Chapter 252~253 [Lin's Palace](1/2)
Early November.
After the Acquisitions and Mergers Committee encouraged acquisitions and mergers in the securities market (stimulating the stock market), Chinese Real Estate took the lead and announced that it would initiate the acquisition of Fuli International at a price of 3.2 yuan per share (a premium of 23%), with a target of 34%
shareholding; after the completion of the acquisition, Fuli International's listed status will still be maintained, and 218 million funds will be used for this acquisition.
For a time, it received enthusiastic response from the small shareholders of Fuli International and had a certain stimulating effect on the entire market.
As for the rescue operation launched by Li Chaoren, it had already been conditionally acquired by the Acquisitions and Mergers Committee. However, after discussion, everyone temporarily changed their minds and decided to jointly buy 15,000 futures contracts. Lin Zuhui also subscribed for 3,000 contracts personally.
.....
In the office of Chinese Real Estate, Lin Zuhui was looking through the asset statements of Fuli International and was in a very good mood.
Fuli International's investment properties in the United States are very rich, with total assets of nearly 1 billion, liabilities of less than 200 million, and a net asset value of up to 800 million. It is equivalent to Chinese Real Estate's premium acquisition of Fuli International, and the net asset value of its stocks still has not incurred losses.
, on the contrary, there is profit.
After a while, Gao Yi, general manager of Chinese Real Estate, and Zheng Xuebin, general manager of Fuli International, came to Lin Zuhui's office hand in hand.
Zheng Xuebin was originally the general manager of Fuli International. After Chinese Real Estate acquired Fuli International, he was not laid off and only three directors were sent to the board of directors of Fuli International.
Of course, digestion must be carried out after the acquisition. This is Lin Zuhui's consistent style.
"boss!"
"Okay, everyone, sit down!"
After everyone was seated, Lin Zuhui said: "Fuli International's original conservative management was able to escape the stock market crash. However, this stock market crash has a great impact on the U.S. economy, which is an opportunity for Fuli International.
Therefore, next year I plan to invest in a commercial office center in Los Angeles. Please go and investigate more and come up with a plan for me!"
"Okay!" they both said in unison.
Gao Yi added: "Boss, I suggest that during this period, senior staff of Chinese Real Estate be appointed to give Fuli International a new look and lay a solid foundation for Fuli International's development next year!"
Chinese Real Estate is an efficient investment property company. Its senior staff have very rich real estate experience. Even simple rent collection can reflect the quality and management of a company.
Lin Zuhui nodded and affirmed Gao Yi's statement: "Well, this is very necessary! Just acquiring without digesting it is not my style, Lin Zuhui. You two start working on this matter. I hope that after three months, I can see whether
The same Fuli International!”
"Yes, boss!"
The two people's confident and passionate answers made Lin Zuhui very satisfied.
As his subordinates, everyone should understand that the company needs to develop and develop rapidly; anyone who cannot keep up will have the fate of being eliminated.
Next year, Fuli International will invest in a commercial office center in Los Angeles. It is a relatively large project and requires a lot of funds. Lin Zuhui plans to raise funds through loans and rights issues.
After the two left, Lin Zuhui thought about the structure of the New Era Department!
It is time to develop into a comprehensive group. Listed companies such as Cheung Kong, New World, and Sun Hung Kai not only have real estate business, but also other comprehensive businesses.
For example, New World has container business (investing in overseas containers of shareholders), shipping, and communications, not to mention that it also owns a large construction company in Xiangjiang-Hip Hing Construction, as well as Songden Engineering, Jiading Engineering, Fuji Decoration Engineering, etc., which can contribute to modernization.
Buildings include commercial buildings, hotels, and high-end residences. We provide comprehensive services from engineering planning, design, drawing, electrical engineering, construction engineering, and interior decoration.
Not only that, they have already extended their tentacles overseas, and New Era Real Estate has just started!
Thinking of this, Lin Zuhui decided to prepare for a group meeting to announce the group's general policy expansion.
.......
Lin Zuhui came to Hengjin Investment Company. This company was originally called "Hengjin Securities" and was equivalent to the private investment company of Lin Zuhui's family. Because its business was no longer limited to financial business and gradually extended to the investment field, it was renamed "Hengjin Investment".
During the meeting, Lin Zuhui listened to reports from several core senior executives.
George Hui reported: "Boss, this time we made a total profit of HK$920 million from short-selling the Dow Jones Industrial Index, and withdrawn funds of HK$1.37 billion...Currently, HK$1.3 billion of funds have arrived in the account in Hong Kong, and the remaining 70 million
Hong Kong dollars are used for securities investment in the United States.... Hengjin Investment has established branches in New York and Los Angeles in the United States, and Vancouver, Canada. We are continuing to recruit commercial investment talents, and we expect to be able to meet your needs by the end of the year!"
Robert Hui reported: "Boss, this time we short-sold the FTSE Index and made a total profit of 350 million Hong Kong dollars, and the funds returned were 650 million Hong Kong dollars..."
Wu Guominghui reported: "Boss, we short-sold the Singapore index...short-sold the Japanese index...the two places made a total profit of HK$750 million, and withdrawn funds of HK$1.35 billion..."
Li Haohui reported: "Boss, we made a profit of 150 million by short-selling the Hang Seng Index and got back 220 million..."
