The birth of the Hong Kong Island family

After Chinese New Year (1984).

At 8:30 in the morning, Lin Zhichao came to work at the Cheung Kong headquarters in the Victoria Harbor Center in Central on time. He is an energetic person and rarely wastes time on useless things. So even if he is the boss, he can sit in the office on time every morning.

Of course, this uselessness does not include ‘women’. In Lin Zhichao’s life, ‘career’ and ‘women’ are equally important. If he only has a career and no luck with women, I'm afraid he will think what's the point of making money?

Throughout the first half of his life, he had six long-term companionships with women, and no fewer than ten women with whom he had pleasant interactions.

"Lin Shengzao"

Entering the building, the staff in suits and ties greeted Lin Zhichao energetically, with admiration in their eyes!

These employees are all white-collar workers in Hong Kong, and their incomes are very high. For example, a regular real estate employee of Cheung Kong Group earns 10,000 Hong Kong paper per month; while workers in factories outside earn only an average salary of 2,500 to 3,000.

"morning"

Lin Zhichao responded in a personable manner, and then walked through the crowd with steady steps towards the executive elevator. This elevator is manned 24 hours a day and is only used by senior executives of Victoria Harbor Centre. This will help improve the efficiency of the company.

Of course, Lin Zhichao would not build a dedicated elevator that goes directly to the 52nd floor of the building. After all, this would be a bit wasteful.

Today's elevator does go directly to the headquarters hub of Cheung Kong Group on the 52nd floor. This floor is the brain of Cheung Kong Group. Not far from the elevator, there is a door immediately. When you walk in, you will be greeted by a beautiful receptionist.

The lobby is not for staff to work, but is arranged like a "small bridge flowing over water" and a "Jiangnan Garden". Through these are the offices of senior executives, and Lin Zhichao's office is located in the most upright one near Victoria Harbour. With a total area of ​​2,000 square feet, it has a reception area, a conference area, a lounge, and an office area. It is luxurious, elegant, clean and tidy.

Read the newspaper, drink tea, and finally lean back in a chair to think.

Thinking has become Lin Zhichao's most important job.

How the company should proceed next is all in his mind, which is also the core of the development of his companies.

Cheung Kong Group’s total investment in the Exchange Square will reach HK$7.8 billion (land fee 5 billion + construction fee 2.8 billion), and its investment in the Yangtze River Plaza in Admiralty will reach more than HK$2.5 billion (only counting construction fees and decoration fees, It is expected to exceed 2.5 billion (renovation is very expensive). These two projects alone will require at least 10.5 billion Hong Kong dollars.

If it were other real estate companies, such as Sun Hung Kai and New World, they wouldn't be able to do it at all. After all, this is a rental property, and the return on investment is very slow. Even the Yangtze River Industries in the previous life couldn't do it.

But Cheung Kong Group obviously has no problem. Just by exchanging the 1.3 billion US dollars in hand, it received 10.5 billion Hong Kong dollars in funds. The current stock market value of Cheung Kong Group in the UK has reached more than 200 million U.S. dollars (principal of 100 million U.S. dollars), and it also injected 200 million U.S. dollars into Japan's Higashida Company last year.

The debt ratio of Cheung Kong Group is extremely low, with only HK$1.5 billion in debt. Since its total assets should be around 30 billion (based on current asset value), the debt ratio is not even 10%.

Although Lin Zhichao has entered the banking industry, it does not mean that no bank is willing to accept Cheung Kong Group. Even HSBC and Standard Chartered are willing to lend money, but they cannot lend too much; but Lin Zhichao also has overseas cooperation with Chase Bank, IWC and other overseas banks. We have established cooperative relationships with big banks, so there is no problem for Cheung Kong Group to borrow money.

What's more, Octopus Financial Group can also lend money to Cheung Kong Group, so the development potential of Cheung Kong Group is still 'infinite'!

At 9 o'clock in the morning, Lin Ruihuan, Mai Lisi, Zhou Fuzhao, Zhou Huai'an, Hu Zhaoxu, Huo Jianning, the "new and old six giants" of the Changshi Department came to Lin Zhichao's office.

The six giants each have their own main responsibilities: Lin Ruihuan is responsible for the overall situation and large-scale commercial projects, Mai Lisi is responsible for government affairs (internal housekeeper), Zhou Fuzhao is responsible for finance (financial and technical arrangements), and Zhou Huai'an is responsible for real estate development (sales-oriented projects) ), Hu Zhaoxu is responsible for sales and marketing, Huo Jianning is responsible for overseas expansion, and also assists Zhou Fuzhao in arranging financial technology.

Zhou Fuzhao and Hu Zhaoxu are veterans and will retire within five years, but they already have successors. Zhou Fuzhao's successor is of course Huo Jianning, and Hu Zhaoxu's successor is his deputy Li Minghui, the number one female general in the Changshi Department.

Seven people sat in the conference area of ​​the chairman's office for a meeting.

