I Want To Be a Rich Man on Hong Kong Island

After three days of high-level negotiations, Cheung Kong and Swire Pacific reached an agreement: to form a joint venture to form a new real estate company - Shilia Real Estate, with each party investing HK$50 million; Shilia Real Estate purchased the first phase of the site from Swire Matheson. The area is 60,000 square feet, and the price is HK$60 million.

The first phase of the residential project of "Taikoo Shing" is planned to be 5 residential buildings in the shape of "double cross", with eight households on one floor, each building has 26 floors, and a total of 1040 residential units;

After completion, it will have a floor area of ​​about 800,000 square feet!

After the contract was signed, Swire Pacific also generously showed the design blueprint of Swire City, even Wu Guangyao couldn't help admiring it;

According to the design of Taikoo Matheson, the tenth phase of the "Taikoo Shing" residential project has more than 10,000 residential units (50 residential buildings), and each residential unit ranges from 600 square feet to 900 square feet. In this way, the residential area of ​​Taikoo Shing is 8 million Sq.ft;

Wu Guangyao gasped, because the land cost of Taikoo Shing is very low, the floor land price is only 70 Hong Kong dollars per square foot;

According to the current cost of labor and materials, the floor cost per square foot is expected to be around 60 Hong Kong dollars;

In other words, the floor cost price per square foot is only less than 150 Hong Kong dollars!

So how much can it sell for?

According to history, in 1976, the price of the first two buildings of Taikoo Shing was 230 Hong Kong dollars per square foot;

By 1977, the price per square foot will reach 300 Hong Kong dollars per square foot;

By 1981, real estate reached its peak, and it would reach 1,300 Hong Kong dollars per square foot.

One can imagine the abundance of profits!

Moreover, Taikoo Shing also planned a 3 million square foot "Taikoo Shing Centre", which is known as the largest shopping mall in Hong Kong (later surpassed by Harbor City), and the operation method is only for rent and not for sale; the shopping mall can accommodate hundreds of boutiques and department stores. Various entertainment facilities such as companies, supermarkets, restaurants, cinemas and ice rinks.

The entire Taikoo Shing contributed 11 million square feet of property, but even with such a large area, the construction ratio of the entire Taikoo Dockyard site is only 25%;

In accordance with the 35% construction ratio regulations stipulated by the Hong Kong government, Taikoo Shing took out nearly 40 acres (240,000 square feet) of land to develop gardens, entertainment venues, and recreational areas;

so,

The living environment in Taikoo Shing is top-notch.

Although Swire Pacific's real estate strategy is conservative, Wu Guangyao really admires it.

.........

Changjiang Building, Chairman's Office.

Wu Guangyao said to Li Xing who was on the sofa: "Large private housing estates will become the mainstream of Hong Kong's housing market, and this is also my goal of acquiring established companies everywhere over the years!"

Li Xing was overjoyed when he heard that, Cheung Kong now owns a few large pieces of land, which can be used to develop large private housing estates.

"Boss, are we going to develop a large-scale private housing project immediately?"

Wu Guangyao wanted to test himself as a proud executive, so he said, "How do you plan to use Pok Fu Lam, Causeway Bay, Saixi Lake, and the No. 1 section of Taikoo Valley? Tell me about your plan?"

Cheung Kong currently owns land reserves as follows:

1. Small sites/old buildings of 2.3 million square feet. These are sites (originally 3.8 million square feet) that were bought at a low price during the June 7 incident. These sites have a good geographical environment and are generally located in the prosperous areas of the island and Kowloon.

2. The 5 million square feet New Territories Class B Land Exchange Rights/New Territories Land, which is the result of Cheung Kong's unswerving determination over the years.

3. Large sites, including Pok Fu Lam (900,000 square feet), Causeway Bay (1.3 million square feet), Saixi Lake (860,000 square feet), and No. 1 Pacific Valley (500,000 square feet). Good land.

Calculated in this way, Cheung Kong already has a land reserve of 10 million square feet, which can be described as extremely powerful.

It is precisely because of this that Wu Guangyao did not take advantage of the bottom to absorb new land when the real estate plummeted by 30% this time;

There are also two considerations:

First, there was another big opportunity in 1982 to reserve a large amount of land;

Second, Wu Guangyao intends to let his real estate company specialize in private housing projects (1,500 residential units plus various commercial projects, which are equivalent to the mainland communities in his previous life.); small residential projects (the chassis of several buildings) Not to give up, but to reduce the amount.

Li Xing thought for a while and said seriously: "According to the current situation, I predict that the real estate on Hong Kong Island will start to flourish in 1976. According to Hong Kong's real estate cycle, a booming market will last for four to five years...."

Before Li Xing finished speaking, Wu Guangyao applauded him for his predictability!

It can be said that Li Xing has fully grasped the real estate trend in Hong Kong;

Of course, it does not mean that after 1981, Cheung Kong Industrial Co., Ltd. withdrew from the real estate market, but to reduce debts, reduce real estate development, and reduce large-scale investment in advance to resist risks; of course, the real estate business will not stop, otherwise the company's employees, and How should the cooperating contractors and workers be arranged.

With Wu Guangyao's affirmation, Li Xing immediately became more confident, and said: "So, regarding the four large sites, my idea is: the Saixi Lake site, immediately build a large-scale event venue that integrates entertainment, sports, and leisure. , connected with the Saixi Lake Scenic Area; and reserved 100,000 square feet of residential land for the development of private housing estates in 1976; on the 100,000 square feet of land, 12 26-story residential buildings can be built; by then, the total The floor area is expected to be 1.6 million square feet, with more than 2,000 residential units.”

