Chapter 388 386 [Tin Shui Wai Project]

Selling the shares of Jianing Group now will result in some loss of profits. In addition, Changxin Group is not very short of funds, so there is no need to "kill the goose that lays the eggs".

Li Wendi asked, "What about the Landmark Company? How much debt does it have now?"

Everyone looked at each other, and Zhang Wentao replied, "The debt of the Hong Kong Land Development has exceeded 120 billion yuan. Although it is not much different from its market value, it is supported by 7 core commercial buildings in Central, so it will not collapse for the time being."

Of course, the assets of the Hong Kong property company are not limited to these. The commercial buildings and shopping malls on Hennessy Road and Gloucester Road in Causeway Bay alone are worth tens of billions of dollars. The Duke of Windsor Building in Causeway Bay, built in 79, is a representative example.

"Boss, are you looking for a good time to acquire the land company?" Zhao Lekai asked in shock.

Li Wendi shook his head. "It is very difficult to acquire the Landmark Company. Even if our subsidiaries unite, it may not be possible. However, it is relatively easy to take over some important assets by taking advantage of the situation."

Sure enough, the boss wanted to take action against the Jardine Matheson Group.

Everyone reached a consensus that the Hong Kong Land Development was about to go bankrupt, but their estimates of the timing varied greatly.

"Boss, China Bus Company has withdrawn from the original parking lot and repair shop in North Point. That piece of land has been vacant for a long time. Should we develop it?" Zhang Wentao asked.

Li Wendi thought about it and felt that the land premium for this 7.3 square feet piece of land in North Point was a considerable sum. "Let's put it aside for now. The real estate market is too prosperous now. The land premium will cost more than 1 million. We will decide after the real estate market adjusts."

The local market is a bit sick now. Commercial buildings in Central are being hyped up one after another, and their prices can surge by 5% in half a year. A floor of an office building used to cost 5000 or million yuan, but now it costs more than million yuan. A floor of a Grade A commercial building in Central is even sold for million yuan.

You should know that not long ago, a medium-sized commercial building in Wan Chai was sold for 5700 million yuan. A commercial building was built on top of a first-floor office building in Central, which shocked many people. However, they turned around and followed the hype, like adding fuel to the fire.

"I heard that the current vacancy rate of newly built residential buildings has reached 41.3%, and a large number of residential units are stuck in the hands of speculators of all sizes. Should our group reduce the number of land development sites?" Zhao Lekai suggested.

Since there are a large number of surplus residential units, it is inevitable that the Hong Kong government will reduce the land prices.

Li Wendi looked at Zhang Wentao, and Zhang Wentao replied, "I was just about to make this suggestion. Although our property sales are very good, it is inevitable that it will be affected. It is better to prepare in advance. I suggest that once the adjustment is made, there will definitely be speculators selling residential units. It is better to let the subsidiary company take the opportunity to buy a large number of units at a low price, so that we can also make a profit from the difference."

Li Wendi felt that the profit margin was small and it was easy to lose money. After all, the negotiation date was getting closer. "Forget it. We don't want to lose our reputation because of this little profit. From now on, we will gradually reduce the number of real estate projects we develop and focus on building commercial buildings and shopping malls in the urban areas of Hong Kong and Kowloon."

"Yes!" Zhang Wentao responded.

Wheelock Company Meeting Room
Li Jiacheng personally visited Li Wendi to discuss the Tin Shui Wai new town project that they jointly won in 78.

The project is being developed by three companies: Tatung Properties, Cheung Kong Holdings and Wheelock Properties. The land covers an area of ​​4.83 square kilometers and can be used to build a new town that can accommodate 50 people.

However, at that time, there was nothing in Tin Shui Wai, including roads, transportation, etc. There was only a piece of barren land. According to the original plan, the development time of the entire project spanned 20 years, with an investment of more than 200 billion yuan. If the project could be completed, these three companies would become the largest landowners in Hong Kong.

John Madden, the former chairman of Wheelock & Company, was obsessed with shipping and felt that the project was too big to be completed by three companies and might even drag the company to its death, so he had long considered withdrawing.

In the past two years, although the Hu Yingxiang family of Hopewell Holdings has made a lot of profits from Dabao Real Estate Company, they also have many investments in the mainland and want to withdraw.

Li Wendi did not quite understand Li Jiacheng's idea. It was impossible for such a shrewd person not to see the danger of this project. It could be said that even if Cheung Kong Holdings and Hutchison Whampoa were involved, it might not be completed.

Hua Run?!
Li Wendi suddenly remembered this giant, but it was still not enough. Could it be that he wanted to use it to establish a relationship with Huarun Group and expand the mainland market?
What a shrewd guy! Li Wendi couldn't help but sigh in his heart.

"The Hu family's Dabao Real Estate has already planned to withdraw from the Tin Shui Wai project. I wonder what Wheelock's plan is?" Li Jiacheng asked with a smile.

Li Wendi smiled and said, "Wheelock Group has no intention of withdrawing, but is somewhat confused about the future of the Tin Shui Wai project. An investment of 200 billion yuan is a bit scary. When I first took over Wheelock Group, I didn't care much about this project because it has a 20-year development period."

"Since Henderson Land Development is unwilling to invest too much, and Dabao Real Estate has withdrawn, why don't I introduce a strong company?" Li Jiacheng asked.

"Which company are you talking about, Mr. Li?" Li Wendi asked knowingly.

"The mainland's Huarun Group! Mr. Li should have heard of it." Li Jiacheng said.

Li Wendi pretended to be stunned and said, "It is indeed a strong company. What proportion does Mr. Li plan to allocate to Huarun Group?"

"Mr. Li, Tin Shui Wai is close to Sham Shui Po City, and the lease of the New Territories is about to expire. The Governor has been looking for a solution. If we bring Hua Run Group in, our rights and interests can be guaranteed to the greatest extent. However, Hua Run Group wants to control the dominant rights and interests, a 51% share, so I came here to discuss it with you." Li Jiacheng said.

"There is room for negotiation, but I think Huarun Group should send someone who can make the decision. Mr. Li and I are not from Huarun Group and cannot represent them." Li Wendi's meaning was very clear. 51% could be given, but Huarun Group had to come to negotiate in person.

"Since Mr. Li is interested, I will notify them to come and talk to Mr. Li. I just came here to ask Mr. Li what he thinks." Li Jiacheng said with a smile.

Li Jiacheng wants to establish a relationship with Huarun Group, and Li Wendi also needs it. It would not be a loss to make Huarun Group owe him a favor.

In fact, the Tin Shui Wai project was placed in the hands of the newly established Wellington Company, and Wheelock Holdings held 40% of the shares of Wellington Company. Originally, it wanted to use the name of Wheelock Holdings to develop the new town of Tin Shui Wai. Now that the situation has changed, the leader will naturally be replaced by the Wah Chun Group.

After seeing Li Jiacheng off, Li Wendi began to recall things about Tin Shui Wai in his previous life. Even in the 21st century, Tin Shui Wai was still one of the least developed areas in Hong Kong. However, the Kingswood Villa in Tin Shui Wai allowed Li Jiacheng to earn tens of billions in profits, and of course it also cheated many Hong Kong people.

"We can't let go of this project easily. We must build connections. It's a bridge to enter the mainland." Li Wendi said calmly, but his face was unusually serious.

(End of this chapter)