We are all reborn, who wants to be the richest man?

Chapter 255: Playing Capital Strategy

What is a big deal? Anyone who has not seen Mr. Luo Nianzhong Luo's business investment has not seen large-scale investment.

When you are still worrying about tens or hundreds of millions of funds for a project, you will give in to the interests of billions or tens of billions.

Take a long-term view and don’t care about how much others get now. You must firmly believe that you can get more in the future.

This is what Uncle Li Si, a famous Hong Kong entrepreneur, told the business elites sitting in the audience during an economic exchange in Shanghai decades later.

School?

From kindergarten, primary school, middle school to university, I will build it for you for free.

As long as you are the descendant of the original residents of the New Territories who enjoy the Ding rights policy, you can enroll for free, provided that your grades meet the school's regulations.

Ancestral hall?

The housing estates where the six major families are located will free a piece of land for you to build your own clan's ancestral hall.

You come up with the plan, and I'll spend the money.

Villagers want to do some small business? Can.

As long as you can come up with a plan, whether it is a restaurant food stall or a convenience store, Far East Bank will approve a supportive loan for you.

No review is required, and there is zero interest rate for five years, as long as you are willing to use your future home equity as a mortgage.

Do you think you own too few shares? Luo Nianzhong gave up two percentage points of profit without saying a word. These two points are not a problem at all if they are worth more than billions in the future, and can be written in the contract.

Why Luo Nianzhong is so confident has to do with the land area occupied by the six major families.

Everyone knows that Tiantongyuan in the capital was the largest community in Asia, with millions of people living there.

The land area of ​​the six major families can build four Tiantongyuan and they are still wealthy.

It is definitely impossible for Luo Nianzhong to build residences on all this land. It would be good to build residences on one-tenth of the area.

This is not to build a community but to build a satellite city. There is a large amount of land that needs greening or infrastructure construction.

As long as half of the land can be used for commercial purposes, a CBD plus a large number of residential areas will be established.

Do you think the market value of the company developing such a super project cannot reach HK$200 billion?

Luo Nianzhong impressed these aborigines with his usual generosity, and impressed the Hong Kong government with a huge sum of money. The cooperation talks were naturally pleasant and fast.

However, for such a large project, Far East Group is also under financial pressure. Although Far East Group can make money, it can also spend it.

Cooperation with North America and England, rapid expansion and acquisitions over the years, a large amount of research funding invested in scientific research, Lantau Island, the gold-eating beast, a HK$50 billion rescue plan, this does not include the small money that Luo Nianzhong sees.

In addition to the ten-year low-interest loan of US$70 billion with Japan's Fuji Bank, Luo Nianzhong has successively borrowed more than US$100 billion from various banks in the past two years.

Despite the fact that Far East Group's current debt exceeds US$170 billion, there is still an endless stream of banks coming to sell it door-to-door.

Wall Street values ​​the Far East Group as a whole at more than 100 billion US dollars. However, they do not have specific financial reports of the Far East Group and only rely on guesswork.

Regardless of whether the valuation is high or low, the current debt of US$170 billion is a reasonably low debt for the Far East Group. Therefore, major banks in the world welcome loans to the Far East Group with both hands.

But even so, he has no intention of paying off the land purchase fee from the Hong Kong government in the short term. Only a fool would do this.

Luo Nianzhong’s agreement with the Hong Kong government was to pay HK$720 billion in installments over 20 years, with an interest rate of only a pitiful 5%.

It is equivalent to borrowing 720 billion Hong Kong dollars from the Hong Kong government to develop his business. The interest on this money is much lower than that of banks.

Let alone 20 years, even if Luo Nianzhong's request is a little excessive, the Hong Kong government will have to agree.

Because except for Far East Group, no one has the strength to undertake this big project.

Even if we find someone, we can't do it without making concessions to the six major families like Luo Nianzhong and getting their consent.

Who could be as confident as Luo Nianzhong about the future of the New Territories and make such a huge gamble?

In fact, the Far East Group has begun to make money on this project. In this new city project, the real money investment of the Far East Group will probably not exceed 20 billion Hong Kong dollars.

What to do with the remaining funds? Selling land.

Thus, the largest land dealer in Hong Kong Island was born.

The tripartite cooperation was not reported or publicized, but was only registered with the Hong Kong government.

