Chapter 207 Another huge loan and a new real estate feast

Chapter 207 Another huge loan and a new real estate feast

Chapter 207 Another huge loan and a new real estate feast
What does 850 million feet mean?
Many people may be confused about this, but Ta Kung Pao gave a clear answer, which is a rectangle of 0.8*1km. This concept is immediately clear.

"850 million feet?" A young man reading a newspaper was so surprised that he was speechless.

"850?" asked someone nearby.

"look by youself."

"Oh my god, this is such a large area. My house is less than 300 square feet and there are six people living there."

"Yes." Several more people joined in the discussion.

They are all ordinary people who can only envy the super tycoons and have no idea about the concept behind it.

Central:

Zheng Yutong was just about to have breakfast when she saw the dazzling headline in the Galaxy Daily: 850 Million Feet.

He quickly threw the bread aside, picked it up and started looking at it.

Zhou Cuiying next to him asked curiously, "What's wrong?"

"Look." Zheng Yutong handed the newspaper to his wife.

Zhou Cuiying took one look and exclaimed: 850 million feet?

Zheng Yutong said: "Yes, a full 850 million square feet. I guess there are not many real estate companies in Hong Kong that have such a large area in reserve."

Zhou Cuiying said: "But this is industrial land? It's still different."

Zheng Yutong shook his head and said, "It is indeed industrial land, but as long as you have it in your hands, it is yours, and this is the most important thing."

"You're right, but they were able to get this land by relying on industry to solve the Hong Kong government's problems." Zhou Cuiying shook her head and said, "It's impossible for us to do the same."

Zheng Yutong nodded: "Yes, I can only envy you. I have been struggling for several years and only now have a building area of ​​one million square feet."

North Point, Hong Kong Island, Cheung Kong Factory:
Li Jiacheng looked at the newspaper in his hand and was so shocked that he even forgot to drink water.

Zhuang Yueming, who was standing next to him, came over and saw that Li Jiacheng looked a little strange, so he asked, "What's wrong?"

"Take a look at this." Li Jiacheng handed over the newspaper. Zhuang Yueming was also shocked when he saw the title: "This Changxing Industrial factory needs such a large area, and is planning to recruit tens of thousands of people?"

"Tens of thousands is not surprising." Li Jiacheng said: "We have 7000 people in the Changjiang Plastic Flower Factory. The sales of several products of Changxing Industrial are not worse than plastic flowers, so it is normal to need tens of thousands of people.

This area is indeed large enough, more than ten times the size of our factory."

Zhuang Yueming glanced at the contents of the newspaper in his hand again and said, "It may be because their luggage production equipment is very large and can only be placed on the first floor. Unlike us, we can place the equipment on the middle floor, so naturally we need a large area."

"That makes sense." Li Jiacheng nodded and said, "Looking at the description in the newspaper, Yang Wendong paid for this industrial park, and he will build the future buildings as well, and then rent them to his suppliers or other injection molding factories.

It seems that he is also very optimistic about the future real estate market, otherwise there would be no need for him to invest himself. "

"If you are optimistic, others will be optimistic too." Zhuang Yueming smiled and said, "Moreover, his trading company is now starting to seize the market share of the former plastic pellet importing companies;
If he uses this industrial park to gather other plastic factories together, it will be easier for him to completely control the import market of plastic particles.”

"Yes, the development speed is really fast." Li Jiacheng was full of emotion: "It has only been a few years, and it seems that he is on the way to becoming the number one industrial figure in Hong Kong."

"His products are so creative, and the global demand is not small. It's normal that we can't compete with him." Zhuang Yueming consoled him, "Besides, aren't you pessimistic about the plastic flower market? Are you planning to go into real estate?"

"Yes, there is still a huge demand for plastic flowers, but now many small factories can also make them, so we can no longer have the same profit margin as before." Li Jiacheng paused and said, "I will make money from the plastic flower market for a few more years, and then invest in the real estate industry."

"Okay." Zhuang Yueming said with a smile.

Although it is industrial land and its location is average, its area is really too large. Yang Wendong estimates that the future income generated by his industrial park will probably not be as much as that generated by his own land.

This is also the sadness of Hong Kong's manufacturing industry. Many factory owners have worked hard for decades, only to find that their income is not as much as what they earned by buying houses and going to brothels every day to listen to music.

