Chapter 559: [The short-term direction of CK Industries]
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Chapter 559【The short-term direction of Cheung Kong Holdings】
After three days of high-level negotiations, Cheung Kong Holdings and Swire Properties reached an agreement: a joint venture to form a new real estate company-Shiliya Properties, each of which invested 50 million Hong Kong dollars; Shiliya Properties purchased the first phase of the site from Swire Properties. It is 60,000 square feet and the price is 60 million Hong Kong dollars.
The first phase of the residential project of "Taikoo Shing" is planned to be 5 "double cross" residential buildings, with eight households on one floor, 26 floors in each building, and a total of 1040 residential units;
After completion, it will have a floor area of about 800,000 square feet!
After signing the contract, Swire Pacific also generously showed the blueprint of the city, even Wu Guangyao couldn't help but admire it;
According to Swire Pacific’s design, the tenth phase of the “Taikoo Shing” residential project has more than 10,000 residential units (50 residential towers), with each residential unit ranging from 600 square feet to 900 square feet, so that the residential area of Taikoo Shing is 8 million. Sq.ft;
Wu Guangyao took a breath of air-conditioning. Because the land cost of Taikoo Shing is very low, the floor price is only 70 Hong Kong dollars per square foot;
According to the current cost of labor and materials, the cost per square foot of floor space is estimated to be around 60 Hong Kong dollars;
In other words, the cost price per square foot of floor space is less than 150 Hong Kong dollars!
So how much can you sell?
According to history, the price of the first two buildings in Taikoo Shing in 1976 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, reaching 1,300 Hong Kong dollars per square foot.
The profit is abundant, as you can imagine!
Moreover, Cityplaza has also planned a 3 million square-foot'Taikoo City Center', which is known as the largest shopping mall in Hong Kong (later surpassed by Harbour City). It only rents but does not sell; the 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 proportion of the entire Taikoo Dockyard site was only 25%;
According to the 35% building ratio regulations set by the Hong Kong government, Taikoo Shing has allocated nearly 40 acres (240,000 square feet) of land to open up gardens, casinos, and recreational venues;
Therefore, the living environment of Taikoo Shing is first-rate.
Although Swire Pacific's real estate strategy is conservative, Wu Guangyao truly admires it.
Changjiang Building, Chairman's Office.
Wu Guangyao said to Li Xing on the sofa: “Large private housing estates will become the mainstream of the Hong Kong residential market. This is also the purpose of my purchase of established companies in these years!”
Li Xing’s heart is full of praise. Cheung Kong Industrial now has several large plots of land, which can develop large-scale private housing estates.
"Boss, are we going to develop a large-scale private housing estate plan now?"
Wu Guangyao wanted to test himself as a proud executive, so he said: “How do you plan to use Pokfulam, Causeway Bay, Saixi Lake, Taikoo Valley Section 1 to talk about your plan?”
The land reserves currently owned by Changjiang Industrial are as follows:
One, 2.3 million square feet of small sites/old buildings. These are the sites (original 3.8 million square feet) that were sucked in during the June 7th Incident. These sites have a relatively good geographic environment and are generally located in the prosperous areas of the island and Kowloon.
2, 5 million square feet of New Territories Type B land exchange rights book/New Territories land, this is the result of Cheung Kong's unswerving determination over the years.
3. Large sites, including Pokfulam (900,000 square feet), Causeway Bay (1.3 million square feet), Saixi Lake (860,000 square feet), Taikoo Valley No. 1 (500,000 square feet), these sites are all available but not available Good land for encounter.
Calculated in this way, Cheung Kong Holdings already has a land bank of 10 million square feet, which is extremely powerful.
It is precisely because of this that Wu Guangyao did not take advantage of the 30% drop in real estate to absorb new land;
There are also two considerations:
First, there was another big opportunity in 1982 to reserve a lot of land;
Second, Wu Guangyao intends to allow his own real estate company to specialize in private housing projects (1500 residential units plus various commercial projects, which are equivalent to the inland communities in the previous life.); small residential projects (the chassis of several buildings) Not to give up, but to reduce the number.
Li Xing thought for a while, and said seriously: “According to the current situation, I expect Hong Kong Island’s real estate will begin to flourish in 1976. According to Hong Kong’s real estate cycle, a prosperous market will last for four to five years.”
