The birth of the Hong Kong Island family

Harbor City, the headquarters of the Wharf Group.

Lin Ruihai reported the work situation to his father: "Currently, we have entered the local real estate market in Bangkok and Kuala Lumpur, Thailand, and won a 'Times Square' commercial project respectively, and at the same time made other investments in commercial real estate. In Singapore, we have already We hold 78% of the equity of Marco Polo Hotel in Singapore. The comprehensive acquisition has been completed. Although it was unsuccessful, it has greatly increased our shareholding. At the same time, after the merger of Paragon Tower and the back section of the land, the total value has increased by one times, the potential for appreciation is huge.”

Lin Zhichao listened carefully and was very satisfied with Lin Ruihai's work. He has rarely interfered in the affairs of the Wharf Group, and only talks about the general situation with Lin Ruihai, so now Lin Ruihai has played a leading role in the development of the Wharf Group.

"Times Square is about to attract investment. According to the current market situation, the annual rent can reach more than HK$500 million. So, what is the cash flow situation of Wharf Group?"

Lin Ruihai thought for a moment and said, "Father, I want to sell the Paragon Building and the land behind it for SGD 700 million!"

Lin Zhichao did not doubt Lin Ruihai's price problem. After all, the price of the projects after the merger increased exponentially.

You know, the Paragon Shopping Center in later generations is a landmark building in Singapore. Therefore, its land has huge potential.

But Lin Zhichao said curiously: "Is it possible that you are interested in bigger projects, so the Wharf Group lacks funds?"

After all, Wharf Group is also a large listed company with an annual profit of HK$1 billion, so it is generally not short of money.

Lin Ruihai said seriously: "Father, it's like this. We are doing one project after another, with a long return cycle and a huge investment. If we use the capital market, the results will be immediate and the returns will be huge. You are also a master of this. , you don’t think I’m wrong about this, do you?”

Lin Zhichao smiled and said: "But I won't say that you are completely right! You have to know that the capital market does have fast and large returns, but have you heard of how many established companies are mainly acquired through acquisitions? I think most of them Enterprises rely on operations. Acquisitions can only serve as a supporting role. Never think that the capital market is the foundation of an enterprise."

He doesn't deny it, but he doesn't affirm it either. If he were a new-generation chaebol, he would definitely grow rapidly in this way, but now he is an established chaebol, so he naturally relies on management to build up his fortune.

Lin Ruihai said: "Father is right! But our development in Singapore can be completed with the help of the capital market. Just like acquiring the Marco Polo Hotel in Singapore, you specifically asked me to wait. Now the shares we have acquired reach 78% for a small price."

Lin Zhichao said: "Just tell me what you are trying to sell!"

Lin Ruihai then said: "I found a very good company in Singapore. This company is called 'Singapore Land Company'. It is the largest commercial real estate company in Singapore. More importantly, this company gives people opportunities to take advantage of." Machine', its founder Tao Xinbo is over 70 years old this year, holds only 21% of the shares, and does not have a strong family successor. It belongs to the kind of publicly listed company with little hope for family inheritance. So I have been thinking recently, If the Wharf Group sells the Paragon project to Cheung Kong or other companies, this amount of money will be equivalent to a net profit of 300 million Singapore dollars (1.6 billion Hong Kong dollars) for Wharf. At the same time, I will acquire Singapore Land and let Wharf In one fell swoop, the group controlled Singapore’s largest commercial real estate company.”

Lin Zhichao didn't expect Lin Ruihai to be so 'radical'.

It couldn't be seen before, after all, he had not yet taken power at that time. Now that Lin Zhichao has delegated power to him, it has fostered his ambition.

Lin Zhichao thought about whether he should support his son's 'radical' method. As an experienced person, he knows very well that in the financial market, what seems to be "guidance" is actually "a castle in the air". There are so many trendsetters in the asset market who have not ended well in the end. Even if they survive, they will leave their own companies.

As for the "hostile acquisition" of Singapore Land Enterprises, it is not a big deal in itself, and the Li family in Singapore will not interfere.

"Are you familiar with Singapore's capital market? Do you know the equity distribution of Singapore Land? You have to know that someone else owns 21% of the equity and is a veteran Singaporean chaebol. They will not surrender easily!"

Lin Zhichao decided to 'let go'. As long as his sons were not principled and made particularly big mistakes, he would not restrict their performance.

Lin Ruihai said confidently: "In the past few years, I have made many friends in Singapore, not to mention that Tao Xinbo is already old!"

Lin Zhichao smiled and scolded: "You brat, who hasn't grown old? I don't like hearing what you say! But since you think this acquisition is profitable, I won't stop you, and you don't have to sell Belle. For the palace project, please arrange for the Wharf Group to get a loan from the bank!"

The asset value of Singapore Land is about SGD 3 billion, which is about HKD 16 billion.

The asset value of Wharf Group is approximately HK$30 billion (the market value is only HK$18 billion).

Lin Zhichao doesn't like raising funds through rights issues, mainly because he doesn't want to 'cut leeks' or dilute his own equity.

But don’t forget that Lin Zhichao owns two banks, and Victoria Harbor Investment has a lot of cash flow, so lending to Wharf Group can be said to kill two birds with one stone.

Lin Ruihai said happily: "Thank you dad for your support. I promise to save costs and fight for this acquisition at the minimum price."

Lin Zhichao said with satisfaction: "As long as you know, we are trying to complete the acquisition, not with the determination of 'must buy it', otherwise it will not be cost-effective. The Paragon project will be rebuilt after ten years, and the value will be the same." It’s huge and must be a landmark building on Orchard Road.”

"Yes, I know!"

