Friday, February 12.

Today is the day of the auction of 'Diamond Mountain King', and the heads of major real estate companies and reporters from Hong Kong have gone one after another.

Strictly speaking, today is not an 'official land auction', because there is only one 'land king-level land'; generally speaking, the Hong Kong government will announce the annual official land auction plan in a few months each year, and then the curtain will be held.

The purpose of the Hong Kong government's auction of 'land king-level' land is actually to raise the price and build momentum for the next official land auction.

This also fully shows that the Hong Kong government is very contradictory, not only to calm public grievances and crack down on property speculation, but also to make a lot of money in the auction of official land. After all, seventy percent of the Hong Kong government's finances depend on real estate!

When it comes to the land auction at the 'land king' level, Lin Zuhui originally wanted to sit in charge in person, but after thinking about it, if he went in person, then it was very likely that the price would be raised.

Because in the past year, the New Era Group has given people the feeling that it is no longer as aggressive and imperative in the auction hall as before. Although it is also a big friend of real estate, it is only with Sun Hung Kai and Cheung Kong, so will it consider whether the price is expensive?

Therefore, if Lin Zuhui is in charge in person at this time, it will inevitably give people a feeling of great importance, which is not conducive to the auction.

This piece of land is indeed very good, located at the foot of the Lion Rock, at the tunnel mouth (Kowloon side) of Kowloon and Sha Tin, New Territories, with an area of about 280,000 square feet; According to the Hong Kong Government Planning Department, five residential towers with an area of 1.2 million square feet (about 1,500 residential units) can be built, and a commercial area of 650,000 square feet (low density/low building) can be built, and there can also be a good landscaped public garden.

Lin Zuhui calculated that the house could be sold in 1995 and sold out in the first half of 1997, and the average selling price could reach 6,000 yuan per square foot, and he could get 7.2 billion yuan in cash;

The commercial area is worth 6.5 billion yuan (simple estimate) at 10,000 per square foot.

That's a big project totaling 13.7 billion!

The total construction cost is 2 billion, plus interest and taxes, not even 3 billion.

The land cost of 5 billion is worth it, if anyone grabs it with the New Era Group!

Of course, 5 billion is impossible, and the reserve price of this land is 2.2 billion Hong Kong dollars, and the general premium of 7 percent is already sky-high.

Thinking of this, Lin Zuhui called Liang Zhenxun and said, "You lead the team to participate in the auction this afternoon and get the land back." As for the price, the premium should be 70%. If it is three percent higher, it is my reserve price, you can call me, but be careful! ”

In this era, there are already mobile phones, so it is natural to call the auction hall to apply for it outside the venue.

Liang Zhenxun said: "Well, I know! Speaking of which, this time we may have to watch out for Wheelock, Wharf, and Real Estate Trust, that is, the Bao Yugang family. They developed Times Square in Causeway Bay, making a lot of money, and they didn't need to pay the land premium, only spending 2.4 billion Hong Kong dollars in construction costs, and the rent collection this year was as high as 900 million, so they have been ambitious recently. ”

When Lin Zuhui heard this, he said indifferently: "They can easily earn 900 million, and we will earn billions while lying down, so we don't need to care." You'll just need to use a little trickery, but you're determined to take it! ”

Liang Zhenxun laughed, last year's U.S. stocks made a billion dollars, what is it that is not lying down to make money! And looking at the appearance of the boss, he is very optimistic about Microsoft, General Dynamics, and Citibank, and intends to hold it for a long time.

"Okay, I'll get the job done!"

Hong Kong Government, Auction House.

2 p.m.

Liang Zhenxun walked into the auction with several senior staff, which really attracted everyone's attention, and everyone saw that Lin Zuhui did not come, and suddenly felt a lot less pressure.

In fact, although the New Era Group is wealthy, it is not invincible, after all, everyone has money;

However, Lin Zuhui himself is a little 'arrogant', if he arrives at the scene, he may not care about the price, and everyone is afraid of winning the bid at a high price, but also afraid of absence.

It's not funny!

Liang Zhenxun led the team, and even made some people feel that the New Era Group is focusing on overseas and the mainland.

Everyone still greeted each other, no matter how intense the wait was, everyone was still amicable in private. Even if the auction is competitive, I won't really care afterwards, after all, there are so many auctions every year, and the highest price has to be the truth of Henggu, and no one will deliberately raise the price.

Today's auction can also be regarded as a 'barometer of the Hong Kong property market', if the premium is high, it will also be beneficial to the real estate companies, because it will promote the real estate premium.

Generally speaking, the premium of 40% is the threshold of the market, and the premium of 70% is a sign of the prosperity of the market.

The auction has officially begun.

Everyone has raised their signs, which is very encouraging for a while, and Heung Kong Real Estate may be another year of growth this year.

The competition is fierce!

In the end, only Wheelock, Cheung Kong, New Era Group, New World, and Nan Fung remained.

