In Hong Kong, we build a global business empire

Chapter 125 Another loan of 1.3 billion!
In fact, Lin Haoran’s judgment is quite accurate.

If he could study the detailed history of Hong Kong real estate in depth, especially the golden age of the real estate industry from 1978 to 1981, he would be amazed at the crazy growth of Hong Kong's real estate market.

Since 1978, Hong Kong's real estate market has been running wild like a wild horse, far away from the normal growth trajectory.

Take the eastern part of Tsim Sha Tsui as an example. In just three years, from early 1978 to mid-1981, land prices soared by an astonishing 6 to 7 times, while house prices followed closely behind, rising by more than 3 times.

This growth not only attracted a crazy influx of local funds, but also attracted massive entry of international capital such as Nanyang, which continued to purchase land in Hong Kong to build buildings, further pushing up the heat of Hong Kong's real estate market and forming an unprecedented investment boom.

Therefore, relatively speaking, direct investment in land will bring higher profits!

Today, it is February 1979. Although it has been a year since the starting point in early 2, the land price has increased sixfold and it is difficult to reproduce the myth. However, if you can buy land at this time and hold it patiently until 1978 and then sell it, there is still hope of achieving a three-fold increase.

Of course, Lin Haoran was definitely not aware of these detailed information. He had a general understanding of Hong Kong's history from the Internet in his previous life and knew that a real estate crisis would break out in Hong Kong in 1982. Before the real estate crisis broke out, it was often because of excessive speculation in real estate, that is, the prices rose wildly, which eventually led to a real estate bubble.

Therefore, based on the little knowledge he had, Lin Haoran could already judge that in the next two years, land prices would definitely skyrocket along with housing prices.

Like the bidding rival four years ago that Yang Mingyi mentioned, his profits doubled last year thanks to the real estate he developed on that piece of land.

But if the other party continued to hold the completed property and sold it this year instead of last year, the price could at least double. If it is sold next year, there will be no problem in doubling the price again based on this year's price.

"Okay, then you get ready and tell them that our Wan'an Group will also participate in this auction. I'll go to Huifeng Bank." Lin Haoran said decisively.

That’s right, he was going to borrow money again, but this time he was not borrowing money in his own name, but in the name of Wan’an Group.

If he went to Yumin Financial Company for a loan, he could obviously get more, but Lin Haoran didn't have this idea because he had already borrowed more than 300 million Hong Kong dollars from Yumin Financial Company in his personal name.

If he were to apply for a loan under the name of Wan'an Group again, he would be involved too much with Yumin Financial Company.

For my own safety, I won’t consider the Yumin Financial Company route for now.

As for money, with his current status, he can easily borrow it from anywhere.

According to him, the current bank loan interest rate has risen due to the rise in the property market, but compared with this interest, it is nothing considering the growth of the real estate industry in the past two years.

Half an hour later, Lin Haoran appeared in Shen Bi's office again.

After coming here twice, he is quite familiar with this place.

"Mr. Lin, how come you have time to come here today?" Shen Bi said with a smile.

He had actually just returned from doing some business outside and had nothing important on hand, so he met with Lin Haoran.

"I'm here to discuss business with Huifeng again this time." Lin Haoran said with a smile.

"Oh? What business?" Shen Bi asked in surprise.

"The partner this time is not me, but Wan'an Group. If Wan'an Group wants to borrow money from Huifeng Bank, how much amount can it give?" Lin Haoran asked directly.

"Wan'an Group, it depends on whether you want a mortgage loan or an unsecured loan. If it is a mortgage, the loan amount will be determined based on what you mortgage. If it is an unsecured loan, I will directly approve an amount of 50 million Hong Kong dollars for you." Shen Bi answered Lin Haoran's question without thinking.

Before this, Shen Bi was unfamiliar with Wan'an Group and even only knew that there was such a listed company.

But since he met Lin Haoran, Shen Bi also specially investigated Lin Haoran's background, and gradually gained a very detailed understanding of this group.

Because of this, Shen Bi also knew that Wan'an Group was a very high-quality enterprise, and its stock market value was far lower than its actual value.

He likes high-quality corporate loans the most because they have low risks.

"If I use the deed to the Wan'an Group Building as collateral for mortgage, how much money can I borrow?" Lin Haoran asked.

The market value of just one Wan An Group Building is worth more than 100 million Hong Kong dollars based on current market valuation, which is equivalent to the total stock market value of Wan An Group.

It is conceivable how low the stock market value of Wanan Group is.

However, apart from this building, the only property controlled by Wan'an Group is the land under development in North Point.

Even so, the value of the properties held alone is worth 200 million.

In the past, Lin Wanan would set aside a portion of his annual earnings as dividends. In his opinion, the money is safe in the pocket. When it is in the company's account, it will always belong to the company, but only when the money is in hand will it be his.

Therefore, the reason why Wan'an Group could not develop rapidly was not only because of the lack of loans, but also because Lin Wan'an divided up the profits from the group every year.

Of course, it is normal to consider one's own interests. It is precisely because Lin Wanan continued to absorb the group's profits that he also enriched himself. This is why he had such a large amount of property to divide between the two brothers Lin Haoran and Lin Hao Ning.

