. Shumilou.CoM.Shumilou.Co

In mid-April 1983, the Census and Statistics Department of the Hong Kong Government released data showing that in 1982/1983 (1 April 1982 to 31 March 1983), there was a deficit of HK$3.935 billion in the Hong Kong government's fiscal revenue.

Over the past three years, the proportion of revenue from land sales in government revenue has been declining, from 35% in 1980/1981 to 29% in 1981/1982 and 15% in 1982/1983.

In 1982, residential property prices generally fell by 3 to 4 per cent compared with the peak period, for example, residential property prices in North Point fell from $1,067 per square foot at the end of 1981 to $664 per square foot at the end of 1982, a drop of 38%.

The monthly rent of Grade A office buildings in Central also fell from $28 to $30 psf at the peak in 1981 to $21 to $24 psf at the end of 1982, a drop of about 20% to 25%.

Li Hualong's real estate companies hold a large number of office buildings, and the rent has fallen, but he is not distressed, thinking that he will buy a large amount of land at a low price in the future, as well as acquire potential companies, he is secretly happy.

The sluggish market has led to a contraction in transactions and an increase in vacant buildings.

In 1982, a total of 165,000 leases (including sale and purchase of buildings and private land) were registered with a total value of $99.47 billion, representing a decrease of 13 per cent and 21 per cent respectively over 1981.

At the end of 1982, there were 31,700 vacant private residential units in Hong Kong, with a vacancy rate of 6%, of which 9.1% were large residential units. The vacant area of commercial buildings reached 5.866 million square feet, with a vacancy rate of 10.7%, of which 17.6% was office. The vacant area of industrial buildings reached 13.121 million square feet, and the vacancy rate reached 10.5%, both of which were at the highest or extremely high level in history. According to a research team, the backlog of funds in Hong Kong's real estate industry at that time may be as high as 50 billion yuan.

……

In this real estate crisis, it is the old British-funded real estate company - Hongkong Land that has been hit by arrogance.

In the 70s, a large number of Chinese-funded real estate developers took advantage of the low tide of the real estate market to absorb a large amount of cheap land, and then launched off-the-plan properties when the market recovered and prospered. Buying low and selling high to make huge profits dwarfs the rental income-based landmark, and the status of "self-respect" is gradually lost.

It was only then that Hongkong Land realised the importance of real estate development. Started to strengthen the real estate development business.

Since 1976, Hongkong Land has cooperated with about 30 companies, including Far East Development, Jianing, Hang Lung and Cheung Kong, to develop more than 70 real estate projects.

Since Li Hualong completed the acquisition of Wharf, Jardine Matheson Group has lost its "wing", and the investment strategy of Jardine Matheson Land has undergone a major change. Obviously gave up the conservative, steady and serious style that he had always pursued, turned to be aggressive, impatient and speculative, and became a "super friend" in the Hong Kong real estate industry at that time.

In early 1981, Hongkong Land and Sino Land formed a consortium to purchase the Pak Pen Shan site on Tai Tam Road on Hong Kong Island for $1.308 billion, planning to build villa-style luxury residences. In August of the same year, Hongkong Land and Sun Hung Kai Properties formed a consortium to purchase a large number of old buildings in Tsim Sha Tsui from Li Hualong for 2.8 billion yuan, planning to develop them into high-end commercial buildings in the style of Times Square.

In February 1982, Hongkong Land was sold at a sky-high price of 4.75 billion yuan. Won the land king of Central.

More than a month later, Hongkong Land also launched a "dawn raid", spending HK$3.5 billion to buy 34.9% of the shares of Hong Kong Telephone and HK Electric Group.

At this time, Hongkong Land's decision-makers' judgment on Hong Kong's political and economic situation was seriously detached from objective reality, and they paid a high price for it.

After September 1982, Hong Kong's real estate market collapsed, and Hongkong Land lost more than 3 billion yuan in only three major investment projects: Exchange Square in Central District, Miramar Hotel Old Wing, and Baibi Hill Development Plan.

On Sunday, May 1, 1983, the chairman of Jardine Land and Jardine Land took the initiative to contact Li Hualong. He was asked if he was responsible for acquiring Hongkong Land's shares in Hong Kong Telephone Company and offering a HK$1.4 billion offer.

Previously, Hongkong Land spent nearly HK$2 billion to buy 349.9 million shares of Hong Kong Telephone Company.

The total share capital of HKCW is 1 billion shares (fabricated), and the closing price of the previous trading day was HK$4.1 per share. At this price, the 349.9 million shares in Hongkong Land's hands have a market value of HK$1,434.59 million.

