Hong Kong 1980: The Savage Era

Chapter 139 [Wing On Group Fudu Hotel]

Purchasing properties at a premium now is certainly not a good idea, because since August, the price increase of properties in Hong Kong has been getting smaller and smaller. The prices of industrial buildings, for example, have fallen a lot, which is a dangerous signal.

Therefore, John Madden and Zhang Yuliang were quite tempted by Luo Qihong's proposal to purchase some of Wheelock's properties at a premium. After all, the shipping industry was more profitable than the real estate industry in Hong Kong at that time.

Li Fushu thought about it for a moment and couldn't help but sigh that Luo Qihong's method was quite interesting. Instead of exaggerating too much on the equity of China Gas Company, it would be better to exaggerate on the property. This way, at least some losses could be reduced and the corresponding physical objects would be in hand.

"What properties does Luo Sheng plan to acquire?" asked John Madden.

At this time, Zhang Yuliang's expression changed slightly, which was also noticed by Luo Qihong.

Luo Qihong was worried that Zhang Yuliang would stop him, so he quickly said, "I want to acquire a residential building owned by Wheelock Properties in May Road, Plantation Road, and Garden Terrace in the Mid-Levels, which is worth about 2 million yuan."

"How much premium does Luo Sheng intend to pay?" Zhang Yuliang asked.

Although the Zhang Zhushan family controlled most of the real estate companies under the Wheelock Group, due to the family lawsuits from 79 to 81, Zhang Yuliang had planned to sell most of the assets, withdraw from Hong Kong and invest in Australia, so Zhang Yuliang was still a little hesitant.

If Luo Qihong offers a good price, he may be able to take the opportunity to sell some of the properties.

Luo Qihong thought about John Madden and Zhang Yuliang's reactions and said with a smile, "How about a 1% premium?"

Zhang Yuliang shook his head and said, "At least 2%! The equity premium of China Gas Company is 5%. What do you think, Mr. Madden?"

Zhang Yuliang's move seemed to be a bit disrespectful to John Madden, but John Madden didn't mind it very much and replied directly, "I think it's okay."

Luo Qihong knew that if he refused, today's negotiations would be broken down. If the news leaked and attracted the tycoon Li Zhaoji, he would have no chance of taking over the China Gas Company, or he would have to pay a greater price.

"OK! I accept the price, but I require the letter of intent to be signed today." Luo Qihong was worried that someone would interfere.

Zhang Yuliang suddenly felt that the price he asked for was too low. Seeing how anxious Luo Qihong was, it seemed that there would be no problem in asking for a higher price.

"Of course no problem. Before that, should we discuss which properties Luo Sheng wants to acquire and how to pay the money?" John Madden said with a smile.

"How about the Garden Terrace residential building at 8A Old Peak Road?" said Luo Qihong.

John Madden looked at Zhang Yuliang and asked, "What do you think, Mr. Zhang? The price is 1.9 million yuan, and then a 2% premium, which is 2.28 million yuan."

Zhang Yuliang moved his body and said, "Okay, the price is 2.3 million yuan."

“中华煤气公司溢价5成，作价10亿4千1百万元，加上花园台住宅大厦的2亿3千万元，总计12亿7千1百万元。”罗齐鸿认真说道“这笔款项我想分3期，时间为6个月支付完成，第1期和第2期都是3成，第3期支付4成，当然其中产生的利息也会支付，按照8厘来算。”

"What do you two think?"

John Madden and Zhang Yuliang nodded in agreement.

In fact, the transaction went so smoothly thanks to Li Fushu. With the loan from the Bank of East Asia, Zhang Yuliang and John Madden were not worried at all that Luo Qihong would not be able to pay the money.

"Okay, since both of you agree, let's go and sign the contract later." Luo Qihong was a little impatient.

The closer it got to this point, the more Luo Qihong worried that "Li Zhaoji would show up halfway". It had to be said that these famous tycoons in his previous life had a great influence on him, and at the same time, they also put a lot of pressure on him. An hour later, Luo Qihong and John Madden signed a contract at the law firm, stipulating that Luo Qihong had to pay the first payment within a week, a total of 1 million yuan.

