Hong Kong 1980: The Savage Era

Chapter 437 [Tsuen Wan Plaza]

Ever since Dehe Real Estate Company won the bid for the Garden Road land king, Luo Qihong's personal funds have been reduced to HK$12 billion. The rest are calculated in real estate, and he is also bottom-fishing in the Hong Kong stock market. This HK$12 billion will not last long.

He must have a larger source of funds as soon as possible, otherwise it will be difficult to carry out his current major projects, such as Kwai Chung Container Terminal No. 8 and a series of acquisitions.

Siu On Real Estate Company Office

Although Siu An Real Estate Company is supported by Siu An Group and De'an Securities Investment Company, its importance cannot be underestimated. This can be seen from the market value of Siu An Real Estate Company of several billion Hong Kong dollars.

Luo Qihong intends to develop Zhaoan Real Estate Company into a super real estate enterprise like Sun Hung Kai Properties that integrates real estate rental and development, which is also the symbol of the Luo family.

"Boss, this is the land at Tai Dam Street and Yeung Uk Road in Tsuen Wan. Do you really want to develop Tsuen Wan's iconic building here?" Chen Zhilong said as he handed over the report.

The land of Tsuen Wan Plaza was reclaimed from the original ferry terminal and was acquired by Sun Hung Kai Properties in the previous life. In this life, Luo Qihong planned to intercept it and let Siu On Real Estate Company develop it.

In that area, there are Tsuen Wan Plaza, Nina Tower Phases 88 and , and Citywalk, which is the commercial center of Tsuen Wan. The investment in it is also huge. For example, the investment in Nina Tower Phases and is as high as HK$ billion. It has Tsuen Wan’s tallest building with floors, the first four- or five-star hotel, and a garden-style platform.

If Siu On Real Estate Company wants to take over Tsuen Wan Plaza and Phases 1 and 2 of Citywalk, the investment will be no less than tens of billions of Hong Kong dollars. This will be a super large project, but the profits will also be extremely lucrative.

"What? Do you have a different opinion? Or do you not approve of Tsuen Wan's spending power?" Luo Qihong asked seriously.

"No, the Tsuen Wan area will develop sooner or later. It's just that the investment of tens of billions is too large and it will take a long time to recover the investment. I'm worried that it will affect the further development of the company." Chen Zhilong expressed his concerns.

"Don't worry. This is a commercial complex in Tsuen Wan with residences, offices, hotels, gardens, etc. The speed of recovering funds will not be too slow. If it still doesn't work, I will let Dehe Real Estate Company participate and will never let Zhaoan Real Estate Company affect the development." Luo Qihong said.

The asset value of Dehe Real Estate Company has reached 360 billion yuan, which is higher than the 215 billion yuan market value of Hong Kong Land Development. It can be said to be the number one real estate company in Hong Kong. Investing billion yuan in two or three years is not a big number. After all, the annual rent of Dehe Real Estate Company is tens of billions of Hong Kong dollars.

With the boss's guarantee, Chen Zhilong would certainly not object anymore.

The urban areas of Hong Kong Island and Kowloon have developed quite maturely. Real estate development has begun to shift to the New Territories, and Tsuen Wan is the top priority of the New Territories. In the future, Tsuen Wan's commercial complex will surely have amazing returns.

"I have already contacted the Hong Kong government. The Hong Kong government requires the shopping mall on the land of the old Tsuen Wan pier to be put into use in 92." Chen Zhilong said, "Time is very urgent. We must get it as soon as possible."

"No problem. As long as there is sufficient funding, two years will be enough to complete the construction of a super large shopping mall." Luo Qihong was not worried about this at all. A problem that can be solved with money is not a problem.

"I think that if we want a commercial complex to develop rapidly, we need to introduce transportation facilities such as buses in advance. This will help attract more people and increase house prices and rents," suggested Chen Zhilong.

“Once you get the land, you can start contacting those companies.”