Li Xing hadn't finished speaking, Wu Guangyao applauded and praised his predictability!
It can be said that Li Xing fully understands Hong Kong’s real estate trends;
Of course, it does not mean that Cheung Kong will withdraw from the real estate market after 1981, but to reduce debt, reduce real estate development, and reduce large-scale investment in order to resist risks. Of course, the real estate business will not stop, otherwise the company’s staff, and How to arrange the contractor of the cooperation and the workers.
Affirmed by Wu Guangyao, Li Xing immediately became more confident and said: "So, regarding the four large sites, my idea is: Saixi Lake plot, immediately build a large-scale event venue integrating entertainment, sports and leisure. , And 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 site, 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 large as 860,000 square feet, the construction of 12 residential buildings naturally cannot exceed the floor area ratio, or even very low.
Wu Guangyao interjected: “If we develop housing in 1976, we can sell it in three years in 1978, 1979, and 1980, respectively.”
Although it is known that the high residential buildings in 1981 can reach 1,300 Hong Kong dollars per square foot, it is impossible for Cheung Kong to hold it in its hands for so many years when considering the market, finance and other aspects.
As far as Wu Guangyao knows, in 1976, high-end residential properties 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 make 12 residential buildings into the third phase of the project;
In this way, the financial pressure is reduced without being said by others!
At this time, Li Xing has already passed Wu Guangyao's words and clearly understands the trend of Hong Kong Island's real estate, so he is confident!
Li Xing went on to say: “The operation method and time of the Taikoo Valley No. 1 site are similar to those of the Saixi Lake plot.”
Wu Guangyao nodded again and added: "You can choose to get up at the end of 1975!"
Although from 1974 to 1976, the area of Cheung Kong's construction was relatively small in the past few years, it did not affect Cheung Kong's:
First, the financial status of Cheung Kong Holdings can support the relative blank period of two or three years;
Secondly, there have been many commercial building projects during the construction of Hong Kong Island 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, there will be a situation of robbing workers and contractors on Hong Kong Island. You must be psychologically prepared!"
In the depths of Li Xing's heart, his admiration for Wu Guangyao has undoubtedly increased a lot!
A boss with such a huge business can predict even this kind of scene. It can be said that it is really surprisingly large in brain capacity!
"Well, the boss can rest assured, I will come up with a plan! As for the land in Causeway Bay, I have made a plan! Causeway Bay is the second commercial center of Hong Kong Island, and the cow field in Causeway Bay is as high as 1.1 million. Square feet, there are some sites such as ice factories, and there are also 200,000 square feet. Therefore, I plan to build five high-end commercial buildings on these sites, as well as a high-end private housing estate and high-end residential projects including shopping centers. I plan to start the plan for five Grade A office buildings soon!"
It is not so easy to change to another real estate company, five Grade A high-end office buildings;
But for Cheung Kong, this problem does not exist!
Leave aside other reasons for the time being, but Wu Guangyao is behind Cheung Kong;
The management also knows that even if the financial situation is caused by the excessive development speed, it is not a disaster;
Because the Wu family can privatize this company at any time!
Even Hong Kong Island investors know this truth. Therefore, since the stock market crash, Cheung Kong Holdings has only lost 40% of its market value (most listed companies have lost 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 from the beginning, and has now risen to 15% of Hong Kong’s total market value, reaching a terrible level.
Shareholders not only see that there is the Wu family behind Cheung Kong, they are 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 has even increased rent collection).
To sum up, relying on two large commercial entities and six Grade A office buildings to collect rents, Cheung Kong Holdings' stocks are just very strong!
Of course, this also has a downside, that is, Wu Guangyao sold 12% of Cheung Kong's shares in advance, and then re-purchased them, earning only 300 million Hong Kong dollars.
"The high-end residential project in Causeway Bay, I plan to start building in 1975; as for the Pokfulam plot of land, I think I should reserve it first and consider it in the 1980s!"
After the construction of five commercial buildings and small shopping malls on the land in Causeway Bay, it is estimated that there will be about 800,000 square feet left. It is estimated that 4000 high-end residential units can be built, which is indeed enough for Cheung Kong to digest.
