Rebirth of the Hong Kong Tycoon Era

Chapter 227 [Shatian Project]

The cash flow of Evergrande Real Estate was exhausted at the end of June. In this round of real estate slump, Evergrande has eaten a lot; at the beginning of 6, Evergrande Real Estate had a cash flow of 1973 million Hong Kong dollars in its accounts. In addition to the 8 million Hong Kong dollars for the 'commercial building reconstruction plan', the remaining 2 million Hong Kong dollars are all used for the acquisition of land and old buildings.

Not only that, from 1973 to the first half of 1975, Evergrande made a total profit of 2.2 million Hong Kong dollars, all of which were spent on land purchases, and a land supplement fee of 1.1 million Hong Kong dollars was also paid.

Evergrande Real Estate’s 720 million reserve land has an average cost price of 140 Hong Kong dollars per square foot, and the land in Hong Kong and Kowloon accounts for more than 40%; the land in the New Territories is very cheap, only about one-third of that in Hong Kong and Kowloon.

Currently, 11 million Hong Kong dollars has been spent on the reconstruction plan of 3.5 commercial buildings, of which 2 million Hong Kong dollars are self-owned funds.

The current debt ratio of Evergrande Real Estate is not high, only 3 million Hong Kong dollars, and the debt ratio should be only a little over 1%.

In the first half of the year, the market value of Evergrande Real Estate has doubled, and its current market value has reached 16 billion Hong Kong dollars, making it one of the fastest rebounding real estate companies.

A subsidiary of Evergrande Real Estate, Qide Real Estate, reached a deal with Evergrande Real Estate in June: Qide Real Estate sold AIA to Evergrande Real Estate for 6 million yuan; Qide Real Estate took the money , used to develop its land and repay part of the loan.Kai Tak Building and AIA Building are the core assets of Kai Tak Real Estate, but Kai Tak Real Estate must reduce its debts and use cash to develop the company's land; otherwise, the interest will eat up the company's profits and the other will be its land. Not developed.

At the same time, Evergrande Real Estate issued 300 million new shares (approximately HK$4500 million) in exchange for 75% of the shares of Taoda Real Estate. Taoda Real Estate became a subsidiary of Evergrande Real Estate. Evergrande Real Estate will develop Taoda Real Estate. Its land.

After some operations, the strength of Evergrande Real Estate has grown geometrically, and it is close to Landmark Real Estate. The market value difference between the two companies is only 1 million Hong Kong dollars.

林荣亨个人在这一波地产地产中，收获也是匪浅：华人行（7800万港币）、英美烟草公司旧址（9800万港币）、铁行大厦（5000万港币）、三幢旧厦（1.4亿港币）、地皮旧楼（3亿港币）。

In this wave of bottom-hunting operations, Lin Rongheng personally spent 6.7 million Hong Kong dollars on bottom-hunting real estate.Of course, he will continue to invest in real estate in the future. Lin Rongheng is serious about his love for real estate.

Lin Rongheng personally holds more than 80 billion Hong Kong dollars in cash, which are stored in Switzerland, London, and Hong Kong.

By the second half of 1975, the real estate industry had obviously begun to flourish, and the transaction volume was active.

In July, the Hong Kong government announced that it would invite tenders for the Sha Tin reclamation construction in October.

All of a sudden, some powerful real estate companies sharpened their knives and formed gangs to prepare for bidding;
The bidding price for Shatian reclamation will not be high, and the consortium formed by the four major families in history won the bid with 2060 million Hong Kong dollars.

The biggest cost of this project is the cost of sea reclamation, which is difficult for a real estate company to bear. In addition, most of the land obtained from sea reclamation will be handed over to the Hong Kong government for low-rent housing projects and public facilities projects .

Lin Rongheng is naturally very optimistic about this project, and intends to let Evergrande Real Estate participate in this project; but let’s wait and see what happens. If Lee Shau Kee comes to the door, Evergrande Real Estate does not mind everyone forming a consortium. After all, this project requires an energetic promoter; If Lee Shau Kee does not come to the door, then Evergrande Real Estate will pull in two affiliated listed real estate companies to bid separately.

For this bid, the government does not only look at the bidding price, but also at the content of the bidding;
After all, with just over 2000 million Hong Kong dollars, who wouldn't be able to afford it?

