Hong Kong 1980: The Savage Era

Chapter 337 Chapter 338 [Spin-off]

Tsim Sha Tsui East Shangri-La Hotel
The waiter poured red wine for the guests, then went out and closed the door.

"This wine is good, where is it from?" Luo Qihong took a sip and felt it was very mellow, so he took the bottle of red wine with interest and wanted to see where it was produced.

As a result, his eyes went dark and the words on it seemed to be in French.

"Mr. Luo, this is a red wine produced in 78 by the French Chateau Latour. It's not expensive, only about 7 or 8 yuan a bottle," Huang Zhixiang replied.

For super-rich people like them, 7 or 8 is just a drop in the bucket, and perhaps even the cheapest.

"It's worth the money! It's better than the red wine that costs hundreds of thousands." Luo Qihong nodded slightly, then put down the red wine bottle, looked at Huang Tingfang, and said, "What do you want to talk to me about today, Mr. Huang?"

Having worked with Huang Tingfang for a long time, Luo Qihong didn't want to beat around the bush and waste time.

"I heard that Mr. Luo wants to bid for the land at 33 Canton Road, Tsim Sha Tsui, and Sun Hung Kai Properties also has such a plan." Huang Tingfang said half and kept the other half, as if he wanted Luo Qihong to propose it first.

Luo Qihong knew what Huang Tingfang meant, and asked with a smile, "Mr. Huang wants me to withdraw and help Sino Real Estate Company?"

Huang Tingfang shook his head. "How could I make such an excessive request? Such a large piece of land can bring long-term benefits to the company. How about our two companies cooperate to win it?"

Luo Qihong thought seriously for a moment, "How much rights and interests does Mr. Huang want to occupy?"

"We split it 20-." Huang Tingfang explained, "Mr. Luo should know that this piece of land will cost nearly billion yuan. Such a large amount of money is a heavy burden for that company. Even if they can get a loan, it will take a long time to repay it."

Luo Qihong said, "Okay, but my private company has already made a bidding proposal. Let's discuss the bidding price first. We must win this project."

Huang Tingfang certainly knows the value of this project, even though it is next to the bustling Harbour City.

"3 million! This number was obtained after careful calculation by the senior management of our company. We estimate that the cost can be recovered within 8 years."

"Long life! That's a good omen! But my private company's asking price is 4 million yuan. The main reason is that I'm worried that someone will pay too much premium and snatch the project away. If I get this project, the 1 million yuan won't be a big deal." Luo Qihong insisted on the price he offered.

Huang Tingfang felt that Luo Qihong was trying to take the initiative. He didn't care much about the initiative. He was mainly afraid that he would not be able to gain any benefits from such a good project.

Whether in Tsim Sha Tsui or Central, there is not much land available. One bidding or auction will result in one less piece of land.

"Okay, then let's go with the price of 4 million that Luo Sheng mentioned. However, I hope that the completed building and commercial complex can be managed by Sun Hung Kai Properties." Huang Tingfang is no ordinary person.

Luo Qihong thought about it and realized that this was a family-held interest, and it would be troublesome to obtain management rights, so it would be better to just sit back and collect dividends.

"Okay, but I also hope that when Sino Real Estate Company sells 50% of its interests in the future, my family will be considered first." Luo Qihong was worried that Huang Tingfang would sell the interests in China Hong Kong City like he sold the properties in Tsim Sha Tsui East.

Although the property rights of this piece of land are only 70 years, it is enough to make three generations rich, and it will not be a problem to sell it for 3 billion Hong Kong dollars in the future.

"Then let's have a happy cooperation!" Huang Tingfang stood up and extended his hand to Luo Qihong.

"Happy cooperation!"

The two hands were tightly clasped together and smiles were on their faces.

Federal Realty Office

The Hang Seng Index has been rising sharply recently, and the share prices of real estate companies have been the first to bear the brunt, becoming the highlight of the stock market again. The share price of Federal Real Estate has also risen significantly, and its market value has risen to 24 billion yuan. However, its debt is also serious, with a debt ratio of 61%. It has borrowed 7.3 million yuan from the bank some time ago. Fortunately, the real estate market has risen, which has reduced the debt ratio of Federal Real Estate.

“目前公司已经在中环持有5幢商厦，收租面积逾过75万平方尺，在半山区有11幢别墅、2幢高级住宅大厦.总价值34亿港元。”张宗道汇报说道。

This is the latest asset and debt situation of Federal Realty Corporation.

According to Luo Qihong's plan, Federal Realty will continue to develop its existing land and enter a recovery period, using rent to develop the land and repay debts.

"I heard that the parent company Wheelock will be split up, and Federal Realty will become your property." Zhang Zongdao said tentatively.

In fact, he had guessed all this a long time ago, but it was not so clear. After all, Luo Qihong, as the CEO of Wheelock Group, went to Federal Realty to serve as chairman of the board of directors. This behavior was very strange.

"Yes, Federal Realty Company will give it to me. What's the reaction of the employees below?" Luo Qihong knew that Zhang Zongdao had received the news, so the ordinary employees below should have received it as well.

"There is no unusual change. It doesn't matter to them who owns the company. They just get paid and work the same way," said Zhang Zongdao.

"Do we need to release some news to lower the share price of Federal Realty?" Zhang Zongdao suggested.

Luo Qihong waved his hand and said, "No need! The things inside are very complicated, and you can't get involved. Just let the Federal Real Estate Company remain as it is."

In the afternoon.

Luo Qihong came to the United Enterprise Company again to check the current situation of the company.

The main assets of the United Enterprises Company are ships, but there are not many liabilities on the books, and it can completely survive by relying on the remaining shipping business.

This is also one of the reasons why Luo Qihong pays little attention to joint venture companies.

Today, the United Enterprise Company has contracted the shipping business of Hexiang Trading Company and makes some profit every year, which can repay some debts.

Luo Qihong sold many small companies under the United Enterprise Company, mainly some small companies in Hong Kong and some company equity.

That's why United Enterprises' debt financial situation is so good, with current net assets of $1.32 per share.

What interested Luo Qihong was that the united enterprise had a large number of securities investment companies under its umbrella. Although these companies were small in scale, they also involved a number of overseas company shares, which was an unexpected surprise.

This may solve the basic problems that Luo Qihong wants to solve when investing overseas, allowing Luo Qihong to easily set up the framework.

In fact, before 71, United Enterprises was engaged in securities investment business. Under the command of John Madden, it gradually transformed and invested in the shipping industry. In 73, its fleet was formed into the Baofu Development Company and listed on the market.

Therefore, the proportion of ships under the United Enterprises Corporation was not very high. Even though it cashed out and purchased a number of ships from 71 to 73, it did not sell all of its securities investment companies and some assets.

According to Luo Qihong's idea, both Federal Real Estate Company and United Enterprise Company would be acquired by Dehe Real Estate Company, and United Enterprise Company would eventually be fully privatized and become the flagship company of Dehe Real Estate Company's overseas securities investment.

Dehe Real Estate Company will also be renamed Dehe Group Co., Ltd., holding a large number of properties in core areas such as Central and Mid-Levels, and serving as the flagship group of the Luo Qihong family's investment in the world.

However, it will take a relatively long time to complete the integration, after all, Luo Qihong has enough subsidiaries under the joint venture to integrate.

(End of this chapter)