Time flies, and in the blink of an eye, it is 1962.

After New Year's Day, Cheung Kong Headquarters (13~17 floors of Global Building).

Lin Zhichao sat in a spacious office, flipping through assets and financial statements.

Cheung Kong's assets are divided into three parts – development real estate, commercial real estate, and integrated business (doll face).

Among them, the assets of commercial real estate are (now worth about 250 million ~ 300 million Hong Kong dollars):

Central: Profit Buy, Poly Building, Global Building, Midea Building (under construction);

Causeway Bay: Walden Building (Daimaru Department Store), Xintiandi Building (Xintiandi Shopping Center);

Kowloon: Miramar Hotel, Miramar Shopping Centre, Lychee Garden Amusement Park, Kwun Tong Factory Building

Singapore: Daimaru Department Store Centre

Among them, the assets of the development of real estate are (current value of 3.5~370 million):

Properties under construction – Xiyun Street (5 sold, 2 remaining), Telford Gardens (8 buildings, 3,000 residential units) on Ferry Street.

Reserve land - about 1.2 million square feet of land in Hong Kong and Kowloon urban area.

In other words, all property assets have been as high as 6~650 million Hong Kong dollars, and they have appreciated rapidly.

This is because:

For example, the 200,000 square feet of land in Telford Garden, if the current land price is used, is about less than 40 million; But if calculated according to 3,000 residential units, the total value is more than 160 million.

Moreover, all the properties and plots have seen a great appreciation in value.

In the past year, Cheung Kong sold a total of 990 residential units, earning a profit of about 35 million yuan, commercial real estate income of 22 million yuan, stock market income of 10 million yuan, Poly Construction made a profit of 5 million yuan (its own projects are also counted), and stone mining enterprises were not counted (investment stage), with a total profit of 72 million Hong Kong dollars.

The land return fund is 4 million yuan (Xiyun Street land), and the total return fund is 76 million.

In terms of expenditure:

Generally, only the expenditure of commercial buildings and the purchase of land are calculated, and the construction cost of Midea Building is 20 million, and the cost of purchasing land is about 20 million.

The construction cost of Telford Garden, because it will adopt the 'sales plan' model, generally directly calculates the profit, and the construction cost is not an expenditure (a small amount of loan mode is used in the early stage).

In the end, Cheung Kong had a cash flow of 88 million, of which 10 million Hong Kong dollars received from Liao Chong Hing Bank, which was paid off by the Liao Liewen brothers through property sales.

In other words, after Liao Baoshan's death, Liao Liewen's brothers continued to sell part of the property to repay their debts.

"Boss, it's meeting time!"

"Okay, I'll be right here!"

Then, Lin Zhichao retracted his thoughts and walked towards the conference room.

Almost a dozen senior executives of Cheung Kong Industrial gathered together, and everyone was very happy, and it was another bumper year.

Importantly, Hong Kong's property sector quickly returned to normal and continued to climb after the 'Liu Chong Hing Bank Run'. As if, nothing happened, everyone has forgotten, after all, it is not their own bad luck.

"Let's get started!"

As Lin Zhichao sat down, the high-level leaders spoke and summarized.

If Cheung Kong is listed now, its market value will not lose to Hongkong Land, and it is not counting the reserve land.

After all, although Hongkong Land has seven or eight buildings in the core area of Central, they are all old-fashioned buildings and have not been rebuilt, so there is no cause for concern.

Cheung Kong Holdings, on the other hand, controls the retail business in Kowloon and Hong Kong Island, and also owns four towers, and it is also a high-rise residential building, not to mention the hegemony in the development of real estate.

Although only 990 residential units were sold last year, only 10,800 residential units (first-hand) were sold in Hong Kong, accounting for about 9%.

Of course, if Cheung Kong had gone public in 1972, it would have excluded office buildings, reserve land and other properties.

Jason, General Manager of Miramar Hotel, reported: "Last year, Miramar had an 85% occupancy rate, mainly from tourists visiting Hong Kong, followed by local customers. Kowloon's current competitors are The Peninsula Hotel and the Ambassador Hotel, of which the Peninsula Hotel has only 220 rooms, and it is a long-established local luxury hotel, which is not a direct competitor; The state-guest hotel in Kowloon is a luxury hotel opened this year, and the competition between the two of us is greater, but the state-guest hotel is a four-star hotel, although the number of rooms is more than 400, but the grade and area are much inferior This year, the occupancy rate of the Miramar Hotel will exceed 90%. ”

Lin Zhichao nodded, and then said: "Jardine Matheson and The Peninsula Hotel will not give up, and the Wharf side may usher in changes." Overall, the opportunity for the development of Hong Kong's hotel industry has arrived, and more hotels will appear. Of course, this is not a bad thing, indicating that the hotel industry in Hong Kong is huge. ”

Everyone listened very carefully.