However, Wu Guangyao still shook his head and said, "The Pokfulam plot of land also began to build a large housing estate in 1975. Although the plot of land can be left in hand and can be rebuilt after housing price appreciation, but such a large area will be vacant and people will gossip. Yes! The important thing is that in the 1980s, Cheung Kong still has no shortage of land for large private housing estates, so don't worry!"
Li Xing nodded and said, "En! In that case, it seems that we have really had a lot of big projects in recent years!"
In fact, the large private housing estates of Cheung Kong in the 1980s have not been located at all;
Although the two plots of the HEC can develop large-scale private housing estates, the strength of the HEC itself is not weak. If it rashly strips the HEC’s land, it is easy to be criticized;
Therefore, Wu Guangyao believes that it is also necessary for Hongkong Electric to set up a real estate company to develop the North Point Power Plant and Ap Lei Chau Power Plant on its own;
Of course, brother companies can get involved!
Based on the principle of making money together, Wu Guangyao will not easily privatize the company!
Unless, this company is seriously undervalued by Hong Kong Island investors, which is not conducive to the development of the company, such as the Wharf Group;
While Hutchison Whampoa and Hongkong Electric have no problems with their operations, why do they have to eat alone?
Therefore, there is only one option for the development of large-scale housing estates in Cheung Kong in the 1980s, and that is Tin Shui Wai;
Wu Guangyao is preparing to build a new town, and Cheung Kong Industrial is just getting involved!
(End of this chapter)
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Chapter 559【The short-term direction of Cheung Kong Holdings】
After three days of high-level negotiations, Cheung Kong Holdings and Swire Properties reached an agreement: a joint venture to form a new real estate company-Shiliya Properties, each of which invested 50 million Hong Kong dollars; Shiliya Properties purchased the first phase of the site from Swire Properties. It is 60,000 square feet and the price is 60 million Hong Kong dollars.
The first phase of the residential project of "Taikoo Shing" is planned to be 5 "double cross" residential buildings, with eight households on one floor, 26 floors in each building, and a total of 1040 residential units;
After completion, it will have a floor area of about 800,000 square feet!
After signing the contract, Swire Pacific also generously showed the blueprint of the city, even Wu Guangyao couldn't help but admire it;
According to Swire Pacific’s design, the tenth phase of the “Taikoo Shing” residential project has more than 10,000 residential units (50 residential towers), with each residential unit ranging from 600 square feet to 900 square feet, so that the residential area of Taikoo Shing is 8 million. Sq.ft;
Wu Guangyao took a breath of air-conditioning. Because the land cost of Taikoo Shing is very low, the floor price is only 70 Hong Kong dollars per square foot;
According to the current cost of labor and materials, the cost per square foot of floor space is estimated to be around 60 Hong Kong dollars;
In other words, the cost price per square foot of floor space is less than 150 Hong Kong dollars!
So how much can you sell?
According to history, the price of the first two buildings in Taikoo Shing in 1976 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, reaching 1,300 Hong Kong dollars per square foot.
The profit is abundant, as you can imagine!
Moreover, Cityplaza has also planned a 3 million square-foot'Taikoo City Center', which is known as the largest shopping mall in Hong Kong (later surpassed by Harbour City). It only rents but does not sell; the 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 proportion of the entire Taikoo Dockyard site was only 25%;
According to the 35% building ratio regulations set by the Hong Kong government, Taikoo Shing has allocated nearly 40 acres (240,000 square feet) of land to open up gardens, casinos, and recreational venues;
Therefore, the living environment of Taikoo Shing is first-rate.
Although Swire Pacific's real estate strategy is conservative, Wu Guangyao truly admires it.
Changjiang Building, Chairman's Office.
Wu Guangyao said to Li Xing on the sofa: “Large private housing estates will become the mainstream of the Hong Kong residential market. This is also the purpose of my purchase of established companies in these years!”
Li Xing’s heart is full of praise. Cheung Kong Industrial now has several large plots of land, which can develop large-scale private housing estates.
"Boss, are we going to develop a large-scale private housing estate plan now?"
