In Hong Kong, we build a global business empire

Chapter 171 Bao Fuda's Purpose
Half an hour later, Lin Haoran appeared at the headquarters of Hong Kong Electric Group at 44 Kennedy Road.

When I walked into the reception room of the Hong Kong Electric Group headquarters, I saw Chen Shoulin chatting with a middle-aged foreigner.

Obviously, this person is the famous general manager of the Hong Kong Land Group, Bao Fuda.

"Hello, Mr. Lin." Seeing Lin Haoran, Bao Fuda took the initiative to stand up and shake hands with Lin Haoran to say hello.

"Hello, Mr. Bao Fuda." Lin Haoran responded with a smile.

Although we don’t know why Bao Fuda came here, it is obvious that he has a purpose against the Hong Kong Electric Group.

Previously, the Hong Kong Land Group wanted to acquire the Hong Kong Electric Group, but unfortunately, Lin Haoran got there first. They had no choice but to shift their focus to other companies.

After the three of them sat down again, Chen Shoulin explained to Lin Haoran: "Boss, I just talked to Mr. Bao Fuda. The purpose of his coming here is to jointly develop the land at the former site of the North Point Electric Road Power Plant with our Hong Kong Electric Group."

After hearing what Chen Shoulin said, Lin Haoran suddenly understood.

No wonder the Hong Kong Land Development wants to acquire Hong Kong Electric Group. The biggest reason seems to be that they have their eyes on this piece of land.

In fact, it is true. Apart from the stable source of income from electricity sales, the most valuable asset of the Hong Kong Electric Group is the land in North Point. According to the current land price, the former site of the Electric Road Power Station in North Point is worth about HK$10 billion. By the end of the year, it will be worth HK$20 billion.

For such a priceless piece of land, Swire Properties would naturally find ways to profit from it.

This may also be their biggest motivation for wanting to acquire the Hong Kong Electric Group. Unfortunately, they missed the acquisition opportunity and it was taken over by Lin Haoran in advance. Now they have to cooperate in the hope of participating in the development of this land.

After entering the 1980s, Hong Kong Swire seemed to have regained its confidence in Hong Kong's future. Under the leadership of Executive Director and General Manager Bao Fuda, like many real estate developers, seeing the good real estate market in Hong Kong, it expanded rapidly and transformed itself from a conservative and stable real estate investor to an active and aggressive real estate developer.

Not only did Swire follow in the footsteps of Chinese-funded enterprises by actively seeking and successfully acquiring shares of a series of high-quality listed companies, it also established an image of a "super partner" in the real estate industry, widely seeking cooperation opportunities with other companies to jointly invest in the development of the real estate market.

Today, the Hongkong Land Group is moving forward at full speed with its ambitious expansion plan, and is about to join hands with many well-known companies such as Far East Consortium, Carrian Group, Hang Lung Properties, Cheung Kong Holdings, Qiaoguang Real Estate, and Yau Ma Tei Ferry to jointly develop more than 70 real estate projects.

Therefore, it is a very normal thing for the Hong Kong Land Development Group to approach the Hong Kong Electric Group, hoping to cooperate with the Hong Kong Electric Group to develop the land of the former Electric Road Power Station in North Point.

It is not just the Swire Group. It is estimated that there are many real estate companies that have their eyes on this piece of land, such as Cheung Kong Holdings. This is known and they have discussed this matter in detail with Chen Shoulin many times before.

"Yes, Mr. Lin, we came here with great sincerity. I know that the Hong Kong Electric Group has plans to develop that piece of land, but it probably does not have the ability to do so. After all, your Hong Kong Electric Group is still a newcomer in the real estate industry and certainly cannot develop such a large piece of land independently.

Our Hong Kong Land Group is very strong in real estate development. If the Hong Kong Electric Group cooperates with us, I believe a large community will be developed there. The housing prices in Hong Kong are rising higher and higher. After the development is completed, our housing prices may have risen by one or two times. By then, we can make enough profit from this piece of land." Bao Fuda said seriously.

"Oh? I wonder what Mr. Bao Fuda means by sincerity?" Lin Haoran asked with a smile.

Lin Haoran plans to develop the land of the former site of the Electric Road Power Station in North Point himself, and intends to let the Hong Kong Electric Group and the Wan An Group develop it jointly, so that he can obtain maximum benefits.

As the saying goes, good things should be kept within the family!
However, since the Jardine Matheson Group came to us seeking cooperation, Lin Haoran wanted to see what conditions they could offer.

Lin Haoran has already planned to acquire the Hong Kong Land Development, the largest real estate company in Hong Kong. In other words, he even regards it as his own in his heart.

With the funds he has now, and the fact that other Chinese investors have not yet taken action against Hutchison Whampoa, as long as his ambition is not known to the outside world and is not discovered by Jardine Matheson, the probability of him successfully taking over the Hutchison Whampoa Group is still very high.

The prerequisite is that he must take it over before Hutchison Whampoa and Jardine Matheson start a policy of mutual holdings.

Otherwise, after the mutual shareholding policy between the Hong Kong Land Group and the Jardine Matheson Group began, the shares held by both parties would be nearly 40%. At that time, it would be basically impossible for him to acquire the company, because it would be basically impossible to absorb more than 40% of the shares from the stock market.

However, even after the Hong Kong Land Group and Jardine Matheson Holdings held mutual shares, Lin Haoran still had a chance to control the company. That was to wait until after 1983, when the new head of Jardine Matheson would completely cancel the mutual holdings and significantly reduce the shareholdings between the two parties.

At that time, it was Lin Haoran's second chance to take over the Jardine Matheson Group.

