Chapter 188 Daya strikes, powerful in Hong Kong

Sailboat Building.

In order to better develop Tin Shui Wai, Liu Zhicheng convened a collaboration meeting among his various groups.

Ever since Whampoa Group acquired Tin Shui Wai, Liu Zhicheng has been thinking about how to develop this land.

Of course, there must be residential buildings, electronic industry R&D bases, and supporting commercial areas, which have been planned for a long time.

However, Liu Zhicheng has not yet decided what proportion each should account for.

After much deliberation, Liu Zhicheng decided to leave these issues to the professional team of Huangpu Group to plan, and then just listen to the reports himself.

After the meeting started, Liu Zhicheng did not make any opening remarks and went straight to the point.

"Mr. Hao, you need to organize a team to immediately plan the land in Tin Shui Wai. We need to develop a large residential area and a supporting commercial area.

In addition, I plan to develop several office buildings on this piece of land, mainly to attract investment from electronic R&D companies.

And the leasing price must be low, so as to support more electronic companies and enable them to form economies of scale.”

Liu Zhicheng plans to develop the Electronic Plaza as a non-profit project and will also get involved in Internet projects in the future.

The purpose is very simple, which is to create a place similar to Zhongguancun and make Tin Shui Wai a new business card of Hong Kong.

As for the claim that there is no profit, that is also false. With the real estate dividends in the next decade or so, the value of properties will also rise.

"Mr. Liu, Tin Shui Wai is geographically remote and transportation is very inconvenient. If we are not prepared to make a profit from commercial real estate, the pressure will be extremely great," said Hao Qingwen.

Now, to get from Hong Kong and Kowloon to Tin Shui Wai, you have to go through Tuen Mun, which can be said to be a detour. In addition, there are many trucks from the mainland to Kwai Chung Pier, and the traffic pressure is huge.

In the past, this situation was not changed until the Tai Lam Tunnel was opened.

The Tai Lam Tunnel is part of the Tsing Long (Kwai Tsing Yuen Long) Highway. The tunnel passes through Tai Lam Country Park and connects Kwai Tsing and Yuen Long.

In its previous life, the construction of this tunnel was only started in 1995, with investments from New Acer, Bank of China Corporation, and Huarun Company.

Obtained a 30-year exclusive franchise for the Tai Lam Tunnel through a “build, operate and transfer” approach.

In order to develop Tin Shui Wai, Liu Zhicheng planned to develop this project in advance so that the Yuen Long Industrial Park and Tin Shui Wai could be integrated into the main urban areas of Hong Kong and Kowloon, making travel more convenient for citizens.

"Yes," Liu Zhicheng nodded and said, "I have noticed this, but it is impossible to leave hundreds of hectares of land in Tin Shui Wai idle.

Moreover, it will take time to develop all of them. You should first make a development plan. As for the development cycle, you can make a ten-year plan. "

Liu Zhicheng explained everything to Hao Qingwen, no matter how big or small.

"Okay, Mr. Liu." Hao Qingwen nodded and replied.

Liu Zhicheng looked up at Yuan Tianfan again and said, "Tianfan, do you have any thoughts on the problem of inconvenient transportation in Tin Shui Wai mentioned by Mr. Hao just now?"

The China Power Group managed by Yuan Tianfan has just completed its reorganization, established an infrastructure company, and taken over several infrastructure investment projects in the mainland.

We are currently at a critical juncture in straightening out our loose ends and have no time to think about new investments.

But when the boss asks, you have to answer, and you have to give a good reason. Otherwise, you can't show your value.

Yuan Tianfan thought for a moment and said, "Mr. Liu, I think the only way to solve this problem is to open up the Tai Lam Country Park Tunnel. Of course, I haven't investigated it, so I don't know if it's feasible."

"Well, then your infrastructure company will make a preliminary plan and submit it to me for approval." Liu Zhicheng nodded and said.