Wu Guangyao wanted to test himself as a proud executive, so he said: “How do you plan to use Pokfulam, Causeway Bay, Saixi Lake, Taikoo Valley Section 1 to talk about your plan?”
The land reserves currently owned by Changjiang Industrial are as follows:
One, 2.3 million square feet of small sites/old buildings. These are the sites (original 3.8 million square feet) that were sucked in during the June 7th Incident. These sites have a relatively good geographic environment and are generally located in the prosperous areas of the island and Kowloon.
2, 5 million square feet of New Territories Type B land exchange rights book/New Territories land, this is the result of Cheung Kong's unswerving determination over the years.
3. Large sites, including Pokfulam (900,000 square feet), Causeway Bay (1.3 million square feet), Saixi Lake (860,000 square feet), Taikoo Valley No. 1 (500,000 square feet), these sites are all available but not available Good land for encounter.
Calculated in this way, Cheung Kong Holdings already has a land bank of 10 million square feet, which is extremely powerful.
It is precisely because of this that Wu Guangyao did not take advantage of the 30% drop in real estate to absorb new land;
There are also two considerations:
First, there was another big opportunity in 1982 to reserve a lot of land;
Second, Wu Guangyao intends to allow his own real estate company to specialize in private housing projects (1500 residential units plus various commercial projects, which are equivalent to the inland communities in the previous life.); small residential projects (the chassis of several buildings) Not to give up, but to reduce the number.
Li Xing thought for a while, and said seriously: “According to the current situation, I expect Hong Kong Island’s real estate will begin to flourish in 1976. According to Hong Kong’s real estate cycle, a prosperous market will last for four to five years.”
Li Xing hadn't finished speaking, Wu Guangyao applauded and praised his predictability!
It can be said that Li Xing fully understands Hong Kong’s real estate trends;
Of course, it does not mean that Cheung Kong will withdraw from the real estate market after 1981, but to reduce debt, reduce real estate development, and reduce large-scale investment in order to resist risks. Of course, the real estate business will not stop, otherwise the company’s staff, and How to arrange the contractor of the cooperation and the workers.
Affirmed by Wu Guangyao, Li Xing immediately became more confident and said: "So, regarding the four large sites, my idea is: Saixi Lake plot, immediately build a large-scale event venue integrating entertainment, sports and leisure. , And 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 site, 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 large as 860,000 square feet, the construction of 12 residential buildings naturally cannot exceed the floor area ratio, or even very low.
Wu Guangyao interjected: “If we develop housing in 1976, we can sell it in three years in 1978, 1979, and 1980, respectively.”
Although it is known that the high residential buildings in 1981 can reach 1,300 Hong Kong dollars per square foot, it is impossible for Cheung Kong to hold it in its hands for so many years when considering the market, finance and other aspects.
As far as Wu Guangyao knows, in 1976, high-end residential properties 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 make 12 residential buildings into the third phase of the project;
In this way, the financial pressure is reduced without being said by others!
At this time, Li Xing has already passed Wu Guangyao's words and clearly understands the trend of Hong Kong Island's real estate, so he is confident!
Li Xing went on to say: “The operation method and time of the Taikoo Valley No. 1 site are similar to those of the Saixi Lake plot.”
Wu Guangyao nodded again and added: "You can choose to get up at the end of 1975!"
Although from 1974 to 1976, the area of Cheung Kong's construction was relatively small in the past few years, it did not affect Cheung Kong's:
First, the financial status of Cheung Kong Holdings can support the relative blank period of two or three years;
Secondly, there have been many commercial building projects during the construction of Hong Kong Island 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, there will be a situation of robbing workers and contractors on Hong Kong Island. You must be psychologically prepared!"
In the depths of Li Xing's heart, his admiration for Wu Guangyao has undoubtedly increased a lot!
A boss with such a huge business can predict even this kind of scene. It can be said that it is really surprisingly large in brain capacity!
"Well, the boss can rest assured, I will come up with a plan! As for the land in Causeway Bay, I have made a plan! Causeway Bay is the second commercial center of Hong Kong Island, and the cow field in Causeway Bay is as high as 1.1 million. Square feet, there are some sites such as ice factories, and there are also 200,000 square feet. Therefore, I plan to build five high-end commercial buildings on these sites, as well as a high-end private housing estate and high-end residential projects including shopping centers. I plan to start the plan for five Grade A office buildings soon!"
