I Want To Be a Rich Man on Hong Kong Island - Chapter 687

Chapter 687: [Trouble at OOCL]








Chapter 687【Orient Overseas Troubles】

The Wu family owns more than ten shopping malls in Hong Kong, of which five have more than 2 million square feet of commercial area:

Wharf: At this time, the Wharf includes Harbour City and Ocean Terminal, with an investment property portfolio (rent collection) of up to 5.5 million square feet; in the future, five first-class buildings will be expanded (no height limit, estimated to be about 40 floors) , The investment property portfolio is expected to reach 4 million square feet; that is to say, in the 1990s, the entire Wharf portfolio (rent collection) could reach 9.5 million square feet.

New World Center: The investment property has an area of ​​2.6 million square feet, including two hotels-Burj Al Arab, New World Hotel, three office buildings, three hotel-style management apartments (self-contained), and shopping malls (three-story podium).

Yangtze River Center: The investment property covers an area of ​​2.5 million square feet, including two hotels-the Ritz-Carlton Hotel, Shangri-La Hotel, two office buildings, two high-end residential buildings, and a shopping mall (a 6-story independent building).

Causeway Bay Times Square: The investment property portfolio covers an area of ​​2.4 million square feet, including two first-class Grade A buildings and a 17-story shopping mall.

Whampoa City Plaza: The investment property portfolio covers an area of ​​2 million square feet, a commercial complex integrating hotels, office buildings, and shopping malls.

In addition to these five commercial complexes, the Wu family also has shopping malls such as Galaxy Center, Tsim Sha Tsui Center, Shatin City One, Hefu Center, and Tian Shui Wai five commercial districts;

Small and large shopping centers, the Wu family owns a full 18, and will invest in Plaza Hollywood (Lion Rock) in the future;

For this kind of shopping mall (integrating shopping, office, hotel, and apartment), Wu Guangyao has always treated the same as commercial buildings.

The Wu family owns 90 commercial buildings in Hong Kong (excluding office buildings in the complex, 68 buildings on the island are all over 30 floors high, and 22 buildings in Kowloon are all over 17 floors), as well as 18 shopping plazas.

Except for these investment properties, the Wu family also owns huge industrial buildings. Tin Shuiwei Industrial Park and Hung Hom Industrial Park are enough to be proud of the world;

Don’t say, the Wu family also owns a large number of independent factories and single industrial buildings;

The industrial building area owned by the Wu family is almost as high as 70 million square feet (the building area of ​​Tian Shuiwei Industrial Park is 50 million square feet);

According to the annual output value of industrial buildings on Hong Kong Island in the 1970s and 1980s—about 6 million square feet, the industrial building area of ​​the Wu family in this life requires 12 years of supply from the previous life.

It is precisely because the Wu family owns so many industrial buildings that the prices of industrial buildings in the entire Xiangjiang are far lower than the previous level;

This is exactly what Wu Guangyao needs to see, which will severely suppress the price of industrial buildings;

Although this has cost me a lot, it has also indirectly promoted Hong Kong’s industrial development.

Finally, the Wu family also owns a large number of villas and high-end residential buildings;

Holding a large number of villas is easier to understand, while holding high-end residential real estate is purely a residential building purchased by Wu Guangyao from its listed real estate companies when the real estate plummeted;

This can be used as an investment, and can also alleviate the financial situation of listed real estate companies, killing two birds with one stone.

In June, the Wu family announced the launch of a privatization acquisition of Land;

At this time, the stock price of Land is 7 Hong Kong dollars per share, the total share capital is 1.1 billion shares, and the total market value is 7.7 billion Hong Kong dollars;

The price given by the Wu family was very high—a premium of 60%. It was immediately overjoyed by a small group of investors, and they sold their shares one after another.

In less than half a month, the Wu family increased their shareholding to 90%.

At this point, the privatization heartbeat announced a complete success. As for the remaining 10% of the shares, naturally there are too many ways to get it.

In late September, the Sino-British joint statement on the Hong Kong issue was initialed in Beijing;

On October 1, Wu Guangyao attended the National Day ceremony held in Beijing and was received;

In mid-November, Mrs. Thatcher arrived in the capital and signed a Sino-British joint statement with Huaxia, clarifying the post-1997 "one country, two systems" policy. Hong Kong people's minds have stabilized and the stock market has rebounded.

Central, Oriental Culture Hotel.

Wu Guangyao, Lao Huo, and Dong Da got together for a banquet.

Wu Guangyao said: "What is the current financial situation of OOCL?"

Lao Huo brought Dong Da to come to ask for help. Although Wu Guangyao may not refuse, it is impossible to package it all;

Dong Da said: "Last year (1984), the company made a profit of 160 million Hong Kong dollars; however, due to the high debt of the company, the long-term and short-term debts were as high as 10.2 billion Hong Kong dollars, and only interest costs 620 million Hong Kong dollars. At the same time, the company's assets and liabilities The rate has reached 80%."

