Chapter 223: How much money did Liu Bancheng lose in order to win?

A new week begins.

In the meeting room of Whampoa Group, Liu Zhicheng is checking the tender documents for the "property rights above Lam Tin MTR station".

Liu Zhicheng paid great attention to the bid documents and checked them carefully. Although price was the biggest factor, other details were also important.

The entire project is designed as 17 residential buildings with approximately 4100 residential units.

Public facilities include two owner clubs, a shopping mall, a kindergarten, as well as several recreational parks, children's playgrounds, jogging tracks and nursing homes.

With each residential unit starting from 680 square feet, the final floor area of ​​the entire project exceeds 300 million square feet, reaching 320 million square feet.

After reading the bid, Liu Zhicheng nodded with satisfaction, and several core senior executives breathed a sigh of relief.

"The price is 9.88 million Hong Kong dollars. Mr. Hao, you fill it in."

The HK$9.88 million is just the profit for the subway company. If it wins the bid, it will have to pay the Hong Kong government HK$10 billion as an additional land price.

This price was the result of careful consideration by Liu Zhicheng. The current selling price for the 300 million square feet of floor area is only HK$35 billion. Adding the 20 square feet of shopping mall rental area, the current value of this project is HK$38 billion.

In order to prevent the butterfly effect, Liu Zhicheng decided to take a gamble and set the price at the current loss-making level.

However, if Huangpu Group takes over this project, it will also bear a heavy price.

If the bid price plus the land fee is HK$20 billion, and the Whampoa Group plans to keep the land until the 90s for development.

So the bank interest for the past two years is 4 million Hong Kong dollars, and we have to ensure that Poly Technology makes a profit of 5 million Hong Kong dollars. It is indeed stressful!
Liu Zhicheng's plan was to start sales in the spring of 1991, which would take another year. The bank interest for that year would probably be 3 million Hong Kong dollars, and the entire project would cost more than 7 million Hong Kong dollars in interest alone.

Liu Zhicheng thought about this for a long time, which was one of the reasons why he asked Poly Technology to invest in it.

But Liu Zhicheng is full of confidence in the future of real estate and the future of Hong Kong.

He was convinced that housing prices in large housing estates could reach over HK$1991 per square foot in 3000.

Hong Kong real estate had returned to its peak before May 1990 by mid-1989, but although it was affected by the Gulf War, it did not surge.

Hong Kong is always greatly affected by external factors. As a rule of thumb, when the Gulf War broke out, Hong Kong's housing prices should have plummeted.

But the housing prices in Hong Kong did not fall, but remained stable without rising or falling.

Unexpectedly, the Gulf War ended after only 40 days. Hong Kong's housing prices suddenly skyrocketed before the end of the Gulf War.

In March 1991, housing prices in large housing estates soared from HK$3 to HK$2300 per square foot.

By 1992, affected by the reform and opening up, housing prices in large housing estates skyrocketed again, reaching more than HK$4000 per square foot.

This time, the Hong Kong Government’s Planning Department increased the plot ratio of Lam Tin MTR station, so that the land that was originally planned to only cover 300 million square feet has now been adjusted to cover 320 million square feet of floor area, so real estate developers must be prepared to bleed!
The floor area of ​​320 million square feet, plus a shopping mall of 20 square feet, is currently worth only HK$40 billion.

According to the price quoted by the Whampoa Group, plus the land supplement fee of HK$10 billion, the land cost alone is HK$20 billion.

The construction costs and taxes will be at least HK$18 billion, plus the loan interest, the total investment of the entire project has exceeded HK$40 billion.

Importantly, the Whampoa Group also needs to ensure that Baoli Technology achieves a net profit of HK$5 million.

Several senior executives were a little surprised. The price the boss offered was too high. If it were based on current housing prices, the Huangpu Group would "definitely lose money" and would be simply gambling on future real estate appreciation.

Only Hao Qingwen knew that according to the boss's plan, this was a project that was sure to make money.

"Okay, I'll fill it in right away!" Hao Qingwen replied.

"Ok!"

On the other side, Lu Zhihe and his son were also negotiating the price with their subordinates.

Daya Properties is also an old friend of MTR, and has cooperated in the development of numerous projects.

This time, Daya Real Estate is also a strong contender for the property development rights of Lam Tin MTR station.

Moreover, in the face of huge profits, Daya Real Estate will not give up voluntarily.

"Who do you think is our biggest competitor this time?" Lu Zhihe asked, feeling a little uneasy.

"It's hard to say. Sun Hung Kai, New World, Henderson Land and New Era are all our competitors!" said one of the real estate managers.

What he said was not nonsense, but the truth!

