Hong Kong 1980: The Savage Era

Chapter 561 563 [Others are afraid, I am greedy] (Newbies please collect)
By April, Sun Hung Kai Properties announced the postponement of the development of 4 projects, Cheung Kong Holdings announced the postponement of the development of 13 projects, and the Zhaoan Group had already suspended most of its projects and cleared out all its residential unit inventory before the financial crisis.

Companies such as Sun Hung Kai Properties and Cheung Kong Holdings were unable to judge the exact time of the financial crisis, so they held a large number of residential units. For example, Wheelock Properties launched a site in Kowloon at the end of last year with a unit price of only HK$5888 per square foot, which was HK$10000 per square foot during peak periods.

It can be seen that major real estate developers are really trying desperately to cut prices in order to cash out, repay loans, and have sufficient funds for turnover.

Real estate developers are now working at full capacity, with prices of some sites already reduced by more than 6%.

The land that Zhaoan Group is currently developing are all small plots, and medium and large-scale real estate projects have been frozen and will not be unfrozen until the second half of 99.

"Boss, we won the bid for the Shing Mun Valley Park land in Tsuen Wan with HK$1.6 million. The second place was Cheung Kong Holdings with HK$1.43 million." Chen Zhilong came over excitedly to report on his work.

The land covers an area of ​​8.3 square feet and can be built into a floor area of ​​60 square feet, making it a great luxury housing project.

The land cost of 1930 yuan per square foot is much cheaper than the current 4000 to 5000 yuan (of course, this is a price that is out of stock), which means that Zhaoan Group has picked up a huge bargain.

It is not easy to find land bargains because all real estate developers want to get them, even Cheng Yu-tung, who was unwilling to bid the highest price, has made a move.

If the price is too low, the Hong Kong government will withdraw its bid; if the price is too high, it will be laughed at by peers.

However, it is very easy to pick up property bargains, just like during the Sino-British negotiations in 83, when a large number of properties flooded the market. As long as you are willing to bid, you will definitely get it.

"Well, that's great! We acquired very little land in the past two years, and now we have to make up for it. However, we still need to pay attention to the price and not put too much pressure on our peers." Luo Qihong said.

"Yes! Boss, the Hong Kong government is preparing to launch the land of the former police dormitory on Canton Road in Tsim Sha Tsui. It covers an area of ​​11.1 square feet. The location is very good and all major real estate developers will definitely take it seriously." Chen Zhilong said.

Although the Zhaoan Group has a large amount of reserve land, there is not much land left in the urban areas of Hong Kong Island and Kowloon, and it rarely develops it, waiting for the property market to reach its peak. This shows the importance of this piece of land.

"We have already evaluated this piece of land, and the price per square foot is around HK$4000, which means it is worth HK$44 billion. But the current market conditions are very bad, and the Hong Kong government's reserve price is HK$29 billion, which is more than 3% lower," Chen Zhilong continued.

"What price do you think is appropriate?" Luo Qihong asked Chen Zhilong.

It's hard to find a bargain this time. Good land is the favorite of real estate developers and they will definitely pay attention to it.

"Although everyone will pay attention to it, the funds of major real estate developers are only enough for turnover and they have to cope with the difficulties to come, so they will definitely not dare to offer a high price. I think our 1% premium is stable, which is 32.8 billion Hong Kong dollars."

The asking price is 32.8 billion yuan, with the land cost being close to 3000 yuan per square foot and the floor cost being 5000 yuan per square foot.

According to the market valuation in the millennium, the opening price is six to seven thousand yuan per square foot, and the profit is about 1000 yuan per square foot. The profit margin is not high, so it is very likely that the land will be held for a period of time.

"OK! Let's mark the price according to what you said." Luo Qihong nodded.

After the financial war is over, the Zhaoan Group will start to take action on the commercial buildings in Central. The prices have dropped by more than 97% compared to the peak in 2. It is expected that they can be reduced to 98% of the original price by the end of 7, and can even be further reduced to 6% of the original price.

That is to say, Zhaoan Group made a net profit of 4% from the resale of the Central Commercial Building, which is almost the price of a Central Commercial Building.

This is extremely profitable, much easier than Zhang Ziqiang's kidnapping.

Today, the rent on Russell Street in Causeway Bay has dropped from a peak of HK$300 per square foot to HK$190 per square foot. This price drop is jaw-dropping, and those who bought properties with loans are in tears.

