The birth of the Hong Kong Island family

"Boss, 98% of the investment in the Crocodile Shirt Building has been completed, and all four-story shops have been rented!" Huang Changhong came to Lin Zhichao's office and reported happily.

Lin Zhichao raised his head and was not surprised by the progress. After all, there are still more than two months before the Crocodile Shirt Building will open.

"Did you find anything?"

Huang Changhong knew that the boss was testing him!

After all, as a deputy general manager, when the boss is not in Hong Kong, he is acting as the general manager; if he does not have enough insight, the boss will gradually distrust him.

"About the second half of this year, foreign companies have come to Hong Kong to set up branches and offices. For example, in the Crocodile Shirt Building, about 30% of the office buildings are leased by overseas companies. At the same time, Hong Kong's residential properties have also begun to The situation has become better, and it is expected to return to the upward channel next year."

Lin Zhichao was very satisfied with Huang Changhong's observation and vision. It was easy to find out by looking at it, but in fact it was difficult for anyone to see it thoroughly. Just like the "imbalance between supply and demand" in real estate in the second half of 1957, from the perspective of "hindsight", not many people know, but at the right time, not many real estate developers were keenly aware of the problem.

Of course, real estate executives like Huang Changhong are naturally related to Lin Zhichao.

"Your analysis is right! A new cycle of real estate is coming. I don't know how long it will last this time, but I think it will last longer than the last time because Hong Kong's economy is also developing rapidly, especially the industry."

Huang Changhong is very happy. The real estate cycle is coming, which means that Yangtze River Industry has also ushered in development opportunities. As the deputy general manager, it is natural that the tide will lift all boats.

Then, Huang Changhonghui reported: "The first-year rent of the Crocodile Shirt Building is HK$1.65 million, of which the office rent is HK$1.15 million and the shop rent is HK$500,000."

The first year's rent must be discounted, not to mention that commercial real estate is now also affected. The annual rent is HK$1.65 million. After excluding expenses, there should be a profit of more than HK$1.2 million.

The cost of the Crocodile Shirt Building is: land fee of 2.6 million, construction fee and miscellaneous expenses of 7.5 million, totaling just over 10 million Hong Kong dollars.

It’s equivalent to a return of capital in eight years!

Of course, the land was purchased in 1952. If we calculate the land fee today, it would probably cost more than 5 million.

In this case, it will be a ten-year payback!

However, rents will increase, so it is more realistic to pay back the capital in 6 to 7 years, which is also the ideal rate of return for investment in Hong Kong. The important thing is that after you get your money back, you will find that the property itself has also appreciated in value and you have made another profit.

"not bad!"

Seeing this, Huang Changhong stood up and said goodbye.

He is now responsible for everything in the company, no longer limited to the construction field, and needs to share the worries of his boss in all aspects.

At the same time, Paul Li of Poly Construction serves as the first person in charge of construction matters and is responsible for the first-line supervision of all properties under the Yangtze River Industrial Group.

Lin Zhichao could already predict that if the Yangtze River Industrial Group was listed in 1972, its market value would definitely be much higher than that of the "Five Real Estate Tigers".

Because of the packaged assets, the tentative plans include: 15 to 20 real estate projects (including undeveloped land) and a small number of rent-collecting properties, poly construction, and stone mining companies. Just these three parts of assets are enough to surpass the "Five Real Estate Tigers" in Poly Construction and Stone Mining Enterprises.

As for other unlisted assets, they will return to ‘Cheung Kong Holdings (listed company)’ through acquisitions in the future. Poly Construction and stone mining companies could be spun off and listed in the 1980s to raise funds for the group.

In short, the stock market is a thing that cannot be played without playing. It is a perfect 'wealth for making money'.

Cheung Kong's reserve land has reached 1.35 million square feet. During this plummeting market, it purchased 350,000 square feet of land or land. Lands like these are almost all concentrated in the urban areas of Hong Kong and Kowloon. There are almost none in the New Territories and almost none in remote areas of Kowloon.

After all, if housing was developed towards ‘remote’ areas in the New Territories, Kowloon and Hong Kong Island, it was almost all after the mid-1960s.

Lin Zhichao came to Hong Kong Airlines. He will come here every ten days and a half in the past few days to communicate with senior management, or chat with pilots and flight attendants to make his presence felt.

Although he insists on leaving professional matters to professionals, as the boss, he cannot lose his sense of presence.

"BOSS, Cathay Pacific seems to be preparing an 'inflight food company'" President Hill told Lin Zhichao "unfavorable news."

Hong Kong Airline Catering Company is a good source of profit, at least the return on investment is very high. Moreover, Hong Kong Airlines' profits may exceed HK$1 million this year, which is very good news to be happy about.

Lin Zhichao frowned a little, then thought about it.

"In this way, go talk to Jardine Matheson about the acquisition of the 'Jardine Aircraft Maintenance Company' in their hands. When you talk, you have to release the news!" Soon, Lin Zhichao felt that it was a shock to see if he could scare Taikoo Mathematics. .

