Wolf of Xiangjiang

Chapter 81 [Collision again]

Thursday, June 1979, 1.

In the office of Taifu Group (formerly Yiren Real Estate), Lin Zhengjie was sitting in his office, feeling particularly relaxed.

until now:

Lin Zhengjie's personal company, Taifu Development, already owns spot gold worth more than 1 million Hong Kong dollars, and the holding cost is only about US$222 per ounce. Based on the 'expected cash-out' of US$650 to US$800 per ounce one year later, Lin Zhengjie should have a 'private wealth' of HK$2 million after repaying debt and interest. In this way, he is no longer passive. In the future, you can participate in a fund-raising rights issue without having your shares diluted; you can also strengthen your investment and hide your wealth increase.

Lin Zhengjie's joint venture, Tai'an Development, currently holds the Tiexing Building (worth about 1.8 million), 7.3% of Qingzhou Yingni's equity (worth about 6500 million), and has debts of 1 million.

Lin Zhengjie's listed company 'Taifu Group' currently has a stock price above HK$2, with a market value of over HK$1.7 million, and is highly sought after by the market. At the same time, Taifu Group already holds Cheung Kong Holdings, Sun Hung Kai, and Wharf stocks worth more than HK$1 million (with appreciation), and has also received a loan commitment of HK$6000 million from HSBC Bank. Of course, Taifu Group's liabilities increased to HK$1.1 million, including HK$5000 million in stock allocations.

"Chairman, HSBC has allocated a loan of 6000 million to our account!" Chen Weizhong brought financial manager Zhang Mingcheng to Lin Zhengjie's office.

Lin Zhengjie raised his head and smiled happily: "The funds from HSBC came in time. We can participate in the official land auction tomorrow with confidence!"

Including the HKD 6000 million loan from HSBC, Taifu Group's cash flow is about HKD 6500 million, which is more than enough to participate in the official land auction.

Currently, the price of residential land in the city centers of Hong Kong and Kowloon is around HK$800 per square foot, and land in the New Territories is slightly cheaper. Of course, this is only the average data for reference in official land auctions, and the actual price depends on factors such as location and plot ratio (floor area ratio).

For example: In the first half of last year, Hang Lung spent HK$2 million to buy over 20 square feet of Taoda Factory in Kowloon. At that time, the land price had reached HK$800 to 900 per square foot, and it was in a "remote area" of Kowloon rather than in the city. However, the plot ratio of that land was very high, allowing the construction of a large-scale housing estate, later known as "Amoy Gardens", with more than 4800 residential units. Equivalent to a plot ratio of over 15, approximately 300 million square feet of floor space can be built.

During this period, Lin Zhengjie also learned a lot about 'real estate development', which was considered a beginner's introduction.

Why does Lin Zhengjie insist on joining the ranks of real estate developers? After all, if he used money to speculate in gold and stocks, wouldn't he make money faster?
The reason is very simple. Taifu Group must have its own "industrial assets". It cannot support the stock price by always speculating in stocks and gold. In this way, it will be inconvenient to raise funds through rights issues, bank loans, etc. in the future.

So Lin Zhengjie decided to buy a piece of land and learn to be a 'real estate developer' first.

Anyway, according to the current trend of real estate, there is no problem with an annual return rate of 50%. However, there are still at least two and a half years before real estate adjustment and decline (it entered the adjustment stage in 2 and entered the plummeting stage in 1981.8), which is enough for Taifu Group to develop and sell Come up with a project.

Chen Weizhong said: "Our real estate development department has almost been established, and we have also studied which of the land at tomorrow's auction has more potential. The 6.5-square-foot land in Wong Tai Sin, Kowloon, has an area of ​​​​The ratio is 7.5, and it can build about 48.8 square feet of floor space. According to the current property prices there, the selling price is more than 1.8 million Hong Kong dollars. The construction fees and taxes are expected to be around 7000 million."

The land in Wong Tai Sin is indeed the most suitable for the current projects of Taifu Group. If the land price is 5000 million, construction fees and taxes will cost more than 7000 million. Of course, the interest on bank loans must also be calculated (more than 2000 million is basically a loan).
It seems that the profit is very low, about 4000 million, and it will take 1 and a half to 2 years to recover.

But major developers don’t think so, because many times everyone is betting that house prices will rise!
Otherwise, the land would not be auctioned at a premium.

According to Lin Zhengjie's calculations, if the 48.8 square feet of floor space is sold in early 1981, it should be able to achieve sales of more than 4 million.

Calculating this way, you will earn more!

"I understand, let's make a decision at the auction tomorrow!" Lin Zhengjie said.

"Ok"

He has also read the information and has already made some calculations.

As a small real estate developer, whether you can get it successfully tomorrow is one thing.

After all, if a big real estate developer messes with you, Lin Zhengjie will be in trouble.

The total capital of Taifu Group is only 6500 million in cash flow, so there are not many choices, especially since there will only be four land auctions tomorrow.