A plan is a plan. The construction of such a tunnel must be supported by the Hong Kong government. We must have a plan first. Otherwise, how can we lobby the Hong Kong government for support?
Moreover, Liu Zhicheng is also preparing to propose a large infrastructure plan in Tin Shui Wai to the Hong Kong government to promote employment for Hong Kong citizens, and Youde will certainly be happy to see it.

No matter how difficult it is, Liu Zhicheng will lobby the Hong Kong government to solve the problems one by one.

"Mr. Huo, Mr. Wang, you from Orange Technology must also send someone to assist Mr. Hao in completing the planning of the Tin Shui Wai development project.

You need to explain the current and future prospects of the Electronic Plaza to the planning team of Huangpu Group and put forward reasonable suggestions. "Liu Zhicheng continued to instruct.

Huo Haiqing and Wang Xingfa both expressed their understanding.

Liu Zhicheng looked at the capable people in front of him and said slowly: "The development of Tin Shui Wai is a major project of the Whampoa Group in Hong Kong in the next ten years.
This project involves infrastructure, power facilities, and the electronics industry plaza. Whoever is involved must support it unconditionally.”

Liu Zhicheng took a sip of tea and continued, "The Hong Kong stock market and real estate market are in a mess now. Shanfeng Investment and Huangpu Group should take the initiative to assume social responsibility.

If any of our colleagues are in trouble, we must help them if we can. With our current financial reserves, we can still make appropriate moves.

It is our unshirkable responsibility to build confidence in Hong Kong's stock market and real estate, but every project transaction must be approved by me."

Liu Zhicheng spoke with great righteousness, but in fact he was just seizing the opportunity to buy at the bottom in order to maximize his own interests.

It would be a sin for Liu Zhicheng not to seize the opportunity to buy at the bottom.

Finally, Liu Zhicheng asked Han Chunxi to keep a close eye on the Hong Kong dollar exchange rate and the movements of various banks, and report any situation as soon as possible.

Although the Hong Kong government stipulates that its own banks cannot transfer profits to itself, Liu Zhicheng, as the richest man in Hong Kong, cannot do without a bank. Otherwise, how can he build a consortium?

When others are crazy, I am afraid; when others are afraid, I am crazy! This is Liu Zhicheng's investment philosophy.

.........

After the meeting, when Liu Zhicheng was about to take a break, Daya Lu Zhihe came to visit him.

Lui Chih-ho must have seen the wailing in the Hong Kong real estate market and came to sound out the 'prophet'.

"Mr. Liu is really a man of foresight. We all admire him." As soon as Lu Zhihe entered the door, he flattered Liu Zhicheng.

"Haha, Mr. Lu, that's great. Real estate has a certain cyclicality, and before this, as long as you observe carefully, you will find signs of a crash. I just made preparations in advance." Liu Zhicheng smiled and shook hands.

"That's incredible. No wonder Mr. Liu became rich." Lu Zhihe continued to flatter.

In fact, before the real estate crash, residential property prices had been flat for half a year, and transaction volume had slowed down. The negotiation result can be said to be an excuse for the capital market.

It is foreseeable that even if there were no negotiations, Hong Kong's real estate and stock markets would definitely experience a correction, but the severity might be slightly different.

Liu Zhicheng ignored Lu Zhihe's flattery and asked with a smile: "Surely Lu Sheng didn't come here just to flatter me today, right?"

"Haha, of course not." When Lu Zhihe saw Liu Zhicheng asking this, he knew it was time to get down to business.

"Mr. Liu, Mr. Chen from Hang Lung Properties came to me and hoped to get help from Daya." Lu Zhihe asked tentatively.

Because Lui Chi-wo knew that Chen Zengxi of Hang Lung Properties and Liu Zhicheng had a feud, when Chen Zengxi found him, he wanted to refuse directly.

But Liu Zhicheng mentioned bottom fishing many times and made his words ambiguous, neither refusing nor agreeing.