The aircraft maintenance business in Hong Kong is a very profitable and huge business. Because there are so many aircraft coming to Hong Kong, there is always a lot of business demand. With the development of Hong Kong's tourism industry and economy, this business has become even more huge.

To put it simply, in the early 1960s, Swire and Jardine merged two machine repair companies and went public in 1965 with a market value of more than 300 million. They sold 25% of the public shares and raised more than 80 million to expand the hangar .

Hilton was puzzled and said: "Boss, if the news is released, wouldn't it mean that we will be at a disadvantage. Under the same conditions, Jardine Matheson will definitely give priority to Swire. Moreover, the mechanical repair project requires a large number of mechanical talents. After we buy it."

Lin Zhichao said with a smile: "I just want to let Swire know! As for mechanical talents, my Yangtze River Industry Group and Global Shipping have sufficient mechanical engineers. In this regard, they are no worse than the old foreign companies."

Even if the average person buys a mechanical repair project, he may not be able to do it successfully, but Lin Zhichao has too many mechanical talents. Engineers who repair aircraft are also mechanical engineers and are generally trained by the manufacturer of the aircraft.

Hill suddenly realized that the boss's move was to intimidate Taikoo Matheson, which meant that if you want to get involved in 'airline food', I will get involved in 'machine repair engineering'.

Obviously, it is best for Hong Kong’s ‘aviation food’ and ‘mechanical engineering’ to be in the hands of one airline. Vicious competition will result in losses for both parties.

"Okay, I'll be ready to contact you right away."

Lin Zhichao added: "The acquisition of the mechanical repair project must be done with sincerity. We have no pressure on funds, and we must have enough sincerity! In short, report to me in time if there is any situation, and I will intervene if necessary."

Hill had been subdued by Lin Zhichao at this time and immediately said: "Yes, BOSS."

After all, Hong Kong Airlines is 100% owned by Oneworld Airlines, and the management does not have much capital to fight against the boss.

In fact, in this competition, Lin Zhichao hoped that Swire Pacific would give up and withdraw from aviation food. The condition was that Hong Kong Airlines would withdraw from the competition for mechanical maintenance projects.

Of course, the specific situation has not yet been determined and everything is unknown.

"What? Hong Kong Airlines is in contact with Jardine Matheson to acquire Jardine Aircraft Maintenance Company?" the old Shiyok nervously asked Cathay Pacific President Kyle.

"Yes, the news is very accurate!" Kyle said firmly.

Schjock stood up from his office, then paced around the office thinking about the problem.

Kyle said tentatively: "I guess Jardine Matheson won't sell it to them. After all, the aircraft maintenance business is more profitable. They should consider merging it with our machine maintenance engineering instead of selling it."

Shi Yoke said solemnly: "Yike Matheson only recognizes money, and Lin Zhichao just has money, so there may not be a possibility of a deal. Moreover, Hong Kong Airlines is one of the two airlines in Hong Kong. Selling to them cannot be found out. Something wrong. By the way, who released the news?"

Kyle thought for a while and said, "It seems to have spread from the airport!"

Shiyock immediately thought about it, and said after a long time: "It seems that Hong Kong Airlines may want to talk to us!"

"What to talk about?"

"airline food"

Kyle understood instantly and said, "Taipan, you mean that Hong Kong Airlines wants us to give up entering the aviation food field, and they also give up acquiring Jardine Machinery Company?"

Shiyock nodded and said, "Yes!"

Kyle suddenly said unhappily: "It is not certain that they will acquire Jardine Aircraft Maintenance Company, and we can enter the aviation food field at any time. Why should we do this transaction?"

Shi Yoke said helplessly: "Because Lin Zhichao is rich! As long as he offers a high price for the acquisition, Jardine may be tempted even if he is worried about us, who are also British-owned. What's more, once the price rises, we will merge with Jardine Aircraft in the future Maintenance, was slaughtered by Hui Yihe. So, no matter what you say, you have to talk about it, let me ask Lin Zhichao about this matter!"

When Jardine Matheson sold Hong Kong Airlines shares to Lin Zhichao, it was because British Overseas Airlines sold it first, so Jardine Matheson did not receive much 'condemnation' in this circle.

Now it would be reasonable to sell the aircraft maintenance company to Hong Kong Airlines. After all, Hong Kong Airlines is one of the two airlines in Hong Kong, so it is normal to acquire the aircraft maintenance business. Importantly, Hong Kong Airlines has shares in HSBC.

So, in any case, Shiyock didn't want to gamble, but planned to talk to Lin Zhichao.

Originally, there was no competition between the two airlines in Hong Kong. They flew on each side with different routes.

Moreover, both the Hong Kong government and London also hope that Hong Kong will have two airlines, which will help competition. The only thing I didn't expect was that Lin Zhichao, a Chinese, had the strength to buy it.

Of course, it is already a fact now, the last thing Shiyock wants to see Lin Zhichao intervene in Hong Kong's "aircraft maintenance" business. Because Swire has the backing of powerful shipyard mechanical engineers, and Lin Zhichao also has the backing of his industrial empire, if Hong Kong Airlines enters the machine repair business, competition will be fierce in the future.

