In Hong Kong, we build a global business empire
Chapter 390 Acquiring a bank?
Not long after Niu Bijian left the office, Ma Shiming returned to the office again.
"Mr. Ma, you guessed it right. The other party is here for the Jardine Matheson Group. He thinks his management ability is better than yours and wants to replace you!" Lin Haoran said to Ma Shiming with a smile.
After hearing this, Ma Shiming did not immediately show his indignation or displeasure towards Niu Bijian. Instead, he responded in a calm and confident tone: "Boss, in your opinion, which one is better, my talent or Mr. Niu Bijian's?"
When Lin Haoran heard this, he was stunned at first, then the corners of his mouth raised, revealing an approving smile.
He smiled and said: "Mr. Ma, the reason why I came all the way from Hong Kong to Singapore to personally invite you to join the Hong Kong Land Group is because I have a deep understanding of you and fully recognize you, including a high recognition of your talent.
This recognition itself is the best proof of your ability. Therefore, when Mr. Niu Bijian put forward his idea, I rejected him without hesitation.
In my opinion, no matter how outstanding and talented Mr. Niu Bijian is, he cannot be compared with you in many aspects. More importantly, I trust your way of dealing with people, Mr. Ma, and believe that you can create a brighter future for the Hong Kong Land Group.
As for Mr. Niu Bijian, although he has been the head of Jardine Matheson and Hong Kong Land Group for many years, Hong Kong Land Group has indeed made a lot of progress thanks to the rise in the real estate market, but other real estate companies are also booming. On the other hand, what I have observed is that Jardine Matheson has been going downhill all the time! "
The boss' words were full of trust and appreciation for Ma Shiming, and also made Ma Shiming feel his important position in the Jardine Mathematics Group.
Lin Haoran noticed that after he finished speaking, Ma Shiming's loyalty even increased directly from 88 to 90.
Perhaps he was touched by the trust of his boss.
No matter what, increased loyalty is ultimately a good thing.
Lin Haoran's mood instantly became cheerful.
Niu Bijian's visit was not completely in vain. At least to a certain extent, it strengthened Ma Shiming's loyalty to Lin Haoran.
As for Niu Bijian's final wish for Lin Haoran to reconsider, Lin Haoran curled his lips and there was no need to consider it at all.
As far as he knew, after leaving Jardine Matheson, Niu Bijian quickly faded out of people's sight and lost his former prominent reputation in the business world.
“Boss, in the past month or so, I have tried to bring some projects to the market, and the response has been quite good. We soon found buyers. The largest buyer is a consortium from Nanyang. As an outside force, it is not easy for them to acquire high-quality projects.
As a British-owned company, our Hong Kong Land Group has received some favor from the government, so we have a lot of good projects. Therefore, once our projects are announced, they are often sold within a week.
So far, we have successfully sold 4 cooperative projects and 1 independent development project. Most of these projects were planned or even acquired one or two years ago. According to the current market conditions, it is not only easy to sell them, but also profitable.
For example, the piece of land on the east side of Crucian Bay was purchased by our company at an auction for HK$1.7 million. With the investment in the past two years, the total cost was only about HK$2.1 million. Now, we have successfully sold it to the well-known Su Group in Southeast Asia for HK$4 million, making a net profit of HK$1.9 million.
And these five projects combined have brought back a total of HK$5 billion!" Ma Shiming turned to report another progress to Lin Haoran and no longer mentioned the matter of Niu Bijian.
This is why the Hong Kong Land Group’s current cash flow is as high as HK$5 billion.
Although some money was spent in the handover with Jardine Matheson, it was not worth mentioning.
Prior to this, the Swire Properties Group had more than seventy real estate projects under development!
This shows how huge the assets held by the Swire Group are.
After screening, Lin Haoran has kept about thirty projects.
These projects are not suitable for sale, such as the projects developed by the Swire Group's "Ten-Year Plan", which Lin Haoran kept.
These projects are all located in Central, Causeway Bay, Wan Chai, Sheung Wan and other places. If they are sold now, it would be equivalent to terminating the huge "Ten-Year Plan". Naturally, he would not do such a stupid thing.
So, basically, he stayed on all the projects in Central.
The remaining more than 40 projects, including more than 30 cooperative projects and nearly 10 independently developed projects, all need to be sold as soon as possible.
And now, according to what Ma Shiming said, five of the projects have been sold.
Previously, Lin Haoran asked Ma Shiming to sell off those projects in less central locations and those developed in cooperation with bad companies.
In particular, Lin Haoran is going to sell off the dozen or so projects jointly developed with the Jianing Group.
Otherwise, if the Carrian Group collapsed in two or three years, wouldn’t the Jardine Matheson Group be the scapegoat?
