The Industrial Giant Reborn

Chapter 143 Private Equity Fund with Surprising Results

That afternoon, after completing some major financial approvals, Chen Zhiwen went to Kowloon, the headquarters of Hengyi Company in Hung Hom.

"Father, your headquarters is a bit too shabby, why don't you move to Hutchison Building? I'll let them make a floor for you!" It was also the former Hengyi headquarters, and Chen Zhiwen felt that it was too small when he came this time. Now, it may also be the headquarters of Habit and Huang.

"Wait a minute, your Hutchison Building is crowded enough. I still have a one-year lease here, and I have to pay if I go. Besides, my subordinates' homes are nearby, so it's too troublesome to go to Hutchison Office." !" Chen Tianfu said while eating a few puffs brought by his son.

"More than a year! This is just right. The new building headquarters of Galaxy Holdings is estimated to be completed at that time. You will move there together. Your employees can actually learn from me and give them some benefits. Let them go When buying a house on Hong Kong Island, Hengyi will provide a little subsidy with low interest rates, so that everyone will be better off in the future." Chen Zhiwen said.

At present, the entire Galaxy, Red Bull, and Midea are implementing this welfare policy. If employees want to buy a house, they can get a certain amount of low-interest loan support from the company. Although this policy has only been in place for less than half a year, more than 500 employees have already applied. Regardless of whether you have a vision or a rigid demand, if you start with real estate with almost empty hands now, you will definitely be happy in the future.

This is also a low-cost benefit that Chen Zhiwen provides to his employees, and the real estate market pays for him.

"Usually, our real estate company will give some of our late sales to employees, and then give them a discount. You have never heard of this method." Chen Tianfu laughed.

"You can't even sell this thing in the late market. It must be in a bad location, or the sun is not good, or for other reasons. You are not giving benefits, but taking your employees for granted!" Chen Zhiwen smiled and shook his head and said, although even if you bought it now The late market will not lose money in the future, 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 will always be someone who is willing, and a poor place to live is much better than no place to live." Chen Tianfu said.

"That's true. There is no house that can't be sold, only the price that can't be sold." Chen Zhiwen didn't bother with this topic anymore, and took out a document from his document bag, saying, "Dad, I came here today for You bring a few gifts, I am some high-quality land under Hutchison Whampoa, if you are interested, we follow the rules of the Hong Kong real estate market, I will take half of the land, you will take half of the operation, and the profits will be shared equally, how about it?"

"Let me take a look." Chen Tianfu quickly put the puffs aside, took the document and read it carefully, and said after a while: "These locations are indeed good, and it is no problem to develop a few medium-sized communities. An office building, or a luxury apartment building can also be built next to it.”

"There are 8 projects here, is Hengyi capable of developing them all?" Chen Zhiwen asked.

Hutchison'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, and Cheung Kong's construction suppliers are willing to First pay the construction cost by yourself. This is the most classic white wolf in the real estate industry. As long as you develop quickly and wait until the pre-sale is available, if the market is hot, you can quickly pay the loan and the money advanced by the supplier, and finally you can earn money. a sum.

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. Ordinary real estate companies cannot do it at all. Hengyi Real Estate cannot do it, and Galaxy Real Estate cannot do it. However, it can only adopt the normal model of Hong Kong's real estate industry, and this model requires a lot of capital investment, and there is a limit to the number of projects that can be cooperated. Chen Zhiwen also took a period of time to find a few suitable item.

I wanted to let my dad choose, because too much development funds would put a lot of pressure on Hengyi, not to mention, he asked Chen Tianfu to buy all of Hengyi's assets over the past year or so. Although the price of industrial land has increased, it is not yet 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 firms have been established as joint ventures in Central?"

"Yes, a lot of money has been raised?" Chen Zhiwen took the document, glanced at the final figure, and said in surprise, "8000 million Hong Kong dollars have been raised?"

"Yes, in fact, a total of 3000 to [-] million Hong Kong dollars was raised before, but because of your acquisition of Hutchison, there are still so many actions in the follow-up, and the media keeps blowing up, many people know that the boss behind our private equity fund is you, They are rushing to send money!" Chen Tianfu said with a smile.

"That's not bad. With so much capital, if we use a little more leverage, we will have two or three hundred million yuan!" Chen Zhiwen nodded and said, "It seems that we can collect all kinds of hot money through private placement!"

"Yes, as long as you really have confidence in the real estate industry in the future, you can easily raise hundreds of millions of Hong Kong dollars with a higher interest rate, but the problem is that there are also high risks." Chen Tianfu said.

"Risk is not a problem, how much interest do we give now?" Chen Zhiwen asked.

"Now the bank's one-year deposit interest rate is 5.5%, and the interest rate we give is 7%. Here is the comparison table, please take a look." Chen Tianfu took out a piece of paper from the folder next to him.

Chen Zhiwen took it, looked carefully, and found that there were different interest tables from one year to five years, and said: "Our interest rate is generally 1.5-2% higher than that of banks, and the five-year rate is 9.5%. It attracted a lot of people."

In the 70s, since the outbreak of the global oil crisis, the world has fallen into severe inflation. Although the oil crisis ended later, the oil price will not drop. At the same time, the losses caused at the beginning have not disappeared. The big central bank is desperately raising the benchmark interest rate to suppress inflation, and Hong Kong will naturally not be able to escape, otherwise, a large amount of funds will have to be withdrawn from Hong Kong.