Lin Zhichao first said: "Changshi Group already has two local commercial projects. If the Miramar Hotel is temporarily shelved after the recycling, we will receive huge compensation anyway."

Everyone laughed. The 88,000 square feet of land in the old wing of the Miramar Hotel was sold to Carnegie and Land for a peak of 2.8 billion. Due to the disasters of the two companies, especially the bankruptcy of Carnegie Land, Cheung Kong Land guaranteed the project, so Cheung Kong The group has collected a total of 900 million Hong Kong dollars in tart booking fees, and the land needs compensation (at least 300 million Hong Kong dollars). In the end, the land must be returned to Cheung Kong Holdings.

This is equivalent to making 1.2 billion in vain!

Of course, from another perspective, if this land has been shelved for many years, Cheung Kong Group will also lose some income. However, the Miramar Hotel's business will not be affected. After all, a brand new hotel building has been built next to it (the former site of Lok Fu Building). As for the shopping mall itself, it is also a bit old and not as good as Harbor City, New World Center, and Peak. A large number of commercial complexes in the east.

Lin Ruihuan said: "Chairman, Singapore's Daimaru Department Store on Orchard Road has become relatively outdated and is somewhat incompatible with the emerging shopping malls. It is time to consider rebuilding it into a first-class shopping mall and hotel commercial complex!"

Cheung Kong Group has two commercial projects in Singapore, each covering an area of ​​100,000 square feet, and both are located in the best locations on Orchard Road.

After Lin Zhichao thought for a while, he said: "We can start designing and planning. Since we want to rebuild, it must be beautiful enough!"

Lin Ruihuan said: "Okay"

In the 1970s, the buildings built in Hong Kong actually used computers to control lighting, ventilation, fire protection, etc. Although personal computers were not yet popular at that time, a commercial computer only cost 400,000 U.S. dollars, and the modern control of the building was fully realized. internal.

Nowadays, personal computers have begun to become popular. Even Lin Zhichao’s office has been equipped with computers. Although there is no Internet, he can still do some office work.

Based on this, it is time for Daimaru Department Store Building to be rebuilt into a first-class shopping mall + hotel complex that firmly occupies an important commercial position on Orchard Road.

In fact, many of Lin Zhichao's businesses have extended to Singapore.

Next, Lin Zhichao said: "In terms of real estate development, Cheung Kong has actually accumulated four large-scale housing estates - Tin Shui Wai, Whampoa Dockyard, Ap Lei Chau, and Cha Kwo Ling Oil Depot. It is expected that large-scale housing estates will be built on these four sites alone. Each can provide 40,000 residential units. This was the development strategy of the Cheung Kong Group in the 1980s and 1990s - focusing on the development of large-scale housing estates. Of course, these large-scale housing estates all belong to the Cheung Kong Group, not just the Cheung Kong Group. "

There were happy expressions on everyone’s faces!

At this time, Cheung Kong Group controls 48% of Hutchison Whampoa, 55% of Qingzhou Yingni; and Hutchison Whampoa controls 34.7% of Hong Kong Electric. This is the holding of listed companies. If unlisted companies are included, there are hundreds of descendant companies.

Strong soldiers and strong horses!

Zhou Huaian said: "The reserve land of Cheung Kong Group can build 18 million square feet of floor space, which will be enough for development for about 10 years. This does not include large housing estates."

In recent years, even during the trough of real estate, Changshi Group has not acquired much land, mainly using it to invest in commercial projects and financial projects.

But even if the real estate market is at a trough, Cheung Kong Group will complete 800,000 to 1 million square feet of floor space every year for sale (goods are rotated), so the land reserve has declined.

There is also the Navy Dockyard’s 300,000 square feet of reserve land, which has been converted into 5 million square feet of commercial area.

But even so, it is nearly double that of Sun Hung Kai. Sun Hung Kai Properties is estimated to have less than 10 million square feet (calculated in terms of completed floors).

Lin Zhichao said: "Now that several commercial projects have been finalized, the company's cash flow is relatively abundant, so we need to continue to increase our land reserves. However, considering that Hong Kong's economy is becoming increasingly developed, we should move towards large-scale housing estates, high-end residences, and large-scale housing estates." development, so we need to increase investment in this.”

Zhou Huaian nodded and said, "Okay, I'll note it down!"

Even if Cheung Kong Group allocates the construction costs of Yangtze River Plaza and Exchange Plaza (all of which are allocated), it still has a cash flow of more than one billion Hong Kong dollars; moreover, it can also borrow money for development.

Next, Lin Zhichao said: "How is the progress of the Japanese business?"

Huo Jianning immediately said: "The Raffles City Plaza in Chiba and Kanagawa Prefectures has entered the preliminary preparation stage. The total investment is expected to be 1.2 billion US dollars (including land). Dongtian Enterprise will invest 300 million US dollars and loan 500 million US dollars. The remaining The US$400 million was invested by Tsutsumi Yoshiakita. At the same time, we used the two Raffles City buildings as collateral and have verbally obtained loans of US$500 million from multiple banks, plus the available construction funds for the Raffles City Plaza. , we are prepared to continue to acquire properties in the Tokyo metropolitan area, and currently there are four commercial sites and three commercial district complex buildings under planning."

