Chapter 126: Final Decision

Now the cement road donated by the Yanxin Zhicheng Foundation has been built. It only takes half an hour at most to get from Pengcheng to Shekou.

"We should invest in building a modern hotel in Pengcheng, so that next time we come here, we will at least have a good environment for rest," Liu Zhicheng suggested.

Apart from anything else, Pengcheng City is currently a window for reform and opening up in the country. In the future, there will definitely be a large number of overseas tourists visiting, and building a hotel will definitely not be a loss.

After hearing what Liu Zhicheng said, Feiting Tai also said, "This is a good investment project. The biggest cost of investing in a hotel in Xiangjiang is the land. But in Pengcheng, as long as the government agrees, the land doesn't cost anything."

Liu Zhicheng's companies have a large number of hotel assets and will definitely invest in a large number of hotel properties in the mainland in the future.

Liu Zhicheng thought for a while and said, "Investing in a hotel is definitely not a problem, but my idea is that if we want to invest, we should invest in building a luxurious hotel, at least not lower than a normal five-star hotel in Hong Kong."

After hearing Liu Zhicheng's idea, the charter boat king was a little surprised and hesitant, because Pengcheng is still just a small county town and there are really few pedestrians on the streets.

"Does Pengcheng need to build such a big hotel now? There are few people on the streets. Isn't a five-star hotel a bit too advanced?"

Liu Zhicheng smiled and said, "We invested in building this hotel, mainly to receive guests from Hong Kong. Mr. Huo, what do you think?"

Liu Zhicheng proposed to build a five-star hotel, mainly because he thought that Pengcheng would develop too fast in the future. Otherwise, it would need to be rebuilt in ten or eight years, which would be very troublesome.

After thinking for a while, Feiting Tai said, "What Mr. Liu said makes sense, but there is one thing you don't know. In fact, as early as last year, I had discussed with a leader in Kyoto that the mainland was preparing to build eight joint venture hotels. If we proposed to build a five-star hotel here, they might not approve it."

Liu Zhicheng had heard about what Feitingtai said in his previous life. These eight joint-venture hotels were located in Kyoto, Shanghai, Yangcheng, Jinling and other cities.

Among them, the charter ship king was the most active. He first built a five-star hotel in Beijing, while the airship Tai Huosheng built a five-star hotel in Guangzhou.

But during the construction process, they encountered many problems, either a shortage of building materials or some procedural hassles.

There is a shortage of building materials in the mainland now, and many of them need to be imported. If a five-star hotel is to be built in Shenzhen, at least some of the scarce building materials can be brought in from Hong Kong.

Liu Zhicheng nodded and said, "I see. However, I am very interested in building a five-star hotel in Pengcheng. I would like to ask Mr. Huo to report this matter for me. If you agree, I will build it. If not, then I will build an ordinary guesthouse. How do you think?"

"Okay!" Feiting Tai agreed. No matter where it was built, at least it was an investment.

…………

In the afternoon, after the senior officials of Pengcheng met with everyone collectively, Baochuan Wang, Feiting Tai and Liu Zhicheng held a closed-door meeting with the senior officials.

The most important content is that Liu Zhicheng wants to build a five-star hotel in Pengcheng.

After listening to the three people's ideas, the senior official said, "I welcome you to invest in Pengcheng, but the investment in a five-star hotel can easily reach hundreds of millions. Currently, Pengcheng cannot make the decision on such a project. It must be reported for approval."

Although Pengcheng was established with the intention of being a pioneer in reform and opening up, the city's autonomy is limited to investments below US$500 million.

Moreover, in the early days of reform and opening up, except for the Shekou Industrial Zone, any investment in other places had to be a joint venture, and domestic capital had to hold the controlling stake.

Even though materials and labor are cheaper in the mainland, the investment in a modern five-star hotel requires at least hundreds of millions of Hong Kong dollars, and Shenhai City does not have the right to directly approve such a project.

Liu Zhicheng smiled and said, "It doesn't matter. If you don't agree, I will invest in a smaller hotel. The number of beds will be about the same as a large hotel!"

"Haha, good idea." The senior official smiled.

It is no secret that the mainland government is short of foreign exchange. Of course, the local government welcomes foreign investment.

In the previous life, in 1978, the mainland sent a large number of ministries to visit various countries, and many countries, led by the United States, relaxed various restrictions on cooperation with the mainland.

Therefore, at the end of last year, the mainland government introduced an economic revitalization plan to introduce 600 billion US dollars from Europe, the United States and RB to build 120 new large-scale projects.

However, this plan completely failed this spring because all foreign investment delegations returned empty-handed.

Because they found that the industrial supporting facilities in the mainland were very poor and the workers in the mainland state-owned enterprise factories were too inefficient.

The most important thing is that foreign exchange controls are strict. It is easy for funds to enter the country, but it is extremely difficult to get funds out.

These were mainly due to restrictions imposed by the government at the time. For example, when Liu Zhicheng invested in a hotel in Pengcheng, it had to be a joint venture.

Reform and opening up cannot be stopped and must be persisted in. If foreign capital is unwilling to invest, we can only spend our own money.

At that time, in order to purchase equipment, we had to use up our gold reserves. So, in this era, having foreign exchange is really a big deal!
Today, the Shekou Industrial Zone has introduced 7 textile factories, 2 garment factories, 1 shoe factory, 3 plastic factories and 4 food factories from Hong Kong.

It is mainly light industry and very small in scale, but I heard that it has a good reputation. After all, the labor here is very cheap. For intensive manufacturing, it is simply a paradise for labor-intensive enterprises in Hong Kong.