It is not so easy to change to another real estate company, five Grade A high-end office buildings;
But for Cheung Kong, this problem does not exist!
Leave aside other reasons for the time being, but Wu Guangyao is behind Cheung Kong;
The management also knows that even if the financial situation is caused by the excessive development speed, it is not a disaster;
Because the Wu family can privatize this company at any time!
Even Hong Kong Island investors know this truth. Therefore, since the stock market crash, Cheung Kong Holdings has only lost 40% of its market value (most listed companies have lost 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 from the beginning, and has now risen to 15% of Hong Kong’s total market value, reaching a terrible level.
Shareholders not only see that there is the Wu family behind Cheung Kong, they are 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 has even increased rent collection).
To sum up, relying on two large commercial entities and six Grade A office buildings to collect rents, Cheung Kong Holdings' stocks are just very strong!
Of course, this also has a downside, that is, Wu Guangyao sold 12% of Cheung Kong's shares in advance, and then re-purchased them, earning only 300 million Hong Kong dollars.
"The high-end residential project in Causeway Bay, I plan to start building in 1975; as for the Pokfulam plot of land, I think I should reserve it first and consider it in the 1980s!"
After the construction of five commercial buildings and small shopping malls on the land in Causeway Bay, it is estimated that there will be about 800,000 square feet left. It is estimated that 4000 high-end residential units can be built, which is indeed enough for Cheung Kong to digest.
However, Wu Guangyao still shook his head and said, "The Pokfulam plot of land also began to build a large housing estate in 1975. Although the plot of land can be left in hand and can be rebuilt after housing price appreciation, but such a large area will be vacant and people will gossip. Yes! The important thing is that in the 1980s, Cheung Kong still has no shortage of land for large private housing estates, so don't worry!"
Li Xing nodded and said, "En! In that case, it seems that we have really had a lot of big projects in recent years!"
In fact, the large private housing estates of Cheung Kong in the 1980s have not been located at all;
Although the two plots of the HEC can develop large-scale private housing estates, the strength of the HEC itself is not weak. If it rashly strips the HEC’s land, it is easy to be criticized;
Therefore, Wu Guangyao believes that it is also necessary for Hongkong Electric to set up a real estate company to develop the North Point Power Plant and Ap Lei Chau Power Plant on its own;
Of course, brother companies can get involved!
Based on the principle of making money together, Wu Guangyao will not easily privatize the company!
Unless, this company is seriously undervalued by Hong Kong Island investors, which is not conducive to the development of the company, such as the Wharf Group;
While Hutchison Whampoa and Hongkong Electric have no problems with their operations, why do they have to eat alone?
Therefore, there is only one option for the development of large-scale housing estates in Cheung Kong in the 1980s, and that is Tin Shui Wai;
Wu Guangyao is preparing to build a new town, and Cheung Kong Industrial is just getting involved!
