483 Invested in Hang Lung and Strategic Support
"Book direct?" Chen Zengxi was stunned, and then took a serious look at Chen Zhiwen, and was sure in his heart that Chen Zhiwen was more optimistic about the future of Hong Kong real estate than him, otherwise it would be impossible to take the initiative to hold himself now.
"Yes, I can book in advance, but I can only book at the current price, I can directly pay the funds in advance, reduce the financial pressure and follow-up risk of the whole project? How is it? Chen Zhiwen said with a light smile.
The whole of Hong Kong, like Li Jiacheng, there are many people who are more optimistic about the future real estate market, but no one would have imagined that in just 12 years in the future, Hong Kong's housing prices will rise more than ten times, and the rent will also rise, that is to say, spend 100 million to buy a property today, and in the next few years, you can recover the investment cost only by rent, and earn a property worth one billion Hong Kong dollars in vain, plus at least 70 or 80 million yuan of rental income per year.
However, with his current holdings of Hutchison and Land, he will not be much interested in ordinary properties, but what Hang Lung holds in his hands is next to 9 subway stations, although the value is not as good as Central, but it can be regarded as the second tier of the Hong Kong real estate market.
"Book at the current price, Chen Sheng, isn't this a little too low?" Chen Zengxi said with some embarrassment, everyone knows that the land price will rise sooner or later in the future, but he doesn't know when, he is also short of funds to tide over the difficult period, and the purchase of the property in his hand at the current price makes him a little reluctant, but he doesn't dare to offend Chen Zhiwen, otherwise the other party will not invest, if Hang Lung can't survive, then he will die.
"I'm booking now, I'm giving money now, at the current price, of course? Do you think that the price is low now, so if the price is lower in the future, are you ready to make up the difference to me? Chen Zhiwen said lightly: "In that case, the price of the houses that you Hang Lung sold before is now halved, and you are also ready to supply those who buy houses?" ”
"Of course not." Chen Zengxi hurriedly said that if it was a normal situation, he could choose not to buy it, but it would definitely not work now.
"In this way, I will send someone to your company to learn all the information of these 9 property projects, and then I will determine which properties I will acquire in advance, and then we will discuss, how about it?" Chen Zhiwen said indifferently.
In the original history, Hang Lung Properties was repossessed by the Hong Kong government because it could not take out the funds to pay for the third phase of the Hong Kong government, that is to say, Chen Zengxi did not have a choice, and he did not want to annex this project, but only acquired some high-quality properties, and Chen Zhiwen did not look down on those general residential projects.
"Okay, then we will discuss it after all our cooperation intentions come out." Chen Zengxi nodded and said, the other party is obviously willing to invest in himself, so naturally he has to follow Chen Zhiwen, and when the follow-up details come out, if the other party doesn't want much property, then it is okay to sell it to him at the current house price, at least he can recover some of the funds first and reduce his financial pressure, if it is more, then discuss again.
"Well, one more thing, I'm also more optimistic about Hang Lung Properties, so I want to take another stake in your company, which will be between 16-20%, so that I can also get a board seat, but don't worry, I won't forcibly buy your company." Chen Zhiwen said again.
In the late 80s, Hang Lung became cautious in investing due to capital and courage problems, and missed the golden age of Hong Kong real estate.
Now that he has invested in this project, and he can also profit from it, then this project cannot fail, and part of the future profits of Hang Lung Group may be taken away by himself, but at least it can still be earned, compared with the original history is a positive and a negative, if you seize the golden development period after 85 years, the future may not become the second Cheung Kong Industrial, such a company, it is naturally worth investing in yourself, but there is no need to acquire, let these kings in the Hong Kong real estate market work for themselves, it is the most cost-effective.
"The words of the director, it's not a problem, we welcome Chen Sheng very much, that is, if Chen Sheng owns more than 16% of Hang Lung's shares, then Hisense Bank can't cooperate with Hang Lung, it's better to do this, Chen Sheng's shares are reduced to 15.9%, and I give you the same rights as directors, and in this case, Hisense can also cooperate with us, Chen Sheng can earn higher profits through Hisense, isn't it better?" Chen Zengxi said quickly.
"Good way, I didn't think about it that much, so let's do this." Chen Zhiwen nodded with a smile and said,15.9% and 16% or a little more,It's true that there is not much difference,But if Hisense can cooperate with Hang Lung,The funds involved,I'm afraid the future will also be tens of billions,I can't just use Hisense Bank to profit from Hang Lung's project,If Hang Lung Real Estate develops better,Then 15.9% of your shares,Maybe you can make more profits。
Another point,Like HSBC's cultivation of Cheung Kong Industrial,Hisense also needs to have a few large real estate partners in Hong Kong,The members of the Taishan Club were originally very good,It's just that Hu Yingxiang's focus will still be on the mainland,And the mainland in the future,It doesn't necessarily need Hong Kong's loans anymore,As for Bao Yugang Bao's family,Now concentrate on power generation and don't engage in shipping,It's not very good,Another Guo He year,People's main business will still be abroad。
Combined, the loan funds that can be used by these three companies are not a small amount, but they are still not comparable to a real estate company that has been developing in Hong Kong for a long time and is getting better and better, and Hang Lung is currently a good choice.
