Oriental Property Building

Zhang Heng temporarily put aside the matter after the two newspapers and the literary publishing house got on the right track.

Today, Zhang Heng was looking at the report in his hand, when Chen Yulian knocked on the door and walked in, Zhang Heng put down the report in his hand and looked at Chen Yulian.

Chen Yulian said, "Ah Heng, Mr. Yuan is here"

"Invite Him In"

"Yes"

Chen Yulian led Yuan Tianfan in, Zhang Heng asked Yuan Tianfan to sit down and asked him what was the matter, Yuan Tianfan came to tell Zhang Heng that the bidding for the construction rights of Central Station and Admiralty Station would start in two days, and asked Zhang Heng if he was interested.

Zhang Heng thought about it for a while and couldn't help but be moved, but what Zhang Heng valued more was not the profits of the development of the superstructure, but the reputation of Oriental Real Estate.

At present, Oriental Real Estate is only a little famous in the business world, in the eyes of people in Xiangjiang, maybe Oriental Real Estate is just a shell company that acquires Wharf, Zhang Heng believes that this is a good opportunity to enter the eyes of ordinary people in Xiangjiang, and it can also allow Oriental Real Estate to enter the central district of Hong Kong Island.

Tian'an Construction, controlled by Oriental Real Estate, was originally a very well-known construction company in Xiangjiang, but due to the economic depression caused by the financial crisis in 1973, coupled with the wrong decisions of decision-makers, Tian'an Construction slowly declined, and was reduced from a large construction company to a medium-sized construction company.

However, knowing oneself and knowing one's opponent can win all battles, so Zhang Heng asked: "Tianfan, how much do you know about this bidding." ”

Zhang Heng watched Yuan Tianfan take out a thick piece of information from his briefcase, it seemed that he had put in a lot of effort, Zhang Heng thought to himself

The subway project is the largest public project since the opening of the port of Hong Kong. The entire project is scheduled to be completed in eight years at a cost of about HK$20.5 billion. The first phase of the project, which runs from Kwun Tong in Kowloon through the Harbour Crossing to Central on Hong Kong Island, is 15.6 kilometres long with 15 stations and costs about HK$5.65 billion.

The main sources of funds are the Hong Kong government's guarantee to obtain various long-term loans from banks, the MTR company to raise funds through the sale of shares in the securities market, and the profits from the joint development of the property above the station by the MTR company and the real estate company.

Central Station and Admiralty Station are the most important stations of the MTR with the largest passenger flow. Central Station is the end of the first section of the MTR, located in the most prosperous banking district in Hong Kong, Admiralty Station is the first station through the Harbour Tunnel, and is also the interchange station of the Hong Kong Island East Spur Line, near the Hong Kong Government Offices, the Supreme Court, the Navy Headquarters, the Police Headquarters, the Red Cross, the Museum and other famous buildings, and the Central Bank District is close at hand.

After Zhang Heng looked at the information about the subway project given by Yuan Tianfan, he found that the two stations of Central and Admiralty are like the two thighs of a chicken, and the profit of the property on top of it is still very large, but this will also cause many real estate developers to "salivate".

Zhang Heng then asked, "Who are the bidding opponents?"

Yuan Tianfan replied, "There are many bidders this time, among which are some powerful landlords and builders, but the company with the highest demand is Heung Kong Land."

Heung Kong Land has the highest voice, Zhang Heng is right to think about it, the Central District is the "old nest" of Heung Kong Land, and seizing the construction rights of Central and Admiralty stations is equivalent to entering the heart of the Central District.

Hong Kong Island Central is the "old nest" of Heung Kong Land. At that time, the founder of Heung Kong Land, Paul Chater, participated in the reclamation of the Central District and obtained preferential land from the Hong Kong government.

Heung Kong Land is located in the Central District and has more than 10 skyscrapers. The Landmark and Connaught Plaza (also known as Jardine House) are located in the wings of the future Central MTR station. The Central station also happens to be on Chater Road, and on the south side of Chater Road is Chater Garden Square. The names and owners of these properties and streets give an indication of Hongkong Land's status in Central.

There is a very popular saying in the business community of Hong Kong: "It is easy to shake the mountain, but it is difficult to shake the land!"

Zhang Heng estimates that when the time comes, there will be large British-funded real estate developers and builders such as Hongkong Land, Swire, and Kinmen, and the strength of Chinese-funded real estate construction companies is slightly inferior

At present, Hongkong Land has the highest call to win the bid, and Oriental Real Estate wants to participate in the bidding and seize the construction rights of Central and Admiralty stations, which is equivalent to entering the heart of the Central District, so it must use Hongkong Land as a competitor to fight against this behemoth, but it is not yet known who will die.

Zhang Heng understands the strength of Heung Kong Land, but Zhang Heng also knows the weakness of a general land that is not easy to perceive, Zhang Heng has seen the Taipan of Heung Kong Land, Zhang Heng found that Niu Bijian is a pride, especially now he is the Taipan of Heung Kong Land, and at the same time he is also the Taipan of Jardine Matheson, he has always believed that he has an advantage, and he is also used to sitting big, and the overly conceited Niu Bijian will not calmly study what the partner needs, and cater to the partner.

Zhang Heng carefully studied the subway company, the Xiangjiang Metro Company is a public company directly under the Hong Kong government, and the public company in Xiangjiang is not like the state-owned enterprises in the mainland in the future, everything is handled by the government.

Except for a few government concessions and concessions, the MTR Corporation has to raise funds, design, construct, operate and operate in accordance with the usual rules of shopping malls.

Through data analysis, the Public Works Bureau of the Hong Kong Government estimated the original site of the General Post Office in the Central District at about HK$250 million, and the original site was used as the top of the two MTR stations in Central and Admiralty. Together with the estimated land for the Kowloon Bay Depot site, the total value of the two is about HK$600 million.

The Hong Kong government will grant the original valuation price to the MTRC to develop the property to make up for the shortfall in the construction funds of the MTR.

In order to purchase the land of the original site of the old Central District General Post Office, the MTR Company has negotiated with the Hong Kong government many times.

The intention of the metro company is to pay for the land purchase with part of the cash and part of the subway stock. The Hong Kong government insisted that all payments be made in cash.

Therefore, Zhang Heng understood that the subway company was seriously short of cash, and bidding for the development right of the station entrance cover would definitely be able to obtain a great advantage on the condition of cash payment.

The disagreement between the MTR and the Hong Kong government over the payment for land purchases indicates that the MTRC is severely short of cash, and the MTRC is now in dire need of cash to repay the loan and count on greater profits.

Zhang Heng discussed with Yuan Tianfan how to write the bidding form. In the end, Cheung Heng not only proposed in the tender to design the two sites into first-class commercial complexes, as this was not enough to frustrate other bidders, but any bidder would have the idea and ability to build a high-end commercial building property.

Therefore, Zhang Heng also proposed to meet the urgent cash needs of the subway company, and the Oriental Real Estate Group would provide cash for the construction cost at one time, and after the commercial building was completed in the later stage, all the benefits would be distributed to the subway company.