Chapter 410 408 [Ambush and Acquisition of Land Compensation Fees]

Mid-May 83

Although only four companies participated in the bidding for the Admiralty Real Estate King, the Hong Kong government did not take back the land because the winning bid price for the land was not low.

When people outside heard that Changxin Group won the bid with a price of 7.1 million yuan, they were quite excited, but it did not cause much improvement in the real estate industry. The rich were still selling their properties in the hope of recovering their funds as soon as possible.

Therefore, the Hong Kong government was very disappointed, but Li Wendi was full of hope. He planned to design the land of Admiralty Barracks into a commercial building and a five-star hotel, just like the Swire Properties in his previous life. It was expected to be completed in the first half of 5 and open for occupancy one or two months before the end of the negotiations.

This is just right, and you can earn back the cost as quickly as possible.

At this time, the Cheung Hsin Group had recovered a large amount of cash before the disaster, and it was fully capable of renting out the two buildings of the first phase of the Central Bus Terminal and the two buildings on the Admiralty Land built in 84.

However, in this case, Changxin Group does not have much funds to buy at the bottom, but it can start in the direction of the industrial building.

Zhang Wentao rushed in and reported, "Boss, there is good news. The mainland has finally agreed to build a five-star hotel in Shekou. They said we can have a 5% stake, but they require us to build three more factories to help them boost economic investment in the industrial zone."

There was not much joy on Li Wendi's face, but he soon thought of a solution. He could agree to it, and since it didn't say when it would be completed, the group could take its time and control the progress by itself.

"Reply to them, the group agreed."

"Okay!" Zhang Wentao said hesitantly, "Boss, the group's funds are a bit tight. Can we use some of our US dollar reserves?"

Li Wendi shook his head. "Not for the time being. We can take the two plots of land we won the bid for and apply for a bank loan. The group's debt ratio is not high anyway."

"Yes! Then I will contact the bank myself." Zhang Wentao knew his boss's style of doing things very well, and decisions made would rarely be changed.

"The Hong Kong Land Development has announced its revenue report for last year, which showed a loss of 13.8 billion yuan. This is the first time in the history of the Hong Kong Land Development that it has incurred a loss. In addition, its debt ratio is very high. Now HSBC is worried about whether the Hong Kong Land Development can repay its debts." Zhang Wentao continued to report on his work.

"How do Newbyjian and Bao Fuda plan to solve this problem?" Li Wendi crossed his fingers on the desk.

"Newby and Bao Fuda have proposed to the board of directors to sell the commercial buildings in Central that they acquired in 82 to raise funds to repay debts. It is said that this plan involves as many as seven commercial buildings in Central and can raise 7 billion yuan. If the plan can be implemented smoothly, the debt of the Swire Properties can be reduced to 20 billion yuan, but the debt ratio will still be as high as 130%." Zhang Wentao said.

Li Wendi thought for a while and said, "Does Wheelock have the ability to take over these commercial buildings?"

There is not much market for selling commercial buildings in Central at this time, and few real estate developers have such huge funds to acquire these seven commercial buildings in Central.

"There should be. Before the disaster, Wheelock had sold a large number of properties in the Mid-levels under your instructions, and recovered more than 10 billion yuan. However, Director Wang (Wang Tichuan) seemed to want to recover those properties in the Mid-levels at the lowest point of the real estate market." Zhang Wentao said truthfully. Although Wheelock is a subsidiary of the Evergreen Group, it has a lot of autonomy. After all, Wang Tichuan himself is a member of the board of directors of the Evergreen Group. Zhang Wentao does not have much power to command him, and can only communicate and cooperate through negotiation.

"Acquiring the small and medium-sized commercial buildings in Central owned by Hutchison Whampoa is a good thing for Wheelock Company. However, it is normal for Wheelock Company to have other plans. Wheelock Company's debt ratio is also quite low. Wheelock Company can take out 6 million yuan and then borrow money from the bank to acquire the four or five commercial buildings in Central owned by Hutchison Whampoa." Li Wendi said thoughtfully.

He does not plan to hold these small commercial buildings for a long time. Cheung Kong Group and Wheelock Holdings own 12 Grade A commercial buildings in Central, with a rental area of ​​more than 400 million square feet, so small commercial buildings are no longer that important.

Today's small commercial buildings in Central have fallen by nearly 82% compared to their peak in 2, so there is plenty of room for profit.

Then Li Wendi came to Wharf Holdings to handle some urgent official business.

"The Hong Kong property company has suffered a series of blows, and its share price has fallen to 6% of its peak. I plan to use Wharf Holdings as the leader, with my family as the auxiliary, to launch an acquisition of the Hong Kong property company," Li Wendi asked Mai Lisi.

Mai Lisi thought seriously for a while and responded, "Although the strength of the Landmark Company has been damaged, it is still not to be underestimated. Now is a sensitive period. Boss, would you like to reconsider it?"

Li Wendi shook his head. "It's useless to overthink! My real goal is to let Wharf Holdings acquire all of Hong Kong Land's properties in Causeway Bay. Whether or not the acquisition is successful is secondary."

"If that's the case, Wharf Holdings has the ability to accomplish it on its own." Maris is also a man who does his job well. This is Wharf Holdings' interest, and he certainly doesn't want to share it with others.

Li Wendi smiled and didn't care about it at all, because if his family had enough strength, they could privatize Wharf Holdings, or use other methods to swallow up these important properties of Wharf Holdings, including Harbour City.

"Okay, Wharf Holdings will start buying shares of Hong Kong Land secretly. Jardine Matheson Holdings holds about 22% of Hong Kong Land's shares. Once you have acquired 15% of the shares, you can initiate the takeover. Hong Kong Land's cash flow has dried up," said Li Wendi.

"Yes!" Mai Lisi said again, "The rent of Harbour City has been reduced a lot, and the vacancy rate is close to 12%. I think the renovation of those residential buildings can begin."

Li Wendi thought for a while, and considering the role of Wharf Holdings in future bargain hunting, he said, "Let's rebuild one residential building first, and try to complete the reconstruction of two residential buildings within two years."

"Understood! The HK$4 million land premium for the Causeway Bay Tram Repair Shop has been prepared. When do you plan to discuss the land premium with the Hong Kong Government's Land Department?" asked Marley.

"When the Hong Kong government is even more short of money, it has already announced the amount of the deficit a few days ago. As long as the crisis continues to get worse, the Hong Kong government will become weaker and weaker. At that time, we can negotiate with the Hong Kong government about the land compensation fee." Li Wendi said with a cunning smile.

Li Wendi not only wants to negotiate with the Hong Kong Government's Land Department for the land compensation for the Tram Repair Shop in Causeway Bay, but also for the land compensation for more than 90 million square feet of land in Hung Hom held by Starlight Real Estate Company and the old power station land in North Point of the Electric Light Company. If this amount of money was at its peak in 200, it would probably be more than 82 billion yuan. Now at least half of it can be saved.

However, Li Wendi only wants to give the Hong Kong government 10 billion yuan, or even less.

(End of this chapter)