Although Jason speaks English and does not understand Chinese, everyone understands English.

For this kind of meeting, Jason only needs to pay attention to the Miramar Hotel he is responsible for, and there is no need to understand anything else. Moreover, he usually rarely attends meetings, and rarely attends the weekly company meetings, and he always comes when Huang Changhong tells him to have a meeting.

The Miramar Hotel is indeed developing well, creating an occupancy rate of 85% in the first year, which shows that the general environment is very good, coupled with the hardware facilities and software facilities of the Miramar Hotel, all of which are full. Therefore, it is expected that in the five years of 1962~1966, the average occupancy rate will still be maintained at 90%.

When the hotel industry in Hong Kong is good, the rate of return can reach 8~12%; In other countries, the hotel industry has a return rate of only 6~8%. When the market is average, it is even only 5~6%, just collecting interest.

The reason why everyone likes to invest is probably because of the high cash flow and the ease of getting a loan. The reason why Lin Zhichao invested was nothing more than 'good face', of course, he also knew that Hong Kong's hotel industry still has the highest rate of return in the world.

"Manager Hu, how does your sales department plan to allocate the real estate plan?"

Hu Zhaoxu was a little curious, after all, didn't the boss himself talk about it?

But he still replied seriously: "At present, Cheung Kong has two sites under construction - Xiyun Street and Ferry Street, and there is also a luxury house in the mid-levels of Causeway Bay under planning. There are a total of 3,360 residential units on Hi Wan Street and Ferry Street, which are intended to be sold over three years, i.e. an average of about 1,120 units per year. As for the mid-levels luxury homes in Causeway Bay, each unit can be sold for almost HK$150,000, which is expected to be 128 residential units. ”

This 39,000 sq. ft. development in Causeway Bay uses caisson technology to build a luxury residential tower. Each unit is about 1500~1800 square feet, which is considered a luxury house in the middle of the mountain, with swimming pools, clubhouses and other facilities.

Lin Zhichao said: "The real estate in Causeway Bay Mid-Levels will be used for rental in the future!" And then the plan to sell 1,100 homes a year, it's about the same. However, this year must be the year of real estate explosion, the Hong Kong government will come up with a lot of land auctions, we can take two more small sites, and develop them immediately, as a supplement, to sell 1,500 residences a year, or to do so. ”

If in 1962~1964, if you don't get land in these three years, it will be completely unreasonable; Therefore, if you simply take two small plots of land every year and develop them after you get them, although the profit is not as high as the hoarding of land, it should also be more than 35% a year.

Hu Zhaoxu nodded and said, "Okay, I've written it down!" ”

If Lin Zhichao is not in Hong Kong, it may be Huang Changhong and Hu Zhaoxu who jointly go to auction the land, and he is now very decentralized. On the other hand, if there is a high-quality land for a commercial building in Central, Lin Zhichao may have to compete for it.

As for the annual supply of 1,500 residential units, it is not a lot, and it is only 15% according to last year's standards; Lin Zhichao predicted that in the years of 1962~1965, the supply of residential units in Hong Kong would gradually increase to nearly 30,000 in 1965.

This is because this year, the Hong Kong government will propose to reduce the plot ratio by 20%, that is, the area of the same land should be reduced by 20%, which will be officially implemented in 1966.

Because of this, property buyers began to desperately build by 1966, and banks desperately invested their money in real estate.

After a meeting, all the executives had a common idea - that is, the boss is really stable!

The plan for the next three years has been basically formulated.

Jardine Taipan John Keswick once again brought his son Henry Keswick to Miramar Shopping Center for inspection and visit. Since Jardine Matheson went public last year, the Keswick family has completely controlled the Jardine Matheson Group, and before that, it was more like a multi-family Hopewell company.

Because other families and shareholders were not optimistic about Hong Kong's prospects, the Keswick family, with the support of three commercial banks in London, acquired part of the shares of others, and completely became the controlling family of the Jardine Matheson family.