(End of this chapter)
Chapter 559The short-term direction of Cheung Kong HoldingsAfter three days of high-level negotiations, Cheung Kong Holdings and Swire Properties reached an agreement: a joint venture to form a new real estate company-Shiliya Properties, each of which invested 50 million Hong Kong dollars; Shiliya Properties purchased the first phase of the site from Swire Properties. It is 60,000 square feet and the price is 60 million Hong Kong dollars.The first phase of the residential project of "Taikoo Shing" is planned to be 5 "double cross" residential buildings, with eight households on one floor, 26 floors in each building, and a total of 1040 residential units;After completion, it will have a floor area of about 800,000 square feet!After signing the contract, Swire Pacific also generously showed the blueprint of the city, even Wu Guangyao couldn't help but admire it;According to Swire Pacific's design, the tenth phase of the Taikoo Shing residential project has more than 10,000 residential units 50 residential towers, with each residential unit ranging from 600 square feet to 900 square feet, so that the residential area of Taikoo Shing is 8 million. Sq.ft;Wu Guangyao took a breath of air-conditioning. Because the land cost of Taikoo Shing is very low, the floor price is only 70 Hong Kong dollars per square foot;According to the current cost of labor and materials, the cost per square foot of floor space is estimated to be around 60 Hong Kong dollars;In other words, the cost price per square foot of floor space is less than 150 Hong Kong dollars!So how much can you sell?According to history, the price of the first two buildings in Taikoo Shing in 1976 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, reaching 1,300 Hong Kong dollars per square foot.The profit is abundant, as you can imagine!Moreover, Cityplaza has also planned a 3 million square-foot'Taikoo City Center', which is known as the largest shopping mall in Hong Kong later surpassed by Harbour City. It only rents but does not sell; the 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 proportion of the entire Taikoo Dockyard site was only 25%;According to the 35% building ratio regulations set by the Hong Kong government, Taikoo Shing has allocated nearly 40 acres 240,000 square feet of land to open up gardens, casinos, and recreational venues;Therefore, the living environment of Taikoo Shing is first-rate.Although Swire Pacific's real estate strategy is conservative, Wu Guangyao truly admires it.Changjiang Building, Chairman's Office.Wu Guangyao said to Li Xing on the sofa: Large private housing estates will become the mainstream of the Hong Kong residential market. This is also the purpose of my purchase of established companies in these years!Li Xing's heart is full of praise. Cheung Kong Industrial now has several large plots of land, which can develop large-scale private housing estates."Boss, are we going to develop a large-scale private housing estate plan now?"Wu Guangyao wanted to test himself as a proud executive, so he said: How do you plan to use Pokfulam, Causeway Bay, Saixi Lake, Taikoo Valley Section 1 to talk about your plan?The land reserves currently owned by Changjiang Industrial are as follows:One, 2.3 million square feet of small sites/old buildings. These are the sites original 3.8 million square feet that were sucked in during the June 7th Incident. These sites have a relatively good geographic environment and are generally located in the prosperous areas of the island and Kowloon.2, 5 million square feet of New Territories Type B land exchange rights book/New Territories land, this is the result of Cheung Kong's unswerving determination over the years.3. Large sites, including Pokfulam 900,000 square feet, Causeway Bay 1.3 million square feet, Saixi Lake 860,000 square feet, Taikoo Valley No. 1 500,000 square feet, these sites are all available but not available Good land for encounter.Calculated in this way, Cheung Kong Holdings already has a land bank of 10 million square feet, which is extremely powerful.It is precisely because of this that Wu Guangyao did not take advantage of the 30% drop in real estate to absorb new land;There are also two considerations:First, there was another big opportunity in 1982 to reserve a lot of land;Second, Wu Guangyao intends to allow his own real estate company to specialize in private housing projects 1500 residential units plus various commercial projects, which are equivalent to the inland communities in the previous life.; small residential projects the chassis of several buildings Not to give up, but to reduce the number.Li Xing thought for a while, and said seriously: According to the current situation, I expect Hong Kong Island's real estate will begin to flourish in 1976. According to Hong Kong's real estate cycle, a prosperous market will last for four to five years.Li Xing hadn't finished speaking, Wu Guangyao applauded and praised his predictability!It can be said that Li Xing fully understands Hong Kong's real estate trends;Of course, it does not mean that Cheung Kong will withdraw from the real estate market after 1981, but to reduce debt, reduce real estate development, and reduce large-scale investment in order to resist risks. Of course, the real estate business will not stop, otherwise the company's staff, and How to arrange the contractor of the cooperation and the workers.Affirmed by Wu Guangyao, Li Xing immediately became more confident and said: "So, regarding the four large sites, my idea is: Saixi Lake plot, immediately build a large-scale event venue integrating entertainment, sports and leisure. , And 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 site, 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 large as 860,000 square feet, the construction of 12 residential buildings