Chapter 114: Navy Dockyard
One afternoon in late March, Li Huahu returned to Hong Kong from Macau and came to Li Hualong's home.
Li Hualong returned home from work and saw Li Huahu playing with Li Shengjiang, and Li Shengjiang was amused and giggled.
"Third brother, why did you get off work so early?" Li Huahu asked with a smile.
"Knowing you're coming, I'll leave work early." Li Hualong came to Li Huahu's side and sat down.
After chatting a few words, Li Huahu asked: "In a few days, Galaxy Entertainment Company is going to give shareholders a dividend, what do you say I should invest?" ”
Without waiting for Li Hualong to answer, Li Huahu sighed lightly and said: "In the past two months, Hong Kong's housing prices have fallen a lot, and I don't dare to buy a house." ”
"Buying up rather than buying down is not a good investment idea." Li Hualong said.
"What do you mean, you can buy the dip?"
"Hmm!" Li Hualong smiled and nodded, "Crisis and opportunity coexist, the market is sluggish, many people are reluctant to buy land, when we encounter good land, we go against the market, buy land, we can get a good opportunity for development." In two days, the prime plot of naval dockyard will be unveiled, and if nothing else, I should take that land. ”
Li Huahu's eyes widened, and he said in surprise: "The land in the naval dockyard is very large, do you plan to eat it alone?" ”
"The money for the purchase of land is not a one-time payment. I can divide that piece of land into multiple plots, some of which I develop myself, some of which I sell, and I can also consider listing for financing. ”
Li Huahu muttered, "I haven't heard you talk about this before. ”
Li Hualong smiled: "It's not time to sue you!" ”
"What is the price you are paying?"
"100 million."
"I saw the tender advertisement for that land in the newspaper, but I didn't look closely, how big is the area?"
"27 acres."
"An acre is 43,560 square feet, and 27 acres is more than a million square feet, am I not mistaken?"
"More than 1.17 million square feet, to be exact." Li Hualong smiled, "This land is definitely the most valuable land for development among the land that the Hong Kong government has ever publicly tendered. ”
"100 million, buying 1.17 million square feet of land, less than 100 Hong Kong dollars per square foot, hehe, I feel a little cheap!"
"It's not cheap, and if nothing else, I should be able to buy this land. The land is not entirely for buildings, with roads and greenery taking up half of the land. Now that the Hong Kong property market is in a downturn, this project is too huge, it needs to invest a lot of money, and the risk factor is very large. I don't think many people will participate in the auction, and now many real estate developers are already frightened, and they are shocked when it comes to real estate, and no one has the ability to develop this land solely except me. ”
"Didn't the Hong Kong government place advertisements in overseas newspapers and periodicals, and a few days ago, the Hong Kong government entertained businessmen from Japan. Overseas consortia are very powerful. ”
"Now the international community is unanimously bearish on the Hong Kong real estate market, even if there are foreign investors bidding, the price will not be very high. If you want to place a bid, you must first pay a deposit of 6 million yuan, and this alone can turn away many interested people. ”
"yes." Li Huahu muttered, "You won't bid alone, right?" ”
"No, it won't." A sly smile flashed across Li Hualong's face.
The Hong Kong government attaches great importance to the auction (covert) of the land of the naval dockyard, and not only sells advertisements in Hong Kong, but also places advertisements in newspapers and magazines in London and New York.
Li Hualong knew that the international community was pessimistic about the Hong Kong real estate market, and he was worried that he would be the only one to participate in the auction, and the Hong Kong government would temporarily cancel the auction and take back the land, so he found Li Xiaohe and Bao Yugang, hoping that they could come forward and temporarily form an inter-consortium to participate in the auction and play the role of accompanying the prince to study.
Li Hualong is not worried that Li Xiaohe or Bao Yugang will cut off the beard halfway, even if he does not buy this land, he will not be very disappointed, after all, in the next few years, Hong Kong's property prices and land prices will drop sharply, and he has many opportunities to invest and make money.
Historically, when the Hong Kong government auctioned the naval dock for the first time, no one participated in the bidding except Fok Yingdong, and the appearance of Li Hualong affected the accumulation of Fok Yingdong's wealth.