All of these have to be dealt with on an improvisational basis. Before that time comes, he doesn't know how Huanyu Investment Company's absorption is going and whether the process will go smoothly. He can't accurately predict what will happen in the future. Everything is just speculation.

"Mr. Lin, the situation is this: our Hong Kong Land Group plans to jointly establish a real estate development company with the Hong Kong Electric Group. After our detailed market evaluation, the current value of this piece of land is basically between HK$9 million and HK$10 billion.

To express our sincerity, we propose to use HK$10 billion as the base valuation, with each party assuming an investment of HK$5 million and jointly purchasing the land at this price of HK$10 billion. Subsequently, we will formally purchase the land from your Hong Kong Electric Group in the name of this joint venture company.

After the project is completed, the profits will be distributed in a 50-50 ratio, which not only ensures that the Hong Kong Electric Group does not need to bear the development pressure alone, but also brings significant win-win opportunities for both of us." Bao Fuda told them their plan.

This cooperation model is quite popular in the current real estate industry in Hong Kong. Its advantages are obvious. First, it effectively disperses the financial pressure and enables the project to be launched more smoothly.

Secondly, by combining resources from both sides, development efficiency can be improved, which helps to bring projects to market faster;
Furthermore, the profit-sharing mechanism ensures that both parties receive substantial returns;
Finally, through cooperation, the risks borne by a single party can be effectively reduced, and true risk sharing and benefit sharing can be achieved.

For example, as Bao Fuda said, everyone invested HK$10 billion together. In fact, before the development, the Hong Kong Electric Group can obtain HK$5 million of funds injected by Bao Fuda in advance, and they do not need to invest the HK$50 million themselves. After all, it is just a transfer from left hand to right hand. Moreover, after developing the land for real estate, the Hong Kong Electric Group can also obtain % of the profit.

If Lin Haoran had not acquired the Hong Kong Electric Group, by the end of the year, the Hong Kong Electric Group, Cheung Kong Holdings and Wheelock Holdings would have also adopted this cooperation model and jointly established a real estate development company, except that the number of partners would have increased from two to three.

"Mr. Bao Fuda, actually before you came, many developers had already set their sights on this piece of land, including top British and Chinese companies, but we didn't agree to any of them.

Because I myself own a Wan'an Group, which is also mainly engaged in real estate development. I believe Mr. Bao Fuda should also know that the reason why we have not developed yet is because the Wan'an Group does not have enough funds for the time being. In addition, there is no rush to develop the land of the former site of the North Point Electric Road Power Plant.

With the current market conditions in Hong Kong, the value will only increase in the future. I believe that your Hong Kong Land Group should be able to see this, otherwise you would not come to us for cooperation. "Lin Haoran said calmly.

If you want to cooperate, the other party must offer enough benefits.

The kind of cooperation proposed by the Jardine Matheson Group is too ordinary and they don’t have many advantages.

To be honest, Hong Kong Electric Group can cooperate with anyone, such as the Five Tigers of Chinese real estate industry. Although their total scale is not as large as that of Hong Kong Land Development, their development capabilities are not inferior to that of Hong Kong Land Development. So why must they cooperate with Hong Kong Land Development?

The location of the former site of the Electric Road Power Plant in North Point makes it priceless. The land is located less than two kilometers northeast of Causeway Bay, close to the Hung Hom Cross-Harbour Tunnel and right on the coast of Victoria Harbour. It has a superior geographical location. Opposite the land is the Shangri-La Hotel Building project currently under construction by Wan'an Group.

Such a good geographical location is not inferior to the value of plots of land in Hung Hom, Causeway Bay and other places.

This is a piece of fat meat and everyone wants to take a bite, including the Jardine Matheson Group.

Bao Fuda didn't show any expression after hearing what Lin Haoran said, because he knew that it would not be easy to negotiate this cooperation.

Although Lin Haoran is young, he was able to successfully acquire the controlling stake in the Hong Kong Electric Group at such a young age, and his Hong Kong Land Group did it right in front of everyone. This alone is enough to represent the extraordinary nature of this young Chinese.

Moreover, Lin Haoran has been in charge of the Hong Kong Electric Group for nearly ten days. During this period, the share price of the Hong Kong Electric Group has not fallen due to Lin Haoran's taking over, but has continued to rise.

Today, the price per share of Hong Kong Electric Company Limited has reached around HK$4.1. Based on the total market value, the market value of Hong Kong Electric Company Limited has exceeded HK$25 billion.

This rate of increase is even faster than the speed at which their Jardine Matheson Group tried to secretly acquire the shares.

Therefore, it is enough to see from this that even the shareholders in the market have developed confidence in the Hong Kong Electric Group after Lin Haoran took over.

Their Jardine Matheson Group and even Jardine Matheson had already investigated Lin Haoran's background.

The results of the investigation are not much different from those reported by Oriental Daily.

He was able to guess that the share price of Wharf Holdings would surge, he was able to snatch Ching Chau Cement Company from Li Ka Shing, he was able to boldly invest in oil when others were still speculating whether an oil crisis would come, and he was able to quickly take over Hong Kong Electric Group before their Hong Kong Holdings planned to acquire the Hong Kong Electric Group. All of this is enough to show that Lin Haoran is not simple!
So, in fact, after going through so many things, no one in Hong Kong, whether it is the British or Chinese financial groups, dares to underestimate Lin Haoran.

In the business world, age often comes with more business experience, which is undoubtedly a valuable asset.

However, in front of some business geniuses, simple age and accumulated experience do not always constitute an absolute advantage.

Because geniuses can often quickly skip the stage of experience accumulation with extraordinary insight, innovative thinking and rapid learning ability, and even create unprecedented achievements in certain fields.

Just like Lin Haoran, in the minds of many bigwigs, he is now a rare business genius!

(End of this chapter)