How can this type of bidding be called the biggest rival? It is not a situation where Daya is the only one dominating.

"I think it's the Whampoa Group. Mr. Liu is a person who likes to yell loudly." said another real estate manager.

"Father, if that's the case, then we should make Brother Cheng our enemy." Lu Yaohua said at this time.

Lu Zhihe nodded and said, "It doesn't matter. It's just normal business competition."

He was eager to defeat Liu Bancheng, but he was also worried and uncertain.

Lu Yaohua said: "We offer a price of 800 million Hong Kong dollars, which is the average price of the entire project. If you add interest, it will be a loss-making price. Real estate developers in Hong Kong will probably not offer a higher price than this!"

Lu Zhihe breathed a sigh of relief, as if this was the truth.

But he was still worried and said, "Raise the bid, HK$9.28 million!"

His idea was that since Liu Zhicheng was so interested in the bidding for this plot of land, it meant that he was optimistic about the profits from this plot of land.

This is also the secret of Lu Zhihe's success.

If Liu Zhicheng knew what Lu Zhihe was thinking, he would definitely sigh: A hero is a hero!
"Okay, I'll do it right away!" Lu Yaohua hurried away!
In fact, Daya's initial bid was HK$7 million, but when Lui Chi-ho learned that Whampoa Group was participating in the bidding, he changed it to HK$8 million.

As a result, at the last minute, Lui Chi-woo changed the price again to HK$9.28 million.

In the evening, Liu Zhicheng arrived at the villa halfway up the mountain.

A stunning beauty in simple business attire came running towards Liu Zhicheng from a distance, and then her fragrance entered his arms.

Only Liu Zhicheng's body could withstand such a powerful impact.

"What's wrong? Did you suffer injustice abroad?" Liu Zhicheng hugged Li Zhi and comforted him.

This time, Li Zhi went to Singapore for inspection and stayed there for half a month.

Last time, Liu Zhicheng asked her to accompany him to Singapore for an inspection, so this trip abroad took place.

"No! I missed you!"

The woman left Liu Zhicheng's arms, her big eyes full of tenderness.

"You woman, you scared me. I thought someone bullied you outside." Liu Zhicheng said with a smile.

"Hehe, thank you Brother Cheng for your concern!"

Next, Li Zhi took out a box and gave it to Liu Zhicheng, saying, "This is a gift I bought for you!"

Liu Zhicheng opened the box and said in surprise: "Wow, I like it very much!"

It was an Hermès belt, really nice. Although Liu Zhicheng had almost enough brand-name belts to escape from the 10th floor, he never had too many.

Soon, it's time to have dinner.

There are two live-in maids and two part-time workers in the villa.

After dinner, call Li Zhi to the bedroom and interrogate her tonight! Liu Zhicheng was not in a hurry. He leaned on the bedside table and admired Li Zhi.

So beautiful!
"You're just going to wear this for me to see?" Liu Zhicheng raised his eyebrows, with a serious look on his face.

"Isn't this set very nice? Now pretend that you are in the office, and there is a beautiful female CEO standing next to you. Do you want to conquer her?"

Li Zhi quickly showed off her intellectual beauty and got into the role, as if she was in her office, with a serious look on her face, efficient movements, and she walked with her back straight and her high heels clacking.

You know what, this woman recently cut her hair short and permed it into some waves, which looks quite different!
Liu Zhicheng came forward, and it was like a downpour after a long drought!
a long time.

After they separated, Liu Zhicheng said, "I specially left you a night alone, please don't let me down!"

Li Zhi stood up and said in a charming manner: "Wait for me, you read the newspaper for a while."

After saying that, she turned and went to her room to look for the secret magic weapon.

After a while, when Liu Zhicheng saw Li Zhi coming in, he couldn't help but be surprised.

It was a black dress, tied up with ropes on the shoulders, revealing the vast valley of her chest. The woman had a really good figure.

"How about it?"

Liu Zhicheng was jealous and asked, "You are not planning to wear this to the party, are you?"

He didn't care about it before, but now he suddenly cares about it. Liu Zhicheng doesn't know how his mentality changed so quickly.

"No, I won't show too much, at most I'll show my shoulders! This outfit is specially worn for you to see, how about we dance together!"

The woman knew what the man meant and responded immediately.

This is not bad. Liu Zhicheng turned on the music and danced ballroom dance with the sexy Li Zhi.

This bedroom is seven or eight hundred square feet, enough for two people to immerse themselves in it.

As they danced, Liu Zhicheng lifted up Li Zhi's skirt, revealing her long legs in black stockings...

The next day.

Representatives from several real estate companies came to the subway company to wait for the results to be announced.

