Early December.

At the unveiling ceremony of Times Square in Causeway Bay, guests gathered to see the 'cornucopia' that cost only HK$2 billion and had a first-year rent of HK$650 million.

The cost is only 2 billion, because there is no need for land price and land compensation fee. The land was originally owned by the Hong Kong Tramways Factory, which was a private subsidiary of the Wharf Group.

The rent of HK$650 million is due to the fact that Times Square has a full 2.4 million square feet of commercial area, which is 400,000 square feet larger than Exchange Square, and especially the shopping mall area, which has a 16-storey complex shopping mall with a total of 300 shops, 18 restaurants, 4 cinemas and 700 parking spaces. In addition to this, there are two office towers, one with 46 floors and the other with 36 floors.

This year (1988) is the five years of 1984~1988, the highest real estate premium: the general premium of office buildings in Central is as high as 4%, and the rent of Exchange Square is 56~62 Hong Kong dollars per square foot; The price of housing in Hong Kong and Kowloon has also surpassed the peak of 1,300 in 1981 and reached HK$1,500 per square foot.

The reason why the real estate situation is so good this year is that many overseas countries have come to Hong Kong to set up offices and branches, ready to use Hong Kong as a springboard to enter the mainland business.

Scene.

Lin Zhichao and Hong Kong Governor Wilson and others held a ribbon-cutting ceremony, he did not follow the example of Cheng Yutong, and would rather wait for a year-old visiting dignitaries to cut the ribbon for his 'masterpiece' than hold the opening ceremony lightly.

The opening of the Convention and Exhibition Centre in Wan Chai began in November, but the unveiling ceremony was not held because, in Cheng Yutong's view, Hong Kong is a world-famous metropolis, and there will always be national dignitaries visiting Hong Kong. Therefore, he would rather wait than hold the unveiling ceremony lightly.

Lin Zhichao is different, he has invested in too many large projects, and basically within two or three months of opening, the unveiling ceremony will be held. Foreign guests will also invite some, but will not wait for dignitaries at the national level.

At the scene, Wilson said with a smile: "Times Square in Causeway Bay is no worse than Times Square in New York!" ”

It's a joke!

Lin Zhichao said with the same humor: "I think so!" Who would have thought that Hong Kong would develop so rapidly in the past 30 years; Therefore, no one dares to say that the future development of Hong Kong is not as good as that of New York! ”

The people around couldn't help but laugh, it was obvious that the Governor and Lin Sheng were joking.

Lin Zhichao said in his heart, you would never have thought that the rent in Causeway Bay in the future will surpass New York and become the most expensive retail area in the world. Of course, there was a huge change since then

Wesson was also very pleased that during his tenure, the completion of every major building was a achievement of his tenure. Of course, the biggest contribution of his tenure was the 'new airport plan' announced by the Hong Kong government this year.

Originally, after Lin Zhichao proposed the 'new airport plan', although it was rejected by the government, the government quickly set up a working group to study it, and if it had not been for Youde's death in office, it might have been officially announced in 1987.

As a result, the impact of the change of office led to the official announcement of the new airport plan only this year.

However, Lin Zhichao knows that the official announcement will be officially announced, but there are still a few things waiting for him. The new airport will not be put into use until 1997.

After the reception.

Lin Zhichao and Lin Ruihai, father and son, returned to the headquarters of the Wharf Group in Harbour City.

"Father, there is a commercial plot on Orchard Road in Singapore, which will be open for tender in January next year! This site can be used to build a shopping mall and commercial tower combination plaza of about 500,000 square feet, so I would like to use the Marco Borough Hotel Singapore to bid for S$301 million.

This kid is really brave, Lin Zhichao commented in his heart.

Wharf holds 78% of the shares of Singapore's Marco Borough Hotel (the full acquisition was unsuccessful, so the shareholding is higher), and the asset value of this listed company has increased a lot.

Among them, the Treasure Place Building, which was valued at S$100 million when it was purchased at the end of 1986, is now worth at least S$160 million, with a book profit of S$60 million (about HK$330 million), and the land in the back section of Paragon was purchased at S$70 million, which is now worth S$140 million, with a book profit of S$70 million.

Coupled with the fact that the Marco Borough Hotel (4-star) in Singapore is very profitable, comparable to a five-star hotel, the market value of this company has also nearly tripled.

The Wharf Group controls two large listed companies in Singapore, and together with Lim Swee Hai, he has also become a celebrity in Singapore, and it is rumored that he is planning to immigrate to Singapore.

Lin Zhichao said: "Since you like it, then go to the bid, I have no opinion!" ”

Despite what he said, Lin Ruihai continued: "Well, I plan to sell the land in the back of Paragon to Wharf Group for S$130 million, so that the Marco Borough Hotel Singapore can make a profit of S$60 million and return S$130 million. Coupled with the cash flow on the account of the Marco Borough Hotel in Singapore, it has reached more than 7% of the land price, and the subsequent Lane Crawford Plaza will be completed through a loan. ”

Lin Zhichao said: "I think it's okay! ”

He has reduced his opinions, after all, his son is really good. Now all he can give his sons is an analysis of the development trend.