"Other companies are easy to deal with. Kowloon Motor Bus Company has some problems," said Chen Zhilong.

"This is a win-win project. KMB will not make it difficult. Although Sun Hung Kai Properties controls a large number of shares in KMB, KMB is still not controlled by the Kwok family. If it really doesn't work out, I will come forward in person. At worst, I can launch a takeover battle and compete with Kwok Tak-sheng for the control of KMB." Luo Qihong said bluntly.

"Yeah, that's right. The controller of KMB is Lei Juekun, who is eyeing Sun Hung Kai Properties, so he must want a reliable ally." Chen Zhilong said. "Be careful during the negotiation, don't let Lei Juekun hold you hostage, and know how to take advantage of the situation and use Sun Hung Kai Properties to check Lei Juekun." Luo Qihong advised, worried that Chen Zhilong made a mistake at the beginning and it would become a troublesome matter in the future.

"Don't worry, I will do a good job of this." Chen Zhilong promised.

In Chen Zhilong's opinion, his boss was too cautious. Zhaoan Real Estate Company was already a giant, and Lei Juekun should not dare to play tricks.

"If all else fails, we can seek help from the Hong Kong government. If we make a big move in Tsuen Wan, it will be of great benefit to the Hong Kong government." Luo Qihong said, "Li Mingzhi of the United Group wants to acquire its Wan Chai Kashima Building. What do you think?"

Chen Zhilong thought for a moment and said, "The current market is still not good. Selling the Kashima Building at this time is not in the interests of our company. Moreover, the company's business is doing well. There is no need to sell the property at a low price in the sluggish market."

"Li Mingzhi said that he could buy the land at the highest price in 89, and even at a 1% premium," said Luo Qihong, and it was obvious that he was tempted.

"Kashima Building is an old property of Zhaoan Real Estate Company. It was an important asset of the company when it was first established. Now the company owns a large number of properties in Central and Tsim Sha Tsui. Kashima Building is no longer outstanding. Selling it can alleviate future financial difficulties." said Chen Zhilong.

"Li Mingzhi's United Group is very sincere. You can contact him. Zhaoan Real Estate has acquired a lot of high-quality properties before. The profit from selling high and buying low is considerable." Luo Qihong said.

"Yes, I will inform Director Kang (Kang Wenyi) and Director Cheng."

Li Mingzhi is a very capable person. After offending the Australian Securities and Futures Commission, he began to sell off all his assets in Australia and then moved them to Hong Kong. Now he owns 5 listed companies with a total market value of HK$40 billion.

This person is definitely a leader among the Chinese in Southeast Asia, only slightly inferior to those big Chinese families in Southeast Asia.

United Group controls four listed companies, namely United Real Estate, United Industries, Santai and Dongrong, while Li Mingzhi only controls 4% of the shares of United Group.

If Liu Luanxiong is still engaged in the business of sniping listed companies, United Group is a good target.

United Real Estate Company owns a large number of properties in Tsim Sha Tsui, Mid-Levels and Wan Chai, and these properties are also of very high quality, such as United Plaza in Tsim Sha Tsui and the Fu Jia Li Garden high-end residential building in Mid-Levels.

In fact, Li Mingzhi is very good at financial management. He often buys and sells property assets of his various companies in order to raise the stock price of all United companies and increase the market value.

Li Mingzhi has mastered this method in Australia, but after learning from the lesson in Australia, the securities and media circles in Hong Kong have criticized it, but Li Mingzhi refuses to admit it.

Some even said, "Hasn't Li Jiacheng done a lot of acquisitions? Many people don't understand the whole story, but no one directly questions his actions. If you are well-known and prominent, no one will question you."

Luo Qihong admitted that what Li Mingzhi said was not wrong, but Li Jiacheng knew when to quit, while Li Mingzhi did not seem to have this awareness.

Therefore, this person will definitely be exposed.

(End of this chapter)