You should know that Russell Street in Causeway Bay is the place with the highest retail rent in the world. Even the rent on Russell Street has fallen terribly, let alone other places.

In mid-April, the Hong Kong government announced that the Siu On Group had won the bid for the former police dormitory site on Canton Road in Tsim Sha Tsui for HK$4 billion.

The land worth HK$44 billion was actually won by HK$32.8 billion, and the real estate market became even worse. Even the popular properties dropped by more than 3%, which means that the real estate market in Hong Kong will fall by at least another 3%, and in some places it will even fall by 5%.

Zhaoan Group Office.

Cheng Jianshen sat opposite with a slightly serious expression. Chen Zhilong, Kang Wenyi, Liang Botao and others were all conquering cities and territories. If he did nothing, he would definitely be suppressed.

"Boss, the British don't want to sell Thames Port. They only want to lease it for 30 years. I think this lease is pretty good. The Panama Canal Port is only used for 50 years."

Port and shipping business has always been the focus of the Zhao An Group and is equally important as the real estate industry. According to the outside world, once Zhao An Shipping Company goes public, its market value will exceed HK$1000 billion, making it one of the giants in Hong Kong.

At its peak in 97, HSBC's market capitalization was just over HK$2000 billion. It was already impressive that Siu On Shipping Company accounted for 6% to 7% of its market value.

This acquisition was led by Siu On Shipping Company, not carried out with the assistance of Asia Container Corporation. After all, Asia Container Corporation had many shareholders and it was during the Asian financial crisis, so it was difficult to reach a consensus on the acquisition.

According to Luo Qihong's idea, Zhaoan Shipping Company is fully capable of acquiring other ports independently without having to make concessions to Asia Container Corporation, and he is also unwilling to spend time doing ideological work on those directors.

"Okay, no problem! The 30-year lease term is in line with our expectations." Luo Qihong nodded.

The Siu On Group's conquests around the world shocked the entire Hong Kong market. At that time, major Hong Kong companies were still licking their wounds, but the Siu On Group took the opportunity to expand and grow. It was truly spectacular.

The office of Cheung Kong Holdings.

Li Zeju is only 6 years younger than Luo Qihong. He has achieved some success thanks to his family, but he boasts that he can be compared with Luo Qihong and wants to regain face for his father everywhere. Unfortunately, the result goes against his wishes.

But he obviously will not give up chasing Luo Qihong and letting his family return to the throne.

"Dad, Luo Qihong is buying assets everywhere and doesn't seem to be worried about the comeback of international speculators. Should we consider buying at the bottom?" Li Zeju asked tentatively.

Li Jiacheng took off his glasses, put down the documents, and said to his eldest son earnestly, "Not only Zhao'an Group, which was under Luo Qihong, recovered a large amount of cash flow before the disaster, but also Dehe Real Estate and Heng'an Investment, which also recovered tens of billions of cash. Even if Zhao'an Group's cash flow dried up, Luo Qihong could easily solve it."

"We only have a few billion in cash flow on our books. Once we use it all for expansion, it will be hard to avoid problems. Even if international speculators don't come, we still need to maintain normal turnover during the economic downturn. Don't be fooled by Luo Qihong. His approach is a series of plans, not a half-baked one."

"Yes! Luo Qihong's judgment of timing is always so accurate, and we are under a lot of pressure." Li Zeju sighed slightly. Even though he was unwilling to admit it, his ability was still far inferior to Luo Qihong.

Li Jiacheng smiled faintly and said, "Don't think too much. You are not bad among your peers. Cheng Yutong's eldest son and Li Zhaoji's eldest son are not as good as you. As long as you calm down, you may not be much worse than Luo Qihong."

It was good for Li Zeju to get his father's approval, at least it helped him regain some sanity.

"There are many ports in the world. It is impossible for Luo Qihong to acquire all of them. We don't need to compete with him." Seeing that Li Zeju's complexion had improved, Li Jiacheng began to teach again.

Li Jiacheng spent much more effort on his eldest son than on his second son, but this also restricted the eldest son's growth. He could only become the gatekeeper of a family and was unlikely to be the one to expand the family's territory.

In fact, Li Jiacheng was also happy to see his eldest son catch up with Luo Qihong. Only when there is a goal ahead will his eldest son be motivated.

As for reckless advances, isn't he still here? He can call a halt and stop them at the critical moment to avoid making a big mistake.

However, Li Zeju chose the wrong direction at this time, and he needed to correct it.

(End of this chapter)