Chapter 214 Acquisition of 7 Buildings in Hong Kong Island

Chapter 214 Acquisition of 7 Buildings in Hong Kong Island

Chapter 214 Acquisition of 7 Buildings in Hong Kong Island

Afterwards, Zheng Zhijie gradually introduced the many properties of the real estate company owned by Liao Chong Hing Bank.

Yang Wendong also listened one by one until the last property introduction was completed.

After listening, Yang Wendong said: "Liao Baoshan has been operating for more than ten years, and has the most convenient financing channels. The accumulated real estate properties are really considerable;

According to the market price, it is almost 100 million, right? "

Zheng Zhijie replied: "Yes, the three buildings in Central alone are worth more than 10 million. There are also many residential properties and office buildings in various parts of Hong Kong Island. Just looking at the housing prices, if not 100 million, there are at least 70 or 80 million.

However, we do not know the extent of the debt and how much is mortgaged on the commercial real estate. This is not recorded in the bank's information."

"It doesn't matter. We just need to pay the Liao family to buy the property." Yang Wendong said, "As for the original debt on the property, it is Liao Chongxing Bank's own funds anyway, and they will not take over the loan. We just need to pay the money and get the property."

There are two types of normal property transactions with loans. Either the transaction is with debt, or the property is just purchased and the seller repays the debt after receiving the money. They are essentially the same, except that it puts more financial pressure on the buyer.

But when buying properties from Liu Chong Hing Bank, one can only choose the latter because the buyer’s debts are also his own.

Zheng Zhijie nodded and said, "Yes, then Mr. Yang, which properties do you like?"

"I want all three buildings in Central, especially this 25-story building, I must get it." Yang Wendong paused and said, "Try to get the other two buildings, and as for the other properties, take as much as you can.

I have already negotiated with HSBC and Standard Chartered Bank. They will provide us with a loan of HK$2800 million for this operation. In addition, Changxing Industrial will also mobilize some funds. "

After listening to this, Zheng Zhijie asked, “Mr. Yang, would it be too risky to borrow so much money to buy real estate? Our group’s investment in Kwun Tong is also very large;

If the real estate market does not recover, or even continues to decline, we may suffer great losses.”

"Do you think the real estate market will not improve?" Yang Wendong asked.

He was actually very happy when his subordinates questioned his requests, because this was normal.

In this world, except for him as a time traveler, no one can guarantee the future trend of the real estate market. As a professional manager, he is also obliged to inform the boss of some risks or give advice.

Zheng Zhijie said: "Hong Kong's industry has developed very well recently, and trade is also good. In addition, a large number of foreigners have poured in. From a long-term market perspective, real estate will definitely get better and better;

But it is hard to say in the short term, especially because the bank run on Liu Chong Hing Bank has begun to affect other banks.

I heard that the Hong Kong government has started preparing for the banking law to restrict some high-risk behaviors of banks. This will affect the financing of the real estate market, which will inevitably affect the real estate market in the future.”

"The analysis is correct, but you overestimate the efficiency of the Hong Kong government." Yang Wendong smiled and said, "Besides, the profits of Changxing Industrial are very considerable, and our current loan can be easily repaid in the future.

Especially after the industrial park in Kwun Tong is completed and our fleet is larger, the profits will be even greater.”

Historically, after the bank run at Liu Chong Hing Bank, depositors instinctively went to other banks to withdraw money like horses that had broken free from their reins, fearing that the same thing would happen again.

Under such circumstances, the Hong Kong government, which has always adhered to the "free market principles", had to intervene and invited HSBC to stabilize the situation.

Therefore, in the bank run of Liao Chong Hing, only the Liao family suffered heavy losses, while other people were not greatly affected. The incident was soon forgotten, and the real estate market began to appreciate significantly after several months of lows and stabilization.

"Okay, then I will prepare to communicate with Liao Chong Hing Bank." Zheng Zhijie nodded and agreed.

Since the boss has said so, he will not remind him a second time, let alone disobey the boss's wishes.

Yang Wendong added: "This time we are mainly acquiring fixed properties under Liu Chongxing. Don't touch the properties that are under development, as it will be difficult to sort them out after taking over.

We have limited time and funds, so we prioritize properties that can be rented out in the future and don’t require much management cost.”

Although Changxing Real Estate is already developing its third residential community project, it is still a novice in the real estate market. If it takes over too many properties under development at once, problems may arise.