The next day, Lin Zhengjie and Chen Weizhong came to the official land auction site, and he directly chose a corner to sit down.

After a while, Li Jiacheng, Zheng Yutong, Zhao Shizeng and other real estate tycoons all arrived, and it was quite a crowded situation.

Zhao Shizeng was also an "auction hero" in this era. Before the shipping trough, Huaguang Real Estate was a frequent visitor to Hong Kong auctions. Last year (1978), Huaguang Real Estate also purchased a small building in Central and Du Lao in Wan Chai. Chi Building (original owner is Swire Properties). If Zhao's "Wah Kwong Shipping" had not suffered a disaster in the s, Wah Kwong Real Estate would probably have become a major real estate developer in Hong Kong; because when Wah Kwong Shipping was on the verge of bankruptcy, Zhao had to sell antiques and real estate to Pay off the debt; and at this point, Zhao Shizeng also began to leave the official land auction.

Lin Zhengjie did not go to say hello, pretending not to know everyone, and stayed in the corner waiting for the auction to start.

Today, he is afraid that he will be 'targeted' by Li Jiacheng, approaching Yingni in Qingzhou, and Lin Zhengjie will cost him at least tens of millions of Hong Kong dollars. Due to Lin Zhengjie's intervention, the market value of Qingzhou Yingni exceeded 10 billion at the end of last year, almost doubling the price. Assuming that Lin Zhengjie does not intervene, after Li Jiacheng acquires 25% of the equity, the market value will be only 8 million at most.

Now, the market value of Qingzhou Yingni is almost 11 billion. It has to be said that if Li Jiacheng is still absorbing it, the price will be much higher.

However, Qingzhou Yingni is very valuable, and it is worth it to be more expensive.

Li Jiacheng and Zheng Yutong both noticed Lin Zhengjie in the corner, and their first thought was that Lin Zhengjie was just here to get acquainted. The reason is very simple. The land at the auction site costs tens of millions of Hong Kong dollars. Lin Zhengjie has just acquired Taifu Group and has no strength to develop it yet.

Even if you want to be a real estate developer, you should buy it from private hands so that it is cheaper.

After a while, the British auctioneer stepped onto the podium.

The first piece of land, a commercial and residential land in Wan Chai, has a starting price of HK$8000 million. Lin Zhengjie also participated in the bidding. Although he could not afford it, he was not afraid at all.

However, I only bid twice, and immediately stopped bidding, giving people the impression that I was just having fun.

Of course, if he is really called, Lin Zhengjie can afford it.

The second piece of land, a piece of land in Tsuen Wan, has a starting price of only HK$2000 million because the area is not large.

Generally speaking, if the transaction price is 4% higher than the base price, it is considered a relatively good market; if it is higher than 5%, it means that the market is very promising; the highest, generally does not exceed % to %; if it can reach a level of more than % to %, It shows that it was the most prosperous moment for real estate at that time.

Therefore, the transaction price of the second piece of land is HK$3000 million, which is more reasonable.

Lin Zhengjie started bidding again!
Li Jiacheng was thoughtful and extended his "finger to the sky" without moving his expression. He was the "overlord of the auction house" in the late 1970s.

Among the four major families: Lee Shau Kee likes to acquire old buildings, exchange land rights and interests, and then reserve land through merging buildings and exchanging land, and rarely sets foot in official land auctions; Zheng Yutong does not like to top the price, as long as it is higher than the market price, he It is very likely that he will give up; Guo Desheng is similar to Li Shauji. He also likes to reserve land during low times. Although he also appears in official land auctions, he is not a big spender.

In this way, the second piece of land attracted the attention of the auction. Li Jiacheng, the boss of Changshi Group, and a young man were bidding. Logically speaking, Li Jiacheng should look down on this piece of land.

Zheng Yutong smiled, and he probably understood why this happened.

Here, Lin Zhengjie put on a determined attitude and raised the price to 3000 million, then suddenly braked and stopped.

Li Jiacheng was a little surprised. He didn't expect Lin Zhengjie to brake before him.

Just when he thought he had obtained the land, Dachang Real Estate started bidding again.

Dah Chong Real Estate was founded by Chen Detai. It developed real estate ten years earlier than the four major families including Li Jiacheng. It was a real estate powerhouse in the 1950s and 1960s. However, after the 1970s, Dachang Real Estate always relied on British capital (Hutchison Land and Land). , lack of confidence in developing large-scale projects independently, resulting in falling far behind and falling into the top ten real estate companies.

The bidder today is Chen Detai's eldest son, Chen Bin, who is only 36 years old. He saw Li Jiacheng competing for the land and thought that there was no problem with the land, so he could give a higher price.

After Li Jiacheng called for a fixed price again, he happily withdrew.

"Old thing" Lin Zhengjie cursed in a low voice.

This is directed at myself.

But Li Jiacheng probably didn't know that his target was not this land.

(End of this chapter)