"The biggest problem for Hang Lung Properties now is the 9 subway properties, right?" Chen Zhiwen asked rhetorically.

"Yes, if these 9 subway properties are given up, then Hang Lung's vitality will inevitably be greatly damaged, but if you don't give up, the amount of money to be invested in this is simply sky-high, and at the current land price, I don't dare to develop like this, losing money is a trivial matter, I can afford it, but if the house is built and can't be sold, and the cost can't be recovered, then no real estate company can bear it." Chen Zengxi said.

The business model of the real estate company itself is a big leverage, such as a land price of 1 billion construction cost of 1 billion, some players who have a good relationship with the bank and are bold may only pay one or two hundred million yuan, and then unlimited nesting dolls, and then wait until they can be pre-sold, and then collect a future income to use on construction costs and even other projects.

As long as there is no problem with the pre-sale in the back, even if only 1.8 billion is recovered, it will be a loss of 200 million, and the normal real estate company can also bear this loss, but if no one cares about the pre-sale and cannot sell it, it will immediately have a capital chain problem of more than one billion Hong Kong dollars, and the entire group will be dragged down. And now this is the situation in the Hong Kong real estate market, many people are unwilling to buy houses, and they don't buy if they have money, which makes Chan Tseng-hee dare not develop projects at all.

In 1982, when the land price was at its highest, Chan Tseng-hei's Hang Lung Group, with a number of real estate companies formed a large consortium, snapped up the MTR company's 9 subway station properties, according to the housing prices at that time, these 9 properties, with a total investment of more than 9 billion Hong Kong dollars, even if the future housing prices remain unchanged, sales will be as high as 13 billion, according to the proportion, the total profit of 4 billion Hong Kong dollars, Hang Lung Group can make a net profit of 1.4 billion Hong Kong dollars, and if the house price can rise, the profit can be doubled.

Unfortunately, before the end of the year, land prices plummeted, and the book loss alone was as high as more than a billion, and at the same time, because of the collapse of Hong Kong's real estate market, many foreign banks also began to retreat, and Japanese banks that had made a promise of HK$1.5 billion to Hang Lung ran away overnight.

Naturally, it is impossible to reverse the contract that has been signed, and since the Hong Kong government also has a time limit for the development of real estate projects, Hang Lung has made great efforts to persuade the Hong Kong government to agree to postpone the development date, and at the same time wants the Hong Kong government to reduce the previous price a little.

But how could the Hong Kong government and the MTR Corporation agree? After all, a few years before the real estate crisis, the land auctioned by the Hong Kong government and the MTR was increased with the market price, and I didn't see which real estate company came to make up the difference in price for the Hong Kong government, right?

Under the pressure of many parties, Chen Zengxi used various connections to finally solve the financial problem, but last year's collapse in the official exchange rate of the Hong Kong dollar made his foreign bank liabilities increase by more than 50%, coupled with the past few months, the market has not been good for a long time, Hang Lung Properties is a little unbearable, just taking advantage of the groundbreaking ceremony of the Midea Building, he also came to Chen Zhiwen.

At present, in Hong Kong, he is the only one who has the ability to save Hang Lung.

"This kind of thing, when you won this project, the reason why you had such a high profit margin is actually because of various uncertainties in the market, although you were confident in the Hong Kong real estate market at that time, but you are not unaware of this risk, right?" Chen Zhiwen said with a smile.

The bidding between the MTR and the Hong Kong government, because it is basically exclusive, so in the profit area, it can be said that they eat the big head, and the real estate company eats the small head, but the special thing is that the house prices in Hong Kong have risen too much in the past few years, at the time of the auction, even if there is no profit according to the house prices at that time, but when the development is pre-sold, the house prices may rise by 50%, and the profits are so big that they can even exceed the profits of the Hong Kong government from selling land, which is also the reason why the auction site is crazy in the past few years, and many people have to get the land at a loss. It is completely counting on the future increase in house prices, and making the expected profit.

Then there was a sharp drop in housing prices in 1982, but in the early 82 years, many people already felt that the land price was too high, because the balance between supply and demand was not as good as before, and the Hong Kong government's auction was more profitable.

In other words, if housing prices continue to rise, Hang Lung's profits can get a very considerable figure, and even three or four billion yuan is normal. This is a kind of "bet".

But he lost the bet.

"Yes, I also know the risks, but doing our business is itself a wealth and danger, Chen Sheng ten years ago, didn't he also invest heavily in the real estate industry?" Chen Zengxi smiled bitterly and shook his head and said. Admit gambling and admit defeat, there is nothing bad to admit, when the real estate market is good, everyone can make money, even if you are capable, you don't necessarily make more money than others, if you want to turn over and want to cross a level, you must take a little risk to gamble, and break through once when there is a risk.