Now Wharf Group makes a profit of about 2 billion a year, so the debt is 9 billion Hong Kong dollars, which is not much; In particular, the current bank interest rate is only about 8%. Such a low interest rate is the reason why the Hong Kong Association of Banks cut interest rates several times after the 87 stock market crash, and the trend is similar to that in the world.

At present, Wharf Group owns two core commercial complexes in Hong Kong - Harbour City and Times Square, which are the main sources of profits, and other assets include Lane Crawford Group, Star Ferry, Hong Kong Tramway, etc.; Secondly, Wharf Group holds a 51.5% stake in Singapore's largest business group, Singapore Land, and a 78% stake in the Marco Borough Hotel in Singapore.

This will be followed by the 'redevelopment project' of Harbour City, where five large high-end residential towers will be rebuilt into five first-class Grade A office buildings, which are expected to add nearly 4 million square feet of commercial space. From this point, it can be seen how conservative Jardine Matheson was back then, and actually built five high-end residential buildings at Wharf Wharf instead of commercial buildings.

In 1992, Wharf Group concentrated its efforts on investing in commercial real estate in the mainland.

After the Wharf Group repays some of its debts this year, it will have a debt of just over HK$7 billion, and it will need to pay HK$500 million in interest every year. Fortunately, half of the interest is paid to my own bank, so there is no need to feel heartache.

The next day, Lin Zhichao took Lin Ruihuan to the 'Yangtze River Square' to inspect the work. The 300,000-square-foot commercial complex has been completed and will be officially unveiled in March next year.

The master plan is a five-storey shopping mall (three above ground and two underground) with four skyscrapers (two hotels and hotel serviced apartments, two office buildings) on top

With a total commercial area of 5 million square feet, Cheung Kong Group has surpassed Wharf Group to become the largest commercial real estate company in Hong Kong.

"Father, the lease rate has reached 96%, and the shopping mall will officially open on the eve of the Spring Festival," Lin Ruihuan happily reported.

The shopping mall of Cheung Kong Plaza brings together the largest number of luxury brands and world-class brands in Hong Kong, and it is a 'luxury brand gathering center' that can also rank among the top five in the whole world, including Louis Vuitton, Dior, Hermès, Prada, Gucci, Cartier, Alfred Dunhill, Lanvin, etc., almost none of the luxury goods are left behind.

Of course, this is also due to Hong Kong's status in the world today as a cosmopolitan metropolis, an international metropolis that bridges the East and the West. This year, in particular, the number of overseas companies wanting to invest in Hong Kong has reached a record high.

Because of this, in just eight months of investment, the Yangtze River Plaza has gathered all the luxury goods in the world. Of course, Cheung Kong Group has established a cooperation mechanism with various luxury goods.

The Lam family owns the largest, best-located, and most located commercial real estate in Hong Kong, and because of this, the world's leading brands have long established a cooperative relationship with Cheung Kong Group.

This kind of cooperative relationship will play a great role in the hinterland in the future. Of course, this cooperation is equal, and it can even be said that Cheung Kong Group is still a strong party.

Lin Zhichao said: "Well, what about the work of the two hotels? ”

Lin Ruihuan replied: "The Ritz-Carlton Hotel and JW Marriott Hotel are already making final preparations, and they will open in March next year. The hotel's serviced apartments, managed by Shangri-La Hotels, are also ready to be rolled out on the eve of the Chinese New Year"

Lin Zhichao nodded, the two hotel brands introduced need to pay 5% of the turnover as a management fee, which is actually 'franchising'.

After visiting for a while, Lin Zhichao took Lin Ruihuan to Wan Chai New Street not far away.

"Ruihuan, let people buy the property here in Xinjie, and strive to build the second phase of the Yangtze River Plaza project here in the future. Don't be surprised, just look for opportunities to acquire slowly, even if it's ten years, it's not a problem at all. If a skyscraper can be built here, we can connect it to the first phase of the Yangtze River Plaza through an underground passage. ”

Lin Ruihuan's eyes lit up and said: "My father has thought thoughtfully, and the entire Admiralty area has been built into a first-class commercial area by us. The New Territories are mostly old-fashioned houses, and with patience, it is not a big problem to acquire. I will definitely arrange it, so as not to startle the snake! ”

Why is it said to be 'striking grass and scaring snakes', because there are many people in Hong Kong who are engaged in 'nailing buildings', and there are also 'nail kings' Chen Guihong in later generations, who were nailed for millions of dollars in Mercury Street in North Point, so that Lee Shau Kee had no choice but to pay 100 million Hong Kong dollars.