Wu Guangyao frowned, and the debt-to-asset ratio was as high as 80%, indicating that this company is on the verge of bankruptcy;

In 1985, the world shipping industry will fall into an unprecedented recession;

According to this situation, without external help, OOIL will reach a negative value in its assets in the first half of the year.

Wu Guangyao said: "This year's shipping situation will be even worse, you have to prepare for the worst!"

In the past life, OOIL’s debt in 1985 has reached 20 billion Hong Kong dollars, which shows how bad shipping was in 1985;

In one year, 10 billion Hong Kong dollars in debt was added. In addition to shipping depression and profitability, more is-OOCL ordered 24 new ships in Japan and urgently needed cash to settle accounts.

If someone else analyzes the shipping situation this year, Dong Da will still have a fluke mentality, but Wu Guangyao’s words are obviously like ironclad evidence, which is beyond doubt.

This is the most powerful ship king, the true ‘emperor’ in the history of world shipping.

Dong Da's mind sank, and immediately changed his attention when he came, and said, "Uncle Yao, can you give me some advice on how to do it?"

Wu Guangyao asked first: "What did you plan to do in the first place?"

Dong Da said: "My plan is to persuade Japanese shipyards to accept a small amount of compensation and cancel the order contracts for 12 new ships; the other 12 new ships will be paid for 240 million U.S. dollars, and I intend to pay through bank portfolio loans. ."

Lao Huo interjected: "The mainland's freight demand increases, and shipping orders are deliberately handed over to Eastern Shipping."

Wu Guangyao nodded. After the opening of the mainland, a large amount of imported goods will naturally be needed, which will also require a large number of ships;

Although the mainland can build ships, it is still very difficult for large ships;

And even if it can be made, it is too late now.

As for buying a large number of ships, it is even more impossible, after all, foreign exchange is very tight.

Thinking of this, Wu Guangyao even had a taste. He also has a fleet under his own, but he did not receive many orders from the mainland;

At this time, Wu Guangyao has a total deadweight of 5 million tons, of which 3 million tons of container ships and 2 million oil tankers, which can be regarded as a large shipowner in the world;

Of course, this fleet, like everyone else, does not make much profit;

However, because there is no debt, and because they are all large ships (low operating costs), they will not lose money.

Wu Guangyao clicked and said: "This is far from enough to save Orient Overseas!"

Dong Da nodded seriously, without any doubt about Wu Guangyao's words.

Wu Guangyao continued: "Who are the current creditors of OOCL?"

Dong Da replied: “More than 200 creditors in more than 50 countries.”

Wu Guangyao thought about it, Dong Da’s previous life saved Orient Overseas, but he also turned from a boss to a worker.

"You have to negotiate with these creditors-the agreement on the reorganization of OOIL; the main content is: the establishment of a new company of OOIL, and inject its container ships into this company, which will be responsible for the container transportation business; OOIL needs a new company Investors, Lao Huo is more suitable and can inject a start-up capital.

OOIL Holdings holds most of the shares of OOIL, and all the debts of all creditors are converted into notes, preferred shares and new ordinary shares of OOIL, and Dongs jointly hold the equity of OOIL. Xu Ya set up a debt fund with part of the equity, and the dividends of this part of the shares will be used to redeem his own shares until they are paid off."

The more Dong Da listens, the more reasonable he feels, but he also knows that this is by no means an easy task;

Because there are creditors in 50 countries, it is equivalent to the laws of 50 countries;

This obviously requires great courage to negotiate with these creditors one by one to allow OOCL's restructuring plan.

Although Lao Huo is a shipping layman, he can still hear that this is the only way for OOCL not to go bankrupt;

"It’s still honourable. If it were me, I’m afraid I can only think of ways to inject capital, borrow money, and find business; I would not expect that only by obtaining creditors to reorganize the company can the company be rescued."

Wu Guangyao said in a deep voice: "The method is very easy to think of, but it is very difficult to implement it! I am also a shipowner, so I can’t inject capital; however, as a bank, I can promise a new loan of US$150 million."

Dong Da was immediately overjoyed. Compared with capital injection, isn't it better to get bank loans?

After all, injecting capital is equivalent to diluting the shares of one's own family. Of course, the current capital injection is also necessary.

Wu Guangyao knew that for Dong’s OOCL, the former Huo paid a full US$220 million, US$120 million for the normal operation of OOIL, and US$100 million for the start-up capital of OOIL.

In this life, Wu Guangyao at least allowed OOCL to avoid the loss in 1985, which is a bit easier than restructuring;

In addition, coupled with the new loan of 150 million US dollars promised by itself, it will greatly ease the difficulty of OOIL's restructuring.

(End of this chapter)