Chapter 184 Real Estate Auction

Chapter 184 Real Estate Auction

Chapter 184 Real Estate Auction

According to the information Yang Wendong had found before, Formosa Maw started with US$50, including loans. It almost went bankrupt in 1957, but later expanded its scale against the trend and became successful.

After stabilizing the Taiwan market, it is normal for the estimated market value to expand several times. In fact, if Changxing Industrial had not been able to bring it very lucrative orders, it would have been almost impossible for ordinary wealthy people to just think about investing in it.

When a company reaches a certain size, it basically does not accept funding without any additional help.

The information about Formosa has been handed over to lawyers and investment analysts from the same field. The boss Yang Wendong only looked at Formosa's net profit and turnover last year. The valuation still needs to be decided by professionals.

After they had some free time, the group from Hong Kong also went to the center of Taipei for a tour.

He was accompanied by Wang Hongyuan, a colleague from Changxing Industrial who was previously assigned to Taiwan. He also introduced the sales of his company's products in Taiwan.

After listening to the discussion, Yang Wendong said with a smile, "Our spin mops are the best sellers in Taiwan?"

"Yes, there is a very high demand for spin mops in Taiwan, and many people like them." Wang Hongyuan explained: "Although the population of Taiwan is several times that of Hong Kong, the area is much larger, and the cleaning area is also larger, so they prefer spin mops."

"Yeah." Yang Wendong nodded. As far as he could remember, the rotary mop seemed to have been invented by people from Taiwan.

It should be that the local people have a high demand in this area, which led to the inventor seizing the opportunity.

Wei Zetao next to him said: "The sales of sticky notes in Taiwan are average, because there are not many companies in Taiwan, there are even fewer suitcases, and not many people travel in Taiwan.

Adhesive hooks are okay, though. They are a must-have. No matter what the environment, adhesive hooks are better than using nails to drill holes in the wall."

"Well, the product positioning is different and the local demands are also different." Yang Wendong nodded and said.

The sticky notes are for company use, and the trolley cases are high-end, neither of which is very suitable for Taiwan, which is just beginning to develop its economy, and Hong Kong is only slightly better.

The sticky hook on the spin mop is a consumer product of ordinary price.

Wang Hongyuan added: "Mr. Yang, recently some pirated adhesive hook and spin mop factories have appeared in Taiwan, and we have cracked down on them through distributors.

It has some effect, but it can’t completely eliminate it.”

"It doesn't need to be completely eliminated," Yang Wendong said. "Following the Japanese model, don't get too competitive with these factories, some of which you don't even know where they are.

Let our agents just focus on the sales points. They should have the ability to do so.”

To deal with piracy, we must also pay attention to cost-effectiveness, and it is enough to eliminate most of them. The partner that Changxing Industry chose in Taiwan is a businessman who has connections with high-level Taiwanese officials.

One party provides legal goods, the other party provides connections, and the two parties cooperate to open up the market.

It's actually similar in Japan, but Japan is large and is divided into several regions.

Wang Hongyuan replied: "We have already done these things. Huahui is also using some black and white connections to specifically attack some grocery stores.

It’s just that this kind of news is too difficult to spread. Even if they manage to get it in the newspaper, many people won’t know about it.”

"Then just start from the big cities." Yang Wendong didn't care. In an era of slow information transmission, combating piracy would certainly be doubly difficult.

Unlike the mobile Internet era, once a piece of news comes out, it can be found all over the Internet, and can even be pushed precisely based on interests, hobbies and needs.

"Okay." Wang Hongyuan agreed.

Yang Wendong added: "In addition to the normal business of Changxing Industrial, you need to do one thing for me."

Wang Hongyuan asked, "Mr. Yang, please speak."

Yang Wendong said: "Help me collect information about factories in Taiwan that are a bit large, or factories with great development potential, and send this information to Hong Kong after a period of time."

After having the opportunity to invest in Wang Yongqing, Yang Wendong remembered that there would be many large industrial enterprises in Taiwan in the future. If he could invest early, the rate of return might be higher than Hong Kong real estate.

As for Hong Kong, there are basically no industrial factories that can grow big in the future. Investing in Hong Kong is only suitable for real estate.

Of course, Europe, the United States, and Japan also have such opportunities, but these countries started very early, and even if there are any unicorns in the future, they will be relatively few.

"Okay, I will check once a month." Wang Hongyuan agreed.

He didn't know his boss's purpose, but he still had to carry out his boss's orders.

After two days of sightseeing in Taiwan, Yang Wendong returned to Hong Kong with most of the people, while a small number of people stayed to negotiate with Wang Yongqing and his attorney regarding the subsequent shareholding matters.

Before acquiring shares, a comprehensive financial review of Formosa International Holdings Limited is also required, which is also the normal process for acquiring shares.