Liu Zhicheng went to Shekou for a tour the next day and returned to Hong Kong that afternoon.

...............

Time has quickly come to June 6th, and today the Hong Kong MTR Corporation will hold an auction for the property development rights of Mong Kok Station!
You should know that the total construction cost budget of the Hong Kong MTR Corporation for the Tsuen Wan Line, which started construction this year, is HK$41 billion.

Moreover, auctioning land in Hong Kong to raise funds is the only way to develop the subway, so today's auction will definitely be a big deal. Today's auction will be held on the 6th floor of the Hong Kong Subway Company Headquarters Building in Central, and the time is am.

At half past nine, Liu Zhicheng's motorcade slowly stopped at the underground parking lot of the subway company's headquarters building. For safety reasons, he did not go through the main entrance of the building today.

Because there must be a lot of reporters waiting at the main entrance of the building. The moment I didn't want to get out of the car, I was surrounded by a large group of reporters.

This auction brought together most of Hong Kong's real estate companies. In addition to the so-called "Five Tigers of Real Estate" from the first tier of Chinese-owned companies, some second-tier Chinese-owned real estate companies also participated.

Of course, British companies such as Jardine Matheson Land, Swire Properties and Wheelock Holdings were also involved, but they all sent representatives to participate in the auction.

In fact, at this time, the term "Five Tigers of Chinese Capital" is no longer appropriate. It is just another name for the first echelon of Chinese real estate capital.

Because he is already a powerful figure and the absolute leader in Chinese real estate.

Many real estate bosses frowned when they saw Liu Zhicheng and his group. This was a fierce tiger.

Faced with a competitor that owns Whampoa Group and Wharf Group, although they have not participated in many Hong Kong land auctions, even if they just come to take a look, it will put a little pressure on them.

I was afraid that he would show off his roaring skills again to hurt people. I had already seen his ability last time in Tsim Sha Tsui.

After entering, Liu Zhicheng took a quick look and roughly estimated that there were about 40 companies participating in the auction this time.

The Hong Kong Metro Company saw the rising real estate market and put up a total of 9 plots of land for auction this time. All of them are located at different locations along the subway line and can be considered as high-quality land in Hong Kong.

According to the order in which real estate developers registered, each company received a numbered sign. Huangpu Group's number was 37, and the task of holding the sign was given to Hao Qingwen.

Today Liu Zhicheng brought along Hao Qingwen, Han Chunxi, and Cherie Chung. The purpose of bringing Cherie Chung along was to open her eyes and let her experience the charm of money.

There was still some time before the auction, and small groups gathered in circles in various places, chatting in low voices.

As Hong Kong's real estate situation is booming and the mainland is undergoing reform and opening up, this auction attracted a lot of foreign investment.

Not only local companies from Hong Kong, but also some consortiums from RB and Southeast Asia have participated.

The current situation is not very friendly to some small real estate companies in Hong Kong, so most of them choose to stick together and form a consortium to participate in the auction.

This way of banding together for warmth not only increases strength but also disperses risks.

In the past, Hang Lung Properties was the most active and snatched up many subway station properties.

All major real estate developers are in place and the auction has officially begun.

The auctions organized by Hong Kong MTR are actually quite simple, and generally come in two types:

The first is a blind bid, where all bidding companies write down their reserve prices and cooperation plans, and then the subway company’s board of directors will study them one by one and select the best one.

At the beginning of last year, Daya Real Estate Company won the development rights of Central subway properties by participating in this kind of auction.

The second is the traditional option, where major real estate companies publicly bid.

Today's auction is of the second type. The auctioneer has already introduced it on the stage:
"The first lot to be auctioned is the B15 lot in Yuen Long District... The lot area is 85 square feet, the starting price is HK$6000 million, and the minimum bid increment is HK$100 million each time..."

Now that Liu Zhicheng has built an industrial park in Yuen Long, it has become a highlight in the real estate development of new towns.

Several major real estate giants are eyeing the land in Mong Kok, but for small real estate developers, this is an opportunity.

After the auctioneer finished his introduction, several small real estate companies were eager to try, and gradually raised the price to 7000 million...

Hao Qingwen, who was standing next to him, whispered to Liu Zhicheng, "The location of this piece of land is actually quite good. It's a little small to build a shopping mall, but now that the Yuen Long Industrial Park is in operation, it's possible to build an office building for sale."

Liu Zhicheng nodded and signaled Hao Qingwen to give the waters a try.

"No. 37, million Hong Kong dollars!"

Liu Zhicheng was startled by the auctioneer's shouting and thought he had heard it wrong. Could it be that No. 37 was not the Huangpu Group?
Liu Zhicheng couldn't help but look at Hao Qingwen, looking at him with an unbelievable look, and then smiled.

Hao Qingwen was also startled by the boss's strange smile, and felt creepy. He quickly explained: "Boss, I was a little excited just now."

The other real estate developers were also shocked. Their psychological defenses were broken at once. What did this young man want to do? Raising the price by 30 million in one go?
Until the auctioneer shouted: 1 million for the third time, and then there was the sound of the hammer falling. Liu Zhicheng said nothing, just patted Hao Qingwen's arm, and then continued to smile mysteriously.

In the end, Hao Qingwen made the final decision and bought the land for HK$1 million, which is about HK$1300 per square foot!

This is nothing in the prosperous areas of Central or Kowloon, but it has also refreshed the land prices in Yuen Long.

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