"You bought a farm in Argentina? Is it bigger than Hong Kong Island?" After returning to Hong Kong, father Chen Tianfu asked in surprise after learning about his son's operations in South America.
"How big is Hong Kong Island? There are many farms around the world that are bigger than Hong Kong Island. However, mine is not considered a farm. It can only be said that it has the foundation to become a farm. I want to develop it into a suitable farm. I don't have to spend tens of millions of dollars on it. It won't work." Chen Zhiwen said with a shrug.
The area of Hong Kong Island is less than 80 square kilometers, and the farm I bought covers almost 200 square kilometers, which is 2.5 times the area. But there are really many such large-scale farms around the world, and some farms The area is even larger than the entire Hong Kong (3,000 square kilometers).
However, this is only the area. It is unlikely that all of them can be used as farms. The investment cost is too high. The owners of such large farms will only convert them into pastures for wild cattle grazing, or transform them into scenic spots to do tourism business. .
"Ten million US dollars? That's worth it, such a big land." As a Chinese from the mainland, Chen Tianfu still has a puzzle about land even after spending decades in Hong Kong.
"The investment is too big. With this money, why not invest in China in the future? In South America, if the funds are sufficient in the future, it will actually be good as a ranch. The investment is much lower and the risk is much smaller." Chen Zhiwen said.
The cost of converting a piece of land for grazing is much lower than converting it into a farm, because the latter requires a lot of water. Water is both a resource and requires a lot of investment for all-round transportation, and the infrastructure cost is much higher. , the pasture is much simpler. The animals just need to drink and don’t need to be fed. The animals will walk there by themselves.
"Can we invest in farms in China?" Chen Tianfu asked.
"Maybe in the future." Chen Zhiwen thought for a while and said. He remembered that in the early days of reform, foreign investors could invest in large-scale pastures, farms and even forest farms, but don't think about investing in places that have already achieved results in the mainland, which have not yet been developed. But in areas where there is no domestic capital investment, after development, the grain, meat, milk and eggs will be owned by foreign investors, and taxes will be paid legally.
For the country, there is zero profit if no one develops the land anyway. With foreign investment, foreign exchange, employment, and grain and meat, which are relatively scarce in the country, can be obtained.
Of course, the initial policy also requires joint ventures, that is, the domestic majority will be 51%, and this is also true for the automobile industry. This year, the country frequently sent people overseas to visit General Motors, Ford, Mercedes-Benz, BMW, Volkswagen, Toyota, and Citroën. We are waiting for international car brands, and we also invite these big car companies to visit the country, just to cooperate in the automotive field. There are some international news about this, and Hong Kong will naturally follow suit.
Although the reopening policy has not been officially announced, the current trend is that it is only a matter of time before foreign capital can invest. In fact, businessmen here in Hong Kong have basically felt it.
"Okay, then don't spend this money in South America. Just have fun there. It's better to stay in China. Language communication is much easier." Chen Tianfu said quickly, but he knew that there is a shortage of food in the mainland. The meat industry is even more lacking in funds. Since my son is interested in starting a farm and ranching, he might as well go to China. Although it may be just a hobby for my son, this hobby may help tens of thousands of people in China.
"I didn't invest in South America for the business of farming and ranching. The main reason is that the land there is permanent. As long as I bring in American capital to buy it together, the wealth will be eternal. It can be built anywhere in the world. , including Hong Kong, more and more houses can be built, but the area of land that can grow food, especially land that can retain rainwater, will never change, or even become less and less." Chen Zhiwen explained.
Chen Tianfu thought for a while and said, "What you said makes sense."
"Domestically, if there is a need in the future, I can also invest. Red Bull has already made plans to enter the food field on a large scale. We may also be able to cooperate with the mainland in the future." Chen Zhiwen thought about it and comforted his father. Better.
"I heard that Red Bull is making potato chips and is it planning to enter other food fields?" Chen Tianfu asked curiously.
"Yes, this is Red Bull's internal decision. They discussed internally and are optimistic about the dairy market. They are planning to recruit a team from Dairy International to do the dairy business. If they can do it, I can also invest heavily to help them expand. "Chen Zhiwen replied.
Whether it is Red Bull, Midea or several other real estate companies, Chen Zhiwen only focuses on the main core business. In other aspects, he only needs to be informed of the situation regularly.
For example, Midea decided to use Galaxy Trading's relationship chain in European and American supermarkets to develop some kitchen appliances. The scale is not large, with hundreds of people in care, and a yearly turnover of only a few million Hong Kong dollars.
Chen Zhiwen didn't object after knowing it. You can just play whatever you want. If the performance is average, then continue to be average. If the performance is good, then he will invest a certain amount of funds and resources for further development.
