"The land of Whampoa Group in the old port in Hung Hom?" Zhou Jiayang naturally knew about the land owned by Hutchison Whampoa. He thought about it and said, "Chen Sheng, this land is indeed very good, with a large area and close to the sea, but it is It is industrial land. Richard and I have also discussed this land. According to him, Qi Dezun wanted to develop this land a few years ago. However, if the industrial land wants to be converted into commercial land, he needs to pay a huge amount to the Hong Kong government. Due to the price difference, Qi Dezun also sent people to communicate with the Hong Kong Real Estate Bureau many times, hoping to convert the land into commercial land at a cheaper price, but the Hong Kong government simply refused to let go, and in the end it was settled."
"The income from the auction of land is the Hong Kong government's largest financial revenue. Qi Dezun wants the Hong Kong government to lower the price. Is that a fool's errand?" Chen Zhiwen smiled and said: "I don't need to ask the Hong Kong government to lower the price. Just give it whatever it is. ”
Hong Kong is famous for its low taxes in the global market. Except for a few specialized tax havens, few normal countries or regions can reach Hong Kong's low tax rates.
Excluding the need for defense expenditure, the wealth effect brought by the high-quality port itself, and the dividends brought by being a springboard between the mainland and the Western world, the core reason why the Hong Kong government can maintain low taxes is the fiscal revenue generated from land auctions.
Every year, 30%-50% of the Hong Kong government's fiscal revenue comes from real estate auctions. In order to compete for land, various real estate companies send a large amount of wealth to the Hong Kong government.
The industrial to commercial conversion is a competitor of the real estate auction. If the cost of the industrial to commercial conversion is lower than the real estate auction, then who among the real estate companies will go to the auction to fight to the death?
Therefore, although the Hong Kong government will not prohibit the conversion of land from industrial to commercial, it will need to pay a huge price difference out of pocket. In the end, the cost will be higher than that of a real estate auction, unless the land is very special and is special to the real estate auction. If there is no such land in China, then it has the value of converting it from industry to business.
The Whampoa Port in Hung Hom naturally has worthy value.
"Sheng Chen, although I haven't calculated it carefully, according to the current land price in Hung Hom, the difference we need to make up is probably about 400-500 million." Zhou Jiayang said: "In addition, the funds needed to develop such a large land are also It’s very large. Even if we can get our money back in the future, isn’t this investment a bit too big?”
"You mean the 500 million yuan should be invested elsewhere?" Chen Zhiwen asked with a smile.
"Yes, investing in other land or purchasing property is much safer." Zhou Jiayang nodded.
"In the final analysis, it's just a risk. It's not like Qi Dezun couldn't get out the price difference of several hundred million, but he found out later that he had invested too much money, so he didn't dare to play." Chen Zhiwen said with a smile.
The price difference between industrial and commercial conversion of 2 million square feet of land is indeed not small, but the cost of subsequent development is even higher. It is so high that Qi Dezun, who is not afraid of anything, does not dare to take action. He has been hesitating, but finally gave up and transferred Hutchison's Money goes elsewhere.
The area of Taikoo Shing of the same nature is less than half of the Whampoa Group's land. The huge investment also prevents the Taikoo Group from borrowing excessively and can only sell a large amount of other land to obtain development funds. Although this is in line with their conservative management style Related, but the investment in super-large communities is indeed huge, so large that it is difficult for the four major foreign-level consortiums to afford it.
"It can be said that we will not lose money in the end, but with such a large investment, if we invest it elsewhere, we may get higher profits." Zhou Jiayang said.
"I agree with you." Chen Zhiwen picked up the pen on the table, turned over a piece of second-hand paper, and wrote a few numbers: 1968 1972 1976 1980, then pointed to 1968 and said: "If we go back to 1968 now, and Huang is also ours. Do you think it is risky for us to commercialize this land, build properties, and then sell it all before 1972? Or if we invest in other projects, can we get such high profits?"
"This?" Zhou Jiayang instantly understood what his boss meant, so he said, "Chen Sheng thinks our real estate market will replicate the bull market of 1968-72 in the next few years?"
"It's only high, not low, so we need to convert this land into a commercial property as soon as possible. In four years, it can be almost completely developed." Chen Zhiwen nodded and said.
For him who knows history, he knows that the madness of the real estate market in the next few years will be much more terrifying than the last time. In terms of prices, in the bull market from 1968 to 1972, the average house price increased by about three times, while from 1976 to 1982 It has increased by 5-6 times. If the next bull market is pushed back, from 1985 to 1997, it has increased by almost 15 times. The high housing prices will only become more and more outrageous.
At the peak of the last bull market, the market value of the five Chinese real estate companies in Hong Kong was about HK$300-500 million. By 1981, none of the top ten real estate companies in Hong Kong was less than HK$3 billion. The reason for the increase This is so large because the appreciation of real estate has magnified their wealth.
