Following.

Richman took Lin Zuhui and his entourage to the 245 Park Avenue building.

Lin Zuhui has the impression that in his previous life, HNA won it for $2.2 billion in 2017, and single-handedly pulled New York real estate back from the trough. However, HNA later went bankrupt, and the building was listed for $1.8 billion without a sale.

"Mr. Lim, this building was built in 1967 and is 48 storeys tall with a floor area of 1.43 million square feet. It was only renovated in the mid-80s and is currently 79% occupied. Richman said with some smugness, but his expression soon faded again.

Lin Zuhui observed the building, and also observed Richman, and knew it in his heart.

Anyway, he came to buy an office building in Manhattan with the mentality of picking up a bargain, and he would definitely not buy it if it was expensive.

Everyone walked towards the building, and Lin Zuhui asked, "What is the average unit price of rent?" ”

He must have known it in his heart, but after all, the rent of each building is also different.

Richman would not lie to Lin Zuhui because it would not be good for him. He thought about it for a long time yesterday and felt that his best hope was to complete London's Canary Wharf and make a profit. Of course, he can be said to be bankrupt now, and naturally he can't redeem such a big project, so he needs a lot of venture capital. And Lin Zuhui is undoubtedly the best venture capitalist, he is a business leader in Hong Kong, and he is the richest man in China.

"It's currently $30 per square foot per year!"

Lin Zuhui calculated that the total of US$2.5 per square foot per month (about HK$20 per square foot) is less than the lowest office price in Kowloon.

Hong Kong's office buildings are currently the tallest in the world, surpassing Tokyo, not to mention Manhattan, with an average of HK$30~HK$60 per square foot per month. The office space in Central District has reached 60 Hong Kong dollars per square foot per month, and will soar to more than 90 Hong Kong dollars in the next two years, and the highest should be 110 Hong Kong dollars per square foot in Exchange Square.

As for Manhattan, even before the dot-com crisis, it was estimated to be 45 Hong Kong dollars per square foot (annual rent of 60 US dollars per square foot), far less than Hong Kong.

Importantly, New York's office buildings are taxed more than Hong Kong's, and these buildings are old buildings that can be expensive to repair and upgrade.

The rate of return will not be too high, even if the time to buy is to buy the bottom, the price will be converted.

However, buying a Manhattan mansion is a symbol of strength;

At the same time, it is also paying 'protection fees' in disguise, after all, on the bright side of the New Era Group and Lin Zuhui, both have a large amount of investment in U.S. stocks, in order not to make people blush, they must come to the United States to buy the bottom of the building to balance the relationship between the high rate of return. After all, the rate of return on securities is too high, and you still have to invest in some assets with medium returns (10%~15% rate of return after deducting bank interest).

The group took the elevator and experienced the building, which is indeed relatively new on the whole.

However, Lin Zuhui knows that there are several other buildings in Olympia, which are not as good as those in the forties and fifties.

In 1902, New York built a 22-story Flatiron Building, the tallest building at the time. Therefore, in his previous life, Li Hongzhang was paired with buildings such as the Empire State Building (1931) on the Internet to set off Li Hongzhang's despair, which was purely self-media rubbing traffic.

After visiting 245 Park Avenue in Manhattan, Lin Zuhui said to Richman: "Such a building, the current market price is a building? ”

Richman thought for a moment, then said, "The market price is estimated at $300 million, but no one is sure to buy it!" He didn't want to lie, because with the intelligence of this young man and the group of elite advisors who followed him, he was very professional at first glance.

Lin Zuhui nodded, this kind of building buyer and seller is very test of fit, because there is no standard.

According to Hong Kong's calculations, the unit price is generally 100 times the rent, that is, the selling price of US$250 per square foot, and the building needs 350 million yuan. However, the vacancy rate of this building, and the annual maintenance fee and tax revenue are so high, it is far from being possible to calculate it in this way.

If Lin Zuhui comes up with a psychological price, it is 250 times 80% of the occupancy rate, and then discounted by 70%, that is, the unit price of 140 US dollars; With a leased area of 1.43 million square feet, US$200 million is appropriate.

This price, before 1995, did not increase much. The annual net rental profit may not outpace the high inflation, and the rate of return may only be 5%~8%.

After inspecting 245 Park Avenue in Manhattan, Lin Zuhui and Richman came to the restaurant and had lunch together.

