In the afternoon of the same day, after completing some major financial approvals, Chen Zhiwen went to the headquarters of Hengyi Company in Hung Hom, Kowloon.
"Dad, your headquarters is a bit too shabby. How about moving to Hutchison Building? I'll ask them to give you a floor!" It was also the former Hengyi headquarters. Chen Zhiwen felt that it was too small this time. Maybe I’m used to Hutchison Whampoa’s headquarters.
"Wait a minute, your Hutchison Building is crowded enough. I still have a lease term of more than a year. I have to pay if I go there. Besides, my subordinates' homes are nearby. It's too troublesome to go to Hutchison's office. !" Chen Tianfu said while eating some puffs brought by his son.
"More than a year! This is just right. The new building headquarters of Galaxy Holdings will be completed by then. You can move there together then. As for your employees, you can actually learn from me and give them some benefits and let them go When buying a house on Hong Kong Island, Hengyi will provide some low-interest subsidies, so that everyone will be better off in the future," said Chen Zhiwen.
Currently, Galaxy, Red Bull, and Midea are all implementing this welfare policy. If employees want to buy a house, they can obtain certain low-interest loan support from the company. Although this policy has only been out for less than half a year, more than 500 employees have already applied. Regardless of whether you have a vision or a rigid need, if you buy real estate almost empty-handed now, you will definitely be happy in the future.
This can be considered a low-cost benefit provided by Chen Zhiwen to his employees, and the real estate market pays for it.
"Usually our real estate company will give some of its late sales to employees and give them a discount. I have never heard of your method." Chen Tianfu said with a smile.
"This thing can't be sold at the end of the day. It must be in a bad location, or the sun is not good, or for other reasons. You are not giving benefits, you are taking advantage of the employees!" Chen Zhiwen said with a smile and shook his head, although even if he bought it now There will be no losses in the future in late trading, but normal people don't know the future situation, and not many are willing to buy.
"As long as the discount is low enough! There are always people who are willing, and living in a poor place is much better than having no room at all." Chen Tianfu said.
"That's true. There is no house that cannot be sold, only a price that cannot be sold." Chen Zhiwen no longer dwelled on this topic, and took out a document from his document bag and said, "Dad, I am here today to Bring some gifts, I have some high-quality land owned by Hutchison Whampoa. If you are interested, we will follow the rules of the Hong Kong real estate market. I will take half of the land, you will take half for the operation, and the profits will be divided equally. How about it?"
"Let me take a look." Chen Tianfu quickly put the puff aside, took the document and read it carefully. After a while, he said: "These locations are indeed good. It is no problem to develop several medium-sized communities. This Qinshan Road An office building or a luxury apartment building could be built next to it.”
"There are eight projects here. Can Hengyi have the ability to develop them all?" Chen Zhiwen asked.
Hutchison Whampoa's current real estate is mainly developed together with Li Jiacheng and others. The main reason is that the Canadian Imperial Bank behind Li Jiacheng is willing to pay almost 100% of the mortgage for Li Jiacheng. In addition, Cheung Kong Industrial's construction suppliers are also willing First, advance the construction costs yourself. This is the most classic empty-handed approach in the real estate industry. As long as you develop quickly and wait until pre-sales are available, if the market is hot, you can quickly pay the loan and the money advanced by suppliers, and you can still make money in the end. One stroke.
This seems simple, but it requires the absolute support of the bank and the trust of the construction supplier. These two points are very difficult. General real estate companies cannot do it at all. Hengyi Real Estate cannot do it, and Galaxy Real Estate cannot do it. If the situation is reached, then we can only adopt the normal model of Hong Kong’s real estate industry, and this model requires a lot of capital investment. There is a limit on the number of projects that can be cooperated. Chen Zhiwen also picked for a while before he found a few Suitable project.
I originally wanted to let my dad choose, because too much development funds put a lot of pressure on Hengyi. Not to mention, more than a year ago, he asked Chen Tianfu to buy all of Hengyi’s assets. Although the price of industrial land has increased, it has not yet come time to sell it. In theory, Hengyi cannot spend much money to develop new projects.
"Two months ago, I definitely didn't have this ability, but now, it's different." Chen Tianfu mysteriously took out a plate of documents from the drawer, handed it to his son, and said, "Do you remember us?" How many private equity companies have you jointly opened in Central?"