After returning to Hong Kong, Zheng Zhijie from Changxing Real Estate came forward and said, "Mr. Yang, we have completed the application process. At the end of the month, which is a week later, we can participate in the real estate auction."

"Okay." Yang Wendong nodded and said, "Then we just have to wait for that day. This is also our first time participating in a real estate auction."

Since you want to do real estate, you will have to participate in the Hong Kong government's auction sooner or later. After all, this is the regular way of the real estate industry.

It is not impossible to professionally collect old buildings and then demolish them to build new ones, but it is very time-consuming and requires a lot of underworld involvement to be successful;

Although Yang Wendong doesn't care about being "black", he also doesn't want his industry to be too closely related to these people.

"This is the information of all bidders." Zheng Zhijie handed over another document.

Yang Wendong opened it and said, "Are they mainly Chinese real estate companies? Why are there so few British real estate companies?"

Zheng Zhijie explained: "Because British real estate companies in Hong Kong tend to buy land and build office buildings and then collect rent, Chinese real estate companies tend to build residential or commercial buildings and then quickly cash out the funds.

The land launched by the Hong Kong government this time is mainly for residential use, so there are more Chinese real estate companies involved.”

"Okay." After reading it, Yang Wendong put away the information. He was basically unfamiliar with the companies in it.

This is normal. The Chinese real estate companies that were active in 66 are likely to suffer heavy losses in the next wave of crisis. Only a few will survive into the s and s, and the four major families of the future are probably still surviving.

Zheng Zhijie handed over another document and said, "Mr. Yang, this is the plan for our new office building. Take a look. This building is still planned to have 12 floors, but each floor has an area of ​​1.3 square feet, and the total ground area is 15.6 square feet. It is much larger than the Hong Kong China Building where we are now."

“Is this the area that is obtained after several old buildings and properties are demolished together?” Yang Wendong asked after seeing the building drawings.

Zheng Zhijie said: "Yes, there are three old buildings in total, with a total area of ​​about 1.8 square feet. The plot ratio given by the Hong Kong government is 8. We used some connections to increase it to about 8.6."

Yang Wendong looked at the information and asked, "This building has not been put out to bid yet, right?"

"No, once you have confirmed the rough data, we can open the design bidding." Zheng Zhijie replied: "The subsequent construction bidding will also be after the design."

Yang Wendong nodded and said, "Okay, just follow the normal process. Remember, this building may be the headquarters of Changxing Real Estate in the future, or the short-term headquarters of Changxing Group in the future. You can't be careless about the quality."

Now, except for the factory of Cheung Kong Holdings, all other industries of mine are located in this building, Hong Kong China Building. There will be no problem in the short term, but it is hard to say in the long run.

Especially as a time traveler, he knows the future, and with sufficient funds, the expansion speed of any industry will inevitably be very fast, so it is necessary to prepare the future office space early.

Otherwise, knowing that the land price would plummet in 66, he would not have to consider spending money on a house at this time, mainly for the needs of his future industry. "Okay, Mr. Yang, don't worry." Zheng Zhijie agreed, and then said, "Mr. Yang, there is one more thing. During this period, except for the Lan Ya Cinema, other cinemas on Hong Kong Island are basically unwilling to sell.

So I want to do the same as in Kowloon, buying land or old buildings in various places on Hong Kong Island, and then demolish them to build cinemas.”

Yang Wendong agreed and said, "Okay, we can build it ourselves. There aren't many cinemas in Hong Kong nowadays."

Hong Kong's economy developed extremely rapidly during this era, but cinemas could not keep up.

If you build it earlier, you will have the first-mover advantage because there needs to be distance between theaters.

Fast forward a week to Tuesday, August 8th:
The Hong Kong government held a grand auction inside the Alexandra House in Central. Yang Wendong also came here in a low-key manner with Zheng Zhijie.

"I really don't know many people here." Yang Wendong said softly after taking a look at the people around him.

Zheng Zhijie said with a smile: "Mr. Yang, your previous career was mainly in the industrial field. Naturally, you don't know many people in the real estate field. Let me introduce them to you."

"Okay." Yang Wendong nodded.

Afterwards, Zheng Zhijie introduced many wealthy groups at the scene from a distance, and Yang Wendong simply listened. These people had not made a name for themselves after the 70s, so there was nothing worth making friends with for him.

Suddenly, Zheng Zhijie said the name of an acquaintance: "Mr. Yang, that person is Zheng Yutong, the son-in-law of jewelry tycoon Zhou Zhiyuan."

"Zheng Yutong?" Yang Wendong immediately looked over and saw a young man about 30 years old chatting with the older people around him.

But although he looks younger, he seems to have a higher status, and people around him are a bit flattering towards him.