"And how do you want me to help you?" Chen Zhiwen nodded and said, 10 years ago, he just started his business, at that time the core was not Midea and Red Bull, these two companies were just to build the most basic foundation during that time, the real focus was on the Hong Kong real estate industry, especially industrial land, so that he earned seven or eight billion in 2 years, it can be said that this investment was one of the main sources of funds for him to acquire Hutchison, otherwise, Hutchison missed, it would be almost impossible to acquire again.

Therefore, wealth and wealth are in danger, this sentence is not empty words, and he knows the future economic trend, so he dares to say that there is no risk, otherwise when others play like this, a time node mistake may be lost.

"Mr. Chen, I would like to know, are you interested in the 9 subway station projects of Hang Lung Group?" Chen Zengxi did not answer directly, but asked.

"You're trying to get me a stake?" Chen Zhiwen said with a light smile. The old fox of the shopping mall, as soon as this sentence was spoken, Chen Zhiwen knew his purpose, inviting himself to become a shareholder was only secondary, and the bigger purpose was to judge his own views on the real estate economy in the short term in the short term from his answer. Due to the requirements of the Hong Kong government and the MTR, these 9 MTR property station projects cannot be postponed indefinitely.

If you agree, it means that your judgment will be that the real estate economy will recover in the short term, and if it is resolved, it will naturally mean the opposite.

"Yes." Chen Zengxi nodded and said.

"When is the deadline given to you by the Hong Kong government?" Chen Zhiwen asked.

"Construction must start in September this year, and it can be pre-sold before the end of next year, and it needs to be completed in July 86, which is the bottom line of the Hong Kong government, because at that time, the MTR project will also be completed, and if it is not matched, it will affect the entire future Hong Kong subway plan." Chen Zengxi said.

In fact, because of the real estate crisis, the Hong Kong government is also very empathetic, many of the projects that have been auctioned can be discussed, and it is naturally impossible for the Hong Kong government to make concessions in money, but in terms of time, it can generally be postponed a little to ease the economic pressure of real estate companies.

Although the subway project has also been affected by the economic crisis, it cannot be delayed for too long compared to other real estate projects, and Hang Lung's 9 projects have been tied up and have to continue to do it, which can be regarded as a risk after high profits.

"How do you distribute the shares?" Chen Zhiwen asked again.

"It depends on how much Chen Sheng needs!" Chen Zengxi said with a smile: "These 9 subway property projects are not my sole proprietorship, my shares, less than 40%, and there are more than a dozen other small shareholders, among these shareholders, many of them can no longer bear it, they also need to get rid of it, as long as Chen Sheng is willing, I can be a middleman and sell their shares to you at a land price, which is definitely much lower than the amount of shares they invested before." ”

"It's a good idea, but if I only buy shares, doesn't that mean I don't have an investment? How to solve the problem of funding? In particular, once I invest more than 16% of the shares, then Hisense Bank will not be able to participate in the loan of this project. Chen Zhiwen asked, Chen Zengxi's move is really good, killing two birds with one stone, he has a lot of shares, he can also introduce the capital of a larger consortium, and he can get rid of those who don't want to follow the investment.

"If Chen Sheng joins, it is not a problem for us to find other banks for loans." Chen Zengxi said with a smile on his face.

Chen Zhiwen's words just now,It has been shown that he is more optimistic about this project,Otherwise, he would not think about 16% of the shares,This shows that the recovery of the real estate market in the future should not be far away,As for Hisense Bank can not lend directly,It's a pity,But this is not a big deal,As long as Chen Zhiwen is a shareholder,There will be no problem in finding any bank loan。

"This is also true, it seems that Chen Sheng is really optimistic about these subway property projects." Chen Zhiwen smiled and said.

"Yes, half of our Hang Lung's financial resources have been invested, and even now, I am optimistic that it will have too much impact on the capital chain." Chen Zengxi said.

"When these metro properties were signed with the Hong Kong government, did they agree on the ratio of self-ownership and sale?" Chen Zhiwen asked again.

Many of the Hong Kong government's auctions need to stipulate that the developer should limit the proportion of the property after the completion of the project, especially when it comes to shopping malls.

There may also be office buildings, but not many, and for residential buildings, some will limit the proportion that must be sold, so as to prevent real estate companies from affecting the entire market in large quantities.

"No, it can be sold, and my original idea is the same, after cashing out, I will pay dividends to all shareholders, and if I hold it myself, it will not be easy to distribute it among shareholders." Chen Zengxi said.

"In that case, I booked some of the residential and office buildings in these properties directly, how about it?" Chen Zhiwen said again.

(End of chapter)