At the same time, a large number of reporters also came to the subway company to wait for news.

The media had already begun to fan the flames. They caught up with Huangpu Group's Hao Qingwen and asked him hastily, "Mr. Hao, is Huangpu Group confident that it will win the bid this time?"

Hao Qingwen said politely: "I believe that many real estate developers here are full of confidence. Of course, the final result has to wait for announcement, so we will wait and see."

What this means is that one is full of confidence!

In fact, he knew in his heart that the winning bidder would definitely be Huangpu Real Estate, and the boss had offered a sky-high price!

At this moment, Lu Yaohua, who was not far away, suddenly became nervous, because he saw Hao Qingwen was very relaxed and seemed to be sure of winning, so he had a bad feeling.

After a while, Tang Jun, chairman of the subway company, came out. The hall was silent for a moment and everyone held their breath.

“Hello everyone, I’m glad that you all participated in this bidding and report!
Our subway company is very satisfied with everyone's sincerity in this bidding. The subway project is a public project that will benefit the citizens.

Okay, I won’t keep you in suspense. Now I announce: the winner of this bid is Huangpu Group. Congratulations! "

Hao Qingwen couldn't help but feel happy. Although he had a premonition that he would win the bid, he still felt the joy of success.

Next, Hao Qingwen spoke a few words on behalf of Huangpu Real Estate and was surrounded by reporters.

What the reporter is most concerned about is the price, but it is impossible to disclose this.

"Excuse me, Manager Hao, did Mr. Liu research his competitors beforehand and set the price accordingly?"

“We are very optimistic about the real estate industry in Hong Kong and have set a very favorable price.

We don’t know what everyone’s bid was, but I guess it was a close win!”

"Excuse me, Manager Hao, some people said before that Hong Kong is the Liu family's city. Has the winning of the Lantian site this time further confirmed everyone's nickname for Mr. Liu as Liu's half city?"

"On behalf of the boss, I want to thank you for your compliments. We didn't think too much about this bid. As we all know, the boss always values ​​the future value of real estate, not its current value.

Sorry, I need to report this good news to my boss. I will accept your interview another day."

When Liu Zhicheng learned that Huangpu Group won the bid, a smile appeared on his face.

“This project not only brings us huge profits, but I also like its large-scale housing estate nature.

As a real estate developer, you have to build large housing estates, skyscrapers, and hotels.”

Hao Qingwen, who was sitting on the sofa, nodded and said, "Boss is right. Fortunately, we won the bid this time. I heard that the second highest bid was also over 9 million Hong Kong dollars."

After listening to this, Liu Zhicheng paused and thought that this butterfly effect was too severe.

"Do you know who it is?"

"I haven't found out yet. Do you want to go and find out?"

Liu Zhicheng shook his head and said with a smile: "No need."

Just let it go, because you are the one who laughs last.

On that day, Liu Zhicheng received many congratulatory calls, including one from Lu Zhihe.

After the phone call, Liu Zhicheng learned that the other bidder for more than HK$9 million was from Lui Chi-ho.

Liu Zhicheng really admires this Lu Xiaoxiong! If he didn't have the golden finger of "prophet", he really couldn't do it.

On Wednesday, media outlets across Hong Kong were reporting that Liu Zhicheng had acquired the property rights above the Lam Tin MTR station.

Many media outlets have also heard a shocking piece of news: Huangpu Group's price tag has made this project unprofitable in the current real estate environment.

The media immediately exclaimed: How much money did the Whampoa Group lose in order to win?

In the afternoon, Liu Zhicheng, Han Chunxi and others went to the Wharf Holdings to handle the terminal bidding business.

At the entrance of the Sailboat Building Company, he was surrounded by several reporters who were waiting there.

"Mr. Liu, what do you think about the 'loss-making' bidding?"

Damn, it turns out he’s a reporter from Oriental Daily, asking such tricky questions!

Liu Zhicheng said seriously: "Is the house you bought three years ago also priced at the current price?"

The reporter was immediately unable to refute! The other reporters all laughed, "You fool, don't you know that he is the king of the media? How can you argue with him?"

"Mr. Liu, so you are very optimistic about the real estate trend in Hong Kong?"

It turned out to be a reporter from our own media "Tiantian Economic News"!
Liu Zhicheng smiled and said, "Of course! In the 1987 stock market crash, stocks fell by 50% and real estate fell by 10%. This shows that the potential of Hong Kong real estate has not been exhausted.

I am personally very optimistic about the market trend in the future. I heard that we also won by a narrow margin this time, which means that other real estate developers also hold the same view. "

After saying this, Liu Zhicheng left the scene under the protection of his bodyguards.

(End of this chapter)