Now it seems that Ma Shiming is also very active in execution. Most importantly, Ma Shiming, like him, also feels that the real estate industry in Hong Kong is developing so wildly that problems will definitely arise soon.
Selling it now seems like a loss, because Hong Kong's real estate industry will continue to rise in the next few decades.
But Lin Haoran knew very well that in more than a year, the real estate industry in Hong Kong would collapse, and no one knew how many real estate companies would go bankrupt.
It can be said that by that time, it would be easy for him to ask the Swire Properties Group to acquire the company at a relatively low price.
It is already December, and Hong Kong's housing prices have basically reached the peak before the real estate bubble. They will at most rise slightly further, and by the beginning of next year, they will basically have reached the top.
Therefore, he is not greedy. He cannot insist on selling at the peak because the project involved is too large. If he is too greedy, it may lead to the premature outbreak of the real estate crisis.
On the contrary, now, because there are no symptoms of the real estate crisis, even if he sells these projects, it will not have much impact on the Hong Kong real estate industry.
"By the way, how much are the remaining thirty or so real estate projects that are about to be sold worth based on the market price?" Lin Haoran asked.
"I asked the group's finance department to do the statistics, and together with the five projects that have been sold, the total value is about HK$5 billion. Since most of our valuable projects are near Central, these projects are not for sale, and the locations of those projects that are about to be sold are a bit worse than business districts such as Central, so the average value of a project is generally around HK$60 million to HK$ million." Ma Shiming reported.
Lin Haoran calculated: "60 billion, and the Hong Kong Land Group has already sold 12 billion Hong Kong dollars of it, which means that it can still get back 48 billion Hong Kong dollars."
Very good! In this way, after all the sales are completed, wouldn’t the Swire Group have tens of billions in cash?
However, the Swire Group currently still has debts of HK$48 billion. Although these funds do not need to be repaid in the short term, they will definitely have to be repaid in the long run.
Therefore, the nearly HK$48 billion in cash must be deducted from the HK$ billion in liabilities.
All in all, there is still nearly 5 billion Hong Kong dollars available.
However, out of the 33 billion Hong Kong dollars, Lin Haoran needs to pay back billion Hong Kong dollars to Citibank in one year. Therefore, after calculating this way, there are not many available funds left.
In addition, there are nearly thirty projects currently under development that also require funding.
Fortunately, the land for these projects has basically been purchased, the bulk of the money has been paid, and a lot of money has been invested in the projects. Although the remaining funds involved are also large, with the current capabilities of the Swire Group, after the burden has been reduced, this investment is already a piece of cake.
And don’t forget that as the largest rent collector in Hong Kong, the Hong Kong Land Group has the strongest property management. Therefore, even if the Hong Kong Land Group no longer continues to develop real estate projects, a large amount of funds will flow into the company’s account every year.
In addition, Dairy Farm International, a subsidiary of the Hong Kong Land Group, is a company with profits that are no less than that of the Hong Kong Land Group. As the 100% holding parent company, the Hong Kong Land Group can fully mobilize funds from Dairy Farm International.
After comprehensive consideration, Lin Haoran suddenly realized that both the Hong Kong Land Development and Dairy Farm International held too huge a cash flow.
This cash is now mainly kept in several banks in which Jardine Matheson & Co. previously invested.
But now, the Swire Group is no longer a subsidiary of Jardine Matheson & Co., and it is obviously a waste to keep the funds in these banks!
Moreover, it is not just the Hong Kong Land Group and its subsidiaries, but also the companies that Lin Haoran now controls, such as the Hong Kong Electric Group and the Wan Ching Group, which will generate a large amount of capital transactions and even a large amount of cash reserves.
Even if these funds are safe if placed in other large banks, their availability is too low!
In the past, the Swire Group invested its money as it had it, and it owed a lot of debts. In addition, Jardine Matheson itself was involved in the financial industry, so naturally it did not have such worries.
But things are different now. Not only has the Swire Group been completely separated from Jardine Matheson, it also holds a huge amount of cash. In this situation, it is obviously inappropriate to handle it as before.
At least companies like the Hong Kong Electric Group have started financial business and are engaged in external lending business, which can make a lot of money.
Why not set up an investment company and use its spare cash for overseas investments?
He doesn't like the loan interest, but he can invest in the stock market!
"Mr. Ma, you said that the Swire Group has temporarily withdrawn from the real estate industry and has more and more cash on hand. What do you think about us setting up an investment company to manage this fund?" Lin Haoran looked at Ma Shiming and asked him.
"Boss, I think you are now the richest man in Hong Kong. The several group companies you control are all giants in Hong Kong. I suggest that you go all the way and directly acquire a bank!" Ma Shiming said with a smile.
"Acquiring a bank?" Lin Haoran pondered. (End of this chapter)
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