During the dinner, Richman seemed to be more concerned about Lam's views on the prospects of Canary Wharf, so he said: "Mr. Lin also knows about the Canary Wharf project? ”

Lin Zuhui nodded with a smile and said: "I've been there a few times, and every time I sigh that 'European Wall Street' is about to be born!" Unfortunately, the British economy is declining, and the government's commitment to the subway project has not been approved for a long time, which is the biggest constraint on the success of this project. ”

Richman agrees: "When I took over the project, the London government promised to build a light rail, an underground extension, a water passenger terminal and a new international airport, and in the end only the light rail was built as planned. ”

Lin Zuhui wanted to cause Richman to lose his car and protect the handsome, so he continued: "London can't let such a big project stop, I think the resolution of the subway extension will be passed soon, maybe next year or the year after. If you can pull enough money to redeem it from creditor banks, as long as you hold on for another five to eight years, the project will be a big success. ”

"That being said, if Olympia York goes bankrupt, even if I lead a group of venture capitalists to complete the project, I'm afraid it's the investors who make the money," Richman said. ”

Lin Zuhui said with a smile: "It's better than nothing!" You are the leader of the project, you can open a high salary for yourself, or you can take out a personal loan to join the investment. But then again, your company might not be that bad! ”

Richman looked at Lin Zuhui and said seriously: "Mr. Lin, you are a businessman worthy of my admiration. But I want to ask you, what is the biggest factor in your success? ”

Looking at Richman, who was once praised by European and American investors, thinking of how popular he was back then, and those commercial banks sent money to him one after another, Lin Zuhui couldn't help but sigh that the world is impermanent, and Richman will soon have a new nickname - Canadian reckless.

"I think it's a dip!" Lin Zuhui said.

"When is the end?" Richman asked hurriedly.

"Everyone is desperate, and I think it's the bottom. I'm crazy when others are panicking, and I'm panicking when others are crazy, that's probably it! Actually, I didn't want to meddle in European and American commercial real estate this year, because the market is not panicked enough! ”

Richman smiled bitterly: "What Mr. Lin means is that if Olympia goes bankrupt, it will lead to real panic in the office market in Europe and the United States!" But I admire your philosophical motto that I am crazy when others are panicking, and I panic when others are crazy. ”

Isn't that it?

Next year and the year after next should be the best time.

However, if Olympia goes bankrupt, its assets must be in the hands of creditor banks, and he may not be able to buy them cheaply. You must know that in the previous life, Olympia's 12 million square feet of Manhattan office building was only sold by the bond bank in 1996, and Citibank, Li Chaoren, and the Bank of Canada joined forces to compete, as for whether it was successful, Lin Zuhui did not know.

Probably not!

Lin Zuhui comforted Richman and said, "Mr. Richman, I have no intention of sprinkling salt on your wounds. Speaking of which, I'm not very eager to invest in the Manhattan office building in Olympia. In Xiangjiang, the office projects I invest in can have an annual rate of return of 30%, which is not found in the world. ”

Richman was surprised, and sighed in his heart What kind of market is ZTM, the rate of return is so high!

The two chatted very speculatively, especially on the Canary Wharf project, Lin Zuhui made it clear that he could invest, even if the Manhattan office project did not reach a cooperation.

Of course, the two investment methods are different, if Richman can sell eight towers in Manhattan to himself cheaply, he promises that in the Canary Wharf project, Lin Zuhui can buy 10% of the equity for him first, and he can redeem it within a certain period of time, only paying the principal and interest.

In other words, even if the price of this project appreciates a lot, he only needs to borrow from the bank and then pay Lin Zuhui's principal and interest.

Richman's heart suddenly became hot, this condition is simply too superior!

Once Olympia goes bankrupt, all the assets do not belong to him, so why should he care about the cheap sale of Manhattan office buildings!

What's more, the price of office buildings in Manhattan is so cheap that they can be sold!

The deal with Richman will not be made immediately, and the procedures inside are a bit complicated. First of all, it is for Richman to make up his mind; Secondly, these eight buildings have been targeted by bond banks, and if they want to be sold, they must be negotiated; Finally, there will be formal negotiations between the two sides.

The eight buildings that Lin wanted to buy did not include Olympia's World Trade Tower, nor did it include all of Olympia's commercial properties in Manhattan.

The eight buildings have a total area of 11.8 million square feet (including 245 Park Avenue), and the psychological price given by Lin Zuhui is US$140 per square foot, totaling US$1.65 billion, or HK$12.88 billion.

Take the 245 Park Avenue building as an example, it can be sold to HNA for $2.2 billion in the future, and the value will appreciate 10 times in 15 years. Of course, this part of the income does not include the rent during the period.