"Yes, a lot of money has been raised?" Chen Zhiwen took the document, glanced at the last number, and said in surprise: "Has 80 million Hong Kong dollars been raised?"
"Yes, we actually only raised a total of 20 to 30 million Hong Kong dollars before, but because of your acquisition of Hutchison and so many follow-up actions, plus the constant exposure of the media, many people know that you are the boss behind our private equity fund. , they are all rushing to give away money!" Chen Tianfu said with a smile.
"That's not bad. With so much capital, if we use a little leverage, we can have two to three billion!" Chen Zhiwen nodded and said, "It seems that we can collect all kinds of hot money through private placement!"
"Yes, as long as you are really confident in the future of real estate and raise the interest rate, you can easily raise hundreds of millions of Hong Kong dollars, but the problem is that the risks are also high." Chen Tianfu said.
"Risk is not a problem. How much interest do we give now?" Chen Zhiwen asked.
"Currently, the bank's one-year deposit interest is 5.5%, and the interest we give is 7%. Here is a comparison table, take a look." Chen Tianfu took out a piece of paper from the folder next to him.
Chen Zhiwen took it and looked at it carefully. There were different interest tables from one year to five years. He said: "Our interest rates are generally 1.5-2% higher than those of banks. The five-year rate is 9.5%. No wonder we can It attracted a lot of people.”
In the 1970s, after the global oil crisis broke out, the world fell into severe inflation. Although the oil crisis ended later, the oil price would not drop. At the same time, the losses caused at the beginning have not disappeared, which has led to various problems around the world. The major central banks are desperately raising benchmark interest rates to suppress inflation, and Hong Kong cannot escape, otherwise, a large amount of funds will have to be evacuated from Hong Kong.
"Yes, so much money also needs to be paid with interest. I am just waiting for your project. As long as all these lands are developed, if the real estate market will increase by 30% as you said, we will be there in one year. If we can make a net profit of one or two billion, if we share half of it, I, Hengyi, can also make tens of millions." Chen Tianfu said with a smile.
"Actually, I'm thinking about another thing now!" Chen Zhiwen said suddenly: "If we increase the five-year interest rate to 2.5% or even 3% higher than the bank, how much funds do you think we can raise?"
"This must be a lot. Do you want to play so big?" Chen Tianfu asked.
"Yes, after five years, even if the interest is the same as the principal, I won't worry, because we will only earn more!" Chen Zhiwen said.
"Are you sure?" Chen Tianfu asked again.
"Yes!" Chen Zhiwen nodded. Private equity funds are actually a loophole in financial risk control in many countries, because they do not have complete risk control like banks. Many Ponzi schemes exploit this loophole.
For Chen Zhiwen, in the next few years, he can make five or six times as much money with his eyes closed. Even 10% annual interest is nothing. Moreover, according to the history he knows, in the next few years, Inflation in Europe and the United States still cannot be suppressed. In order to deal with inflation, European and American central banks will continue to increase benchmark interest rates, that is, raise interest rates. In a few years, the current high interest rates may become low by then.
In other words, regardless of investment income, if you absorb funds at high interest rates now, they will be considered low interest rates in the next few years! It's just so weird.
"Okay, then I'll try to increase the interest a little bit first." Chen Tianfu nodded and said. The real estate industry itself is always blocked, and the same is true for Qianhu Real Estate. At least in the early days, it was blocked, while other real estate companies were blocked. The same goes for companies, half of them are blocked and half of them rely on vision.
"Only increase the five-year term, forget about two or three years. We need to find a way to get people to buy five-year funds." Chen Zhiwen went on to say that the longer the repayment period, the more beneficial it is to him. There is another way to raise private equity funds. The characteristic of high quality is that there is no need to repay the money in the interim, which is much better than a bank loan.
"Okay, you old man, I'll give it a try." Chen Tianfu nodded and said.
"There will be no problem, don't worry." Chen Zhiwen reassured: "Then we will go through the cooperation process. These 8 plots of land will be developed by Hengyi. Hengyi will be responsible for the funds. Huang and I will wait to collect the money after one year. "
…
Hong Kong, Hong Kong Economic Journal Headquarters:
"Dong dong dong" There was a knock on the door in the editor-in-chief's office.