The specific information is not difficult to check, but no one would check it, but everyone who should know knows it.

Changshi, Li Bancheng's office.

Li Bancheng, who got the news as soon as possible, called all his confidants over.

"Our opportunity has come. Winning residential projects in the New Territories will definitely increase our profits by leaps and bounds."

"Aren't you afraid that something will happen when the time comes? This is also a big gamble for us."

Li Bancheng knew very well what his subordinates were worried about. This was also a long-standing worry for all businessmen in Hong Kong.

However, Li Bancheng was very confident at this time, as if he was confident that he would encounter a big opportunity.

"Do you know what Welch said when I called him just now to ask about the land price?"

Seeing his subordinates shaking their heads, Li Bancheng said, "No bargaining at HK$2.5 per square meter."

"Is Welch crazy?"

Hutchison Whampoa's current head coach, Weili, thought he had heard wrong. "How much is the land price in Kowloon? Not long ago, the Hong Kong government sold a piece of residential land in Kowloon for only HK$2.1 per square meter. Why did Welch dare to ask for HK$2.5?"

"He told me that this was decided by Luo Sheng himself."

Li Bancheng's words silenced everyone. Luo Nianzhong has always given people the impression that he is friendly and makes money. To put it bluntly, he doesn't cheat people.

Since he has set this price, it means that he thinks the land there will be worth this price in the future. This time, everyone can't help but think of his grand plan to build another Hong Kong Island again.

“Should we also enter the Internet?”

They are all smart people. They know that this industry must be bullish, but they just don’t know to what extent it can rise.

The main subject of Luo Nianzhong's plan is the Internet industry. Since he feels that this industry can affect surrounding housing prices to this extent, it is self-evident how much value the industry itself can generate.

But Li Bancheng saw it clearly and shook his head to reject the proposal, "We know nothing about this industry, and we don't even have anyone to learn from, let alone where to start.

Enter now, and don’t end up like Jianing in the end. Let’s look at the follow-up development before looking for opportunities.”

The Jianing here is talking about Jianing computers. Chen Songqing didn't understand even an industry like personal computers that has gradually matured, let alone the unknown Internet.

There is certainly a reason why Chen Songqing doesn't want to run the business well, but can it really be run well even if it is managed well? There is a question mark here.

"Let's do our job well and just follow the Far East Group to get a little dirty.

Even though it’s meaty, it’s not necessarily smaller than steak.”

"You just made up your mind because the other party is the Far East Group and they bid such a high price, right?"

Li Bancheng smiled and said nothing and did not deny this.

"Could it be that the other party wanted to develop it themselves, so they bid a high price to dissuade others?"

Faced with another speculation from his subordinates, Li Bancheng shook his head, "Does he need to find a reason to enter the residential field? This is different from Lantau Island. Lantau Island already had a residential plan when he took over, so it was regarded as a whole. Far East Real Estate was developed.

But the New Territories is different. Not only is the place large, but the various housing estates are scattered in a complicated manner.

Another point is, do you think Far East Group has really given up on residential real estate? To put it bluntly, we are just white gloves of the Far East Group."

Wei Li nodded in agreement and said, "Yes, if nothing else, 24.8% of Changshi's shares are in their hands.

As far as I know, in these large real estate companies listed with Chinese capital, they have about 10% of the equity, so it is not an exaggeration to say that we are working for them."

Originally, the Luo family was the second largest shareholder of Changshi after Li Bancheng. In the rescue plan some time ago, Far East Bank swept away the shares of major real estate companies on the market.

This is because several major companies have repurchased a lot themselves to drive up the price, otherwise Far East Bank would have even more shares.

After this battle, anyone with a clear mind knows that although Far East is not involved in residential real estate, he has made more money than anyone else in residential real estate.

Li Bancheng knocked on the table, "This is an opportunity. I predict that the Hong Kong government will probably not sell land in the New Territories within ten years, so the land in the hands of Far East has become the only way to develop residential projects."

“If my prediction is correct, Far East Group will be able to recover all its costs and make a fortune just from the sale of residential land.

What we are playing is management, and what others are playing is capital strategy.”

Li Bancheng saw things very clearly, and he was not the only person on Hong Kong Island who saw things as clearly as he did.

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