On the third day after the Hong Kong newspaper publicity, Yang Wendong made an appointment with Bai Yushan.

After a warm exchange, Bai Yushan asked in confusion: "Brother Dong, although the land you got is large enough, it is industrial land, so you can only open a factory.

Even if the nearby real estate appreciates in value in the future, its value will increase, but it will be difficult for you to cash out because it is so large.”

"In the short term, I have not thought about cashing out for development." Yang Wendong smiled and said, "But I am very optimistic about the future economy of Hong Kong. The remote areas around every town today may become commercial centers in the future.

Kwun Tong may not be as attractive as Hong Kong Island or even Tsim Sha Tsui, but with this location, as long as the nearby business picks up, the factory can move to another location and this piece of land will be vacant.”

"That's right." Bai Yushan nodded and said, "But if you want to change industrial land into commercial or residential land, you have to pay the full difference.

Basically, not a penny can be lost. The Hong Kong government's fiscal revenue mainly comes from land sales, and they cannot leave this loophole."

Generally, industrial to commercial conversion requires an application to the Hong Kong government, which will generally agree because the owner needs to pay the difference, which is the same piece of land, the value of the commercial land minus the value of the industrial land.

But there is basically no room for negotiation on this money, because once the door for negotiation is opened, many real estate companies will not participate in the auction, but will instead purchase industrial land and convert it into commercial or residential use, which will affect the foundation of the Hong Kong government's fiscal revenue.

"I know." Yang Wendong nodded and said, "But don't you think the most important thing is to have this land first? This land belongs to me, so it is always possible to change it into commercial land."

The Hong Kong government is indeed very strict about "industrial conversion to commercial", but it does not mean that there is no opportunity at all. In history, Li Jiacheng took advantage of the real estate crisis in 84 to negotiate with the Hong Kong government to convert 200 million square feet of industrial land in Whampoa Port into commercial land. Later, it was built into the largest walled village in Hong Kong, making a profit of nearly billion Hong Kong dollars.

Even if this trick cannot be replicated in the future, there are still other ways. The simplest logic is to convert industrial to commercial when the land price is low, and then develop it when the land price is high.

The location of my land is not as good as Huangpu Garden, but the area is about 4 times that of Huangpu Plaza. If it is developed in the future, the total income is estimated to be even higher.

Bai Yushan smiled and said, "It will be many years later anyway. The most important thing now is your industrial park plan."

"Yes." Yang Wendong nodded and said, "Industry is the most important thing now. If I can create jobs for tens of thousands of people, it will not only benefit me, but also a large number of poor people in Hong Kong as a whole."

Although he is not a saint, he will not hesitate to help his fellow countrymen, especially when it is mutually beneficial.

However, his principle is not to let people starve to death or have a hard time living due to lack of water and food. As for not being able to buy a house in the future, we can only say that he does not participate in evil, and he cannot control anything else.

"That's a great achievement, maybe it will go down in history." Bai Yushan said with a smile.

Yang Wendong shook his head: "There is no history book in Hong Kong, so we can't count on it. It's good enough if we can do well now."

"Yeah, that's right." Bai Yushan nodded and said, "When I was losing weight before, I was hungry for a day or two. It was so uncomfortable. It's hard to imagine that many children don't have enough to eat every day."

"This is what they call 'rich people feasting and drinking, poor people freezing to death'. Rich people have too many delicious foods to eat, but poor people have nothing to eat." Yang Wendong said helplessly, "I was the same a few years ago. I couldn't even get a piece of meat in a month. Just imagine how pitiful it was."

Bai Yushan asked curiously: "So after you succeeded, you wanted to help other poor people?"

"I'll help as much as I can." Yang Wendong smiled and said, "So I not only need industry, but also a lot of capital, so that I can do better and have a more successful career."

Bai Yushan nodded and said, "If you want to make money quickly, you still have to rely on real estate and shipping, or banks. Your Changxing Industry is a special case in the industrial world."

"So I won't let go of real estate and shipping either." Yang Wendong smiled and said, "I'm going to meet with Sanders again tomorrow to discuss the cooperation with HSBC."

"For the Changxing Ten Thousand People Industrial Park?" Bai Yushan asked curiously, "Hasn't it been discussed?"

