The Industrial Giant Reborn

"Chen Sheng, there is one more thing. The Hong Kong government is about to start the first auction after the economic crisis. According to my information, many real estate companies are not going to participate. Do we need to go?" Zhou Jiayang asked again road.

"What do you think?" Chen Zhiwen didn't answer, but asked rhetorically.

"I think we should participate. This is the first large-scale land auction held by the Hong Kong government 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 Admiralty on Hong Kong Island and Tsim Sha Tsui. There is some large residential land in Kowloon. If it was two years ago, companies such as Landmark, Cheung Kong Properties, and Swire Properties would have rushed to compete. Now that they have stopped, it is easy for us to obtain these lands. "Zhou Jiayang analyzed:

"The only problem is that according to the previous economic laws, the real estate market will still be sluggish for at least a year or two. We are buying too early now, and we may lose money in half a year or a year. However, considering the location of many land Very good, really wait until the real estate price drops again, when many people are ready to buy the bottom, we may not be able to buy it.”

"The analysis is correct. Of course, we will go to the Hong Kong government's auction, but we don't really want any land. When this kind of real estate crisis has just started, we can just pick those high-quality locations to start with. Ordinary locations, let it go. Go, as long as you have money, you can buy it anytime." Chen Zhiwen nodded and said.

Not to mention the fact that the real estate crisis has just begun, it was the time when housing prices were the highest in 1981. If a super building in Central chose to sell, Chen Zhiwen would not hesitate to take it down. Risk capability is strong. Even in the real estate crisis where the average house price in Hong Kong has dropped by half, the average price in Central has dropped by 20-30%. In the core area of ​​Central, it only means that it has dropped by 10-20%, or there is nothing, because of the crisis. Just started, no one has shot yet.

Of course, the strong property prices in Central have something to do with the fact that the owners of properties in Central insist on not selling them. Given the location, even if these owners encounter financial difficulties, they will find ways to raise money from other places. They will not sell unless they have to. Once the time has passed, or the crisis worsens, they will start to sell properties in batches, and housing prices in Central will naturally fall as well, but by that time, other places will have to fall even more.

And the second is naturally that Chen Zhiwen, as a time traveler, knows the future of Hong Kong housing prices. Housing prices have risen sharply, and rents have also risen sharply. Regardless of the currency value, the rent in the next few years may be able to buy a once "high-priced" building.

This is also the most attractive part of Hong Kong's real estate market. Except for the electronics industry and the Internet industry that are about to explode, no other industry can compare with Hong Kong's real estate industry, even the giants of the traditional automobile industry.

But in terms of influence, Hong Kong is very different from the car giants.

"Okay, then I will follow this way of thinking in the future. If I encounter a very high-quality land that costs a lot of money, I will inform Chen Sheng again." Zhou Jiayang said.

"Okay, no problem, just take care of some small projects." Chen Zhiwen nodded, he had already begun to decentralize power appropriately, otherwise it would be too tiring for him to come and confirm each of the tens of millions or billions of land auctions and purchases , through the consultation of one's own direct subordinates and the headquarters office, some medium-investment matters can be decided.

These two parties are people chosen by me, and they have been with me for a while, and they understand their own requirements relatively well. Basically, they can do this kind of thing to the same extent, even if they miss it or buy more, When I approve the quarterly results in the future, I will also remind them, so that they will also make appropriate changes.

"There is another problem. The Hong Kong government has development requirements for the auctioned land. After we buy it, we need to develop it according to the time. It cannot be kept 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 said again.

"Try to negotiate with the Hong Kong government to see if it can be developed at a later date. If it is not possible, then we should follow the contract. We can keep the office buildings built. For residential buildings, if the market is not good at the time of pre-sale, Then we sell within the group, and use certain discounts and loan concessions to attract employees to buy houses, so that we can recover the funds, and those employees who are willing to buy houses can also be regarded as benefits." Chen Zhiwen thought for a while and said.