Without much thought, Li Hualong agreed to acquire 349.9 million shares of the Hong Kong Telephone Company for a total price of HK$1.4 billion.

Li Hualong knows very well that even if he does not buy the shares of the Hong Kong telephone company, there are other interested sellers. He did not want foreign ownership of the Hong Kong Telephone Company.

Li Hualong vaguely remembers that in 2000, Li Chao's second son acquired the Hong Kong Telecommunications Company, and the Hong Kong Telephone Company was the predecessor of the Hong Kong Telecommunications Company, when the Hong Kong Telephone Company was valued at 200 billion Hong Kong dollars, and now the market value of this company is only more than 4 billion Hong Kong dollars, that is, in the next ten years, the market value of the Hong Kong Telephone Company will increase by more than 50 times, and it will be able to get dividends every year.

Prior to this, Li Hualong held 150 million shares of Hong Kong Telephone Company, and he increased his holdings by 349.9 million shares, reaching 49.99% of the shares, touching the conditions for a full acquisition.

After Li Hualong signed the acquisition agreement with Hongkong Land, he announced that he was willing to fully acquire the shares of Hong Kong Telephone Company at a price of HK$4.1 per share.

Obviously, none of the minority shareholders of HKTC were willing to sell their shares to Li Hualong at HK$4.1 per share.

From May 2 to 4, the trading of the Hong Kong telephone company was suspended.

On May 4, Li Hualong completed the procedures for purchasing 349.9 million shares of Hong Kong Telephone Company from Hongkong Land.

On Thursday, May 5, the trading of HKT's shares resumed, and on this day, the company's opening price was HK$4.4 and the closing price was HK$4.5.

Li Hualong does not plan to continue to increase his holdings in the Hong Kong telephone company for the time being, and he feels that with a 49.99% stake, he can completely control the company.

Hongkong Land sold its shares in the Hong Kong Telephone Company to obtain HK$1.4 billion in funds, which could not fundamentally solve the company's debt crisis, at which time the company's total debt exceeded HK$12 billion, and the debt ratio exceeded 50%.

It can be said that Hong Kong is in the midst of strong winds and rains, of course, Li Hualong and other far-sighted and prepared people are living a very happy life.

……

At the beginning of July, Li Yisong's 80th birthday, Li Huawen and Li Huahu both brought their families to Yisong Garden to congratulate Li Yisong on his birthday.

In fact, as early as last year, Li Yisong celebrated his 80th birthday.

After dinner, Li Yisong and others came to the courtyard to cool off.

After chatting for a while, Li Huawen brought the topic to the new city square.

Li Huawen said: "Third, the new town square is almost completed, and the Sha Tin railway station has not yet completed the expansion, I estimate that no one is willing to settle in the new town square and open a store." You have so many retail businesses under your umbrella, but you have to settle in. ”

"Big brother, do you think this is okay, Carrefour Group leased the entire New Town Plaza for a lease period of ten years, with an annual rent increase of 10 percent, and at the beginning, the rent was less."

"That's fine." Li Huawen smiled, "How much do you think the rent is appropriate?" ”

"Uh......" Li Hualong pondered for a moment, "How about HK$1,000 per square meter per year?" ”

"Isn't it a little lower?" Li Huawen said.

"Is there any outsider participation in the new town square, Carrefour Group is owned by the third brother alone, and the rent is low." Li Huahu said.

"Okay then." Li Huawen nodded and smiled, "To be honest, the annual rent of 1,000 Hong Kong dollars per square meter is not low, and there is a ten% increase every year." ”

"For the sake of calculation, the rent of the mall will increase by HK$100 per square meter per year." Li Huahu said with a smile.

"Okay, okay." Li Huawen nodded.

"That's it, that's it!" Li Hualong smiled, "By the way, big brother, you also have a supermarket chain (Wellcome), do you want to open a branch in New Town Plaza?" ”

"I won't join in the excitement, I found that running a supermarket chain is not very profitable, and it may be better to renovate the store, split it into multiple units, and rent it out to others." Li Huawen said.

"Big brother, you're not going to give up running a supermarket chain, are you?" Li Huahu asked curiously.

"I don't have this plan for the time being, that is, think about it, I run Wellcome, which is good for Aaron." Li Huawen smiled and said, "Ah Long, I'm not wrong!" ”

"That's right, thank you, big brother!" Li Hualong smiled, he knew very well in his heart that if Carrefour monopolized the retail industry in Hong Kong, there would definitely be a lot of trouble, and if Wellcome was allowed to "seize" a certain market share, it would be covered with a fig leaf. (To be continued.) )