The birth of the Hong Kong Island family

Early December.

At the opening ceremony of Times Square in Causeway Bay, guests gathered to take a look at this "treasure bowl" that cost only HK$2 billion and had a rent of HK$650 million in the first year.

The cost is only 2 billion because there is no need for land premium or land supplement. This land was originally the Hong Kong Tramway Main Factory, and Hong Kong Tramways was an unlisted company of the Wharf Group (which was privatized).

The rent is as high as HK$650 million because 'Times Square' has a commercial area of ​​2.4 million square feet, which is 400,000 square feet larger than Exchange Square; especially the shopping mall area. Times Square has a 16-story comprehensive shopping mall. , housing a total of 300 shops, 18 restaurants, 4 cinemas and 700 parking spaces; in addition, there are two office towers, one 46 storeys high and the other 36 storeys high.

This year (1988) was the year with the highest real estate premiums in the five years from 1984 to 1988: the general premium for office buildings in Central was as high as 40%, and the rent at Exchange Square reached 56 to 62 Hong Kong dollars per square foot; the price of residential buildings in Hong Kong and Kowloon, It has also exceeded the peak in 1981 (1300) and reached 1500 Hong Kong dollars per square foot.

The reason why the real estate situation is so good this year is that many overseas countries have come to Hong Kong to set up offices and branches, preparing to use Hong Kong as a springboard to enter mainland business.

on site.

Lin Chi-chao and Hong Kong Governor Wei Yishun and others held the ribbon-cutting ceremony. He did not follow Zheng Yutong's example. He would rather wait for a year for visiting Hong Kong dignitaries to cut the ribbon for his 'masterpiece' than hold an opening ceremony easily.

The Convention and Exhibition Center in Wan Chai opened in November, but the opening ceremony was not held because in Zheng Yutong's view, Hong Kong is a world-famous metropolis and there will always be national-level dignitaries visiting Hong Kong. Therefore, he would rather wait than hold the unveiling ceremony easily.

But Lin Zhichao is different. He has invested in too many large projects, and the opening ceremony will basically take place within two or three months of opening. Some foreign guests will also be invited, but they will not wait for national-level dignitaries.

At the scene, Wei Yixin said with a smile: "Times Square in Causeway Bay is no worse than Times Square in New York!"

This is a joke!

Lin Zhichao said with the same humor: "I think so! Who would have thought that Hong Kong developed so fast in the past thirty years; therefore, no one dares to say that Hong Kong's future development will not be as good as New York!"

The people around couldn't help laughing. It was obvious that the Hong Kong Governor and Lin Sheng were joking.

Lin Zhichao said in his heart, you would never have thought that the rent in Causeway Bay would surpass New York in the future and become the most expensive retail area in the world. Of course, huge changes took place later

Wei Yixin was also very happy that day. During his tenure, every large building completed was an achievement of his tenure. Of course, his biggest contribution during his tenure was the "new airport plan" announced by the Hong Kong government this year.

Originally, after Lin Zhichao proposed the "new airport plan", although it was rejected by the government, the government quickly established a working group to conduct research; if Youde had not died in office, it might have been officially announced in 1987.

As a result, due to the impact of the change of leadership, the new airport plan was only officially announced this year.

However, Lin Zhichao knew that official announcements were official announcements, but there were still a series of things waiting for him. The new airport will not be officially put into use until the handover in 1997.

After the reception.

Lin Zhichao and Lin Ruihai, father and son, returned to the Wharf Group headquarters in Harbor City.

"Father, there is a piece of commercial land on Orchard Road in Singapore, which will be put up for public bidding in January next year! This land can build a shopping mall and commercial building combination plaza of about 500,000 square feet. So, I want to use the Marco Polo Hotel in Singapore The bidding price is S$301 million. Once I win the bid, I want to build a 'Lane Crawford Plaza'."

This kid is really brave, Lin Zhichao commented in his heart.

Wharf holds 78% of the Marco Polo Hotel in Singapore (the full acquisition failed, so the shareholding is relatively high). The asset value of this listed company has increased a lot.

Among them, the Baolong Square Building was worth 100 million Singapore dollars when purchased at the end of 1986. It is now worth at least 160 million Singapore dollars, with a book profit of 60 million Singapore dollars (about 330 million Hong Kong dollars); among which, the land at the back of Paragon was purchased for 70 million The new currency is now worth SGD 140 million, with a book profit of SGD 70 million.

In addition, the Marco Polo Hotel (four-star) in Singapore is very profitable, comparable to a five-star hotel, so the market value of this company has nearly tripled.

The Wharf Group controls two large listed companies in Singapore. Together with Lin Ruihai, he has become a celebrity in Singapore. There are even rumors that he is planning to immigrate to Singapore.

Lin Zhichao said: "Since you like it, then go ahead and bid. I have no objection!"

