Hong Kong 1980: The Savage Era

Chapter 365 Chapter 366 [Energy Enterprise]

"Do we need to send someone to keep an eye on Zhong Wei?" Su Qishan asked cautiously.

Zhong Wei is a little crazy. Everyone is worried that this guy will do something that will hurt others and benefit himself. Knowing it in advance can reduce the impact.

"Okay." Luo Qihong nodded slightly, not really caring about it. "How is the progress of the Jinzhong Dehe Plaza project?"

Dehe Plaza covers an area of ​​11.5 square feet. The project includes the construction of a shopping mall, a garden courtyard, a commercial building and a hotel building.

The commercial building is 36 stories high with a floor area of ​​86 square feet, and the shopping mall is 5 stories high (including the basement) with a floor area of ​​more than 20 square feet.

The entire Dehe Plaza has a floor area of ​​153.4 million square feet, and is expected to provide Dehe Real Estate Company with an annual rental income of more than HK$3 million. According to the current market conditions, the investment can be recovered within 7 years.

"It can be completed in the first half of next year. However, if we get the land next to it, it will inevitably affect the opening and rental collection of the first phase of the property, and the leasing of the hotel and commercial building will be greatly hindered." Su Qishan said.

Luo Qihong said, "Everyone knows that we are determined to get the land next to the barracks. The reserved construction works can prove everything. But forget it, let's just take the loss. We must get the land next to it."

"In that case, let's delay the construction until the Hong Kong government is willing to sell the land next door."

"Yes!" Su Qishan continued to report, "There is a small commercial building for sale at the intersection of Star Street, Yongfeng Street West and Queen's Road East in Wan Chai. I personally think we can buy it, then purchase the old building, and finally merge the buildings to build a Grade A commercial building with a floor area of ​​up to 40 square feet."

“This place borders Central. Although the land price is not as high as that in Central, it is 4% more expensive than other places in Wan Chai. It is a good project, but it takes a long time to acquire the old buildings.”

"Are there many owners in this place?" Luo Qihong asked.

"A lot. Offices and shops have been broken up, and there are more than 1 owners." Su Qishan said, "The place is small. Once we acquire 3% of the scattered properties, it will inevitably arouse the vigilance of other owners, and they will definitely take the opportunity to raise the price."

Luo Qihong remembered that the Taikoo Three Towers in his previous life were located at that location. He heard that it took more than ten years to acquire the old building. The land covers an area of ​​about 4 square feet, which is a good project.

The acquisition process takes a long time, but it doesn't require a lot of effort.

"Take it down, take it down as much as possible." Luo Qihong decided, "Assign staff to be responsible for the affairs of this small commercial building and the adjacent property."

"Yes, boss!" Su Qishan said happily, "I will keep a close eye on this piece of land."

“How’s the New Sun Plaza project going?”

The New Sun Plaza covers an area of ​​4.4 square feet. After completion, the shopping mall area will be 15 square feet, the office area will be 43 square feet, and the rentable area will be 40.1 square feet.

"We will basically be able to move in in March next year," Su Qishan reported. "We have already started recruiting tenants. Many brand companies have contacted us. All the good shops have been reserved, but it is a bit difficult to rent out office space."

"What's the reason?" Luo Qihong asked with a raised eyebrow.

“The biggest reason is that there is a large supply of office space nearby and our rental prices are higher than those of our peers.”

"Then lower the bar a bit and catch up with our peers," Luo Qihong said.

"There are some old commercial buildings nearby, and ours is newly built, so it should be higher in theory, which will help us to get back our investment as soon as possible." Su Qishan still thought that the price should not be reduced. "You decide, if the vacancy rate exceeds 40% after the completion, we must reduce the price for renting all the offices." Luo Qihong knew that office space was not a scarce commodity, and compared with places like Central where every inch of land is worth a lot of money, it was difficult to make it 'scarce'.

Soon, Su Qishan mentioned the Federal Real Estate Company again. "At the request of the Federal Real Estate Company, we have already issued 3 million yuan in shares. Zhang Zongdao has also negotiated with the Hong Kong Land Company to acquire the Excelsior Hotel and the World Trade Center Building in Causeway Bay for 5 billion yuan."

Of this amount, HK$10 billion came from rights issue, and the remaining HK$6 million was a loan.

Federal Realty's current market value is 26 billion yuan, and its debt ratio is still as high as 58%. However, after the transaction is completed, its market value will exceed 30 billion yuan and its debt ratio will drop below 50%.

In addition to the privatization of China Entertainment Properties, Luo Qihong will have to pay at least 22 billion yuan to complete the final plan.

"Well, let's leave it at that for now regarding the Federal Real Estate Company. Your current work focus is to complete those projects for Dehe Real Estate Company and keep an eye on the land next to Dehe Plaza, as well as raise funds for that land." Luo Qihong instructed.

Su Qishan responded with a "yes" and added, "There is one more thing. The Royal Bank of Canada has found Li Jiacheng and hopes that Li Jiacheng can invest in Husky Energy Canada."

"Husky Energy is one of Canada's largest energy companies. It is heavily in debt and lost more than HK$2 million last year. This year, the loss is even worse, and it is expected to exceed HK$3 million."

"If we inject capital to control the company, we will lose about 1 million yuan every day. However, Li Jiacheng seems to be very interested in this project and does not care about the possible losses."

"Do you mean that we should intervene and steal Li Jiacheng's business?" Luo Qihong asked with a serious face.

He didn't expect that even though Li Jiacheng had lost energy companies such as the Electric Light Company, it still couldn't stop Li Jiacheng's expansion in the energy field.

If he steals this business, he will naturally become enemies with Li Jiacheng, or even a mortal enemy.

Luo Qihong also did not want to take over the mess of Husky Energy because he had learned about Husky Energy and knew that once he accepted it, he would have to clear the bank's debts and deal with internal business cost issues.

The first problem is difficult to solve. Luo Qihong is not the controlling shareholder of the Royal Bank of Canada and has no power over the Canadian market, which is very different from Li Jiacheng.

The second problem would require a lot of energy, or sending out a very capable confidant to solve, but unfortunately he had neither of these.

If he had to take over, Luo Qihong felt a little nervous, because some businesses require more than just money.

"Boss, don't you have a gas company under your company? You can take over it." Su Qishan said tentatively.

"It's different. Oil development in Canada is very difficult. In addition, the local oil composition is very complex and the cost of decomposing and cleaning it is too high. It is better to import it directly from the Middle East. In this case, it will be difficult for Husky Energy to achieve great success. Canada's population is only more than 3 million." Luo Qihong said.

Su Qishan retorted, "Boss, that's not the case. Husky Energy has many oil wells in the Middle East. The current losses are mainly caused by the bad market conditions. As long as the international oil price picks up, Husky Energy can make a lot of money."

"Qishan, I don't want to go against Li Jiacheng for the time being. Moreover, a big part of the reason why the Royal Bank of Canada approached Li Jiacheng is because of Li Jiacheng's status as a major shareholder. It is difficult for us to launch a successful sneak attack." Luo Qihong said earnestly.

Su Qishan guessed Luo Qihong's reaction, so he took out a document and said, "This is the information of another energy company of the same level in Canada. This company, like Husky Energy, is facing a huge dilemma."

Luo Qihong was slightly stunned, but still took the report and read it carefully.

(End of this chapter)