Yang Wendong smiled and said, "The cooperation this time has been negotiated, but I need to borrow an additional sum of money for another use." "Oh." Although Bai Yushan was curious, she did not ask any more questions.

Generally speaking, Yang Wendong would tell her things that he could let her know, and she would not ask if he didn't want to tell her.

The next day, Yang Wendong went to HSBC in person.

"Hello, Mr. Sanders." After being brought into HSBC Bank by a blonde white assistant, Yang Wendong also met Sanders.

Sanders also knew that Yang Wendong would come, and said with a smile: "Hello, Mr. Yang, please take a seat."

The two sat down and exchanged some pleasantries, and the assistant also served the coffee.

Sanders said with a smile: "Mr. Yang, I brought this from England. Please try it."

"Okay." Yang Wendong agreed with a smile. Although he didn't like coffee very much, Sanders' attitude clearly showed that he valued it very much, so he still had to give him face.

After taking a sip, he found that the coffee tasted different but not too different, as he expected. However, he still said, "Good coffee."

"Haha, if you like, Mr. Yang, I'll give you some." Sanders smiled and then asked, "Mr. Yang, the cooperation in Kwun Tong has basically been negotiated. What do you want to talk to me about today?"

Yang Wendong said directly: "I want to borrow another sum of money from HSBC."

Although the price per unit of land in Kwun Tong is not expensive, the area is too large and requires a lot of capital. In addition to the future land leveling and factory construction, we will borrow nearly HK$2000 million from HSBC. However, what we want to discuss now is another sum.

"Loan?" Sanders was a little surprised and asked with a smile, "For this kind of thing, there's no need for Mr. Yang to come in person, right?"

Yang Wendong smiled and said, "Normally it's not necessary, but this time it involves a lot of money and some things, so I want to talk to Mr. Sanders in person."

There is actually a lot of money in Changxing Industrial's account, and it is making profits every month. However, real estate investment can and needs to use bank funds.

At present, the entire Changxing Group's investments in multiple large businesses all rely on Changxing Industrial, a cash cow, including the acquisition of a large number of properties in Kwun Tong in the past two months, the purchase of ships by Changxing Shipping, etc. All these together require Yang Wendong to use more loans to ensure sufficient funds in his account.

"More? How much?" Sanders asked curiously.

Yang Wendong replied: "It depends on how much HSBC is willing to lend me. If it's less, 20 or 30 million Hong Kong dollars will be fine. If it's more, 40 or 50 million is not too much for me."

"So much?" Sanders' face changed, and he asked, "Mr. Yang needs so much money, is he planning to enter the shipping market? Buy a new ship?"

For a project that could cost tens of millions of Hong Kong dollars, the only thing Sanders could think of was to buy a large number of new ships.

As for real estate, although a lot of money is needed, he is aware of large-scale real estate projects that require so much money, and they all have owners.

Yang Wendong smiled and said, "No, I just want to borrow money. The purpose of this money cannot be announced to the public for the time being, including your bank."

In the shipping industry, once his company's team becomes more skilled, he may also buy new ships. At that time, he may also need to cooperate with a large bank like HSBC, but not now.

Sanders frowned and said, "Mr. Yang, if you do this, it may be for some special business purposes, but it will be very difficult for our bank;
If the loan has no clear investment direction, the bank's risk cannot be controlled or monitored, and it is impossible to give more loans like this."

"I understand that." Yang Wendong nodded and said, "Changxing Industrial has shown you its financial data before. So give me a number. How much can you borrow with this kind of collateral?"

The scale of Changxing Industry can no longer be concealed. The export data has been getting bigger and bigger. Some newspapers had already reported it in the second half of last year, especially after the trolley cases came out.

The industrial investment in Kwun Tong has shocked the whole of Hong Kong. Therefore, when necessary, Yang Wendong is ready to let Changxing Industrial directly participate in the mortgage.

When participating in a mortgage, you naturally need to show some internal financial data to the bank. In fact, even if you don’t show it, it’s useless because there are also data in the tax area.

Even though Yang Wendong avoided taxes through overseas tax havens, he also retained a considerable amount of profits in Hong Kong, just in case the company's accounting data looked good when he needed to apply for a loan.