It’s Spring Again (1988).

Singapore.

The Shangri-La Hotel Group is holding a banquet, and Lawyer Li represents the Singapore government to receive a group of wealthy people from Hong Kong. Among these rich people include Lin Zhichao, Zheng Yutong, Li Shauji, Run Run Shaw, Cao Wenjin, Zhou Wenxuan and others.

This time, Hong Kong tycoons formed 'Suntec City Development Co., Ltd.' and invested S$208 million to acquire the development rights of the Singapore International Convention and Exhibition Center. This section of land covers an area of ​​11.69 hectares and plans to build Asia's largest conference and exhibition center. , including a conference and exhibition center with an area of ​​more than 100 square feet, an 18-storey and four 45-storey office buildings, and a large shopping mall. The total investment is expected to be HK$4.8 billion.

The entire project is expected to be completed in 1999. After completion, it will account for approximately 15% to 18% of the same level (Grade A first-class) office buildings in Singapore, becoming Singapore's 'city within a city'.

In this combined company, Lin Zhichao, Zheng Yutong, Li Shauji, Shaw Run Run, and Cao Wenjin each hold 16% of the shares, Zhou Wenxuan holds 7% of the shares, and other shareholders hold the rest. This project is not led by Lin Zhichao, but by Cao Wenjin, so the chairman is also Cao Wenjin.

Lawyer Li raised his wine glass, came to Lin Zhichao, and said, "Mr. Lin, you have been active on the world's business stage recently!"

Lin Zhichao said with a smile: "Lawyer Li, you have given me the award! They are just real estate projects that do not add anything creative to the world, so they are not worth mentioning!"

Lawyer Li was stunned and then said: "Of course you can't say that. Real estate provides office space, promotes commodity circulation, and drives local employment. It is an industry that every government needs to pay attention to. What's more, you are not just a real estate company business, but a diversified business giant!”

People around him smiled and nodded, and they couldn't help but sigh in their hearts. Lawyer Li had a very high opinion of Lin Zhichao.

Of course Lin Zhichao was just a 'joke'. He and Lawyer Li had a very good relationship. They had been acquaintances and cooperated with each other as early as the 1950s. He made this 'joke' because he recalled lawyer Li's comments about Li Jiacheng that were circulated on the Internet in his previous life.

In fact, it is an Internet rumor. At most, Lawyer Li said that "Li Jiacheng's industries are mostly monopoly industries." From Lawyer Li's perspective, there is no problem; but from a businessman's perspective, who wouldn't want to Monopoly, why don’t even technology giants like Microsoft want to monopolize? Of course, the relationship between Lawyer Li and Li Jiacheng in the previous life was also good, and they were friends.

Lin Zhichao said: "Thank you Lawyer Li for your affirmation. I am really happy when you say this."

Similarly, Lawyer Li is also someone whom Lin Zhichao respects!

That night, everyone had a great time chatting.

The next day.

Xinda Urban Development Co., Ltd. was officially established, and the rich and senior executives took photos to commemorate the event.

Cao Wenjin was the initiator and Run Run Shao was a senior, so they sat in the middle.

Lin Zhichao sits second on the right, Zheng Yutong is first on the right; Zhou Wenxuan is first on the left, and Lee Shau-kee is second on the left.

Behind, stood other shareholders and some executives.

Because Lin Zhichao is too young, even if he dresses a little older, he is a 40-year-old elegant man, and he is incompatible with these old men. What's more important is his 'temperament', he is really the most eye-catching person among the crowd.

"OK" the part-time photographer called it a day with satisfaction.

Afterwards, several wealthy people started chatting.

Cao Wenjin praised: "Lawyer Li is a very pragmatic person. He told me that as long as it is a reasonable request regarding this project, he will immediately solve it for us. From this, it can be seen that without him, Singapore would not be the same." Prosperity and stability today.”

People who have interacted with Lawyer Li really praise him. Even Lin Zhichao thinks that Lawyer Li is a person with a very high level of conversation and deserves his praise for many things.

Therefore, Lin Zhichao also has a natural affection for Singapore, and this will be his second base in the future.

At this time, Zhou Wenxuan asked: "Lin Sheng, Singapore's economy is also rising now. Do you think the future prospects are better for Singapore or Hong Kong?"

Of course, Singapore at this time cannot be compared with Hong Kong. In 1986, Hong Kong's per capita income and GDP were both equal to those of the United Kingdom. Now they have surpassed the United Kingdom. After all, Hong Kong is now growing at an annual rate of 10%.

Lin Zhichao smiled and said: "If development continues according to the current situation, it may take 20 years for Singapore to surpass Hong Kong. After all, Singapore is a country and they will focus on the development of science and technology. Of course, if Hong Kong can also pay attention to the development of science and technology, there will naturally be hope. .”

Everyone thinks, who in Hong Kong will invest in the technology industry, except you, a big chaebol.

However, how much results can a consortium achieve by investing in the technology industry, so everyone is not very optimistic about it.

Of course, everyone still complimented Lin Zhichao a few times.

In fact, in his heart, Lin Zhichao has decided to change the pattern of Hong Kong in his lifetime and strive to achieve a per capita GDP that cannot be exceeded by Singapore in 2020.

To put it bluntly, Hong Kong is a city with a population of several hundred, and he doesn’t believe he can’t bring it along.

If the cultural industry does well, it will drive Hong Kong’s GDP to increase by 20%;

The development of the technology industry has driven Hong Kong's GDP growth by 10%.

The cultural industry is not only a cultural industry, but also drives the local tourism industry, retail industry, etc., so it may be very easy to drive a city with a population of several million. (End of chapter)