"If this is the case, we will indeed make a lot of money, and it is even possible to clear off all Hutchison Whampoa's liabilities at once." Zhou Jiayang's eyes suddenly lit up. Although this piece of land is the largest, if it is really developed, we can pay it back. Clearing all the liabilities of Hutchison Whampoa would be super cost-effective. Otherwise, if a piece of land is not developed, it will be in vain. If Hutchison Whampoa has no liabilities, or only a small part of them, its assets are so strong that it is estimated that the entire Hong Kong except HSBC There is no one better than Land Land.
"So, next, the focus of your work is to coordinate with the Hong Kong government to convert this land from industrial to commercial. The price can naturally be lower. For some other non-commercial core areas of Hutchison Whampoa, we still implement the previous plan. , try to cooperate with Li Jiacheng or other Chinese real estate companies, cash out if you can, and keep some good land left." Chen Zhiwen continued.
Hutchison Whampoa and its subsidiaries have a lot of land. It is impossible to develop all of it. No company has such energy. Even Land, it took more than ten years to acquire Dairy Milk International in 1972. It took time to slowly develop the land.
"Okay, then I will prepare the relevant information. But Chen Sheng, did you transfer the funds for the industrial-to-business transfer from overseas? Or did you get a loan from a bank?" Zhou Jiayang then asked.
"Which bank do you think would dare to lend Hutchison Whampoa for this project? The two previous projects of Galaxy are theoretically in default of the loan." Chen Zhiwen said with a smile.
The land for the Galaxy Headquarters Building is a loan, and the future construction costs are also loans. This is a complete violation. However, it is normal for HSBC to do this kind of thing. In the original history of 1979, Cheung Kong Holdings Snake Elephant and Hutchison Whampoa acquired 22.8% of Hutchison Whampoa's shares for HK$620 million. Li Jiacheng only had to pay 20% first, which is about HK$124 million. This is an incredible operation. In other words, Li Jiacheng spent HK$120 million. Acquired Hutchison Whampoa, which has a market capitalization of HK$2.5 billion and total assets of over HK$6 billion.
But this is not the most outrageous thing. The most outrageous thing is that Li Jiacheng’s 120 million Hong Kong dollars was lent to Li Jiacheng by HSBC a few days before the transaction was announced. Li Jiacheng was completely empty-handed and did not spend a penny. Got Hutchison Whampoa.
However, Comrade Li's ability to receive such good benefits must come at a cost that outsiders don't know. The most basic one must be to cooperate with HSBC's needs in all aspects in the future. It is naturally impossible for Chen Zhiwen to do this. Besides, HSBC has neither This ability really controls him.
Moreover, it is not 4 years later. Even if HSBC is optimistic about this project, it is estimated that it will not dare to invest so much money, because although the risk is not great, if it does occur, plus Hutchison Whampoa's own liabilities, it will be enough to drag HSBC into the bottom of the sea. .
"But Mr. Chen, you don't have so many credit lines overseas, unless we mortgage Red Bull?" Zhou Jiayang said with a frown.
"Red Bull can't do it. There will always be other ways in the future. It will be decided when the time comes. And with the efficiency of the Hong Kong government, even if we start talking today, it is estimated that it will take less than half a year to finalize it. In such a long time, there are still many variables Yes." Chen Zhiwen said.
Although Red Bull is not profitable, as long as the financial statements are released, any Wall Street banker can see that Red Bull is not unable to make profits, but chooses not to make profits. The purpose of all this is to monopolize the market as soon as possible.
With Red Bull's current popularity and sales volume, if it is really used as a mortgage, it can easily obtain hundreds of millions of dollars. However, the risk of doing so is very high. Although the outside world currently believes that Red Bull's profit margin will not be low, But basically no one knows how much it is, not even a few people inside Red Bull know.
But once this financial report is given to Wall Street, Coca-Cola and PepsiCo will definitely know that. Although these two companies are currently fighting to the death for their main business, the Coke market, after knowing the profits of energy drinks, even if they randomly use some resources to enter the market, To compete with Red Bull for the market, Red Bull will suffer heavy losses. Even if it wins in the end, it will be very laborious, waste a lot of money, delay its own development, and may also promote the birth of a new brand, which would be a huge loss.
The best way is to use the cash cow Wal-Mart's stock. There is no way. The Walton family is so powerful. When they open a shopping mall, it immediately becomes popular. Banks are queuing up to send money to Wal-Mart for new store expansion. Wall Street is also The multiple upgrades to Wal-Mart's stock rating will naturally increase Citibank's credit line to Chen Zhiwen.
However, from the perspective of risk sharing, Chen Zhiwen does not want to borrow too much from one bank, whether it is HSBC or Citigroup.
"Richard has recently been communicating with many companies to sell various businesses of Hutchison Whampoa. If everything goes well, maybe within three months to half a year, a lot of funds can be obtained. Hundreds of millions should not be a problem. ." Zhou Jiayang thought for a while and said.
The current structure of Hutchison Whampoa still has Richard as the chief executive, responsible for all businesses except real estate and retail, and he, Zhou Jiayang, is naturally responsible for these two.