Liu Zhicheng just asked Huangpu Group and Shanfeng Investment to build confidence in Hong Kong at an internal company meeting today, but he did not expect Lu Zhihe to act faster.

"What is their situation now?" Liu Zhicheng asked. "From the end of last year to this year, a consortium led by Hang Lung Properties has won the right to develop nine subway station properties, planning to build eight commercial buildings and 9 residential units.
According to the property price before the crisis, it reached HK$183 billion, while the cost was only HK$70 billion. Due to the collapse of the real estate market, it is already in the red. "

Due to the falling house prices, plus the bank loan interest and the profits promised to the subway, if Hang Lung forces the development, it will only suffer losses and no profits at all.

Lui Chih-ho glanced at Liu Chih-cheng and continued, "Hang Lung is currently negotiating with the Xiangshan Building site, hoping to reduce the land premium from HK$18.2 billion to HK$14 billion."

"Did it succeed?" Liu Zhicheng asked curiously.

"No." Lui Chih-ho shook his head and said, "The Hong Kong government not only disagrees with reducing the land premium, but also requires that the land premium must be paid in full within one month. Otherwise, it will be considered a breach of contract and the 4 million Hong Kong dollars paid will be confiscated."

Liu Zhicheng shook his head and said that the Hong Kong government had made a good deal.

Liu Zhicheng didn’t know how the situation was handled later, but he knew that this was the former Lippo Center, which consisted of two octagonal buildings.

It covers an area of ​​7 square feet and there are no buildings around it, so the buildable area is very large. It is a rare piece of prime land in Central.

"What was the attitude of the banking consortium when cooperating with them before?" Liu Zhicheng asked again.

"The R-funded bank that had been cooperating with Hang Lung went back on its word and directly cancelled the loan. Moreover, as Hong Kong's future is uncertain, no local bank in Hong Kong is willing to lend money under such circumstances," Lui Chih-he said slowly.

As Hong Kong's stock index and property prices plummeted, banks' bad debts increased sharply. They are in a difficult situation and can hardly save themselves. How could they possibly lend money to Hang Lung, which is on the verge of bankruptcy?
"This is also normal. Banks are also responsible for the safety of their own funds." Liu Zhicheng glanced at Lu Zhihe and said, "Mr. Lu, do you want to help him get out of this predicament?"

"Yes, but I know that Mr. Liu and Mr. Chen have a grudge, so I need to listen to Mr. Liu's opinion." Lu Zhihe said.

"Are you taking over the whole thing, or just part of it?"

"Of course we will take it all. Besides, the land this time is of high quality and will bring great opportunities to the Daya Group."

In order to persuade Liu Zhicheng, it seems that Lu Zhihe did some work before coming.

"Yes." Liu Zhicheng nodded and asked, "Are we under financial pressure?"

"Mr. Liu, Daya Real Estate currently has a cash reserve of 1.2 billion Hong Kong dollars. Together with Daya Mining, there will be no problem at all." Lu Zhihe said.

"But Mr. Lu, this wave of real estate crash has just begun. No one knows when it will end. You must be prepared for a long-term battle."

In the past, Hang Lung Properties survived this wave, but due to lack of confidence, it sold the pre-sale properties in advance and lost most of its profits.

Liu Zhicheng took a sip of tea and continued, "I predict that it will take more than two years to recover. This project is sure to make money.
But if you want to make money, you have to sell it in 86 to make a huge profit. "

Liu Zhicheng explained it so clearly, and Lu Zhihe was no fool, so he certainly knew the gains and losses.

After a moment, Lu Zhihe slowly said, "I understand. If Hang Lung Properties doesn't bleed, I will definitely not take over."

Lu Zhihe is indeed a business tycoon. Anyone who doesn’t take advantage of an opportunity is a bastard.

"Well, Mr. Lu should send someone to communicate with the Hong Kong government so that we can take over smoothly." Liu Zhicheng smiled and said.

"Haha." Lu Zhihe also smiled knowingly.