"Father, this Lin Zhichao has a lot of money and a very smart mind, and now he actually has the hegemony of retail business in Hong Kong and Kowloon, and even has such a luxurious hotel in Kowloon, which can be described as a lot of money." Henry Keswick praised.

John had two sons – Henry and Simon, and Henry Keswick had just returned from Australia to Hong Kong as a director of Jardine Matheson.

"Although he has good brains and wealth, it is a pity that he does not have a good plot. We own Wharf and are in a better location than here in every way. Therefore, investing in a shopping mall at Wharf's Pier 1 can cut off the flow of customers here. John Keswick's tone was tinged with contempt and smugness.

Wharf No. 1 in Wharf is so large that cruise ships arriving in Hong Kong drop off their passengers there. At the same time, it is also a unique location near the sea on three sides, which is indeed a good place to build a shopping center.

Henry Keswick said: "Wharf's funds, I'm afraid I can't take out tens of millions of Hong Kong dollars to build a large shopping mall. However, this kind of thing is very good for Hong Kong's economy and the scenery on both sides of Victoria Harbour, and we can turn to the Hong Kong government for help. ”

John Kaswick's eyes lit up and he said, "Okay, it's up to you to plan this matter, raise funds as soon as possible, come up with a plan, and make a shopping center bigger and more expensive than Miramar Shopping Center." And you're right, you can ask the Hong Kong government to help you with this, and they won't refuse, because this is the landmark of Victoria Harbour. ”

He is very satisfied with his son's idea, and he has been worried about the funds recently. Although Jardine Matheson has two flagships and Hong Kong real estate is also very prosperous, Wharf and Hongkong Land are not very profitable at this time.

Although Jardine Matheson has just raised more than 400 million yuan, more of these funds will be invested overseas. The Keswick family wanted to make Jardine Matheson a worldwide group, not a large ocean house in the Far East.

The confiscation of 30 million pounds that year was a loss because the assets were too concentrated in the Far East.

Henry Keswick said, "No problem! Then he said: "This Miramar hotel is also doing very well, and Wharf will also develop the hotel industry there in the future." ”

John said, "One step at a time! The Mandarin Hotel in Central will open next year, and Kowloon will hold off for the time being. ”

Henry Keswick nodded and said, "I see! ”

After discussing the work matters, Henry Keswick said: "Lin Zhichao, a Chinese, has strong financial strength and rapid development, which is really incredible! ”

After all, John Keswick has experienced a lot of things, and he has also experienced the confiscation of Jardine's assets, etc., and has seen too much glory, so he said: "It is not necessarily a good thing that he develops too fast, and the debt ratio must be very high." Once there is a big risk in shipping, then it is bankrupt. ”

After all, there is no listing, how do these people know how many assets Lin Zhichao has.

To put it simply, everyone doesn't know whether Changjiang Industrial Group will make money or not, whether it will lose money, etc.; The same is true for shipping companies, everyone doesn't know how much money Lin Zhichao has, let alone how much debt he has.

When Henry Keswick heard his father say this, he soon became dismissive of Chinese capital. The Jardine Matheson system has been established with Wharf and Hongkong Land as its wings, and all three companies have the strength to far exceed the Chinese capital, and they are also listed companies, and funds can be raised through a variety of channels.

At this time, Lin Zhichao also guessed that once the Miramar shopping center was opened, it would soon cause a reaction from Wharf. Ocean Terminal is likely to be built more than a year ahead of schedule, putting pressure on Miramar Mall.

Of course, Hong Kong's economy and tourism are also developing, and there is room for competition. The impact is there, but not too great.

The time to really work with British capital has to be in the seventies.

Mid-January.

"Lisheng, how about the Paterson Street we plan to build?" Lin Zhichao showed off to Li Mingze in the tone of a friend.

In the early 50s, the two got acquainted because of the sale and purchase of the 'Embassy Building', and later Li Zeming took the initiative to sell the site of the 'Wah Shun Building' at 2 Hysan Road to Lam Chi-chiu.

Li Mingze looked at the bustling Paterson Street, and immediately said with admiration: "I didn't expect that Causeway Bay also has today's prosperity, and there is no doubt that Changjiang Real Estate is the biggest changer." Paterson Street, Xiyun Street, and Huaxin Building have all driven the development of the surrounding area. Especially here in Paterson Street, the traffic of Daimaru Department Store made me see the development prospects of Causeway Bay. ”

Hysan Land owns a large number of properties in Causeway Bay, and they are the happiest if Causeway Bay is developed. And Li Mingze is in charge of Hysan Land, so he naturally understands this very well, and when he sold the site of 2 Hysan Road, he hoped that Lin Zhichao could come to Causeway Bay for development.