"With the title deed of the Wan'an Group Building, I can give you 8% of the market price. As for how much the Wan'an Group Building is worth, we need our appraiser to conduct an assessment." Shen Bi said cautiously.

8%?
Lin Haoran nodded and said, that’s enough.

According to his own estimation, 8% of the market value can at least borrow million Hong Kong dollars. As for the exact amount, we will have to wait for the professional appraisers of Huifeng Bank to evaluate it. "Okay, then I'll trouble Huifeng Bank to help with the evaluation. I plan to use the deed of the Wan'an Group Building as collateral, but I hope Huifeng Bank can be faster. Wan'an Group needs funds in the near future." Lin Haoran said directly.

He did not express his intention to bid for the land.

"Please rest assured, Mr. Lin, the evaluation results will be out as early as today. As for the loan process, I can provide you with a fast-track approval process." Shen Bi said with a smile.

"Then I'll trouble you, Mr. Shen Bi. In that case, I won't bother you any more." Lin Haoran stood up and said.

The purpose of his visit has already been made clear, so there is naturally no need for him to stay here.

"Okay, Mr. Lin, take care. I will call you to tell you the result tonight at the latest." Shen Bi sent Lin Haoran out of the office door.

Business is business, and when it comes to business, one thing is one thing.

After returning to the Wan'an Group Building, Lin Haoran began to discuss the future development of the group with Yang Mingyi.

It was not until around six o'clock in the evening that he finally received a call from Shen Bi himself.

“Mr. Lin, after in-depth analysis and professional evaluation by our banking team, taking into account multiple factors such as the prime location of the Wan’an Group Building, the actual construction area, and market trends, we finally determined that the current market value of the building is approximately HK$1.65 million.

Based on this, according to our bank's loan policy of up to 1.32%, Wan'an Group will be eligible for a loan amount of approximately HK$ million." Shen Bi conveyed the message clearly and directly on the phone.

Hearing Shen Bi's words, Lin Haoran was a little surprised. Could he actually borrow so much?

Originally, he thought he would be satisfied with 100 million Hong Kong dollars, and since he could borrow more, he would naturally not hesitate.

However, when I think about the fact that housing prices have been rising since last year, it may have been worth just over HK$1 million in mid-last year, but now it is worth HK$1.65 million. There is absolutely no problem with this. This is a market behavior.

"Okay, thank you for your help, Mr. Shen Bi. Tomorrow morning I will bring Wan'an Group's lawyers, property deeds, etc. to sign the contract with Huifeng Bank." Lin Haoran said directly.

"Okay, Mr. Lin, I will personally wait for you at the company!" Shen Bi's laughter came through the phone line, sounding particularly happy.

This is big business.

Relying on this loan, Huifeng Bank can earn a lot of interest.

The next morning, Lin Haoran led the core team of Wan'an Group, including General Manager Yang Mingyi, and arrived at Huifeng Bank on time, carrying complete property rights documents of the group's building, to discuss the details of the loan cooperation.

Given that Mr. Shen Bi and Lin Haoran had already had in-depth discussions on the main terms in the early stages and all necessary information was fully prepared, the signing and approval process of the loan contract was very smooth.

It took less than two hours for both parties to complete all the procedures.

The final loan amount is HK$1.3 million, with a loan term of three years. Upon maturity, the principal and interest must be repaid in one lump sum and the lease must be redeemed.

The two parties also agreed that if the loan is repaid in advance, the interest will be reduced or exempted based on the actual loan period, and this clause is also written into the contract.

This was the condition that Lin Haoran requested to be included, because he did not intend to really take out a three-year loan. At the latest, he would sell the property in mid-1981.

By the second half of 1981, housing prices had probably begun to fall, and it would have been difficult to sell by then.

Therefore, the best time to buy was in the first half of 1981 or the middle of the year when the real estate market was hottest.

With 1.3 million Hong Kong dollars, Lin Haoran believed that he should be able to buy several pieces of high-quality land.

For Lin Haoran, hoarding land is the purpose of this investment. Under normal circumstances, it will be no problem to double or triple the value in two years.

As for buying land and building a house? Time is too tight now, and he doesn't have that much time to waste.

Lin Haoran did not intend to use the Wan'an Group's funds for short-term investments in oil, gold, etc. like his own personal funds.

After all, he had no intention of disclosing the specific details of his own short-term investments, but once he used the group's funds to invest, as a listed company, he would have to disclose the relevant matters in his financial statements.

As for his own funds, he can do whatever he wants and invest however he wants, naturally hoping to earn more.

Therefore, he did not intend to take the same investment path for Wan'an Group's funds and his own personal funds.

"Mr. Shen Bi, it's a pleasure working with you!" Lin Haoran shook hands with Shen Bi and said with a smile.

"Similarly, I hope your investment will be successful!" Shen Bi also responded with a smile.

For Huifeng Bank, this loan cooperation is undoubtedly a stable and low-risk choice. The Wan'an Group Building serves as collateral to ensure the safety of the bank's funds.

Such a business that is sure to make a profit naturally makes Huifeng Bank happy to see it happen, and it is willing to provide all-round support and assistance to Wan'an Group.

(End of this chapter)