Wu Guangyao nodded. Since the entire site is as high as 860,000 square feet, it is naturally impossible to build 12 residential buildings that exceed the floor area ratio, or even very low.

Wu Guangyao interjected: "If we developed residential buildings in 1976, we could divide them into three years for sales in 1978, 1979, and 1980."

Although it is known that in 1981, the high-end housing could reach 1,300 Hong Kong dollars per square foot, but considering the market, finance and other aspects, it is impossible for Cheung Kong to hold it in its hands for so many years.

As far as Wu Guangyao knows, in 1976, the high-end residential buildings on Hong Kong Island reached 300 Hong Kong dollars per square foot, and by 1981, it will reach 1,300 Hong Kong dollars per square foot, an increase of about three times.

Li Xing nodded. Since the boss said that the sales will be divided into three years, then he only needs to divide the 12 residential buildings into the third phase of the project;

In this way, the financial pressure is reduced, and people will not be said!

At this time, Li Xing had clearly understood the trend of real estate in Hong Kong Island through Wu Guangyao's words, so he was full of confidence!

Li Xing went on to say: "The No. 1 site of the Taikoo Valley is similar to the operation method and time of the Saixi Lake site."

Wu Guangyao nodded again, and added: "You can choose to start building at the end of 1975!"

Although from 1974 to 1976, the building area of ​​Cheung Kong Industrial Co., Ltd. was relatively small in recent years, but it did not affect Cheung Kong Industrial Co., Ltd.:

First, Cheung Kong’s financial situation can support a relatively blank period of two or three years;

Second, Hong Kong Island First Construction has also had many commercial building projects in the past few years, which will not cause a large number of workers and contractors to lose their jobs!

Thinking of this, Wu Guangyao reminded: "I predict that by 1976, Hong Kong Island will rob workers and contractors. You must be mentally prepared!"

Deep in Li Xing's heart, his admiration for Wu Guangyao undoubtedly increased a lot!

For a boss with such a huge career to be able to predict such a scene, it can be said that he has a surprisingly large brain capacity!

"Well, boss, don't worry, I will come up with a plan! Regarding the land in Causeway Bay, I have already made a plan! Causeway Bay is the second commercial center of Hong Kong Island, and the land for the dairy farm in Causeway Bay is as high as 1.1 million square feet, and some ice factories and other lands are also 200,000 square feet. Therefore, I plan to build five high-end commercial buildings on these lands, as well as a high-end private housing estate and high-end residential project including a shopping center. I plan to start the plan for five Grade A office buildings soon!"

If it were any other real estate company, five Grade A high-end office buildings would not be so easy;

But for Cheung Kong, this problem does not exist!

Leaving aside other reasons, it is because Wu Guangyao is behind Cheung Kong;

The management also knows that even if there is a financial situation due to excessive development speed, it is not a disaster;

Because the Wu family can privatize this company at any time!

Even stockholders in Hong Kong Island know this truth. Therefore, since the stock market crash, Cheung Kong’s market value has only evaporated by 40% (the vast majority of listed companies have evaporated by 70%), and still has a market value of 4.2 billion Hong Kong dollars;

This market value accounted for 9% of Hong Kong's total market value at the beginning, and now it has climbed to account for 15% of Hong Kong's total market value, reaching a terrifying level.

Shareholders not only saw that the Wu family was behind Cheung Kong, they were not worried about bankruptcy;

There is also a very obvious financial situation, and Cheung Kong’s rent collection is very high and stable (commercial real estate has only dropped by 25%, and Singapore’s rent collection has increased).

To sum up, relying on two large commercial complexes and six Grade A office buildings to collect rents, Cheung Kong's stock is simply very strong!

Of course, this also has a downside, that is, Wu Guangyao sold 12% of Cheung Kong shares in advance, and then bought them again, earning only 300 million Hong Kong dollars.

"For the high-end residential project in Causeway Bay, I plan to start building in 1975; as for the land in Pok Fu Lam, I think it's better to reserve it first, and then consider it in the 1980s!"

After the construction of 5 commercial buildings and a small shopping center in Causeway Bay, it is estimated that there will be about 800,000 square feet left. It is estimated that 4,000 high-end residential units can be built, which is indeed enough for Cheung Kong Industrial to digest for a stage.

However, Wu Guangyao still shook his head and said, "The land in Pok Fu Lam also started to build a large-scale housing estate in 1975. Although the land is kept in hand, it can wait for the house price to appreciate and rebuild, but such a large piece of land is vacant, and people will gossip about it." Yes! The important thing is that in the 1980s, Cheung Kong would still not lack land for large private housing estates, so don’t worry!”

Li Xing nodded and said, "En! If that's the case, it seems that we have really had a lot of big projects in the past few years!"

In fact, Cheung Kong’s large-scale private housing estates in the 1980s were not located at all;

Although the two pieces of land of Hongkong Electric can develop large-scale private housing estates, Hongkong Electric itself is not weak, and it is easy to be criticized for stripping the land of Hong Kong Electric rashly;

Therefore, Wu Guangyao believes that it is also necessary for Hongkong Electric to establish a real estate company to develop the two lands of North Point Power Plant and Ap Lei Chau Power Plant by itself;

Of course, brother companies can get involved!

Based on the principle of earning money together, Wu Guangyao will not privatize the company easily!

Unless, this company is seriously underestimated by shareholders in Hong Kong Island, which is not conducive to the development of the company, such as Wharf Group;

However, companies such as Hutchison Whampoa and Hongkong Electric have no problems in their operations, so why do they have to eat alone?

Therefore, there is only one option for Cheung Kong to develop large-scale housing estates in the 1980s, and that is Tin Shui Wai;

Wu Guangyao is planning to build a new town, and Cheung Kong just happens to get involved!

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