Hong Kong 1980: The Savage Era

Chapter 503 Chapter 505 [131 billion big project]

end of June.

The negotiations between Hong Kong's Kowloon Airlines and China Airlines finally made progress. China Airlines took into consideration that 97 was approaching and Hong Kong's aviation industry was monopolized by Cathay Pacific Airways. If it took action in 97, it would probably face many difficulties and be affected by public opinion.

However, China Airlines still does not want Zhaoan Group to hold their shares. Even if the entire Kowloon Airlines is exchanged for 1% of the shares, their bid is still very low.

Once the transaction is successful, Zhaoan Group will suffer huge losses, so it is just progress.

China Airlines' strategy of making a massive push into Hong Kong has already been decided and cannot be changed, causing panic among the top executives of the Swire Group. The aviation industry is their money bag, and their position would be unstable if it was affected.

Therefore, the senior management of Swire Group once again found Luo Qihong and wanted to discuss the acquisition of Kowloon Airlines.

Finally, the two sides reached an agreement, Cathay Pacific Airways transferred 5% of its shares to Siu On Group, and Siu On Group sold its 68% stake in Kowloon Airways to Cathay Pacific Airways for HK$13.8 billion.

This price made Zhaoan Group a small profit, enough to buy about 2% of Cathay Pacific's shares.

The Swire Group then made a decision that surprised Luo Qihong and sold 13% of Cathay Pacific Airways' shares to China Airlines. As for any other private transactions, Luo Qihong certainly had no way of knowing.

It seems that Swire Group has been willing to cut a lot of meat in order to keep the fat piece of meat in the aviation industry.

This also reminded Luo Qihong of a saying from his previous life: 'Among the British-owned enterprises in Hong Kong, Swire Group is the best at playing the mainland card.' If it were Jardine Matheson, they would definitely not be so willing to do so. They would not cut their own flesh to protect themselves, but would only let outsiders cut their flesh.

"We finally got rid of Kowloon Airlines." Bai Jinyan said happily. In Zhaoan Group, only Kowloon Airlines was losing money, while the other companies were making huge profits, which made Bai Jinyan extremely disgusted with this company.

"From the sound of your voice, it seems you really don't like Kowloon Airlines?!" Luo Qihong asked knowingly.

In the original plan, Luo Qihong wanted to enter the world aviation industry with Kowloon Airlines, but after discovering that the aviation industries in various countries were not very profitable, he backed down, which led to the sale of Kowloon Airlines.

Bai Jinyan curled his lips and said, "Who would like a company that loses money? If it wasn't related to your big plan, I would be willing to sell it to China Airlines at a low price."

"Kowloon Airlines was just a casual move. We wanted to disgust the Swire Group, but we didn't expect it to stay in our hands for so long." Luo Qihong said half-truthfully.

"The Swire Group now only has aviation, real estate and a small amount of manufacturing. If it loses the aviation industry, it will probably become a second- or third-rate company." Bai Jinyan said, "But it is indeed very bold to give up profits in this way."

"If you hadn't pushed me so hard, I don't think the Swire Group would have given up its interests so easily, or even thought about how to fight back."

"It's not me who's pushing them hard, it's China Airlines. Kowloon Airlines still has some market share in Hong Kong, and they've cut off Cathay Pacific's water supply to the mainland. It's no exaggeration to say that they've cut off two fingers. They're afraid that after 97, China Airlines will rely on the Hong Kong government to deal with them, so they decided to just deal with us and China Airlines together." Luo Qihong smiled faintly.

In fact, the mainland's top leaders are looking at the long term. Hong Kong still has great use, and Cathay Pacific, as Hong Kong's monopoly enterprise, is also a key link in it. It is best not to move for the time being.

He was already very satisfied to get a 5% stake in Cathay Pacific Airways, not to mention that he had made a lot of money from Kowloon Airlines.

"Speaking of this, companies in Hong Kong are relocating their registrations one after another. Should we follow suit?" Bai Jinyan was still a little worried. After all, rumors were spreading everywhere in Hong Kong.

Luo Qihong said with a smile, "All the companies that can relocate have already done so. Companies like China Gas Company and Siu On Real Estate Company cannot relocate because our only foothold is in Hong Kong."