"Everyone cooperates for mutual benefit, and I also think that sooner or later, Hisense will surpass HSBC and become the largest bank in Hong Kong." Chen Zengxi laughed and said, this time I came to find Chen Zhiwen, and basically achieved the goal, although there will be some other problems, but this is also the norm, large-scale cooperation, how can there be smooth cooperation from beginning to end?
"HSBC? It's not that easy. Chen Zhiwen shook his head with a smile and said.
If it is just a "central bank" in Hong Kong, then as long as it is a little more successful in overseas layout, such as after the acquisition of Standard Chartered, it can surpass HSBC in terms of scale, but HSBC in the 80s is also the beginning of rapid development, under the plan specified by Shen Bi, the later Taipan are implementing the strategy he left behind, and finally make HSBC one of the top ten banks in the world.
Hisense in the future,It is difficult to reach this height,After all, the European and American markets can be open to HSBC,But it may not be possible for a Chinese bank。
Of course, Chen Zhiwen also admires Shen Bi's ability, after all, the European and American markets are open to many Western banks, but only HSBC can succeed.
Compared with several acquisitions in Europe, the acquisition of a stake in Hang Lung and the cooperation with Hang Lung were much simpler, and the professional business team of Hang Lung was quick to communicate with each other when both bosses were willing.
After obtaining information on all the MTR station properties, Chen Zhiwen finally chose seven commercial buildings as his future self-owned properties, including the Cotton Tree Building in the Murray Road section of Central District, and the Heung Shan Building in the Admiralty 2 section. The other 5 buildings are slightly worse, but they are also at the upper middle level, and 7 buildings have a total construction area of 4.1 million square feet.
These 7 buildings are all at the entrance of the subway station, and the surrounding business environment is good, the others are basically residential, and a few office buildings are very general.
Chen Zengxi naturally knows that these 7 properties are the most valuable, but his project, the most important thing is originally residential, after all, compared to residential, the office building does not have to be next to the subway, the residential next to the subway is the most suitable place to collect rent, when the normal real estate market is not bad, how rich people will grab this residence and then rent it, which is the majority of Hang Lung Properties' interests in these 9 property projects.
Subsequently, it was about the price negotiation of the value of the 7 properties and the entire project, and the shareholding of Hang Lung Properties itself was relatively simple, and the shares of the listed company were placed there, and after the market learned that Chen Zhiwen became a shareholder, Hang Lung's stock rose sharply, but this has nothing to do with Chen Zhiwen, and the price of his shares was according to the previous one.
In the end, Chen Zhiwen bought these 7 buildings at a price of 2.16 billion Hong Kong dollars, which belonged to Hongkong Land, considering that the whole project is currently short of money, so he directly gave half of the deposit, and then needs to wait for the completion of the building to give, but this does not affect Hang Lung, as long as there is a contract, it is completely possible to borrow from other banks through the contract.
At the same time, Chen Zhiwen also acquired 18.9% of the shares from other shareholders of the project for HK$1.06 billion, and also contacted Standard Chartered, Bank of China, and Sumitomo Bank of Japan, and the three of them together to conduct a new evaluation of the entire project, and also need to borrow about HK$3 billion.
"Chen Sheng, happy cooperation." In the headquarters building of Hang Lung Properties Group, Chen Zengxi opened a bottle of valuable red wine, poured two glasses himself, doubled it to Chen Zhiwen, and then raised his glass and said.
"The cooperation is very pleasant, the entire subway station project can be started, and I estimate that by next year, Hong Kong's economy will begin to recover." Chen Zhiwen smiled and said that he had reached a cooperation, and he had also got the high-quality properties and shares he wanted, so it didn't matter if he said his prediction for the future.
"yes, it's finally time to start work, and for more than a year, my heart has almost stopped a few times." Chen Zengxi shook his head and said with a wry smile, one thing that seems very simple to Chen Zhiwen is super difficult for him, no bank loans, money owed to the Hong Kong government, the project cannot be started, and many suppliers are involved in default, one cannot be controlled, and Hang Lung Properties is not dead and crippled.
Now, although the loss of the best quality buildings, but the whole company's project, can progress normally, and the 7 buildings, not in vain, is not given to others, the land is still paid, compared with the current housing prices are also about the same, that is, when they bought the land, it is much higher than now, but people buy now, naturally it is impossible to follow the previous price.
The most important thing is that Chen Zhiwen has invested in his own companies and projects, so on the side of various banks, Hang Lung Real Estate Company has become a high-quality cooperation object, as long as it is not an outrageous loan requirement, it will be much more convenient in many times in the future, not to mention, there is also a well-funded Hisense Bank.
(End of chapter)