Soon, New World Development was defeated, and Zheng Yutong said to himself: "It's still cost-effective to buy foreign hotels, so many hotels are only 5 billion, and this piece of land is already 3 billion Hong Kong dollars, and I can't stand it!" ”

The subordinates had to smile in agreement, in fact, New World Development has fallen behind now because it does not have enough reserve land! Of course, because New World Development has New World Centre in Tsim Sha Tsui and the Convention and Exhibition Plaza in Wan Chai (which is beginning to expand), it is also a large-scale real estate developer, but it cannot be named a 'large-scale real estate developer'.

There are only four large-scale real estate developers in Xiangjiang, namely New Era, Cheung Kong, Sun Hung Kai and Henderson, which occupy 55%~70% of the real estate sales in Xiangjiang every year.

"3.2 billion" Liang Zhenxun quietly raised his card.

He didn't think about getting it for less than 3.5 billion, because he could see that the biggest competitor might be Wheelock. Because Cheung Kong Group does not like to collect rental properties and has sufficient land reserves, it will definitely consider the question of whether it is cost-effective or not; Nan Fung Group is not worth mentioning, and there are a few money that can withstand Huohuo.

Only Wheelock (including Wharf) wants to enter the development of real estate developers, and this land has a commercial area of 650,000 square feet, so it is very eager to obtain.

"3.21 billion"

Wu Guangzhen's face showed a hint of longing, and he thought to himself that the development of Times Square was so successful, and the five residential towers in Harbour City are also being rebuilt into five office towers in phases, adding 4 million square feet of rent collection area. Harbour City and Times Centre have a total of 9.5 million square feet of rent-to-rent area (after redevelopment), which gave him enough courage.

In Wu Guangzhen's view, this land will add a very good shopping mall - Plaza Hollywood, so it is also a must.

The next competition has just begun to be officially staged.

For a while, the major real estate developers looked lively, and their mood was very relaxed at this time, and they were secretly glad that they did not follow, after all, the two families are afraid that they are fighting today.

"3.5 billion" Liang Zhenxun also sighed in his heart that he was afraid that he was going to break the fortune today, and if the price premium was ten percent, he was afraid that he would really have to call and ask.

"3.52 billion" Wu Guangzhen was also very shocked in his heart, is this price a decision that he can make as an executive? Aren't you afraid of going back and being scolded?

"3.53 billion," Liang Zhenxun continued to shout calmly. The boss actually has a 10% budget in mind, otherwise he wouldn't have said that 10% premium would call him.

It's still early, Liang Zhenxun comforted himself.

"3.82 billion" Wu Guangzhen felt very heartbroken, and the 900 million rent he had just collected was not fragrant.

"3.85 billion" Liang Zhenxun felt that it would be added once.

"3.86 billion"

"3.92 billion" Liang Zhenxun shouted again, he had already seen hope.

Sure enough, Wu Guangzhen began to be silent, and as the auctioneer dropped the second hammer, he did not bid again.

"3.92 billion transactions"

Liang Zhenxun breathed a sigh of relief and gestured to Wu Guangzhen, looking very sincere.

Therefore, the talent reacted, Lin Zuhui must have explained the reserve price, and it should still be within the reserve price at present, otherwise Liang Zhenxun would not be so modest.

Wu Guangzhen squeezed out a smile and coped with it.

He wanted to learn from his father-in-law's Shanghainese style, but found that it didn't work at all. Nearly 4 billion land fees, plus construction costs, taxes and fees, may have to invest more than 6 billion in projects.

How much does that cost!

Times Square only invested 2.4 billion yuan in construction costs, and got 2.4 million square feet of first-class rental properties, with a rent of 900 million Hong Kong dollars in the first year alone, and more in the second year, after all, the first year of leasing needs to be preferential.

Harbour City rebuilds 5 super office buildings, and can obtain 4 million square feet of rent-collected properties, which is less than 4 billion yuan in construction costs (land compensation fee unknown).

For a while, Wu Guangzhen couldn't help but sigh that the auction would meet the New Era Group, which could only be said to be not an easy thing.

When Lin Zuhui learned that he won the Diamond Mountain King for 3.92 billion yuan (3.53 billion in his previous life), although he was a little stunned, he still encouraged Liang Zhenxun with satisfaction.

He had a budget of 10 percent, or even 12 percent, in his heart, after all, he needed to invest; Twelve percent of the land budget is also more profitable than European and American investment.

What's more, as long as this kind of project is planned, it will be able to compensate for the excess land fee. For example, the sales schedule, for example, before July 97, you can make a little more money by signing a long-term lease contract (the price is a little preferential).

As for whether he will be scolded, Lin Zuhui is not afraid at all, people stand from a different perspective, he is the chairman of the board of directors of a listed company, and he needs to be responsible for 60,000 or 70,000 shareholders.

It can be said that before the second half of the ninety-seventh year, Lin Zuhui will at least let the New Era Group sell tens of billions of assets (the current annual property transaction volume is 450 billion) and invest in the European and American markets.

Of course, core office buildings and shopping malls will not be sold.

(End of chapter)