"Yeah." Bai Jinyan nodded reluctantly. Luo Qihong had made too many investments overseas and she couldn't get involved, so she could only keep her business in Hong Kong.

"The group should take its time when investing overseas. Don't be too hasty. For example, in the UK incident, who would have thought that Soros would attack the pound. The group's assets are worth more than 60 billion. As long as the momentum of development is maintained, it will sooner or later occupy a place in the world." Luo Qihong said soothingly. Hengan Investment Company's assets have been soaring. It has opened up markets in the United States and Singapore. Today's assets are worth more than billion US dollars, almost half of Zhaoan Group. Bai Jinyan is naturally anxious.

Early July.

Chen Zhilong walked into Luo Qihong's office with a bright smile. Before he sat down, he said, "Boss, there is good news. The Hong Kong government is going to launch the 'Diamond Hill Land King'. This piece of land has an area of ​​28 square feet. It is expected to build five residential buildings with a floor area of ​​120 million square feet, and 65 square feet of commercial space."

This land is located in Lion Rock, at the entrance of the tunnel between Kowloon and Shatin in the New Territories. It is a very good project.

Luo Qihong took the report and opened it. The total construction cost was estimated to be HK$20 billion, plus interest and taxes, which would be around HK$24 billion.

As for the auction fee, it is not mentioned above and may be impossible to estimate, but based on the estimated house prices in 1994 and 95, the average price per square foot could be 5500 yuan, which would bring in 66 billion in cash.

The 65 square feet of commercial space is worth at least HK$65 billion, totaling HK$131 billion.

The profit can reach HK$60 billion, which means a 65 square feet commercial plaza for free.

Of course, this is the most conservative estimate. If the cost can be reduced to HK$55 billion, the profit will be more substantial.

The reserve price of this piece of land is HK$22 billion, and a premium of 5% to 6% is generally considered very high.

"The highest price I'll give for this project is 40 billion. If it exceeds this number, don't consider it anymore." Luo Qihong did not plan to attend the event, fearing that the price would be deliberately raised.

In fact, Zhaoan Group already has several large shopping malls, and this project is just the icing on the cake.

It is really useless to spend too much money to acquire it. If it is for investment and making money, the group can also find similar alternatives.

"Who does the boss want to send to the auction?" Chen Zhilong looked eager to try.

"You and Wen Yi should go to the auction together this time. You have participated in many auctions and should have mastered the skills." Luo Qihong said.

"Okay, got it. What we have to be wary of this time are Wharf Holdings and Sun Hung Kai Properties. The former has made a lot of cash with Times Square in Causeway Bay and Harbour City. This piece of land does not require land premiums, and only costs HK$24 billion. Wharf will definitely invest heavily."

"Sun Hung Kai Properties has made huge profits in residential buildings in recent years, and its market value has exceeded HK$100 billion. Its cash flow should not be much worse than ours, and it will not be timid."

Chen Zhilong analyzed Luo Qihong with a serious expression.

Luo Qihong suddenly remembered seeing an asset assessment of the Guo Bingxiang brothers in a magazine (only the market value of listed companies was counted). The family assets of HK$571.9 billion ranked 7th in Hong Kong.

The first place is naturally Li Jiacheng. After all, Luo Qihong's listed companies are not as good as Li Jiacheng's Cheung Kong Holdings and Hutchison Whampoa. However, Luo Qihong is also ranked fourth with family assets of HK$4 billion.

The Kwok brothers only do real estate, but they have managed to increase the market value of Sun Hung Kai Properties to HK$1100 billion, which is really impressive. Currently, Sun Hung Kai Properties has become the third among Hong Kong's blue chip stocks, second only to HSBC and Hong Kong Telecom. In the 3s, its land reserves were already ranked first. At this time, the land market was booming, so they naturally made a lot of money.

"Sun Hung Kai Properties has so much land reserves, they shouldn't compete too fiercely with us, and their reserve price will certainly not be higher than ours. As for the Wharf Group, you better be careful and use some tricks," Luo Qihong advised.

"Yes, boss!" Chen Zhilong replied.

(End of this chapter)