"Yes, with so much money, you have to pay interest. I'm just waiting for your project. As long as all the land is developed, if the real estate market will rise by 30% as you said, we will be able to do so in a year. If I can make a net profit of one or two hundred million, if I divide it into half, I, Heng Yi, can also earn tens of millions." Chen Tianfu said with a smile.

"Actually, I'm thinking about another thing now!" Chen Zhiwen said suddenly: "If we raise the five-year interest rate to 2.5% or even 3% higher than that of the bank, how much money 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 the financial risk control of many countries, because they do not have complete risk control like banks. Many Ponzi schemes exploit this loophole.

But for Chen Zhiwen, in the next few years, he can earn five or six times the money with his eyes closed. Inflation in Europe and the United States still cannot be suppressed. In order to cope with inflation, European and American central banks will continue to increase the benchmark interest rate, that is, raise interest rates. In a few years, the current high interest rate may be low by then.

In other words, regardless of investment income, if you absorb funds with high interest rates now, it will be considered low interest rates in the next few years!It's that weird.

"Okay, then I'll try to raise the interest rate a little bit first." Chen Tianfu nodded and said, the real estate industry itself has been blocked, and it is the same as Landmark, at least in the early stage, while other real estate The same is true for companies, half blocked and half based on vision.

"Only increase the five-year period, forget it for two or three years, and find a way to let people buy five-year funds." Chen Zhiwen continued, the longer the repayment period, the better for him, private equity funds still have a The high-quality feature is that there is no need to repay the money in the middle period, which is much better than bank loans.

"Okay, I'll fight you old man." Chen Tianfu nodded and said.

"There will be no problem, don't worry." Chen Zhiwen comforted: "Then we will go through the cooperation process. These 8 lands will be developed by Hengyi, and Hengyi will be responsible for the funds. Huang and I will wait a year to collect the money. "

……

Hong Kong, Hong Kong Economic Journal Headquarters:

In the editor-in-chief's office of "Dong Dong Dong", there was a knock on the door.

"Come in." The editor-in-chief Shen Yiteng continued to write his own things without raising his head, and said loudly.

"Editor Shen, I have big news about Chen Zhiwen." The person named Zhao Weiting came in and said happily.

"Chen Zhiwen? Did you interview him?" Shen Yiteng stopped the pen in his hand, raised his head and asked.

For Chen Zhiwen, all the Hong Kong media have a love-hate relationship. As the first Chinese to acquire one of the four major foreign companies, it can be said that it once became the focus of the entire public opinion. Two months ago, all the newspapers were reporting on Chen Zhiwen. It has also achieved very good sales results.

But what the media needs most is interviews with the parties involved. It’s just that Chen Zhiwen, like many rich people in Hong Kong, doesn’t accept interviews at all. Some of them went too far and were given a meal by K. Although it was not serious, it was still unlucky for them.

"No, editor-in-chief, you know that some wealthy people in Hong Kong don't like to be interviewed, and Chen Zhiwen must belong to this category." Zhao Weiting said with a smile.

"That's because we look down on small media like us. If it's an international media, they will definitely go." Shen Yiteng shook his head lightly 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 going to set up a charity fund called Huagang Fund. It is said that he will inject [-] million Hong Kong dollars into it!" Zhao Weiting said with a smile.

"[-] million Hong Kong dollars?" Shen Yiteng was stunned for a moment, quickly thinking about how many zeros there were, and then said, "Are you sure? There has never been such a large amount of donation in Hong Kong's history, not even close to it!"

"Sure, but not immediately, but in ten years." Zhao Weiting said.

"Ten years? That makes sense. Hutchison is so heavily in debt, there is no reason to spend [-] million on charity at this time." Shen Yiteng quickly seemed to understand, and said: "It seems that Chen Zhiwen wants to Make yourself a good person in Hong Kong."

"If you can do charity, it doesn't matter if it's for the sake of fame. The 1000 million funds are divided into ten years, and there are [-] million a year. It can help many people." Zhao Weiting said with a smile: "This news has not yet been announced. I think we are the first Bu should put this news on the front page tomorrow and become the headline, and the whole of Hong Kong will know about it soon, so it's better to make it easier for us."

"No problem, I will leave you the position of the first edition." Shen Yiteng nodded in agreement, and asked again: "Then what is the second step you mentioned?"

"In 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 Huagang Fund will provide charitable funding for education and medical care in the future, and the main target is children. But I think, since they were just established, 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 paying any cost; secondly, if the information we provide can help some people, it may be more convenient for us to interview in the future; thirdly, , This new fund has a huge momentum, and it is very likely that Chen Zhiwen personally intervened in the project, as long as we establish a good relationship with the new fund, maybe we can have a little relationship with Chen Zhiwen in the future."

"You think carefully." Shen Yiteng couldn't help but look at the young man in front of him more.

"Editor Shen, it's actually because I was poor and afraid when I was a child, but I couldn't help others myself, but now I have such an opportunity, I want to do my part." Zhao Weiting smiled awkwardly.

"Understood, of course we have to do things that can help others and are good for ourselves." Shen Yiteng nodded and said: "Well, you go to call your friend in the Hong Kong government and ask more about this Huagang Fund information, try to hurry up, and then organize it for me. I also need content for the first edition of news.

For the future cooperation, I will talk to the boss. He is definitely willing to have the opportunity to cooperate with a Chinese giant like Chen Zhiwen. "

"Okay, then I'll go right away." Zhao Weiting quickly stood up, and then left the editor's office.

(End of this chapter)