongkong Land, with a total area of 1.4 million square feet (about 140,000 square meters), and the location is also in a prime location.

At the beginning, Hongkong Land and Jianing in Huangkeng were very happy, but now that Hongkong Land has been acquired, it has to bear this huge debt.

Nian Mao replied: "It has almost been sold for 14, and some time ago, in order to recover the funds, Hongkong Land could only sell at a low price, which was cheaper for many people. ”

Xu Zhi thought for a while and said: "The location of this Jianing Center is still very good, so let's let Evergrande take over the rest of the Jianing Center, it just so happens that Evergrande is currently lacking a decent headquarters." ”

Nian Mao smiled: "This is not bad, being able to sell such a building at one time can indeed recover a lot of funds, and Evergrande is also its own company, I am not afraid that we will regret it when the land price comes up in the future." ”

As a top management in the real estate industry, Nian Mao is also very vicious, so he can naturally see that the real estate market will inevitably recover in the future.

Xu Zhi continued: "I would recommend and encourage all my senior employees to buy Hongkong Land's residences with certain discounts and loans, which can also alleviate Hongkong Land's current financial problems!"

"Chairman, that's not good. Nian Mao asked with some hesitation, although what the chairman said was encouragement, but the order is very likely to become a certain degree of compulsion, which is an inevitable problem in the workplace.

Xu Zhi said: "It's okay, you don't have to worry about the specifics, I will master a degree, and as long as it takes a while, it is estimated that people who are willing to obey will be grateful to me too late." ”

"Okay, I'll come up with the best plan based on Hongkong Land's residential business location announcements. Nian Mao could only agree.

"If there are any other requirements, I will try my best to solve the problem if I can help Hongkong solve it, and Evergrande's acquisition of this Jianing Center will also bear a lot of debt pressure, although I still have some funds on my side, but there are also other investments, it is impossible to help Hongkong Land endlessly, and then you will have to rely on yourself in the future." Xu Zhi said with a smile.

Nian Mao pondered for a moment and said: "Chairman, if we can sell Jianing Center, Hongkong Land will be able to obtain at least another 2 billion Hong Kong dollars, and at the same time, a lot of cash will be cashed out in the residential area, which is enough for us to continue to develop the Exchange Square project, as long as we can wait until the pre-sale period, we can get more funds, so that as long as the real estate market does not deteriorate, Hongkong Land's debt problem will be well controlled." ”

"The Exchange Square project is mainly for sale?" Xu Zhi asked.

Exchange Square is the site of the Central Bus Terminus, which was launched by the Hong Kong government in early 1982, on the west side of the current Connaught Building, with a total area of 144,000 square feet (15,000 square meters), and its location is a prime location in the prime area, with the Central commercial center to the south and Victoria Harbour to the north.

Nian Mao nodded: "In Hongkong Land's plan back then, the entire Exchange Square was divided into three phases, with a total construction area of 2 million square feet (200,000 square meters), of which about half of the area was held, and the other half was sold to recoup funds.

The transaction price of this land that year was HK$5.3 billion, plus the investment in construction, which is enough to account for 13% of Hongkong Land's current external debt, and it is impossible not to sell part of the property. ”

"It's a pity, this location is ......" Xu Zhi couldn't help but feel a little pity, the property location held by Hongkong Land is too good, and anyone in power in every building wants to hold it for a long time, and the former Jardine Matheson should be the same, otherwise he would not have owed so many huge debts.

"Chairman, if you want to hold all of Exchange Square, it's not impossible. Before the outbreak of the real estate crisis, there was an overseas consortium that intended to acquire at a high price, but it was directly rejected and there was no chance to negotiate, which is different from the business methods of some other Chinese giants who cashed out quickly.

Of course, there may also be a difference in the size of the capital, although the current scale of the Chinese-funded consortium is getting bigger and bigger, but it is still not comparable to the scale of Hongkong Land and Evergrande, and it also depends on the location of the property. And if the position of Central is replaced, eighty percent will also end up, such as the current Harmony Center, the location is also in Central, and the Harmony Group is also ready to hold it for a long time.

Xu Zhi asked, "What method? Don't you tell me to inject another amount of money?"

Nian Mao shook his head and smiled: "Of course not, the main reason why Bao Fuda decided to sell half of the Exchange Square business is that the debt of this project is too heavy, and the interest rate is as high as 25%. ”

"25%?" Xu Zhi was a little surprised: "How can it be so high? Which bank's loan?"

After the two oil crises, the global monetary system contracted, and the United States began to implement a high-interest policy in order to allow global funds to flow back to the country, and in the early 80s, the interest rate on deposits in the United States was as high as 5%, which is extremely rare in the entire history of American banks.

The interest rate on deposits is higher, and the interest rate on natural loans is higher, and although President Reagan intends to ease finance, it is impossible to do it in one step.

As the world's largest economic power, the influence of the United States in this era is far stronger than in the 21st century, and countries including Europe and Asia are forced to follow the policy of the United States and implement a high-interest financial policy, otherwise, a large amount of capital will flow into the United States.

The same is true for Xiangjiang, even the most preferential loan interest rate in the personal housing policy, is as high as 13-15%, and the commercial interest is higher, such as 80 years Bao Yugang asked HSBC to borrow 2 billion Hong Kong dollars, which became a good story in the business world, but the loan interest rate was as high as 21%, and Bao Yugang's acquisition of Wharf Hou also had to be paid off quickly to reduce financial pressure.

It's just that no matter how high the interest is, this 25% is too exaggerated, and it will cost 250 million to borrow one billion a year.

Nian Mao smiled bitterly: "This is the interest set with HSBC when Bao Fuda was in power, I asked the person who handled it at the time, this is also the condition that Hongkong Land had to agree to in order to win the land of Exchange Square, Bao Fuda They think that as long as the real estate market can prosper for a long time, 25% interest is also bearable!"

"What ......a idiot" Xu Zhi couldn't help but be speechless, no wonder the Jardine Department was greatly injured by this group of people, and he didn't have a vision, and he desperately increased the risk of his own business: "In this way, I will arrange Standard Chartered or other overseas banks to lend a normal interest fund to Hongkong Land, and then return the money to HSBC." ”

Nian Mao shook his head and said: "Chairman, this trick doesn't work, I have also thought about this method, but the loan contract between HSBC and Hongkong Land has liquidated damages, and early repayment of debts is not allowed!"

......