Hong Kong 1980: The Savage Era

Chapter 426 428 [Getting Closer]

By mid to late April.

The Hong Kong government launched the auction of five pieces of government land without any warning, which made many real estate developers eager to try.

Luo Qihong also took time out to attend, which surprised all the real estate developers at the auction.

You should know that among these five pieces of land, three are of industrial nature and two are of commercial nature.

These plots of land are not prime, but their locations are decent and their floor areas range from 3 square feet to 6 square feet.

As a well-known real estate enthusiast in Hong Kong, Huang Tingfang was very successful in developing land in Tsim Sha Tsui East and Canton Road, making huge profits, which made Sun Hung Kai Properties rise rapidly and become one of the top 15 real estate companies in Hong Kong.

When Huang Tingfang saw Luo Qihong appear, he immediately remembered the incident of the Central Plaza in Wan Chai being robbed, and his brows couldn't help but frown.

Although Huang Tingfang and Luo Qihong have collaborated many times, they are still competitors after all, and a rival who is growing very fast. He is now a hot figure in Hong Kong.

The real estate market in Hong Kong is very hot right now. Land prices have more than doubled from the early 80s. For example, an ordinary residential house in Central costs HK$2400 per square foot, while the price of a luxury house in Tresgun House has reached HK$4200 per square foot.

Luo Qihong's companies own a large amount of land and properties in Central. For example, Federal Realty alone owns 9 small and medium-sized commercial buildings worth more than HK$60 billion. There are also some scattered properties in Central, but the market value is only HK$50 billion. It is definitely a high-quality real estate company.

As a flagship real estate company, Zhaoan Real Estate Company is higher than Federal Real Estate Company in terms of market value and net asset value.

The market value of Sino Properties and Sino Land Company combined is only slightly higher than that of Siu On Properties, and cannot be compared with all the companies under Luo Qihong.

"Mr. Luo, you came here in person. Which pieces of land did you take a fancy to?" Huang Tingfang asked with a forced smile.

Luo Qihong smiled and said, "Don't be nervous, Mr. Huang. I'm just here to take a look and join in the fun. I may not leave."

"My companies are pulling back, and I can't personally undermine this resolution."

Hearing this, Huang Tingfang's expression improved a little. At least Luo Qihong didn't intend to take all of them away.

Sino Properties no longer owns properties in the Tsim Sha Tsui East area, and Sino Land Development only holds interests in Tsim Sha Tsui Centre, Empire Centre and a few other commercial buildings. Compared with the eight large properties in Tsim Sha Tsui East during its heyday, its holdings have been greatly weakened.

Of course, this was a strategic mistake on Huang Tingfang's part, as he wanted to cash out and develop other territories.

Like Huang Tingfang, many real estate developers can only develop their real estate companies through ordinary means. There are very few who are as powerful as Luo Qihong in the stock and securities markets.

There are only a few people who are so powerful so far, Luo Qihong and Li Zhaoji are among them.

The auction started soon, and Luo Qihong, as he said, did not participate in the auction, but only came to watch.

After the first piece of land was successfully auctioned, the real estate developers felt relieved when they saw that Luo Qihong really had no intention of quitting the game, and began to compete seriously for the next lot.

In the end, Huang Tingfang and his son spent HK$4.1 million to acquire two industrial plots of land and one commercial plot of land in Causeway Bay.

The demand for industrial buildings in Hong Kong has been sluggish, and the market has become much sluggish compared to 87. However, the Hong Kong government has passed a resolution that "real estate developers can demolish industrial buildings and convert them into commercial buildings", allowing industrial property rights holders to apply to the Town Planning Board for a change in land use and to build buildings for both industrial and office use.

In other words, Huang Tingfang could change the nature of the two plots of land by paying land compensation fees. He bought two plots of commercial land, but he still spent the money for industrial land.

"Congratulations, Mr. Huang!" Luo Qihong stood up and said to Huang Tingfang. "Mr. Luo, you are too kind. I just got a bargain." Huang Tingfang said, "The Hong Kong government is going to launch the Central Garden Road land king next month. Mr. Luo, are you interested in cooperating to win it?"

Luo Qihong shook his head. "This piece of land is worth 50 billion Hong Kong dollars. I am planning to develop my own land and have no plans to bid for it for the time being."

“That’s such a pity!…” Huang Tingfang nodded.

Huang Tingfang's purpose was very simple. With Luo Qihong's participation, the possibility of winning the auction would be much greater. If it was just his own company, it would not have the strength to win.

Even if we join forces with other companies, our competitiveness will also be insufficient.

Back to Dehe Real Estate Company.

Luo Qihong pondered for a moment and said to Su Qishan next to him, "If the market value of Federal Real Estate Company drops to 25 billion, and the auction price of the Central Garden Road land king is 35 billion, can we privatize Federal Real Estate and take over the Central Garden Road land king at the same time?"

Another few billion yuan in cash!
Su Qishan took a deep breath and said, "The company does not have so much cash flow at the moment, so we can only carry out one of the projects at most."

"If you want to force it, that's fine, but I'm worried that we might run into trouble. At that time, I'll need your personal rescue."

Luo Qihong nodded slightly. "The rescue is not a big problem, but I can only provide 20 billion yuan at most. Do you think we can continue?"

Su Qishan's eyes lit up and he said excitedly, "Of course, we now hold 62% of the shares of Federal Real Estate. Based on the market value of 25 billion, we need to spend about 11 billion in cash, and there will be some left."

Luo Qihong smiled and said, "The privatization of Federal Realty Corporation has been delayed for more than two years, which has greatly eased our economic difficulties. If it is delayed any further, it may not be beneficial and may even cause new difficulties."

Su Qishan calmed down. He didn't know why the boss was so confident about the crash. But he also believed it inexplicably. It might be because of the boss's winning record.

Luo Qihong was very clear that if he missed this opportunity, he would have to wait until 98 for another chance, and the funds required by then would inevitably exceed the current market value.

So, no matter what, he had to privatize the Federal Realty Company and the Shipping Company as soon as possible.

"How many scattered properties does the company have now?" Luo Qihong asked.

Su Qishan thought for a moment and replied, "There are probably some scattered properties with a market value of 12 billion yuan, and some land."

"Sell them all at the market price, don't keep any. We don't have much time left. If you feel it's a pity, you can buy them back later." Luo Qihong said in a deep voice.

Su Qishan sensed something was wrong and explained, "Boss, the company previously owned scattered properties worth more than HK$30 billion. It's not that we want to keep some, but it may be that the pace is too slow. I'm worried that if we sell them on a large scale, the buyers will drive down the price."

"Do it as soon as possible. 5 percentage points below the market price is fine. Don't be too concerned about the price. If there is a sharp drop, we can still make a large profit from the difference." Luo Qihong said.

"Yes, I will try my best to resolve these properties and land within half a month. I will never delay and disrupt the boss's plan." Su Qishan vowed.

He knew that many people were eyeing his position, and if he didn't work harder, the boss might replace him, and all his previous efforts would be in vain.

So he must keep up with Luo Qihong and not lose him again.

(End of this chapter)