For example, the price of Central Plaza should be 80~10 billion now, but at the peak in 2015, it is worth 50 billion Hong Kong dollars at most, and the appreciation space is 5~6 times.

But considering the level of rent, maintenance costs, and taxes, Xiangjiang's office buildings make a mess.

If this deal is reached, Lin Zuhui will spend 1.51 billion Hong Kong dollars to buy a 1.5 million square meter building, which is much cheaper than the price Li Chaoren bought a year ago.

At that time, who will be more likely to buy the bottom, Hong Kong investors will be clear at a glance.

As for the source of funds of 12.88 billion Hong Kong dollars (maybe more than that, 13.8 billion is also acceptable), Lin Zuhui plans to use the property in Hong Kong as collateral to borrow 8 billion Hong Kong dollars from commercial banks such as HSBC and Citigroup.

In this way, there is no need to worry that these banks will not borrow, because the property in Xiangjiang is too valuable. Moreover, the New Era Group has no debts, and it is not worried that no one will borrow at all.

In the afternoon, Lin Zuhui came to the office of Fuli Real Estate Investment Management Company in New York.

Since the beginning of this year, Lin Zuhui has embarked on reforms in Futura Real Estate, knowing that he will invest in a large number of commercial real estate in the United States in the next two years. Therefore, the group has strengthened its management capabilities, dispatched senior staff, and recruited a lot of American real estate talents (Chinese are preferred) to form a strong management team.

At present, Vality Properties has about 3 billion Hong Kong dollars of properties in the United States, mainly concentrated in Los Angeles and San Francisco, but now, it is clear that the center is beginning to come to New York.

"Boss"

In the conference room, some senior executives of the group and Fuli Real Estate sat on both sides of the conference table and stood up and said respectfully.

Liang Zhenxun, Gao Yi and other group management are visiting with Lin Zuhui this time; In addition, there are the President of Valuria Properties, Chen Mingzhi, and the senior staff of Fidelity Property Investment Management.

Lin Zuhui nodded, sat down on the main seat, and motioned for everyone to sit down.

"When you come to New York this time, you probably understand my idea, which is to try to buy eight skyscrapers in the hands of Olympia York at a low price. Although the rate of return will not be high even if you invest at a low price, it should still be very worthwhile if you think about it in the long run. Of course, this investment may not work out, but be prepared! ”

"Yes, boss!"

Lin Zuhui said to Chen Mingming: "In terms of office management, you have to do a good job, and excellent management can make the vacancy rate lower!" For tenants, we are their waiters, and we must be ready to solve their problems at any time! For the property, we have to take care of the maintenance. ”

Chen Mingming is a senior executive from Hong Kong, but he has been working in the United States for four years and is already quite familiar with this area.

"Rest assured, boss, we will definitely manage our properties well, like Chinese real estate learning."

Lin Zuhui nodded and continued: "Even if the transaction of the eight buildings is not successful, I will buy a considerable number of high-quality rental properties in Manhattan next year as a long-term investment. As the flagship of New Era Group's investment in the United States, Futura Real Estate must develop into a team with high efficiency and high quality. ”

Everyone saw that Lin Zuhui attached so much importance to it, and they also knew that this boss was going to buy the bottom in the United States!

Xiangjiang is too small to accommodate the New Era Group.

Then, Lin Zuhui listened to everyone's work report.

Commercial real estate in Los Angeles is a bit miserable, with a 22% vacancy rate. Of course, that's what the environment knows. The 'commercial center' project in Los Angeles encountered a trough of office buildings in Europe and the United States before it was completed. In addition to the land and construction costs of that year (1988), the investment is also large, so it is not optimistic at present.

It's just a long-term investment, and as long as the debt is reasonable, it will always be profitable.

Lin Zuhui thought for a while and said to Liang Zhenxun: "Take out another $100 million and inject it into Futura Real Estate Investment Management Company, and then buy shares of General Dynamics in the United States and buy it as soon as possible." ”

Liang Zhenxun hurriedly said: "Okay, I'll arrange it immediately!" ”

A total of $450 million has been invested in U.S. stocks, but General Dynamics shares are expected to be released by the end of next year. The investment strategy is because Lin Zuhui has seen Buffett's investment experience.

After spending HK$3 billion each on the acquisition of Miramar Hotels and mainland investment, New Era Group still has more than HK$6 billion on its books. The net profit and return in the second half of the year will not be less than 6 billion, in short, even if it invests 5 billion in an office building in the United States (another 8 billion plus loans), New Era Group still has a stable cash flow.

So, there's no need to worry about cash flow insufficiency.

(End of chapter)