This was the division of labor model discussed when Hutchison Whampoa merged. Zhou Jiayang didn’t understand Hutchison Whampoa’s many businesses, but Richard’s team in real estate didn’t either, so they each did their own thing. As for the retail business, Chen Zhiwen I came here specifically. In fact, Watson's retail business is very small now, not very big. It just has big development plans in the future, and now it is just slowly exploring and preparing.
"Well, I almost forgot. Please remind me at the next meeting. I want to urge him to return the funds as soon as possible instead of dragging it around just to sell more money." Chen Zhiwen shook his head and said.
Richard is considered a capable person. In the past few months, he has stabilized Hutchison Whampoa. Although many people have resigned, it has not caused any major problems. As for the core business of cleanup fees formulated by Chen Zhiwen, it is also very important. Being conscientious means always trying to get a better price, which leads to lower efficiency.
But this cannot be blamed on him. The thinking of these British ghosts is that Hutchison Whampoa no longer has a very urgent capital chain crisis, so it should take its time and sell it at a good price.
Moreover, because Chen Zhiwen doesn't understand Hutchison Whampoa's various businesses, he basically can't interfere too much. In the past few months, apart from discussing real estate business with Zhou Jiayang, he doesn't come to Hutchison very often, except once a week. The high-level meeting gave Richard sufficient rights and freedoms as promised.
"Okay, I'll let you know before the next meeting." Zhou Jiayang promised: "Then at the next high-level meeting, do you want to tell everyone about Hung Hom?"
"No, just tell Richard alone. Try to keep the negotiations with the Hong Kong government a secret. If it leaks out, it will not be good for Hutchison Whampoa's other businesses." Chen Zhiwen said.
Once the public knows that Hutchison Whampoa is planning to develop this land, it must know that Hutchison Whampoa is short of money. Just the project that Li Jiacheng has been cooperating with Hutchison Whampoa may be bitten by the other party. Even Richard has been selling various Branches and marginal businesses will also be affected. Not only will there be less money, but there may also be delays.
The most troublesome thing is the banks. If the banking groups, especially HSBC, do not allow Hutchison Whampoa to make such a large financial investment, that will be trouble. Although it is unlikely that this will happen, we must be careful.
"Okay, then try to keep it a secret first." Zhou Jiayang nodded and agreed: "Is it the Hong Kong government?"
"The Independent Commission Against Corruption has only been established for two years. It is unlikely that these people would dare to leak secrets for money. But if they really can't control it, then just take it one step at a time." Chen Zhiwen said.
As long as the Hong Kong real estate market rebounds in another half year and the return on my overseas investment is higher, the risk will be further reduced and the financial problem will be much better. Now I just need to keep it as secret as possible this year.
If it weren't for the fact that the land price is getting higher and higher, the price difference that needs to be paid will become even greater if it continues to be delayed. At the same time, the funds generated by obtaining this land as soon as possible will further facilitate his future planning, and he will not be in trouble just after Hutchison Whampoa's debt. Make this move after stabilizing.
"Okay, I'll try my best to control it." Zhou Jiayang nodded and said: "Chen Sheng, there is one more thing. You arranged for me to contact Time Life Company to purchase the TVB stocks in their hands. They have already made an offer, but the price On the high side.”
"How much higher?" Chen Zhiwen asked. If someone like this takes the initiative to come to your door and ask to buy stocks, forget it if he doesn't sell them. If he can sell them, he will definitely kill him! He will do the same.
"According to the current valuation, the TVB stock held by Time Life is worth about HK$40 million, and they quoted 60 million! I have arranged for people to talk to them several times, but it has only dropped to 57 million." Zhou Jiayang said .
"50% is a bit too much." Chen Zhiwen nodded and said that the general trend in the industry is generally a 30% price increase, unless the other party is involved in a takeover war, in which case it is 100% possible.
Zhou Jiayang continued: "My idea is to pretend to contact HSBC and then show off for a while. This small foreign bank is actually in trouble. As long as we pass the news to them secretly, they won't be in a hurry."
"You don't have to pretend to be real, just get in touch with it. If it's suitable, even HSBC will buy it." Chen Zhiwen said.
At first, because funds were too tight, HSBC didn't let HSBC know about it. Now that it's better, it doesn't matter. Although TVB is not valuable, its strategic significance is very high. Even if Hutchison Whampoa is still heavily in debt, the acquisition is still To be acquired.
And it is also the most suitable time. If we wait a few more years, the scale of Red Bull Midea will be several times larger than it is now, and Hutchison Whampoa will be completely out of debt. In addition, he will take action against Wharf. Shen Bi may not be so stupid as to fight with Wharf. He is his own enemy, but he will never make himself stronger again.
"Okay, then I will also contact the investment department of HSBC." Zhou Jiayang nodded and said. He also knows that his boss has a good relationship with HSBC, but he can't just let his boss deal with such a small matter based on favors, right?
PS: Please give me a monthly ticket again!
(End of chapter)
