"Sheng Chen, there is one more thing. The Hong Kong government will soon start the first auction after the economic crisis. According to my information, many real estate companies are not prepared to participate. Do we need to go?" Zhou Jiayang asked again road.
"What do you think?" Chen Zhiwen did not answer, but asked instead.
"I think we should participate. This is the Hong Kong government's first large-scale land auction after the outbreak of the economic crisis. In order to restore market confidence, the Hong Kong government has offered a lot of high-quality land, including in Admiralty, Hong Kong Island, and in Tsim Sha Tsui. There are some large-scale residential plots in Kowloon. Two years ago, companies such as Land, Cheung Kong Holdings, and Swire Properties would probably have competed. But now they have stopped. It is very easy for us to get these plots. "Zhou Jiayang analyzed:
"The only problem is that according to the previous economic rules, the real estate market will still be sluggish for at least one or two years. It is too early for us to acquire now, and we may lose money after half a year or a year, but considering the location of many land It’s very good. If real estate prices really drop further and many people are ready to buy them at the bottom, we may not be able to buy them anymore.”
"The analysis is correct. We will naturally go to the Hong Kong government's auction, but we don't really want all the land. When this real estate crisis has just begun, we can just pick those high-quality locations to start with. For ordinary locations, let it go. Go ahead, as long as you have money, you can buy it anytime." Chen Zhiwen nodded and said.
Not to mention that the real estate crisis has just begun. In 1981, when housing prices were at their highest, if a super building in Central chooses to be sold, Chen Zhiwen will not hesitate to take it down. One is because Central, as the core of Hong Kong's economy, resists Strong risk capabilities. Even during the current real estate crisis in which the average house price in Hong Kong has dropped by half, the average house price in Central has dropped by 20 to 30%. In the core area of Central, it has even only dropped by 10 to 20%, or not at all, because of the crisis. It has just begun and no one has taken action yet.
Of course, the fact that house prices in Central are so strong is also related to the fact that the owners of properties in Central refuse to sell out. Given this location, even if these owners encounter financial difficulties, they will find ways to raise money from other places and will not sell out unless they have to. As for Central real estate, once time passes or the crisis worsens, they will begin to sell properties in batches, and Central housing prices will naturally fall as well, but by that time, other places will not fall even more sharply.
The second is of course that Chen Zhiwen, as a time traveler, knows that in the future, Hong Kong housing prices, the high of 1981, were actually tied again around 1986, and in the next ten years, they can rise another five or six times, and even wait until the future. Housing prices have risen sharply, and rents have also risen sharply. Regardless of monetary value, you may be able to buy a once "high-priced" building with the rent in the next few years.
This is also the most attractive part of the Hong Kong real estate market. Apart from the electronics industry and the Internet industry that are about to explode, no other industry can compare with the Hong Kong real estate industry, not even the giants in the traditional automobile industry.
However, in terms of influence, Hong Kong is vastly different from the automobile giants.
"Okay, then I will follow this idea in the future. If I encounter a very high-quality land that costs a lot of money, I will inform Chen Sheng." Zhou Jiayang said.
"Okay, no problem. Just take care of some small projects." Chen Zhiwen nodded. He had already begun to appropriately delegate power. Otherwise, it would be too tiring for him to confirm one by one for tens of millions of land auctions and purchases. , through consultation with your direct subordinates and the headquarters office, you can decide on some medium investment matters.
Both parties have chosen people who have been with them for a while, and they have a relatively good understanding of their own requirements. They can basically do this kind of thing with the same accuracy, even if they miss something or buy too much. When I review and approve quarterly results in the future, I will also remind them so that they can make appropriate changes.
"There is another problem. The Hong Kong government has development requirements for the land auctioned. Once we buy it, we need to develop it according to time. We cannot keep it for a long time. If the real estate market does not recover for a long time, This will also be a lot of pressure for us." Zhou Jiayang added.
"Try to negotiate with the Hong Kong government to see if we can develop it later. If it doesn't work, then we will follow the contract and we will be able to sustain the office buildings we build. As for residential buildings, if the market is not good at the time of pre-sale, Then we will sell within the group and use certain discounts and loan concessions to attract employees to buy houses. In this way, we can recycle the funds and those employees who are willing to buy houses will also receive benefits." Chen Zhiwen thought for a while and said.
A few years ago, several of his companies actually provided internal benefits for internal employees with partial down payments or loans, but this was only for a small number of outstanding people. However, after 1979, housing prices in Hong Kong were about to peak. Chen Zhiwen He canceled all support to prevent employees’ hard-earned money from being taken away by the real estate crisis. It is true that he will make more money in ten years, but he is not sure whether some people’s mentality can still persist ten years from now.