After listening to the report, Lin Zuhui calculated that from this short selling of the global stock market, he had made a total profit of 2.15 billion and withdrawn 3.6 billion in funds.
The funds have been secured, and Lin Zuhui has a smile on his face.
Then, Lin Zuhui arranged for the US and UK branches to develop in the direction of focusing on commercial investment and supplemented by financial investment, providing himself with excellent investment project suggestions.
After the meeting, Lin Zuhui summoned Li Hao and Wu Guoming in the office.
"I am very optimistic about Japan's securities market and real estate market in the next two years. I plan to invest 3 billion Hong Kong dollars in the Japanese securities market, and I will also make a five-fold leveraged investment."
Lin Zuhui's words shocked the two of them. The boss was addicted to venture capital. However, the two did not advise because they felt that they were not qualified. In their hearts, Lin Zuhui was called the god of investment. This time he accurately predicted the global stock market crash.
.
Moreover, it is reasonable for the appreciation of the yen to drive Japan's domestic economic expansion.
Wu Guoming said: "Then the Japanese branch must expand, boss!"
Lin Zuhui nodded and said: "Okay, you can handle this matter immediately. Li Hao, you also participate."
Li Hao is considered Lin Zuhui's deputy, so he is half a level higher than Wu Guoming.
"Okay, boss!"
Lin Zuhui warned: "Be quick and come up with Japan's most worthy investment stock plan before the end of the year. Remember to consider stocks in the two industries of electronics and real estate! Also, to diversify multiple Japanese securities companies, it is best to provide
We will only consider it if we offer five times leverage.”
"Okay, boss!"
Before short-selling futures, these countries already had many offshore companies invested by Hengjin, so there was no need for further trouble.
The two of them quickly accepted the order and went down to make arrangements!
Lin Zuhui was lost in thought in the office: He remembered that after the stock market crash, the Nikkei 225 went from 20,000 points to 39,000 points in December 1989, a rise of nearly 100% in two years.
Assuming that the stock selection is not wrong, five times the leverage can be doubled by 10 times, and 3 billion can be turned into 18 billion.
The market capitalization of the Japanese stock market reached US$4.5 trillion in 1989, exceeding the US$4 trillion of the US stock market; a mere US$2.5 billion is nothing!
Of course, Lin Zuhui has a cash flow of 8 billion this year, and only invested 3 billion in the Japanese market. This is just a diversified investment, and he does not put all his eggs in one basket.
For the remaining 5 billion, reconsider the investment direction and consider as little financial products as possible, there are risks!
...
...
A new week begins.
Lin Zuhui came to the office early, first read the newspaper for a while, and then began to think while writing.
The largest drop in the stock market crash was 50% (the Hang Seng Index had a maximum of 3960 and a minimum of 1980). It was expected that the property market would be dragged down as a result. However, this storm only affected 10% to 15% of property prices, and high-quality properties
The lower drop was quite surprising to everyone.
Of course, most businessmen are still unable to make a judgment. After all, the panic in the market is still there, and everyone is worried that real estate will not fall yet.
But Lin Zuhui already knew that he could buy the bottom!
After a while, three carriages arrived at Lin Zuhui's office, which is a custom every Monday.
Lam Cho-fai said: "The Hong Kong government is now approving 300,000 square feet of land every quarter (approving land in the New Territories, not including Crown land auctions), right?"
Liang Zhenxun quickly replied: "Yes!"
"Well, from now on, we will use our land exchange rights and interests as much as possible to acquire more land in the New Territories as reserve land!"
"OK!"
Then, Lin Zuhui asked: "How much will the New Territories land exchange rights and interests decrease?"
"Type B land exchange rights letter", or letter b. The Hong Kong government expropriated the cultivated land of farmers in the New Territories for various development purposes. The exchange conditions were to first collect the cultivated land and then allocate land for building houses to them in exchange, usually two
Half a square foot of arable land is exchanged for one square foot of house land. Farmers hold a piece of land exchange rights certificate, and they can only exchange land for development in the future. If they want to get real benefits at the moment, they are basically at their wits' end.
Real estate developers noticed this situation and negotiated with farmers to purchase their land-exchange rights deeds in cash, which was generally welcomed by farmers. Purchasing land-exchange rights deeds is much cheaper than government auctions of official land. As long as you are patient,
Waiting for the land exchange to be announced, there will be a large piece of land purchased at a reasonable price that can be used for building buildings.
"A drop of 25%~30% is still possible!"
Lin Zuhui immediately said: "Okay, let's start stocking up! From now on until June next year, it is a good time for us to increase our land bank holdings in large quantities. I have a guess that the overall growth rate of real estate next year may be the same as in 1985.
Reaching 30% to 40%. Therefore, in addition to the company’s 2.6 billion cash flow for purchasing land reserves, I will also borrow 2 billion from the bank for this round of development!”
The three of them were shocked. This caused the debt of New Era Real Estate to soar to 4.3 billion!
However, banks have begun to cut interest rates again, currently only 9% (9%), which is very good news for real estate developers.
What's more, Lin Zuhui knows that bank interest rates may rise to 8% next year.
Chen Bin immediately said: "If this is the case, then we need to increase the development site by another 20%, and strive to achieve a net profit of 800 million to 1 billion from real estate development next year!"
Lam Cho Fai asked: "Are there enough senior staff to develop real estate?"
Chen Bin said: "It's enough, even if it's not enough, we can recruit them quickly!"
To be continued...