Although he said this, Lin Ruihai continued: "Well, I plan to sell the land at the back of Paragon to the Wharf Group for 130 million Singapore dollars, so that the Marco Polo Hotel in Singapore can make a profit of 60 million Singapore dollars. 130 million Singapore dollars was withdrawn. Coupled with the cash flow on the books of Marco Polo Hotel in Singapore, it has reached more than 70% of the land price, and the subsequent Lane Crawford Plaza will be completed through loans."

Lin Zhichao said: "I think it's okay!"

He has expressed less opinions, after all, his son is really outstanding. Now the only advice he can give his sons is analysis of development trends.

Nowadays, the Wharf Group earns about 2 billion a year, so its debt is HK$9 billion, which is not too much; especially, the current bank interest is only about 8%. Such low interest rates are the result of the Hong Kong Association of Banks cutting interest rates several times after the August 7th stock market crash. This is a similar trend across the world.

At present, Wharf Group owns two core commercial complexes in Hong Kong - Harbor City and Times Square, which are the main sources of profits. Other assets include Lane Crawford Department Store Group, Star Ferry, Hong Kong Tram, etc.; secondly, Kowloon Cang Group holds a 51.5% stake in Singapore's largest commercial group, Singapore Land, and a 78% stake in the Marco Polo Hotel in Singapore.

Subsequently, there will be a "redevelopment project" of Harbor City - five large-scale high-end residential buildings will be rebuilt into five first-class Grade A office buildings, which is expected to increase the commercial building area by nearly 4 million square feet. From this we can see how conservative Jardine was back then, and actually built five high-end residential buildings at Wharf Pier instead of commercial buildings.

By 1992, Wharf Group concentrated its efforts on investing in commercial real estate in the mainland.

After the Wharf Group repays some debts this year, it will be left with just over HK$7 billion in debt, and it will need to pay HK$500 million in interest every year. Fortunately, half of the interest is paid to its own bank, so there is no need to feel heartbroken.

The next day, Lin Zhichao took Lin Ruihuan to the ‘Yangtze River Plaza’ to inspect the work. This commercial complex covering an area of ​​300,000 square feet has been completed and will be officially unveiled in March next year.

The overall plan is a five-story shopping mall (three floors above ground and two floors underground), with four skyscrapers above it (two hotels and hotel serviced residences, and two office buildings), as shown in the picture

With a total of 5 million square feet of commercial area, Cheung Kong Group has surpassed Wharf Group to become the largest commercial real estate company in Hong Kong.

"Father, the leasing rate has reached 96%. The shopping center will officially open on the eve of the Spring Festival," Lin Ruihuan happily reported.

The shopping mall of Yangtze River Plaza gathers the largest number of luxury brands and world-class brands in Hong Kong. Even if you look at the entire world, it can also be ranked among the top five "luxury brand gathering centers", including Louis Vuitton, Dior, Hermès, Prada, Gucci, Cartier, Alfred Dunhill, Lanvin, etc., almost no luxury goods are left behind.

Of course, this is also due to Hong Kong's current status in the world - a cosmopolitan city, an international metropolis that bridges the gap between China and the West. Especially this year, the number of overseas companies wanting to invest in Hong Kong has hit a record high.

Because of this, in only eight months of investment, Yangtze River Plaza has already gathered all the luxury goods in the world. Of course, Changshi Group has established a cooperation mechanism with various luxury goods companies.

The Lam family owns the largest, best-located, and most-located commercial real estate in Hong Kong. Because of this, world-renowned brands have long established a cooperative relationship with Cheung Kong Group.

This kind of cooperative relationship will play a big role in the mainland in the future. Of course, this cooperation is equal, and it can even be said that Cheung Kong Group is still the stronger one.

Lin Zhichao said: "Well, what is the working situation of the two hotels?"

Lin Ruihuan replied: "The Ritz-Carlton Hotel and JW Marriott Hotel are already making final preparations and will open in March next year. The hotel serviced residences managed by Shangri-La Hotel are also ready and will be filmed on the eve of the Spring Festival."

Lin Zhichao nodded. The two hotel brands introduced require a payment of 5% of the turnover as management fees. They are actually "franchises".

After visiting for a while, Lin Zhichao took Lin Ruihuan to Wan Chai New Street not far away.

"Ruihuan, let someone acquire the property here on Xinjie, and try to build the second phase of the Yangtze River Plaza project here in the future. Don't jump into the trap, just look for opportunities to acquire it slowly, even if it takes ten years, it won't be a problem at all. If it's here A skyscraper can be built and we can connect it to the first phase of Yangtze River Plaza through an underground passage.”

Lin Ruihuan's eyes lit up and he said: "My father has thought carefully. We have turned the entire Admiralty area into a first-class commercial area. If we can build the second phase of Yangtze River Plaza in Wan Chai, we will definitely get good returns. Basically, there are many places in the New Territories. It’s an old-fashioned house, so as long as you have patience, it won’t be a big problem to acquire it. I will make sure to make arrangements so that I don’t alert others!”

Why is it said to be "snatching the snake"? Because there are many people in Hong Kong who are engaged in "nailing buildings". In later generations, there is also the "nailing king" Chen Guihong, who spent millions on Mercury Street in North Point, leaving Lee Shau Kee helpless to take out 100 million Hong Kong dollars.