"Come in." Editor-in-chief Shen Yiteng said loudly without raising his head, continuing to write his own things.
"Editor Shen, I have big news about Chen Zhiwen." The visitor's name was Zhao Weiting, and he said happily after coming in.
"Chen Zhiwen? Have you interviewed him?" Shen Yiteng stopped the pen in his hand and quickly raised his head and asked.
For Chen Zhiwen, all Hong Kong media have a mixture of love and hate. As the first Chinese to acquire one of the four major foreign banks, it can be said that he once became the focus of public opinion. Two months ago, all newspapers were reporting on Chen Zhiwen and achieved very good sales results.
But what the media needs most is interviews with the parties concerned. However, Chen Zhiwen, like many Hong Kong rich people, does not accept interviews at all. He cannot even block people's houses on the road or in the company. With more than a dozen bodyguards, all reporters who dare to approach are blocked. Some of them went too far and even got beaten up. Although it wasn't serious, it was still unlucky for me.
"No, editor-in-chief, you also know that some rich people in Hong Kong don't like to be interviewed, and Chen Zhiwen must also fall into this category." Zhao Weiting said with a smile.
"That's because they look down on small media like us. If it's an international media, they will definitely go." Shen Yiteng shook his head slightly and said, "Go on."
"A friend of mine works as a clerk in a department of the Hong Kong government. She heard the news today that Chen Zhiwen is planning to set up a charity fund called the Huagang Foundation. It is said that he will inject HK$100 million into it!" Zhao Weiting said with a smile.
"One hundred million Hong Kong dollars?" Shen Yiteng was stunned for a moment, thinking quickly about how many zeros there were, and then said, "Are you sure? There has never been such a large amount of donation in the history of Hong Kong, not even close!"
"Sure, but not immediately, but in ten years." Zhao Weiting said.
"Ten years? That makes sense. Hutchison is now in such heavy debt, there is no reason to spend 100 million on charity at this time." Shen Yiteng soon seemed to understand and said: "It seems that Chen Zhiwen wants to Make yourself a good person in Hong Kong."
"It doesn't matter if you can do charity, even for the sake of fame. One hundred million funds divided into ten years will be ten million a year, which can help a lot of people." Zhao Weiting said with a smile: "This news has not been announced yet. I think our first The first step is to put this news on the front page and make it a headline tomorrow. Soon the whole Hong Kong will know about it, so it might as well be easier for us."
"No problem, I'll leave the first page position to you." Shen Yiteng nodded and agreed, then asked: "Then what is the second step you mentioned?"
"The second step, I think we should take the initiative to cooperate with this fund." Zhao Weiting said.
"How to cooperate?" Shen Yiteng became interested and continued to ask.
"My friend said that the Hua-Hong Kong Foundation will provide charitable assistance in education and medical care in the future, and its main targets will also be children. But I think they have just been established and there is no way to know who needs help and who doesn't, but we These reporters know something, and if we can provide relevant information, it will definitely be of great help." Zhao Weiting said calmly:
"In this way, firstly, we can improve the image of our newspaper without any cost. Secondly, if the information we provide can help some people, then maybe it will be much more convenient for us to interview in the future. Thirdly, , this new fund has a huge momentum, and it is very likely that it is a project that Chen Zhiwen personally intervenes in. As long as we establish a good relationship with the new fund, we may be able to build a relationship with Chen Zhiwen in the future."
"You think very carefully." Shen Yiteng couldn't help but take another look at the young man in front of him.
"Editor Shen, it's actually because I was afraid of poverty when I was a child, but I didn't have the ability to help others. But now that I have such an opportunity, I want to do my part." Zhao Weiting said with an embarrassed smile.
"Understood, of course we have to do things that can help others and are good for ourselves." Shen Yiteng nodded and said: "In this case, you go call your friends in the Hong Kong government and ask more about this Hua-Hong Kong Fund Please try your best to collect the information as quickly as possible, and then organize it for me. I also need content for the first page of news.
I will talk to my boss about future cooperation. If there is an opportunity to cooperate with a Chinese giant like Chen Zhiwen, he will definitely be willing to do so. "
"Okay, I'll go right away." Zhao Weiting quickly stood up and left the editor's office.
(End of chapter)