Lin Zhichao said with a smile: "The traffic of Daimaru Department Store is something I didn't expect, and now the pressure on my side of Xintiandi Shopping Center has increased greatly. Fortunately, the two shopping models can play a role in promoting each other, and I believe that this summer vacation will be a double hit here. ”

Walden Building, Xintiandi Building, and even use a sky bridge to connect, which means that after visiting Daimaru Department Store, you can also come to Xintiandi Shopping Center.

And this kind of pedestrian bridge is the only one of its kind in Hong Kong, and it is a pioneering design.

Li Mingze nodded and said: "I admire Mr. Lin's innovative methods, and his contribution to Hong Kong real estate is definitely the greatest." ”

Lin Zhichao said modestly: "Haha, I don't dare to say this, I was forced out." ”

It can indeed be understood as being forced out, because after the Hong Kong government allowed the construction of high-rise buildings, the real estate company had to solve all kinds of troublesome problems if it wanted to sell the high-rise buildings, otherwise the buyers would have doubts.

A lot of innovation is born out of the need to solve certain problems.

Subsequently, Lin Zhichao took Li Zeming around Paterson Street, he didn't deliberately show off anything, but for a reason.

"Lisheng, if Causeway Bay is to become a retail district in Hong Kong, or for Causeway Bay to really develop, there is a project that must be done."

When Li Mingze heard this, he immediately said modestly: "Lin Sheng, please speak!" ”

Lin Zhichao immediately threw out a shocking thing, he said seriously: "That is to build an undersea tunnel connecting Hong Kong Island and Kowloon, and the entrance and exit of Hong Kong Island is better only if you choose Causeway Bay." In this way, Causeway Bay will also become more prosperous because of this tunnel. ”

Li Mingze was taken aback and said: "The construction of the undersea tunnel is too large, and the Hong Kong government may not be willing to invest. What Mr. Mo Feilin said is, are you willing to take the lead in investing in this project? ”

Lin Zhichao nodded and said calmly: "This project seems to be huge, maybe the investment is 2~300 million Hong Kong dollars, but with the development of Hong Kong's economy, Hong Kong and Kowloon urgently need closer economic ties, this tunnel is easy to return to, and it is a very good infrastructure investment." My idea is to gather Chinese and British capital, and everyone will form a team together, raise funds, and make full use of bank loans to complete this project. ”

After thinking about it, Li Mingze said: "This project is indeed harmless to Hong Kong Baili, and Hong Kong Island and Kowloon should need close ties. I would love to join this project! ”

Lin Zhichao is not just attracting investment, but attracting popularity, so he said: "Later, after we contact a group of interested investment consortiums, you can propose it in the Legislative Council to let the Hong Kong government undertake the construction first, and if the Hong Kong government does not intend to undertake the construction, it will be handed over to the private team to undertake." If it is a private construction, the right to charge for 40 years can still be requested. ”

Li Mingze nodded and said, "Indeed! It's a good investment in every way. ”

Subsequently, the two talked seriously about the detailed planning, and finally hit it off.

Lin Zhichao's investment in the Hung Hom Cross Harbour Tunnel is not for profit, it may be that after recovering the cost, he will make a little profit, and it will be handed over to the Hong Kong government in the 90s.

After all, if this charging model is too greedy, I am afraid that it will be scolded.

Of course, he is not trading at a loss, maybe he will recover the cost in 10 years, make some profits, and return it to the Hong Kong government in 20 years.

Although it is said that 300 million yuan will be invested, 70% of the loan can be borrowed, and the rest will be shared by the various consortia; The investment start-up capital of 90 million yuan is not taken out in a year, let alone a consortium.

As for finding those consortia, Lin Zhichao thinks that Wheelock and HSBC should have no problem, and the Chinese capital plus Lin Zhichao and Li Mingze is almost enough.

There is no problem for Lin Zhichao to account for the majority alone, just tens of millions, so he invests in the name of Changjiang Industrial Group, anyway, there is money over there.

As for the time, Lin Zhichao thinks that the project, planning and design were established in 1962~1964 and built in 1965~1968; In this way, it is four years ahead of the previous life.

This is a great benefit to Hong Kong!

(End of chapter)