As for properties that are simply for collecting rent or individual plots of land, it is much simpler. After acquiring them, you only need to be responsible for collecting rent and repaying the bank loan, and then keep an eye on the price. If it is suitable, sell it; if it is not suitable, continue to hold it.

At the same time, these fixed assets can provide collateral for future loans, because after house prices continue to rise, properties that are currently fully loaned out can be mortgaged again.

This is also one of the fundamental reasons why real estate ≈ finance.

"I understand. We'll prioritize properties in Hong Kong Island." Zheng Zhijie said with a smile, "But I guess they won't sell the property they're in now unless they have no other choice.
The most likely thing to be sold is the headquarters under construction, but the location is so good that there will definitely be a lot of competition."

"Of course, we are not fools. Everyone wants such a prime location." Yang Wendong paused and said, "If there are many competitors, we can buy it directly at a normal price without considering that Liao Chongxing Bank is in urgent need of money now."

No matter how much you put pressure on it, it is nothing compared to the future appreciation potential of a building located in a prime location in Central.

Moreover, he is now considered one of the celebrities in Hong Kong and has come under the attention of the Hong Kong government and the top business circles in Hong Kong. What he needs to do more is to increase his influence.

The 10,000-person industrial park in Kwun Tong counts as one, the shipping company counts as one, and the building in the most central location in Central also counts as one.

"Okay, I understand. Don't worry about the gains and losses for the time being." Zheng Zhijie said, "In this case, the Liao family will probably give us priority."

"Well, that's it. You go and contact the Liao family and tell me immediately if there is any progress." Yang Wendong nodded and said.

Business negotiations were not something that this time-traveling boss was good at; for such matters, he only had to set strategic goals, and the specific implementation would naturally be the responsibility of a team of professional managers and professional business lawyers, accountants, and other professionals.

In the following days, several branches of Liu Chong Hing Bank in Hong Kong had to close one after another due to lack of funds.

This caused further panic, and depositors were anxious and surrounded the few branches that were still open, as well as the head office.

Rumors were spreading in the market. Some said that Liao Baoshan had committed suicide, while others said that he had fled Hong Kong. As the rumors spread, they even appeared in newspapers, forcing the Hong Kong government and police station to publicly prove that Liao Baoshan was still in Hong Kong.

The team formed by Zheng Zhijie also quickly communicated with the Liao family to discuss the prices of various properties.

Yang Wendong also put aside other things temporarily. He was able to acquire a large number of high-quality properties at one time. Such an opportunity only comes once in many years. And because of the bank run, the negotiation time for this real estate transaction will not be very long. June 6:
Liao Baoshan stared blankly at the huge crowd of people downstairs, his face ashen, yet he could do nothing.

At this moment, he finally figured it out. All of this was caused by himself. If he hadn't used the depositors' money to speculate in real estate regardless of the risks, how could he have ended up like this?

"Knock, knock, knock~" There was a knock on the door. Liao Baoshan turned around, saw the person coming, and said, "Come in."

"Dad, how is your headache?" After Liao Liewen came in with some documents, he did not discuss the business first, but instead asked about his father's health.

"It hurts from time to time." Liao Baoshan didn't care about her own body and asked, "What are the offers from the buyers?"

Although he was reluctant, Liao Baoshan also knew that he could no longer keep the properties he once owned. Even if the bank did not go bankrupt, the huge debts owed would require the sale of properties to compensate.

At this moment, he only wanted to keep the Liao family's basic industrial bank and didn't think about anything else.

Liao Liewen said: "There are currently more than a dozen companies that want to acquire our properties, including Hong Kong Land, Swire Properties and Wheelock Properties, which have also taken a fancy to our properties in Central.

These are their offers, and some of them are still negotiable, but given the current time, I'm afraid it's a bit too late."

"Then let's stop talking nonsense. I'll sell it to whoever offers the highest price." Liao Baoshan also knew that time was urgent and he urgently needed money.

Liao Liewen said: "Among all the people who have made offers, Yang Wendong's offer is the highest. His price is basically only slightly lower than the normal market price."

"Yang Wendong?" Liao Baoshan thought of the young man whom she had only met once, and then looked at the information in her hand.

After a while, he said, "This price is indeed very reasonable, only about 5% lower than the market price. However, can he raise so much money in a short period of time?"

"Their people replied that it was possible, and they said it was an emergency loan from HSBC and Standard Chartered." Liao Liewen replied: "As for why these two banks were willing to provide so much loan in a short period of time, I am not sure."