In a private room of a restaurant in Central, Luo Qihong and Li Fushu discussed the next loan matter.

"Mr. Li, you have heard what happened today. Can you pay me the 4.5 million yuan from the transaction of Paramount Company in one lump sum?" Luo Qihong asked.

Li Fushu pondered for a moment and said, "I need to go back and discuss this with the directors before I can reply to Mr. Luo. No matter what, it is a huge sum of 4.5 million yuan."

"Okay, then I'll wait for your good news, Mr. Li." Luo Qihong smiled slightly. "Mr. Li also knows that my premium this time is so high that it's hard to guarantee the funds. Can I use the 31% equity of China Gas Company and the Garden Terrace Residential Building to get a loan at the market price?"

Li Fushu said awkwardly, "I will try my best to help Luo Sheng. The board of directors of Bank of East Asia may not agree, but I will at least secure an 8% market value loan for you, Luo Sheng."

Luo Qihong nodded. Now he could only trust Li Fushu.

如果按照8成的贷款，罗齐鸿大概能拿到7亿1千万元的贷款，加上百乐门公司的4.5亿元，便是11亿6千万元，仍然差1亿1千1百万元。

Therefore, Luo Qihong planned to take advantage of the time difference in payment and make a fortune, at least to make up the gap of 1 million yuan.

Siu On Real Estate Company Office

Luo Qihong and Guo Zhiren, director and general manager of Yongan Co., Ltd., sat on the sofa and had a pleasant conversation as if they were old friends.

In fact, the two had just met, and Luo Qihong had never even heard of Guo Zhiren's name before.

However, Luo Qihong had heard of the famous Wing On Group and Wing On Department Store, and Guo Zhiren was the third-generation leader of the Guo family of the Wing On Group. Although he did not have much power, he had a lot of say.

The most famous department store under the Wing On Group is Wing On Department Store, one of the four largest Chinese department stores in Hong Kong. It is the second largest Chinese department store and is superior to Luo Qihong in both seniority and financial resources.

Moreover, Wing On Group has many industries, such as real estate, banking, insurance, etc., and each industry should not be underestimated.

"Mr. Luo, this visit is for the interests of the Fudu Hotel. The Wing On Group plans to purchase the 40% interests of the Fudu Hotel held by Zhao An Real Estate Company at a high price. I wonder if Mr. Luo can help us?" Guo Zhiren asked with a faint smile.

Luo Qihong didn't expect that Guo Zhiren came for the rights and interests of Fudu Hotel, and guessed that Wing On Group wanted to take the opportunity to merge the building.

Fortuna Hotel is adjacent to Wing On Department Store on Nathan Road, Yau Ma Tei. It covers an area of ​​1.6 square feet and has a floor area of ​​14.4 square feet. If it is acquired by Wing On Group, it will at least give Wing On Group an additional 20 square feet of rental area.

However, the Fudu Hotel is not a must for the Wing On Group. After all, Wing On Department Store already has enough floor space to develop its business. It just wants to maximize profits.

"Oh! Mr. Guo, please give a price first, and I will discuss it with the directors later." Luo Qihong didn't know how high the price Guo Zhiren was talking about, so he didn't say too much.

"2 million yuan, how about that?" Guo Zhiren said with a smile, "It's already a 1% premium. Luo Sheng is an experienced person in the real estate industry, and he should be familiar with the current market conditions. In the past, a 2% premium was naturally a normal thing, but now the market conditions are unpredictable, and no one dares to pay too high a premium."

"Wing On Group wants to merge the buildings and rebuild them, right? Now is indeed a good time. If Mr. Guo can increase his share price by another 5%, we can trade immediately." Luo Qihong said simply.

Guo Zhiren knew that the matter of the building merger could not be hidden from anyone, especially from a real estate tycoon like Luo Qihong. The premium he got before he came was no more than 3%, so a 25% premium was naturally not a big problem, but he did not want to pay too much. However, he was worried that Luo Qihong would raise the price again in the second negotiation.

(End of this chapter)