Afterwards, the two talked about the land of the Hok Yuen Street cement factory. Now the Qingzhou Yingni Cement Factory has moved to Tuen Mun and is clearing the land.

According to Daya Real Estate's plan, a high-end residential area will be built here, which will complement Huangpu City and become a dream city for the middle class.

“We should immediately apply to the Hong Kong government for industrial-to-commercial conversion of this piece of land. Maybe we can get a preferential price, and then we can start construction in phases,” said Liu Zhicheng.

"Mr. Liu is still very confident about the future of Hong Kong." Lu Zhihe said with a smile.

"It is our responsibility to build confidence in Hong Kong."

…………

After Lu Zhihe left the Sail Boat Building, he sent someone to inform Chen Zengxi that Daya expressed its willingness to take over all of his subway station projects and help him get out of the predicament.

Hang Lung was unable to pay the land compensation fee in full and had tried every possible solution, but there was no bank loan and no consortium willing to take over.

He had originally been prepared to lose 4 million Hong Kong dollars and was ready to withdraw from the project, but now Lui Chi-ho told him that Daya was willing to take over the property development rights of the subway station in full, which made him overjoyed.

If you can get back the full deposit, that would be the best, but if you can get back part of the deposit, it will also reduce your losses.

No matter what, the result is a good thing.

In the VIP room of the Peninsula Hotel, Chen Zengxi and Lu Zhihe were discussing the transfer.

After the two exchanged greetings, Lu Zhihe took the initiative and his first sentence made Chen Zengxi very happy.

"Da Ya Properties is willing to take over all the subway station projects held by Hang Lung Properties without Hang Lung having to bear any debts."

Chen Zengxi immediately flattered him, saying, "Daya Real Estate is willing to take over. Mr. Lu is really a timely help. I am very grateful."

Lui Chih-ho immediately responded with Liu Chih-cheng's words: "Hong Kong is so small, and we are all Chinese, so we should help each other.

Moreover, Xiangjiang is at a critical moment now. It is Daya’s responsibility to build confidence in Xiangjiang Real Estate. Mr. Chen does not need to worry too much. "

"Haha." Chen Zengxi laughed, "How is Mr. Lu going to pay the deposit?"

After hearing this, Lu Zhihe's face changed and he said, "Mr. Chen, Daya's help in helping Hang Lung get out of trouble will benefit Hang Lung's reputation."

"Does Mr. Lu mean not to give a cent?" Chen Zengxi's face also changed, and he said, "Mr. Lu, there is no room for negotiation."

"Mr. Chen, my team has already gone to the Hong Kong government to discuss taking over the business after Hang Lung defaults. I think no matter what, we can at least save HK$400 million.

If Mr. Chen is willing to sit down and talk, we are all Chinese businessmen, and I don't want to go too far, I will compensate Hang Lung appropriately, Mr. Chen must calm down. "Lv Zhihe said with a faint smile.

Lu Zhihe ate meat without spitting out bones and slapped Chen Zengxi hard. But in front of money, he had to calm down.

"Lü Sheng, then you tell me."

"We are all Chinese-funded. How about Mr. Chen taking 2 million Hong Kong dollars and leaving?" Lui Chi-ho stated his conditions.

"3 million Hong Kong dollars."

"The agreement was signed with a payment of HK$100 million first and HK$200 million to be paid in two years."

"No, you must pay 3 million Hong Kong dollars in one lump sum." For the sake of his own reputation, Chen Zengxi had to cut his losses and leave.

"Pay 2 million Hong Kong dollars first, and then pay 1 million Hong Kong dollars two years later, Mr. Chen. This is my final condition. If you don't agree, I will leave immediately." After saying this, Lu Zhihe stood up and was about to leave.

Under the current market conditions, it is impossible to leave the market without cutting losses. Lu Zhihe still values ​​the friendship among Chinese businessmen very much.

Otherwise, there would be no meeting today and we would have gone directly to the Hong Kong government for negotiations.

(End of this chapter)