As soon as he finished speaking, everyone was in disbelief.

Zhou Fuzhao immediately said: "Boss, isn't it very risky to deleverage and invest in properties in a strange place like Japan with such a small amount of funds?"

Lin Zhichao smiled and said: "What are you afraid of? Victoria Harbor Investment holds 60% of the shares, and Cheung Kong Holdings only holds 40%! What's more, do you know why I want to take such a risk?"

Everyone shook their heads!

Lin Zhichao said: "There must be an explosive period for Japanese real estate. I think it will be in the late 1980s, so there is no need to worry about risks. Just like when I invested in commercial office buildings in the United States after the oil crisis, I made five times the profit in 6 years. I believe this time I can do the same in Japan.”

Everyone immediately beamed with joy. After all, the face value of the "negotiable securities" invested in nine Manhattan buildings was US$350 million at the time; but around 1982, these securities were worth US$2 billion.

This is the beauty of leverage!

The same goes for investing in Japanese real estate now. Dongtian Real Estate's starting capital was US$500 million, but now it is ready to do more than US$2 billion. And you can continue to leverage in the future. As long as Japanese real estate grows significantly every year, the little interest is not worth mentioning.

In mid-February, Wharf Group issued two announcements, which triggered heated discussions in the market.

First, executive director Lin Ruihai will serve as deputy managing director of Wharf Group.

Secondly, the Wharf Group's Times Square has officially started construction (the Hong Kong Tramway Causeway Bay Russell Street Headquarters site). The entire project includes two 46-storey and 38-storey office buildings - Clark Building and Westminster Building, as well as a The 16-storey comprehensive shopping mall houses a total of 300 shops, 18 restaurants, 4 cinemas and 700 parking spaces, with a total building area of ​​2.4 million square feet (shopping mall + office building).

The construction cycle of Times Square is expected to be five years, and it will be completed and unveiled in early 1989. The design of the building is magnificent. The exterior wall is made of granite and frameless glass. The most eye-catching part of the wall is Hong Kong's first giant outdoor TV curtain wall. The building is surrounded by a 33,000-square-foot open garden plaza. There is a large clock tower in one corner, and its beautiful appearance stands out among its peers. It will become the most high-quality commercial building in Causeway Bay District and the symbol of the district. Since there is no need to pay land premium for the construction of Times Square, the entire investment only costs HK$2.1 billion in construction costs.

As soon as the news came out, the market was shocked again!

"Sir Sir Lin is really taking a big gamble! While others are considering immigrating, he is investing heavily in Hong Kong, including Exchange Square, Yangtze River Plaza, Hong Kong Electric and Times Square. This is a total investment of more than 15 billion!"

"That's right! I haven't heard of any real estate developer who dares to invest at this time. Lin Sheng is really not afraid of being beaten!"

"Crazy, I think Lin Sheng is crazy! He thinks that because he has had a smooth journey for more than thirty years, he can gamble big, but he doesn't know that he only needs to lose once and it's over!"

"It's nonsense. Cheung Kong, Hutchison, and Wharf Group are all companies with sufficient cash flow and low debt. How can they be over after losing once? It's not Land!"

"In short, I think this is a risky plan and irresponsible to shareholders!"

"Are you a shareholder?"

"I'm not!"

"Well, I am a shareholder of these companies, and I can tell you responsibly that the stocks of these companies are rising against the market trend!"

"Ah, crazy, you are all crazy!"

Most of the reviews are good. After all, Lin Zhichao has been in the business world for more than 30 years and has never missed a situation. Therefore, the shareholders of his companies trust him very much.

There are also some bad reviews. Everyone thinks that Lin Zhichao was too hasty. Even if he waits for the Huaying negotiations to be finalized before investing, wouldn't it be safer?

In fact, Lin Zhichao also saw the bad reviews, and he also recognized them. Even Li Jiacheng in his previous life decided to invest 10 billion in Hong Kong only after Sino-British negotiations.

And Lin Zhichao made the investment decision directly at the most dangerous time, which was indeed a risk!

But Lin Zhichao has his own reasons:

First, when his investments are at a low point, he can save construction costs (building materials, labor, etc.);

Secondly, Yangtze River Plaza (completed at the end of 1988), Exchange Plaza (the first and second phases were completed in 1985 and 1988), and Times Square (completed in early 1989) were all completed before the spring of 1989, which was the peak period of real estate, which was conducive to Rents increase.

Finally, these companies have cash flow in their hands, so they naturally need to invest as soon as possible before continuing to expand overseas later.

To sum up, they only need to wait until September this year, and they will apologize to Lin Zhichao even for the last bad review. (End of chapter)