But now, land prices and house prices have completely plummeted. If I can get some residential development land, build some houses, and give them to my internal employees when the market is not willing to buy them, it will be a win-win choice, because from 1985 to 1997, House prices can increase tenfold. This kind of growth rate brings about a sharp increase in wealth, which is very rare in the world. In this case, even if Midea's manufacturing base is moved in the future, these employees who follow it will also be considered There is a guarantee.
However, if some employees believe that the market is not good and do not believe in Hong Kong's future, then there is nothing we can do.
"This is a good idea. The total number of people in our group is almost 100,000. Even if a small number of these people buy houses, our internal capital flow will be activated." Zhou Jiayang nodded and said.
"That's it, in the Hong Kong government's bidding, we will try our best to win good land, build commercial and industrial buildings, and be self-sufficient. The residential units will be sold internally and externally. There is no need to increase our own land for the purpose of making money in the past two years. Just reserve it," Chen Zhiwen said.
"Okay, Chen Sheng." Zhou Jiayang received a positive reply and agreed immediately, and then asked: "For the non-bidding land, do we need to start acquiring it on the market from now on?"
"It's almost the same situation. The same logic. The location is rare. Just start. Don't think about whether it will drop a little more in the future. Otherwise, if you miss it, you will miss it completely. Moreover, the residential land acquired on the market can be held by yourself for a long time. , this is better than the official photo." Chen Zhiwen said after thinking for a moment.
"In fact, the best way to acquire a large amount of land in the market is to directly acquire a company that holds a lot of properties. However, the current economic crisis has just begun, and many companies can survive for a while. I estimate that by next year, we will have a lot of It’s a chance.” Zhou Jiayang said.
"Almost, but there is no need for ordinary small companies to start. With our current size, it is not worth the effort to collect the small fish and shrimps." Chen Zhiwen added.
"Yes, I think so too. Recently, I have arranged for people to investigate the debt situation of the top 100 real estate companies in Hong Kong. With this data, I can first determine which real estate companies will have problems first." Zhou Jia Yang said with a smile.
"The number one one is, of course, Land, but with the scale of Land, it can still last for a long time." Chen Zhiwen said with a smile. Because Hong Kong Electric was acquired by himself in advance, Land has one less big spender than it has in history. However, Chen Zhiwen guided the Hong Kong government to bid for the land in advance, which cost Land an extra nearly HK$3 billion, which is almost the same as the value of 35% of Hong Kong Electric's stock.
In other respects, as in its original history, Land invested heavily in various real estate projects before the real estate crisis, and its debt scale is not much higher than in its original history.
"The stock price of Land has also dropped to just over 10 billion Hong Kong dollars. Mr. Chen, do we need to start making acquisitions again now?" Zhou Jiayang asked again.
As early as after the acquisition of Hutchison, Chen Zhiwen ordered the acquisition of Land shares, but when it came time to forcibly acquire Wharf, he stopped. This was also for the smooth acquisition of Wharf, and after Wharf was acquired, it was not continued because At that time, Land had become very cautious, and Land’s share price was already very high. It would not be cost-effective to acquire large amounts and it would be easy to be discovered.
As of today, it has been silent for almost 3 years, and there is no trace of the previous transactions in the market. It is a good time to start at this time.
"How many Land shares do we have in hand?" Chen Zhiwen asked again.
"The difference is quite a bit 13%." Zhou Jiayang replied: "Originally we had close to 20%, but Yizhi Mutual Control diluted the stocks in the entire market, and our equity also fell."
After Wharf, in order to prevent large Chinese-owned groups from taking action against each other, the Jardine Matheson Group asked Jardine Matheson and Land to increase shares in each other. In this way, Jardine and Land each held 30%+ of the other party's shares. In this way, the others All shareholders' holding ratios have been diluted, and according to the Hong Kong government's 35% triggering takeover offer regulations, Jardine Matheson Land has become as stable as Mount Tai. This is also the fundamental reason why Land has dared to expand desperately.
"Then we will continue to acquire, not only Land, but also Jardine Matheson. It is still early, and the stock price is at a low level during this period. As long as we control the acquisition well, we can achieve two or three times the previous speed. It will definitely arouse suspicion." Chen Zhiwen nodded and said, "If the funds are not enough, I will mobilize them from other places, so you can start with peace of mind."
"Okay, then I'll start tomorrow." Zhou Jiayang said.
"In addition, to acquire the stocks of all the five real estate giants for investment purposes, almost 15% is enough." Chen Zhiwen added.
PS: Ask for monthly tickets at the beginning of the month
(End of chapter)