The same is true for Red Bull. Chen Zhiwen has only decided on Red Bull beverages, Very Coke and the instant noodles business prepared for the mainland in the future. For other things, Red Bull management has the right to make its own decisions. That is, if it is optimistic about a market, it can invest in it. All it takes is to inform Chen Zhiwen That's it. Under normal circumstances, anything that can be decided by so many managements has a market or an opportunity. Chen Zhiwen will not object idlely. Anyway, there is always trial and error. If you make ten mistakes, as long as you get up One is a great success.
Of course, the fundamental reason for such trouble is Chen Zhiwen's layout in the overseas retail market. Costco can promote electrical appliances or food in Hong Kong for free. Otherwise, if a kind of food is created and has no reputation, , it can be said to be extremely difficult to enter a large supermarket.
Red Bull took a fancy to the high demand for dairy in the market, so it was ready to give it a try. Another reason is that one of Red Bull's previous middle managers came from Dairy Milk International, and Dairy Milk International shifted its focus after being acquired by Land. Real estate development and milk business were put aside, so he came up with the idea of poaching the milk team.
"Dairy industry, are you making dairy products and exporting them to the United States? This market is big enough. There are not so many dairy cows in Hong Kong? You can't import milk powder from abroad and then make dairy products and sell them to the United States, right?" Chen Tianfu was a little confused. asked curiously.
"Let's win over the Hong Kong market first. Although there is help from Costco in the United States, it is still relatively far away." Chen Zhiwen shrugged and said, "And there are actually places in Hong Kong. Red Bull is already planning to buy a large area in Tin Shui Wai. We need land to build a dairy farm, but the Hong Kong government directly rejected this plan, and now we are planning to buy land from the Zhao family, the big landlord in Tin Shui Wai.”
"Tian Shui Wai? It's fine there, but the cost of raising cattle must be very high? Are you planning to take the opportunity to hoard more land?" Chen Tianfu asked with a look of disbelief.
"Why should I choose one or the other? Can't I have both?" Chen Zhiwen said with a smile.
"But a place like Tianshuiwei, which is so remote, is it really valuable for real estate development?" Chen Tianfu asked curiously.
"You said 20 years ago, apart from the towns near Victoria Harbor such as Tsim Sha Tsui and Hung Hom, did other places in Kowloon have development value?" Chen Zhiwen asked.
"What you said makes sense." Chen Tianfu also nodded and said. 20 years ago, when he had just entered the real estate market, basically all companies were making a living on Hong Kong Island, with a few small companies or mixed companies. Only those who are not good come to Tsim Sha Tsui or Hung Hom. As for Yuen Long, Shatin, etc., they are all places where aborigines or refugees live. Even the Hong Kong government is unwilling to set up administrative agencies in these places. There is really too little opportunity.
But now, Yuen Long, Sha Tin, Kui Wan and Tuen Mun have become the favorites of many real estate companies, and the Hong Kong government's policies have begun to shift to these places, with the intention of building new residential areas around these towns.
It is hard to say what will happen to Tin Shui Wai in ten or twenty years.
"Given the current situation in Hong Kong, Tin Shui Wai will not be able to develop in more than ten years, so I can buy it for Red Bull to raise cattle or build a dairy factory. I can just make changes when needed in the future," said Chen Zhiwen.
One of Li Ka-shing's four major fenced villages has already been acquired, which is Whampoa Garden, which is about to undergo final pre-sale. According to estimates, after the pre-sale, the entire Hutchison Whampoa Group can make a net profit of HK$1.2 billion plus a large self-sustained commercial plaza.
As for the remaining three, two of them are located on Hong Kong Island, which are the two large power plant sites left after Hong Kong Electric moved away. Now, Chen Zhiwen has ordered the securities department to slowly absorb Hong Kong Electric's stocks, etc. It will take some time to start, and these two pieces of land can only be developed after the power plant is relocated, at least until the mid-1980s.
The last one is "Kingwood Villas" in Tin Shui Wai. This land was only developed in the 1990s. It is really because this place is too remote. Only when the housing prices in Hong Kong Island, Kowloon and the southern part of the New Territories become too expensive, some Hong Kong people have no choice but to settle in Tin Shui Wai.
In other words, if I buy this land now, it will indeed take a long time to develop it. I intend to buy a piece of land here now just for future considerations. Moreover, Tin Shui Wai is very close to the future Deep Sea City, which will be inconvenient in many aspects. few.
"But there is a lease issue in the New Territories, why don't you think about it?" Chen Tianfu asked.
"This has never been a problem for me. Now that the mainland intends to shift its focus to economic development, it urgently needs Hong Kong's experience and certain help, and Hong Kong can serve as an intermediate bridge between China and overseas. Hong Kong will definitely remain this stable." Chen Zhiwen said with a smile.