Li Zhao basically relied on merging buildings to develop, so he had the most dealings with the people who 'nailed the building'.

The person who specializes in nailing the building is not necessarily a club, but it must be a 'rotten pus' who is not afraid of death, and the super-rich see it and obediently pay for it. After all, the richer you are, the less you will use extreme measures against others.

After inspecting for a while, Lin Zhichao returned to the office satisfied.

This year is a bumper year for Cheung Kong, the third phase of Exchange Square opened in July, and the Yangtze River Plaza has also been leased, and these two projects alone have brought huge profits to Cheung Kong Group.

There are also three large-scale commercial projects – Singapore Tylfull Place, Cheung Kong Centre and Kowloon T&F Place, which opened in 1989, 1990 and 1993 respectively.

"Ruihuan, starting early next year, will be within one year, not more than one and a half years at the latest, to cash out Japan's real estate investment as much as possible. This bubble is big enough that, once it bursts, it will be the biggest bubble burst ever. ”

Lin Ruihuan said with a serious expression: "Well, I understand! Starting from the first half of next year, Dongtian Company will gradually cash out commercial complexes and commercial land, and as for Raffles City, it will reduce its stakes."

Lin Zhichao nodded with satisfaction, the value of Dongtian's property assets in Japan has reached more than 13 billion US dollars, and even after repaying the loan, the total value will be more than 10 billion US dollars.

In the second case, Cheung Kong Group will receive a return of 4 billion US dollars, with a profit of more than 3 billion US dollars; Another partner, Harbour Investment, made a profit of more than $5 billion.

Meanwhile.

The Nikkei is also as high as 32,000 points, and when it reaches 34,000 points, it is time for the shares invested by Lin Zhichao to be sold. It is estimated that it can make a profit of $6 billion.

In addition to real estate and stocks, Octopus Financial Group has also been investing in the 'Nikkei Futures Index', and has made a profit of $7.8 billion in a few years.

Don't look at Lin Zhichao's money in Japan, but for a huge market with a total market value of four or five trillion US dollars, and Tokyo property alone can buy the huge market in the United States, only 15 billion US dollars to 20 billion US dollars is not a big proportion at all.

China Bank Building, the headquarters of Octopus Financial Group.

Lin Zhichao received Lin Benfeng, president of 'Hengfeng Bank', and Sanders, vice president of 'Hengfeng Bank', in the office, and listened to their work reports.

Hengfeng Bank is a merger of Hang Lung Bank and Overseas Trust Bank. Overseas Trust Bank was privatised in April this year and subsequently merged with Hang Lung Bank in October to form 'Hengfeng Bank'.

Today, Hengfeng Bank's heavy assets have reached more than 20 billion Hong Kong dollars, and its deposits have reached more than 100 billion yuan (of which half of the deposits of Lin Zhichao and his company), making it a large Chinese-funded bank in Hong Kong.

"At present, what is the credit situation of Hengfeng Bank?"

Sanders, the vice president, who is mainly in charge of the commercial banking sector, said seriously: "This year's structural adjustment has caused a certain impact, and on the whole, among the Chinese banks, it is second only to Hang Seng and the Bank of East Asia."

First, it is not a listed bank, and its finances do not need to be disclosed; The second is that the nature of family banks is too heavy, which makes people have some concerns.

Aside from the $6 billion deposited by Lin Zhichao and part of the cash flow deposited by several Lin companies, Hengfeng Bank also has more than 50 billion deposits.

Understandable!

After all, Lin Zhichao did not think that the development of 'Hengfeng Bank' was huge, and it was more about expanding the scale of its investment bank.

"Well, the commercial banking part, through high-quality services, equipment and system updates for long-term and healthy development, is enough." Lin Zhichao said.

"Okay, I understand! Recently, we are planning to introduce a self-service account checking system from Japan to enhance the service functionality of ATMs. Improve the bank's services. ”

ATMs are regarded as an advanced development model for banks in this era.

Lin Zhichao said with a smile: "The audit system you mentioned, I suddenly thought of advertising creativity, which is called "Uncle Almighty", customers can check the account balance through the bank card!" ”

Sanders' eyes lit up and said: "Boss, this advertising idea is really good, simple and outstanding effect!" ”

Lin Zhichao nodded, and then talked about investment banking.

At present, the investment department of Hengfeng Bank is mainly in Hong Kong, Singapore, London and New York. The project I invest in is to invest in the Hang Seng Index, Nikkei Futures Index, and USD/JPY foreign exchange.

Lin Zhichao will have leveraged financial investment, all of which will be done by Hengfeng Bank. Harbour Investments and Family Offices only invest in more stable products such as equities and real estate.

In this way, Lin Zhichao has three 'financial institutions' in his hands, all of which belong to his personal 'private property'.

(End of chapter)