naturally cannot exceed the floor area ratio, or even very low.Wu Guangyao interjected: If we develop housing in 1976, we can sell it in three years in 1978, 1979, and 1980, respectively.Although it is known that the high residential buildings in 1981 can reach 1,300 Hong Kong dollars per square foot, it is impossible for Cheung Kong to hold it in its hands for so many years when considering the market, finance and other aspects.As far as Wu Guangyao knows, in 1976, high-end residential properties 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 make 12 residential buildings into the third phase of the project;In this way, the financial pressure is reduced without being said by others!At this time, Li Xing has already passed Wu Guangyao's words and clearly understands the trend of Hong Kong Island's real estate, so he is confident!Li Xing went on to say: The operation method and time of the Taikoo Valley No. 1 site are similar to those of the Saixi Lake plot.Wu Guangyao nodded again and added: "You can choose to get up at the end of 1975!"Although from 1974 to 1976, the area of Cheung Kong's construction was relatively small in the past few years, it did not affect Cheung Kong's:First, the financial status of Cheung Kong Holdings can support the relative blank period of two or three years;Secondly, there have been many commercial building projects during the construction of Hong Kong Island 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, there will be a situation of robbing workers and contractors on Hong Kong Island. You must be psychologically prepared!"In the depths of Li Xing's heart, his admiration for Wu Guangyao has undoubtedly increased a lot!A boss with such a huge business can predict even this kind of scene. It can be said that it is really surprisingly large in brain capacity!"Well, the boss can rest assured, I will come up with a plan! As for the land in Causeway Bay, I have made a plan! Causeway Bay is the second commercial center of Hong Kong Island, and the cow field in Causeway Bay is as high as 1.1 million. Square feet, there are some sites such as ice factories, and there are also 200,000 square feet. Therefore, I plan to build five high-end commercial buildings on these sites, as well as a high-end private housing estate and high-end residential projects including shopping centers. I plan to start the plan for five Grade A office buildings soon!"It is not so easy to change to another real estate company, five Grade A high-end office buildings;But for Cheung Kong, this problem does not exist!Leave aside other reasons for the time being, but Wu Guangyao is behind Cheung Kong;The management also knows that even if the financial situation is caused by the excessive development speed, it is not a disaster;Because the Wu family can privatize this company at any time!Even Hong Kong Island investors know this truth. Therefore, since the stock market crash, Cheung Kong Holdings has only lost 40% of its market value most listed companies have lost 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 from the beginning, and has now risen to 15% of Hong Kong's total market value, reaching a terrible level.Shareholders not only see that there is the Wu family behind Cheung Kong, they are 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 has even increased rent collection.To sum up, relying on two large commercial entities and six Grade A office buildings to collect rents, Cheung Kong Holdings' stocks are just very strong!Of course, this also has a downside, that is, Wu Guangyao sold 12% of Cheung Kong's shares in advance, and then re-purchased them, earning only 300 million Hong Kong dollars."The high-end residential project in Causeway Bay, I plan to start building in 1975; as for the Pokfulam plot of land, I think I should reserve it first and consider it in the 1980s!"After the construction of five commercial buildings and small shopping malls on the land in Causeway Bay, it is estimated that there will be about 800,000 square feet left. It is estimated that 4000 high-end residential units can be built, which is indeed enough for Cheung Kong to digest.However, Wu Guangyao still shook his head and said, "The Pokfulam plot of land also began to build a large housing estate in 1975. Although the plot of land can be left in hand and can be rebuilt after housing price appreciation, but such a large area will be vacant and people will gossip. Yes! The important thing is that in the 1980s, Cheung Kong still has no shortage of land for large private housing estates, so don't worry!"Li Xing nodded and said, "En! In that case, it seems that we have really had a lot of big projects in recent years!"In fact, the large private housing estates of Cheung Kong in the 1980s have not been located at all;Although the two plots of the HEC can develop large-scale private housing estates, the strength of the HEC itself is not weak. If it rashly strips the HEC's land, it is easy to be criticized;Therefore, Wu Guangyao believes that it is also necessary for Hongkong Electric to set up a real estate company to develop the North Point Power Plant and Ap Lei Chau Power Plant on its own;Of course, brother companies can get involved!Based on the principle of making money together, Wu Guangyao will not easily privatize the company!Unless, this company is seriously undervalued by Hong Kong Island investors, which is not conducive to the development of the company, such as the Wharf Group;While Hutchison Whampoa and Hongkong Electric have no problems with their operations, why do they have to eat alone?Therefore, there is only one option for the development of large-scale housing estates in Cheung Kong in the 1980s, and that is Tin Shui Wai;Wu Guangyao is preparing to build a new town, and Cheung Kong Industrial is just getting involved!End of this chapter