He knows history, so he is naturally at ease with such things.
But many people in Hong Kong don't know. Those who are more cautious will invest all their funds in Hong Kong Island, because it is not within the scope of restrictions. Others are even more afraid, and they will directly withdraw their investment and prepare to run away.
"Okay, that's okay. The area in Tianshuiwei is big enough for you to raise cattle. Anyway, the feed can be imported from overseas." Chen Tianfu nodded and said, "It's the Zhao family, can you convince me? I’m afraid it’s a bit difficult for them.”
"Yes, the people from Red Bull took the initiative to communicate before. They didn't express their position. They probably wanted to wait for the price." Chen Zhiwen said with a smile.
Tin Shui Wai is one of the most remote places in Hong Kong, but the land here is not ownerless. It is owned by a family surnamed Zhao that has been passed down for hundreds of years. It is said that their family is the descendant of officials of the Ming Dynasty. After the demise of the Ming Dynasty, it was I came here and settled down there. Because of the remoteness of the place, the British ghosts didn't pay much attention to this place after they came to Hong Kong in the 19th century. The Zhao family has been steadily controlling nearly 5 square kilometers of land in Tin Shui Wai.
However, let alone commercial value, this land has no agricultural value. It’s not because the soil quality is poor or there is no water, but because no one is planting it. Besides, Hong Kong’s food, vegetables, and meat all come from China. Even if the Zhao family is in Hong Kong If you have land, it is impossible to beat the price of domestic goods in terms of cost.
"Do you also want to develop real estate?" Chen Tianfu asked.
"Who in Hong Kong doesn't want to do that?" Chen Zhiwen smiled and said, "In a few days, I will invite the owner of the family to come out and have a chat. There will always be a price that he can agree to."
The time soon came to July 10th, and summer had already entered in Hong Kong. Under the scorching sun, there were not many pedestrians on the road.
"Sheng Chen, according to our estimates, Harbor City will be open for business by the beginning of next year." Zhao Lilin, the person in charge of Wharf, conducted a monthly routine report. This is the routine operation of several non-core business companies under Chen Zhiwen. , it’s nothing big, just develop at your own pace, and then report on the progress of various things once a month.
"Okay, there is no problem with the progress, just ensure the quality." Chen Zhiwen nodded. After taking over the Wharf, he did not develop Harbor City at the same speed as Jardine. Instead, he teamed up with several Chinese companies to develop several blocks. After Wharf obtained funds for its non-core land, construction and decoration companies were required to start work in three shifts 24 hours a day to ensure the earliest possible opening.
Even in the early 1980s, the harbor city's annual rental income was 300 to 400 million Hong Kong dollars, and after deducting operating costs, it still had an income of 100 to 200 million Hong Kong dollars. This was enough for Wharf to completely get rid of its funding problems.
"Okay, the financial statements have been handed over to the Finance Department of the head office." Zhao Lilin continued. Usually his boss only pays attention to the development of key projects. As for financial matters, they are basically reviewed by the finance department of the head office. The boss usually We will not interfere unless there is a separate major investment project.
After Zhao Lilin left, Chen Zhiwen was in a good mood. Once Harbor City opens, it will shock the whole of Hong Kong. Its ability to attract money far exceeds many skyscrapers in Central. Even the people who often shop in Central are attracted by Harbor City. After all, Hong Kong's summer and rainy days will seriously affect the people shopping among the shopping malls in Central, but it will not affect Harbor City, which is all indoor shopping.
After a while, Xu Jinhong, the head of Galaxy Group, walked in with a burly middle-aged man.
"Chen Sheng, this is Zhao Defeng, the head of the Zhao family in Tianshuiwei. Zhao Sheng, this is Chen Sheng." Xu Jinhong introduced each other after coming in.
"Hello, Mr. Zhao." Chen Zhiwen nodded.
"Hello, Chen Sheng, I have admired your name for a long time." Zhao Defeng said politely. Although the person in front of him may be much younger than him, his status in Hong Kong is basically among the top five, and this is still counting the political circles. People.
"Please take a seat." Chen Zhiwen gestured, and several people came to the sofa next to the floor-to-ceiling windows. Through the floor-to-ceiling windows, you can see half of Hong Kong, Victoria Harbor and a bunch of buildings on the other side. If you have good eyesight, you can also see the hanging Seagull flying in the air.
The young female assistant came over and after asking, went to prepare the corresponding tea.
"Sheng Zhao, I think people from Red Bull and Galaxy Real Estate have communicated with you in advance. We want to acquire the land you own in Tianshuiwei. We invite you here today just to hear the truth. Do you want to Under what conditions are you willing to sell that piece of land?" Chen Zhiwen asked.
PS: Please give me a monthly ticket
(End of chapter)