During the Korean War, Fok Ying-tung made some money by delivering supplies to the mainland government, and then he got involved in the real estate industry, and although he made some money, it did not make him a Hong Kong real estate tycoon.
Hualong Real Estate Company was the first to sell housing in Hong Kong in strata units, the first to sell "off-the-plan", long before Fok Yingdong set foot in the real estate business, a number of real estate companies in Hong Kong developed rapidly, and when Fok Yingdong entered the market, with his financial resources at that time, he could not compete with large enterprises, so he could only work hard to earn some reasonable profits.
Perhaps because Fok Ying-tung did not rise rapidly and did not have a prominent tycoon, the British government in Hong Kong did not openly express its dissatisfaction and discrimination against him because he supplied materials to the mainland during the Korean War, nor did it suppress him. Later, in 1968, when riots broke out in Hong Kong, property and land prices plummeted, Fok Ying-tung, like many discerning businessmen, took active action and bought a large amount of land, which laid the foundation for him to become a real estate predator in Hong Kong.
Affected by Li Hualong's rebirth, when Huo Yingdong died in this time and space, the entire Huo family had more assets than the Huo family in another time and space, but the influence of the Huo Yingdong family in the mainland was worse, after all, there was the Li Yisong family in this time and space, and there was a benchmark erected by Li Hualong, and Huo Yingdong only had to look up.
In Hong Kong, there is very little land that can be used to build high-rise buildings, and large plots of land in prime locations are even more valuable, such a large plot of land for comprehensive development, there is a lot of room for operation.
Originally, Hongkong Land would not have participated in the bidding for the naval dock land, but the bid price was too low, only HK$76 million, far lower than Li Hualong's bid of HK$100 million.
Li Xiaohe and Bao Yugang found friends to form two consortia, playing the role of a trick, bidding HK$50 million and HK$76 million respectively.
Li Hualong is well aware of the great potential for the appreciation of the naval land, and he is not sure that he will win the bid for the HK$100 million.
Knowing that he had won the bid, Li Hualong was full of excitement and joy.
"Aaron, congratulations!" Bao Yugang was the first to thank Li Hualong.
"Thank you, Brother Bao!" Li Hualong smiled and shook hands with Bao Yugang, and then shook hands with others around him.
At noon that day, Li Hualong held a banquet at the Mandarin Oriental Hotel, inviting Bao Yugang, Li Xiaohe and others.
At the dinner table, Li Xiaohe asked: "Ah Long, you took out such a large amount of money to buy land, optimistic that in the short term, the Hong Kong property market will recover?" ”
"There are both opportunities and dangers." Li Hualong smiled, "I said before, I will not develop this project alone, this piece of land will be divided into twenty pieces, some of which will be developed by myself, a small part will be sold directly, and the other will be developed in joint ventures with others." Ladies and gentlemen, if you are interested, we can set up a joint venture real estate company, and one company will develop a project. ”
Li Xiaohe smiled and said, "Okay, I'm interested!" ”
Li Hualong raised his wine glass and said, "After the plan is completed, I will be the first to find you!" ”
Li Xiaohe also raised his wine glass and touched it with Li Hualong: "I wish us a happy cooperation!" ”
"And me!" The others raised their glasses and clinked glasses with Li Hualong.
When the Hong Kong government advertised in the newspapers for the Navy Dockyard plot, it announced how the winning bidder would pay the bid.
Li Hualong won the bid for the naval dock plot with 100 million Hong Kong dollars, and after winning the bid, he needed to pay 4 million Hong Kong dollars within a week, plus the previous 6 million Hong Kong dollars deposit, a total of 10 million Hong Kong dollars, which is 10% of the transaction amount, which is the down payment, and the remaining 90 percent, that is, 90 million Hong Kong dollars, can be paid in installments, paid in 30 months, without interest, and pay 3 million Hong Kong dollars every month.
Before bidding for the naval dock land, Li Hualong specially registered a real estate company, Gemdale Group Co., Ltd., known as Goldlandholdings Limited in English, and his positioning of this company was to invest in the development of commercial real estate projects in the prime land in the central area of the city, and this company would bid for the naval land plot for the Hong Kong government.