"Well, then sell it to Yang Wendong. We are in urgent need of money now and don't have time to argue with other people." Liao Baoshan didn't want to ask too many questions.

"Okay." Liao Liewen asked again: "Dad, how is the negotiation with the Hong Kong government going? Now we are selling the property to pay back the debt, which is only a temporary solution. If we want to solve the problem fundamentally, we still need the Hong Kong government to guarantee it."

Liao Baoshan, who had been somewhat normal before, suddenly became angry after hearing this: "Those foreigners are trying to take advantage of the opportunity to take over our banking business and have made many excessive demands. Once I agree, my Liao family will be completely kicked out of the banking industry."

Liao Liewen also knew how bad the current situation was. The Hong Kong government would naturally not target a single bank, but it was hard to say about the people within the government. Even if they could not directly participate due to their official positions, how could these people not have connections with the British banks in Hong Kong?

However, the current situation does not allow them to make any choice, so they still said, "But the longer the time is delayed, the more disadvantageous it will be for us."

Liao Baoshan nodded and said, "I know. You should sell the property to raise money first, and leave the Hong Kong government's affairs to me."

"Okay." Liao Liewen also knew that although his family was in trouble, Liao Baoshan had been doing business in Hong Kong for decades and still had his own network of relationships.

Two days later, on June 6:
Yang Wendong came to a luxury suite at the Peninsula Hotel:

Liao Liewen was also here, and handed a stack of documents to Yang Wendong, saying, "Mr. Yang, these are the seven buildings involved in our transaction, with a total value of 7 million. I have waived the difference.

You can take a look at the content.”

"Okay." Yang Wendong nodded, then carefully read the contract and gave it to the legal team around him.

The properties of the 7 office buildings were the final transaction between Yang Wendong and the Liao family.

One is naturally the headquarters of the future Liao Chong Hing Bank Building in Central. The other six buildings are located in Admiralty, Causeway Bay, Wan Chai and Happy Valley.

Half an hour later, both parties reviewed the final contract for the last time, and Yang Wendong and Liao Liewen signed and stamped the contract respectively.

Liao Liewen said: "Mr. Yang, congratulations, you have become the new owner of seven buildings in Hong Kong Island."

Yang Wendong said, "Don't worry, Mr. Liao, I will go to HSBC soon. After the formalities are completed, you will receive the funds soon."

"Okay, thank you." Liao Liewen nodded.

"Mr. Liao, I also hope that your bank can get out of today's predicament as soon as possible." Yang Wendong nodded and said, "We can continue to cooperate after your bank returns to normal."

Although he was not a traitor, he even raised the purchase price compared to others, making the Liao family's losses in the real estate industry not that serious;

But this kind of thing is not a transaction under normal circumstances, and Yang Wendong couldn't really say anything cheerful in front of Liao Liewen who was forced to sell his property.

Liao Liewen nodded and said, "Okay, I hope to cooperate with Mr. Yang again in the future. Our bank will definitely give you a very high discount."

It can't be said that "a friend in need is a friend indeed." Liao Liewen also knew that Yang Wendong was not really helping him, but at least he did not take advantage of his misfortune. Unlike other buyers, who saw that Liao Chongxing Bank was in trouble and urgently needed funds, they pushed the price to the extreme.

In addition, with the large number of properties that Yang Wendong has acquired and the scale of his own shipping company and industrial enterprise, he will inevitably become one of the top Chinese in Hong Kong in the future, even surpassing Liao Baoshan at his peak.

If Liao Chong Hing Bank is to restore its original scale and reputation in the future, it will also need the cooperation of a well-known wealthy person to act as a guarantor.

"OK." Yang Wendong said, "But your bank still needs to try its best to negotiate with the Hong Kong government and resolve this matter through administrative means."

No matter how much money you have, you can only slow down a bank run. If you want to solve the fundamental problem, you must restore the bank's credibility and make depositors have confidence in the bank.

Otherwise, even a normal bank would not be able to withstand a run; the only thing that Hong Kong depositors can trust at present is probably the Hong Kong government or top British banks or consortiums such as HSBC, Standard Chartered and Jardine Matheson to provide guarantees.

Even Yang Wendong at present is far behind the top British financial groups in terms of financial resources and fame, and he simply does not have this ability.

"I understand. Thank you Mr. Yang for telling me." Liao Liewen said with a smile.

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(End of this chapter)