Sanders thought for a moment and said, "The profit rate of Changxing Industrial is indeed impressive. If Mr. Yang wants to invest in the real estate industry, and the real estate industry itself can be used as collateral, then I will give you a quota of 30 to 50 million. I think it will not be a big problem, and the top management of our bank will agree.

It’s just that you can’t tell us the investment direction at the moment, so I estimate that a loan of 1000-1500 million should not be a problem.”

"That's a bit too little." Yang Wendong thought for a moment and said, "Mr. Sanders, I can tell you that this money may be used to acquire some real estate in Hong Kong. In that case, when the real estate is acquired, it can be mortgaged urgently. Can HSBC mobilize funds for me in a short time?"

The purpose of this loan is naturally to wait for the next bank run on Liao Chong Hing Bank.

Rescue is impossible. It is not a question of willingness or not, but of powerlessness. When a bank is in a run, what it needs is not funds, but to restore the confidence of depositors.

Historically, hundreds of millions of Hong Kong dollars in cash were withdrawn from Liao Chong Hing Bank in one day, which could cause the bank's cash flow to collapse over several consecutive days. With Yang Wendong's current financial resources, he is simply unable to save the bank.

However, even if the bank cannot be saved, we can still "help". The Liao Baoshan family will still try its best to save the bank, so they will sell their various properties on a large scale.

These properties are in excellent locations and are the result of Liao Baoshan's lifelong efforts. Under normal circumstances, such properties cannot be bought even with money. It takes years of management and only through accidental opportunities once every few years plus competition with other real estate giants can one get one of them.

Anyway, if I don't intervene, these properties will be sold by the Liao family in an emergency. This opportunity can be said to be a rare real estate feast.

It would be a shame not to catch it, but it can't be considered as kicking someone when he's down, because if he doesn't buy it, someone else will.

"As for real estate, we can discuss it." Sanders was a little surprised, but he also knew that many business activities would not be informed to outsiders in advance.

Then he said, "In that case, I will apply to give you a little more funds, but the premise is that the funds need to be placed in our bank account first. If you want to buy real estate, that's fine.
But if the funds need to be transferred for other business activities that cannot be disclosed to our bank, then there will be restrictions on that part of the funds, and these will be signed in the contract, how about that? "

"Okay." Yang Wendong agreed.

It is just that it is not convenient for him to reveal his purpose now. Once problems arise after the bank run on Liu Chongxing, he will be unable to hide his intention to acquire his properties. By that time, there will be no need to keep it secret.

The reason why he told HSBC in advance was because Liao Baoshan claimed that his assets were as high as hundreds of millions. With such a large amount of funds, he needed to inform the bank in advance. Otherwise, even if banks such as HSBC and Standard Chartered had so much liquidity, it would be impossible for them to lend a lot to outsiders in a short period of time.

Sanders smiled and said, "Okay, I wish us a pleasant cooperation again."

When funds are placed in a bank account, the borrower also needs to pay interest. If it is really an investment in real estate and the risk is not high, the bank will make more money.

According to the contract, if the other party wants to transfer funds, there will be restrictions, and you will just be earning short-term interest in vain.

No matter how you look at it, HSBC is not losing out.

"It's a pleasure to work with you." Yang Wendong said, shaking hands.

Generally speaking, even for commercial loans, banks need to know the purpose. However, in most cases, ordinary people do not have much commercial loan funds, so banks are too lazy to confirm it.

Even if something goes wrong, the risk is not great because these commercial loans are almost always mortgaged with real estate or guaranteed by other businessmen.

The huge loans from large companies usually have a purpose, and loans like this one do have some restrictions.

The next day, Yang Wendong went to Standard Chartered Bank again and made the same request. Standard Chartered Bank had the same attitude as HSBC and only gave a conservative promise.

Yang Wendong also understood this point. What banks hate most is this kind of investment with unknown purpose. If one's own factory is not very profitable, ordinary businessmen may not agree to such a request.

In the following days, Yang Wendong also went to the two banks several times in person. In the end, HSBC gave a loan of HK$2000 million and Standard Chartered gave HK$800 million.

The funds are placed in corresponding bank accounts, and there is also an agreement that if they are used for real estate, all of them can be used. If they are transferred to other banks, or the bank is not informed of the corresponding purpose, only 5% can be obtained.

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(End of this chapter)