So if he bids alone, Lin Rongheng will ask the company's management to make a good bid; if Lee Shau Kee comes to him and everyone cooperates, this project is basically to make money lying down.

Lam Wing Hang has always been optimistic about the New Territories, especially Sha Tin.

Sha Tin is close to Kowloon, only separated by Lion Rock, so the traffic is very convenient.

In addition to the Lion Rock Tunnel, there is also the Kowloon-Canton Railway that can be directly connected. In the future, electrified trains will be added to make it even more convenient.

Coupled with low population density, fresh air, and bright environment, this kind of living conditions is especially rare in the Kowloon Peninsula.

Sha Tin's development prospects will definitely be exciting.

The government's plan for the development of the New Territories is very detailed. A new city will be more beautiful than the old city after careful and careful modern design.It won the bid for the rights and interests of the reclamation land in Sha Tin and developed it into the first city in Sha Tin. It is difficult to estimate the future profits.

Lee Shau Kee did not disappoint Lin Rongheng. Shortly after the Hong Kong government released the news, he made an appointment with Lin Rongheng to discuss. The party also included Guo Desheng, Li Ka-shing, and Zheng Yutong.

To be honest, the development opportunities of the original five tigers of Huazi Real Estate have changed;
The most promising Hehe, because of the fake stock incident and the liquidation of Poly Engineering (Hehe’s shareholding), the reputation and profits have plummeted, and the company’s development has lagged behind the other four tigers;

Hang Lung Properties, which raised the most funds, had frozen 1.15 million Hong Kong dollars in funds (the bid was too high) in Shaw Brothers Building and Xinhua Theater before the stock market crash because of a misreading of the real estate situation, and its development also lagged behind the other three tigers.

Of the so-called five real estate tigers in China, only the three tigers have not retreated but advanced during the stock market crash and oil crisis; coupled with the separation of Sun Hung Kai, Lee Shau Kee's personal real estate company is strong, and the four major families in his previous life have taken shape.

Lin Rongheng has no interest in becoming the fifth largest family. For him, the comprehensive assets of the four major families in the future may not be as large as the Lin family, which is obviously not an order of magnitude.

After everyone sat down, Li Zhaoji first asked Lin Rongheng: "Rongheng, Evergrande Real Estate has excellent strength, what do you think about bidding for the Shatian project this time?"

The other three looked at Lin Rongheng seriously. Everyone was worried that Evergrande Real Estate would not like this combination. If they went to bid alone, they would have one more powerful competitor.

Lin Rongheng smiled and said: "I can agree to your invitation, so I have already made a decision! Evergrande Real Estate has no pressure on funds, but lacks energy. If Brother Zhaoji can take the lead, he naturally wants to make money while lying down."

Everyone breathed a sigh of relief. The cooperation of the five companies, each with 20%, is still very good; moreover, the cooperation of the five companies has much more advantages than Hongkong Land in terms of strength. This bidding can be said to be the most promising.

After some discussion between the two parties, it was finally decided that Lee Shau-kee would take the lead, and five companies would set up a consortium, Baide Real Estate, to bid for the Shatian project in October.

The total reclamation area of ​​the Shatian project is about 600 million square feet, and the five people have agreed to cooperate with the government model - the reclamation will be wholly owned by Black & Decker Real Estate. After the completion of the reclamation, Black & Decker Real Estate will own 170 million square feet of land; Handed over to the Hong Kong government for public land and low-rent housing.

As for the first city in Shatian built by Black & Decker, everyone unanimously recommended Lee Shau-kee to plan it, and everyone will only express their opinions when the time comes.

In the 90s, the value of residential buildings in City One Shatin was 350 billion Hong Kong dollars, and the commercial part was worth 50 billion Hong Kong dollars. It was said to be worth 400 billion Hong Kong dollars.Of course, this is only possible if the property has not been sold.

In fact, reclamation is expected to be completed in 1979, while the first phase of real estate will be sold almost in 1981, and the last phase of sales is expected to be in 1988; that is to say, there will be a Sino-British negotiation crisis in the middle two years, and residential units will at least fall More than 40%.

It is said that this project in the previous life made a total profit of 50 billion Hong Kong dollars. Based on this calculation, each consortium can also obtain a profit of 10 billion Hong Kong dollars.

The only downside is - the cycle is too long!

But lying down to make money, it doesn't matter if the cycle is long.

(End of this chapter)