Zheng Zhijie asked, "Mr. Yang, have you heard of Zheng Yutong?"

"I've heard of it." Yang Wendong nodded. This man will be the head of one of the four major families in Hong Kong in the future.

Unlike Li Jiacheng who is still engaged in plastic flower business, Zheng Yutong entered the real estate industry several years ago and has developed quite well.

Zheng Zhijie continued, "This Zheng Yutong developed a real estate project with hundreds of villas in North Point last year. It is said that he made millions. This time he came here, he is probably our strong rival."

"Well." Yang Wendong said, "It depends on who is braver."

Cheng Yutong's nickname in his previous life was "Shark-hearted Tycoon". It is said that this was because he was very aggressive in investing. Once he set his eyes on a project, he would take it over even if it meant losing money.

However, this "losing money" is obviously the judgment of a person without vision. In fact, he made a lot of money in the end.

Soon, the auction officially began.

The land being auctioned this time is mainly residential and industrial land, with a small amount of commercial land. The first ones to be taken out are naturally the marginal areas of Hong Kong Island or the land in Kowloon.

Although the areas of these plots of land are not small, the atmosphere on site is very dull.

Zheng Zhijie said, "Mr. Yang, the locations of these plots of land are not very good, especially in terms of transportation. There is not even a minibus, so real estate developers are not very interested in these plots of land."

"Well, it's true that we can't do without buses." After listening, Yang Wendong asked, "Have the two bus companies in Hong Kong gone public?"

In this era, there was no subway, and the main means of transportation in Hong Kong was the bus, just like in mainland China in the 80s and 90s.

A car is too luxurious and many people who live and work in Central cannot afford it.

Rickshaws are only suitable for short-distance travel. The Hong Kong government has banned this mode of travel in busy areas, and it will soon be replaced by taxis in the future.

“No.” Zheng Zhijie replied: “I heard that Kowloon Motor Bus is preparing to go public, but I’m not sure about China Motor Bus.”

"Okay, help me check the specific information of these two bus companies tomorrow." Yang Wendong said again.

There are two franchised bus companies in Hong Kong. China Motor Bus controls Hong Kong Island, while Kowloon Motor Bus controls Kowloon. They monopolize the same areas as power companies. However, the profitability of buses themselves is far less than that of electricity or telephones.

……

The bidding continued, and some small plots of land or plots of land in ordinary locations were won after several rounds of competition.

More than half an hour later, a 9000-square-foot piece of land in the Central area was brought to the table, immediately attracting everyone's interest.

In the end, Sha Dantong won the land at a price of HK$188 million, which caused a burst of amazement at the scene.

Next, there is this 6 square feet residential land in Admiralty, which is priced at a low price of HK$150 million.

Just now during the auction, Shadantong raised his hand again: 160 million.

Noisy discussions broke out again at the scene. No one could have imagined that after bidding for one piece of prime land, Zheng Yutong would have to compete for the next one.

Zheng Zhijie said: "Mr. Yang, this Zheng Yutong has a very good relationship with Hang Seng Bank. This is why he has been so domineering in the real estate market over the years."

"The cooperation between real estate and banks is indeed perfect." Yang Wendong smiled. If it weren't for the fact that Liao Chongxing Bank would encounter problems next year, he would also think about cooperating with them for a long time.

Zheng Zhijie asked: "Are we following now?"

"Wait a minute." Yang Wendong didn't care and waited until the end.

At the scene, several people followed suit and the price of the land soon reached HK$245 million, which was basically close to the profit line after it was acquired.

At Yang Wendong's signal, Zheng Zhijie raised his hand and offered a price: "250 million."

"Changxing Real Estate, bid 250 million." The auctioneer said excitedly.

Other real estate developers also looked at Yang Wendong. They all knew that this was the sticky note king who had become famous last year and had now entered the real estate industry.

But it's normal. Many businessmen in Hong Kong, no matter what they did before, will more or less get involved in real estate once they have achieved a certain scale.

"Is there a higher price?" the auctioneer on the stage asked loudly again.

"255 million." Zheng Yutong suddenly raised his hand and said.

"Wow~" Many people at the scene started discussing quietly. In their opinion, even if there is still some profit to be made at this price, it will not be much.

"260 million." After getting Yang Wendong's signal again, Zheng Zhijie raised the sign again and raised the price to a new high.

This price made Zheng Yutong hesitate for a moment, and then he saw him discussing it with the people around him.

"260 million, the first time." The auctioneer looked in Zheng Yutong's direction, obviously hoping that he would continue to raise the price.

However, after delaying for a while, seeing that he had no intention of continuing, I could only announce: "260 million for the second time, 260 million for the third time, deal."

……

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(End of this chapter)