In the blue hall of the Hong Kong club, Lin Zhichao, Hill, old Schjork and Kyle met.

Lin Zhichao and Old Shiyock have no personal relationship, but they have met and greeted each other in some public occasions.

In fact, the two can be regarded as 'enemies', because Lin Zhichao snatched Hong Kong Airlines, and the old Shiyock must have a grudge. Coupled with the 'conflict' that broke out this time, the relationship between the two is naturally so-so.

Of course, business belongs to business, and everyone may cooperate in the future, after all, 'profit is the first word'.

Moreover, Lin Zhichao hates Jardine Matheson more than Swire Matheson. Although Jardine Matheson sold 45% of Hong Kong Airlines' shares to Lin Zhichao last time, it obviously raised the price on the ground, and at that time the matter was already a foregone conclusion.

At the same time, Jardine Matheson's Wharf Group charged very high fees, and global shipping suffered greatly; and this time, Jardine Matheson also offered sky-high prices for the acquisition of aircraft maintenance business, which Hong Kong Airlines could not accept at all.

After the two parties met, Lin Zhichao and Lao Shiyue complimented each other, and there was no apparent grudge between them.

"When Mr. Lin took over Hong Kong Airlines, he immediately changed the company and made it a model in the aviation industry. I really admire him!" Shiyok said with a smile.

I don’t know if this sentence is true or not!

If not, it is trying to drive a wedge between Hill and other management and Lin Zhichao.

It's a pity that Lao Shiyue's plan came to nothing!

Lin Zhichao has always disliked taking credit, so he responded with a smile: "It's all my colleagues who have worked together to change the company. Of course, Hong Kong Airlines has just gotten better. I can't say it is a model in the industry, but it is just a company trying to survive." "

Seeing Lin Zhichao's modesty, old Shiyock knew that this young man was able to grow up to where he is today, naturally he is old and cunning.

"Then let's open the window and talk today. Mr. Lin didn't really buy Jardine Aircraft Maintenance Company, did he?"

Lin Zhichao said seriously: "Absolutely sincere! However, I don't want to see two companies that should coexist peacefully and work together to contribute to the development of Hong Kong's aviation industry fall into internal strife. That will be a loss for Hong Kong's aviation industry." After saying that, he looked sad.

The superb acting skills fooled the three of them in an instant.

Old Shiyok said: "It is true that our two airlines are located in the south and the other in the north. They are not competitors. In this case, Hong Kong Airlines should not acquire the aircraft maintenance business from Jardine Matheson!"

No matter how good your performance is, Old Schjock only wants to negotiate terms and take the initiative.

Lin Zhichao has no reason to show weakness: "The aircraft maintenance business is huge and can fully support two companies. After all, there were two companies before. On the contrary, it is an aviation food company, which has never appeared before. Now we are the first to occupy the market, and the market is not No, I think Cathay Pacific entering this business is purely malicious competition."

The words have been made clear!

Old Shiyok continued: "You have not yet succeeded in the aircraft maintenance project! But we have already started investing in the aviation food company. Obviously, this is not a reciprocal condition!"

Lin Zhichao immediately retorted: "Mr. Shi York may not know my style of doing things. In my eyes, only the size of the benefits. The machine repair engineering business is huge. To be honest, I have a lot of determination. I generally don't consider the immediate situation." benefits, and consider long-term benefits."

The implication is that if there is really no agreement, no matter how expensive the maintenance of the aircraft in Jardine's hands is, he will take it himself.

Old Shiyock immediately understood that Lin Zhichao was not joking, and he lost in the quotation at the beginning. If he hadn't underestimated his opponent too much, he wouldn't have lost in the end.

Next, the two sides began to enter the negotiation stage in earnest.

Cathay Pacific also wanted to take a stake in Airline Food, but was still rejected. In the end, it had to accept the acquisition (equipment and kitchen) by Hong Kong Airlines, while Hong Kong Airlines promised not to participate in the acquisition of the aircraft maintenance business from Jardine Matheson.

Generally speaking, both parties are quite satisfied with this 'mutual concession'.

For Hong Kong Airlines, although it has given up a big cake, it does not belong to it unless it comes, and it is also difficult and costly to obtain. Now it can monopolize Hong Kong's "airline food", which can be said to be an "empty glove" White Wolf'.

For Swire Pacific, after defeating an attack by Hong Kong Airlines, the subsequent merger with Jardine Aircraft Maintenance is only logical. Because Jardine has no energy to operate this business, it has the idea of ​​selling or merging.

May everyone be happy!

On the other side, Jardine Matheson learned that Hong Kong Airlines and Cathay Pacific Airways had reached some kind of agreement, and when Hong Kong Airlines gave up the acquisition of the ‘aircraft maintenance company’ in their hands, they immediately knew that they were being taken advantage of.

"Cunning Chinese!" Keswick cursed in his office.