A few years ago, several of his companies actually provided some internal benefits for internal employees, such as down payment or borrowing, but only for a small number of outstanding people. After 79 years, Hong Kong’s housing prices were about to peak. Chen Zhiwen He canceled all support to prevent the employees' hard-earned money from being taken away by the real estate crisis. It is true that they will make more money in another ten years, but he is not sure whether some people's mentality can persist until ten years later.

But now, land prices have plummeted completely. If I get some residential development land and build some houses, it is a win-win choice for my internal employees when the market is not willing to buy, because from 1985 to 1997, Housing prices can rise tenfold. This growth rate will bring about a sharp increase in wealth, which is very rare in the world. In this case, even if the manufacturing base of Midea is transferred in the future, these employees who follow them will also be regarded as There is a guarantee.

However, if some employees believe that the market is not good and do not believe in the future of Hong Kong, there is nothing they can do.

"This is a good way. The total number of people in our group is nearly 100,000. Even if a small part of these people buy houses, our internal capital flow can be turned around." Zhou Jiayang nodded and said.

"That's it, the Hong Kong government's auction, we try our best to get good land, commercial and industrial buildings are self-sustained, and residential buildings are 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 an affirmative answer, and immediately agreed, and then asked: "The land that is not for auction, do we need to buy it in the market from now on?"

"It's almost the same logic. If the location is rare, just buy it. Don't worry about whether it will fall a little bit later. Otherwise, if you miss it, you will miss it completely. Moreover, the residential land acquired in the market can be held by yourself for a long time. , This point is better than the official ones." Chen Zhiwen said after thinking for a while.

"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 many Here's the chance." Zhou Jiayang said.

"Almost, but there is no need for ordinary small companies to start. With our current size, it is not worthwhile to spend energy to arrange small fish and shrimps back." Chen Zhiwen said again.

"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 judge which real estate companies will have problems first." Zhou Jia Yang said with a smile.

"This number one is of course Landmark, but with the scale of Landmark, it can still last for a long time." Chen Zhiwen said with a smile, because HK Electric was acquired by him in advance, Landmark is one less big spender than in history. The goal, but Chen Zhiwen led the Hong Kong government to bid for the king of land in advance, which cost Hongkong Land nearly 3 billion Hong Kong dollars, which is about the same as 35% of the stock value of Hong Kong Electric.

In other respects, Hongkong Land is the same as its previous history. Before the real estate crisis, it invested a lot in various real estate projects, and its debt scale can be said to be no less than its original history.

"The stock price of Hongkong Land has also dropped to over ten billion Hong Kong dollars. Mr. Chen, do we need to start buying again now?" Zhou Jiayang asked again.

As early as after the acquisition of Hutchison, Chen Zhiwen ordered the acquisition of Hongkong Land's stock, but when it came time to force the acquisition of Wharf, it stopped. This was also for the smooth acquisition of Wharf. At that time, Hongkong Land became very cautious, and the stock price of Hongkong Land was already very high. It would not be cost-effective to continue to buy a large number of land and it would be easy to be discovered.

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 shares of Landmark do we have?" Chen Zhiwen asked again.

"It's almost 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-funded groups from taking action, Jardine and Hongkong asked Jardine and Hongkong to issue additional shares to each other. In this way, Jardine and Hongkong each hold 30%+ of each other's shares. In this way, other The proportion of shareholders’ holdings has been diluted, and according to the Hong Kong government’s 35% trigger takeover offer regulations, Jardine Land has been as stable as Mount Tai, which is the fundamental reason why Hongkong Land dared to expand desperately later.

"Then continue to buy, not only Landmark, but also Jardine's. The time is still early, and the stock price is at a low level during this period. If we buy, as long as we control it 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, and you can just start with peace of mind."

"Okay, then I'll start tomorrow." Zhou Jiayang said.

"In addition, about 15% is enough to buy all the shares of the real estate five tigers for investment purposes." Chen Zhiwen added.

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