Hong Kong 1980: The Savage Era

Chapter 393 394 [Lam Tin Subway Station]

The privatization of China Entertainment Properties by Dehe Real Estate Company was also smooth and was completed in just 5 days.

Now only Federal Real Estate Company needs to be privatized. In fact, the assets of Federal Real Estate Company are not worse than those of Zhaoan Real Estate Company, and are even slightly better.

Because most of Federal Realty's properties are in Central and Mid-Levels, the former is the most expensive area for commercial buildings in Hong Kong, and the latter is the most expensive area for residential buildings in Hong Kong.

The properties of Siu On Real Estate Company are located in Causeway Bay, Wan Chai, Central and Kowloon Peninsula. Although most of them are valuable commercial buildings, it does not own many properties in Central, so it is at a disadvantage.

Of course, Zhaoan Real Estate Company has a better reputation than Federal Real Estate Company, and that was what Luo Qihong intended.

There is no plan for Siu On Properties to be privatized, but there is a plan for Federal Properties to be privatized.

Siu On Real Estate Company Office

Kang Wenyi and Chen Zhilong came together with happy looks on their faces.

"boss!"

"There is a great news. The Hong Kong government is preparing to bid for the property rights above the Lam Tin MTR station in Kowloon Bay. This is a super large project, only slightly inferior to Whampoa Garden and similar to the Telford Garden developed by Hang Lung Company next door." Chen Zhilong said happily.

Although Siu On Properties is among the top ten real estate companies in Hong Kong, its ability to develop large sites is still far inferior to that of similar companies. It only surpasses similar companies in terms of property rental.

This proves that Zhaoan Real Estate's profits are weaker than those of other companies.

If Zhaoan Real Estate Company can acquire the property rights above the Lam Tin Metro Station, it will naturally be more powerful and surpass similar companies.

"This is indeed a huge project. It would be a bit too expensive for us to develop it alone. I plan to contact Baoli Technology to bid together. Of course, we will be the protagonists." Luo Qihong immediately became interested.

Chen Zhilong and Kang Wenyi looked at each other. They guessed that Luo Qihong's purpose was to attract Chinese capital and open up channels for future investment from the mainland.

"Then I will contact Poly Technology Company later to arrange a time for discussion." Chen Zhilong said.

"Well, don't worry about the company's funds. According to the current situation of Zhaoan Real Estate, a loan of 10 billion yuan is not a problem. Not only that, in March or April next year, I will let Zhaoan Real Estate issue a batch of new shares and increase shares to De'an Securities Company. By then, the company will have sufficient follow-up funds." Luo Qihong said.

The two were not surprised at all. They knew that De'an Securities had sold a lot of Zhao'an Real Estate shares before the stock market crash, and that De'an Securities could make some profit from the price difference when new shares were issued in the future.

After everyone left, Luo Qihong was thinking about the property rights above the Lantian subway station, which is the Ligang City in later generations.

这块地皮可建28幢28层到34层的住宅大厦，可以提供4100个住宅单位，3百万平方尺左右的楼面面积。

Although it is not as good as Whampoa Garden, it is also one of the ten most famous housing estates in Hong Kong and can generate tens of billions of yuan in profits.

This project needs careful consideration. If the investment is successful in March or April 88, the first phase of sales can be expected in the first half of 3.

但是恰恰在89年5月份，地产会暴跌30%至35%，直到90年5月才会恢复一年前的房价。

Therefore, if they wanted to make tens of billions of yuan in profit, they had to keep the land secret and wait until the end of 89 or the beginning of 90 to develop it.

This will test the strength of Zhaoan Real Estate Company. After all, the land compensation fee from Li Chaoren and CITIC in the previous life was 10 billion yuan, plus the bidding price and construction costs, it would probably cost 30 billion yuan.

Such a large amount of funds will definitely limit the development plan of Zhaoan Real Estate and even become a heavy burden for Zhaoan Real Estate Company. This is a dilemma.

However, when Luo Qihong thought that the development of Zhaoan Real Estate Company had encountered a bottleneck, perhaps the only breakthrough might be in the direction of land development.

"Forget it. Having billions in profit in three years is already very good. Zhaoan Real Estate also has a large number of properties to rent out, and small projects can continue." Luo Qihong made up his mind immediately.

In fact, Luo Qihong also wanted to cut off Li Jiacheng's arm, and the four major housing estate projects of Cheung Kong Holdings Group became three major housing estate projects.

Luo Qihong received Zhang Yuntao, the head of Baoli Technology Company in Hong Kong, at the office of Zhaoan Real Estate Company.

Luo Qihong was not very familiar with Baoli Technology Company. After a few words of small talk, he went straight to the point, "Mr. Zhang, is your company interested in investing in the real estate industry in Hong Kong?"

Zhang Yuntao's eyes lit up. As a Chinese company in Hong Kong, who wouldn't want to invest in Hong Kong's property market?

However, Chinese companies have only entered Hong Kong for a few years and their foundations are very unstable. Even a company like Huarun has to cooperate with Cheung Kong Holdings, not to mention Polytechnic which is still in its exploratory stage.

"Of course I'm interested. I wonder which project Luo Sheng is talking about?" Zhang Yuntao said.

Now a super large real estate company in Hong Kong is trying to play with Polytechnic. This is a great opportunity and of course we have to express our stance quickly.

Luo Qihong smiled and said, "Mr. Zhang, have you heard about the bidding for the property rights of the Kowloon Bay Lam Tin MTR station project?"

"I've heard that I can convince the company to invest cash." Zhang Yuntao was extremely surprised.

"Mr. Zhang, this project is not small. The land compensation fee alone is probably 10 billion yuan. Taking into account the bidding and construction costs, it will probably exceed 30 billion yuan. Even with a bank loan, it will not be less than 20 billion yuan." Luo Qihong explained.

Zhang Yuntao was shocked. This project was too big.

At this time, the investment in the Yanjing super-large real estate project was only tens of millions, which directly increased 100 times in Hong Kong.

"How much equity can I get?" Zhang Yuntao asked.

"It depends on how much capital your company can inject?" Luo Qihong said with a smile, "We can refer to the plan of Huarun and Cheung Kong Industrial Company to jointly develop Tin Shui Wai. Zhaoan Real Estate Company guarantees the profits of Baoli Technology, and the profit ratio of Zhaoan Real Estate Company will exceed the amount of the house price."

This form of cooperation is extremely beneficial to Zhaoan Real Estate Company. After all, Luo Qihong has a God's perspective.

The current price of residential buildings in Kowloon Bay is between HK$1 and HK$1. If the sales price rises to HK$1 per square foot, Siu On Real Estate Company will make a profit beyond its ownership interest.

Luo Qihong remembers that in 91, the price of large housing estates in Hong Kong rose to 3 yuan per square foot. If handled properly, a profit of 50 billion yuan could be earned.

Zhang Yuntao thought about it carefully and said, "Okay, I will go back and discuss it with the senior management immediately. I will give you a clear answer within three days."

Luo Qihong nodded. Such a large amount of funds was indeed not something that Zhang Yuntao could decide alone.

However, Zhaoan Real Estate Company does not need such a complicated procedure. The three giants have no objection, and Luo Qihong nodded, so it will be implemented without any obstacles.

(End of this chapter)