Li Zhao basically developed by merging buildings, so he had the most contacts with people who built buildings.

The people who specialize in nailing buildings may not necessarily be part of a society, but they must be 'puss' who are not afraid of death. When the super rich see it, they still obediently pay for it. After all, the richer you are, the less likely you are to use extreme measures against others.

After inspecting for a while, Lin Zhichao returned to the office with satisfaction.

This year is a good year for Cheung Kong. The third phase of Exchange Plaza opened in July and the lease of Yangtze River Plaza has been completed. These two projects alone have brought huge profits to Cheung Kong Group.

As for the other three large-scale commercial projects - Singapore Taifu Plaza, Cheung Kong Group Center and Kowloon Taifu Plaza, they opened in 1989, 1990 and 1993 respectively.

"Ruihuan, starting from the beginning of next year, will cash out its Japanese real estate investment as much as possible within one year, no more than one and a half years at the latest. This bubble is already big enough. Once it bursts, it will be the largest bubble in history. rupture."

Lin Ruihuan said with a serious expression: "Well, I understand! Starting from the first half of next year, Dongtian Company will gradually cash out commercial complex buildings and commercial land. As for Raffles City, it will reduce its holdings of shares."

Lin Zhichao nodded with satisfaction. The value of Dongtian Company's property assets in Japan has reached more than 13 billion U.S. dollars. Even after the loan is repaid, the total value will be more than 10 billion U.S. dollars.

In the second item, Cheung Kong Group will receive a return of US$4 billion, with a profit of more than US$3 billion; while another partner, Victoria Harbor Investment, will make a profit of more than US$5 billion.

at the same time.

The Nikkei Index is also as high as 32,000 points. When it reaches 34,000 points, it is time to sell the stocks invested by Lin Zhichao. It is expected to make a profit of US$6 billion.

In addition to real estate and stocks, Octopus Financial Group has also been investing in the "Nikkei Futures" and has made a profit of US$7.8 billion in a few years. If you short the Nikkei later, you can get more profits.

Although Lin Zhichao has made a lot of money in Japan, but for a stock market with a total market value of 4 to 5 trillion US dollars, and Tokyo properties alone can buy a huge market in the United States, a mere 15 billion to 20 billion US dollars is not that big at all. proportion.

Chinese Bank Building, headquarters of Octopus Financial Group.

Lin Zhichao received Lin Benfeng, the president of Hengfeng Bank, and Sanders, the vice president, in his office and listened to their work reports.

Hengfeng Bank was formed from the merger of Hang Lung Bank and Overseas Trust Bank. Overseas Trust Bank was privatized in April this year and subsequently merged with Hang Lung Bank to form "Hengfeng Bank" in October.

Today, Hengfeng Bank's heavy assets have reached more than 20 billion Hong Kong dollars, and its deposits have reached more than 100 billion (of which Lin Zhichao and his company's deposits account for half), making it a large Chinese bank in Hong Kong.

"What is the current credit situation of Hengfeng Bank?"

Sanders, the vice president, is mainly responsible for the commercial banking department. He said seriously: "This year's structural adjustment has had a certain impact. Overall, among Chinese banks, it is second only to Hang Seng and Bank of East Asia."

The first is that it is not a listed bank, and its financial affairs do not need to be disclosed; the second is that the nature of a family bank is too heavy, which makes people a little worried.

Putting aside the 6 billion US dollars deposited by Lin Zhichao and part of the cash flow deposited by several Lin companies, Hengfeng Bank only has more than 50 billion US dollars in deposits.

Understandable!

After all, Lin Zhichao never thought about the development of "Hengfeng Bank". It was more about expanding the scale of its investment bank.

"Well, for the commercial banking sector, long-term and healthy development through high-quality services and equipment and system updates is enough." Lin Zhichao said.

"Okay, I understand! Recently we plan to introduce Japan's self-service account checking system to strengthen the service functionality of automatic teller machines and improve bank services."

Automatic teller machines are regarded as an advanced development model for banks in this era.

Lin Zhichao smiled and said: "The accounting system you mentioned, I suddenly thought of an advertising idea, it's called "Uncle Universal". Customers can check their account balances through their bank cards!"

Sanders' eyes lit up and he said: "Boss, this advertising idea is really good, it's simple and has outstanding effects!"

Lin Zhichao nodded, and then talked about investment banking.

At present, Hengfeng Bank's investment departments are mainly four investment departments in Hong Kong, Singapore, London, and New York; its own investment projects are investment in the Hang Seng Index, Nikkei Index futures, and US dollar/yen foreign exchange. Variety.

Lin Zhichao will let Hengfeng Bank do all the leveraged financial investments. Victoria Harbor Investment and family offices only invest in relatively stable products such as stocks and real estate.

In this way, Lin Zhichao is equivalent to having three 'financial institutions' in his hands, all of which are his personal 'private property'.