Hong Kong, Hutchison House Headquarters:

"Chen Sheng. This is the progress and funding details of the recent Whampoa Garden project, you can take a look first. Zhou Jiayang prepared these materials early in the morning.

"Oh, I'll see, when will the pre-sale start?" Chen Zhiwen took the information and then asked.

Whampoa Garden is currently one of the most important projects under Hutchison Whampoa. A large amount of mobilizable funds have been invested in the entire group of companies, with the aim of being able to convert the value of the land into liquid funds as soon as possible.

The whole Whampoa Garden is divided into three phases, the first phase is an area of 1.7 million square meters of commercial plaza and 20 residential projects of about 3,500 households, although real estate development can use bank funds, Chen Zhiwen also met with Shen Bi, Shen Bi promised to help, but there are many restrictions, the whole Hong Kong has just passed the real estate risk period, the big banks are still relatively strict about risk control, especially Hutchison itself is not lightly indebted.

Although other small banks are not so strict in risk control, the amount of funds is insufficient, and Hutchison also cooperates with some such banks, but the main force is still HSBC, Standard Chartered, East Asia, Hang Seng and other large banks.

It's just that the community of Whampoa Garden, the investment of funds is not much smaller than that of Harbour City in Wharf, and Chen Zhiwen also understands the difficulties of Jardine Matheson now, which is still supported by other overseas businesses.

However, unlike Harbour City, Whampoa Garden is a community project, as long as it reaches the deadline stipulated by the Hong Kong government, it can recover funds through pre-sale.

"At the current rate, by November, we will be able to pre-sell, mainly because it took a lot of time to build the foundation in the early stage." Zhou Jiayang said.

The pre-sale period stipulated by the Hong Kong government is 8 months before the house is built, which is not much shorter for the construction speed of the residential floors, as long as the construction of the main building begins, it is basically fast.

"Okay, don't worry too much about the funds, just follow the normal process and ensure the quality, this project is so big that it is enough to become a milestone in the Hong Kong real estate industry in the future, don't have any big problems." Chen Zhiwen said while looking at the financial expenditure.

In the history of Hong Kong's real estate, the four walled villages can definitely be said to have a pivotal position, and they can match the super commercial office projects, such as the Exchange Square in later generations, the International Financial Center Building, etc., although the walled village project is not as long-term as the large office building, which can bring long-term stable income to the holders, but in the short term, it can bring very large profits, so large that the income of a super walled village project can easily buy a few buildings in Central.

For example, the original historical Whampoa Garden, starting from 85 and finishing in 89 years, earned a total of 5 billion Hong Kong dollars for Hutchison Whampoa at that time plus a large shopping mall, and 5 billion Hong Kong dollars, in 89 years, can buy 2-3 ordinary Central buildings, or a super building, or build themselves.

"No problem, we have always attached great importance to quality, and we have specially invited a Japanese tripartite organization to regularly test the quality of materials from various suppliers." Zhou Jiayang replied.

"Okay, then wait, when the time comes, the funds will flow back, and we can start the second phase." Chen Zhiwen nodded and said.

Zhou Jiayang paused, and said: "In addition to Whampoa Garden, Hutchison is currently mainly cooperating with Chinese-funded real estate to develop land, mainly Li Jiacheng's Cheung Kong Industrial, considering that the debt is improving now, do we still want to cooperate with Li Jiacheng again?" ”

"Continue to cooperate, and Huang has so much land, why keep it?" Chen Zhiwen nodded and said.

Hong Kong's Chinese-funded real estate companies, in the 70s and 80s, can be said to be a group of heroes, all parties to the stage, everyone who can rise, has their own vision, resources, courage, opportunities, and because of this, Chen Zhiwen is happy to cooperate with them to develop a bunch of non-core land under Huang's banner.

Although they were able to make a profit, Hutchison also took at least half of the profits and did not need to pay any money upfront.

If you only look at the real estate market, Hutchison is a loss to do this, after all, these lands can be multiplied several times in the future, and the income will definitely be higher in the future, but what Chen Zhiwen wants is to cash out quickly, 100 million Hong Kong dollars in the 70s, in his hands, as long as he seizes an opportunity, it can be more valuable than 1 billion Hong Kong dollars ten years later.

With the recovery of Hong Kong's real estate market, whether it is Hutchison or Galaxy or Hengyi, the existing self-owned properties or properties to be developed have risen to a certain extent, so that more funds can be borrowed from the bank to develop the project.

As long as the real estate market keeps rising, the profits obtained will far exceed the appreciation brought by the property they hold.

However, the bank will still have a certain degree of risk control and will not lend unlimitedly, which is why Chen Zhiwen wants to cooperate with other Chinese-funded real estate companies, especially Li Jiacheng, who has a strong bank relationship and can lend a lot of money from the Canadian Imperial Bank.

And this cash will soon be of significant use.

"Okay, in addition to the retail sector, after the last time we had a breakdown with Niubijian, both of us started to compete in the real estate market for shops that could be used to open supermarkets, but judging from the recent trend, it seems that Jardine Matheson has chosen to focus on leasing and has given up buying shops." Zhou Jiayang reported again.

"Oh, Hongkong Land has actually given up holding the property, it seems that the problem of the Jardine system is much more serious than we thought." Chen Zhiwen smiled and said.

Although you don't need to buy your own property to do a supermarket, most supermarkets in the world are mainly leased, but with the characteristics of Hongkong Land's commercial real estate holdings, it has actually given up the acquisition of all the real estate of the supermarket, which is definitely not so smooth in terms of capital.

"It's really possible that Hongkong Land's Central redevelopment program has been paused a lot, not at the height of the property crisis in '73 and '74, but now it's stopped." Zhou Jiayang analyzed.

"Then we will have to beat the water dogs even more, in addition to continuing to buy properties, we have to snatch their supermarkets directly from Hongkong Land." Chen Zhiwen continued: "Just consume it like this first, and see if anyone can't bear it." ”

"Okay, I understand." Zhou Jiayang nodded and said.

Ask for a commuter pass

(End of chapter)