Chapter 333 New Territories Land Storage Plan

Chapter 333 New Territories Land Storage Plan

Chapter 333 New Territories Land Storage Plan
After saying goodbye to Wu Zhande, Yang Wendong also called Zheng Zhijie and Liu Huayu.

The service industry in Hong Kong is certainly very dependent on real estate. Therefore, among its brother companies, Carrefour and Changxing Real Estate have the most cooperation.

"Mr. Yang." After the two arrived, they greeted him.

"Sit down." Yang Wendong waved his hand. After the assistant served tea, Yang Wendong said, "I have already communicated with Wu Zhande about Maxim's Foods. They will take a 30% stake and then enter our Carrefour supermarket to do cake business.

However, the price of the shares, the rental and location of Carrefour, and other issues still need to be negotiated by you. "

As the boss, he came forward to quickly resolve the intention issue, but the specific data would naturally not be discussed, and he was not clear about the various cooperation issues.

"Okay, we will negotiate the price with them as soon as possible." Zheng and Liu replied.

Yang Wendong added: "There is one more thing. Wu Zhande wants to borrow some money after the joint venture. We can connect him with Hang Seng Bank or Bank of East Asia and let him get a large loan for expansion."

Zheng Zhijie asked with a smile: "Mr. Yang wants Maxim's Foods to engage in a price war with Jardine Matheson?"

Yang Wendong nodded and said, "That's one of the reasons. The Wu brothers of Meixin are powerful, but they lack funds and are suppressed by Jardine Matheson. Now that they have our support, they can grow rapidly.

In this way, our investment will also have a huge return, and Maxim's is expanding very fast, and Jardine Matheson will either give up or invest more money to keep up, which will also be a waste of resources for them."

"Okay, I understand. I will discuss the credit limit with the heads of the two banks." Zheng Zhijie agreed.

"Well, that's the end of the Mei Xin matter. It all depends on their own abilities." Yang Wendong nodded, then asked, "Have you found a suitable place to build a ranch in the New Territories?"

As Carrefour expanded in size, the demand for chicken and eggs became higher and higher. In this era, the cost of transporting food or live animals overseas was still too high, so investing on your own was a good direction. The most important thing was that there was a reason to stock up on land in the New Territories.

Zheng Zhijie replied, "Mr. Yang, I have already communicated with the Hong Kong government's Lands Department and Agriculture Bureau about this matter. They support us in building a large chicken farm in Hong Kong, but there are still disputes over the site selection and land area."

Yang Wendong asked, "Where do you want to buy land?"

Zheng Zhijie replied: "We wanted to buy a piece of coastal land in Tseung Kwan O to build a chicken farm, but the Hong Kong government disagreed and suggested that we go further north."

"The economy in Tseung Kwan O isn't that good. Why doesn't the Hong Kong government agree to this place?" Yang Wendong asked after thinking for a while.

In the early 60s, in Kowloon, only a few places close to Hong Kong Island had good economic development. Other places were far behind and were no different from the countryside.

Zheng Zhijie said: "It is said that in the future planning of the Hong Kong government, Tseung Kwan O will be the next place to be developed. After all, it is not far from Hong Kong Island, and there are already many people living here. In the future, as long as the Hong Kong economy develops, this place should also be able to develop."

"Yeah, that's true." Yang Wendong nodded and asked, "How much land do you want?"

Zheng Zhijie replied: "Our first phase of breeding is 5 chickens. Even if we use the requirement of 5 feet of land (0.5 square meters) per chicken, plus the public area, we still need about 30 feet (3 square meters) of land."

"One chicken needs five feet of land?" Yang Wendong asked quickly, "Nowadays, are chickens raised in cages or free-range?"

Zheng Zhijie replied: "We can raise chickens in the open. Cage-raising requires a lot of investment, such as building infrastructure and installing air conditioners. Otherwise, the chickens will die of heat in the summer. Hong Kong does not have this kind of breeding technology.

And most importantly, it is too easy for chicken plague to breed in caged environments. Once it occurs, the consequences will be disastrous.”

"Well, then let's raise them freely. Chicken plague is indeed a problem." Yang Wendong also nodded.

Without modern technology, the cost of cage farming may be higher. This farming method is only suitable for places with expensive land prices and strong farming technology.

Zheng Zhijie followed up by saying, “Yes, even if they are free-range, it is easy for accidents to happen if there are many chickens together, so hygiene is of utmost importance.”

"Are there any management talents in this area?" Yang Wendong asked again.

In this era, medicine and immunology were not very developed. Even humans did not have many vaccines and virus-specific medicines, let alone chickens, ducks, cattle, sheep, pigs, etc.

Once a plague occurs, the loss of livestock is a minor matter, but if it is transmitted to humans, it would be a big deal, especially influenza, a virus that many people in later generations do not pay attention to, but in this era, it is very deadly.

In order to control all of this, we urgently need to rely on a professional management team to control hygiene and exogenous pollution, such as bird droppings.

Zheng Zhijie said: "I have arranged for people to contact several chicken farms in Hong Kong. It is not difficult to poach their people. In addition, I have also asked the human resources department to start looking for talents in this field from the mainland. The neighboring Guangdong Province once raised chickens on a large scale to supply Hong Kong, and there are many people in this field."

"Well, okay. As for breeding, we need to refer more to modern Western chicken farming methods and be sure to pay attention to control." Yang Wendong nodded and said.

"Okay." Zheng Zhijie agreed.

Yang Wendong continued, "It's really hard to buy a 30 square foot plot of land near the sea in Tseung Kwan O, so let's move a little further north and find a new place."

It is true that they want to hoard land, but they cannot do so blindly. Otherwise, there would not have been any need for Swire Properties to forcibly acquire the dairy company nine years later. They could have just raised cattle and hoarded land themselves.

The Hong Kong government is not a fool. In many cases, people see through things but do not speak out, and they can probably guess the purpose. Even if a chicken farm is really built, the incidental purpose is also something that the Hong Kong government needs to control.

"We also have backup options." Zheng Zhijie added, "I also went to Shatin to have a look. The land there is quite flat and can be used to build a chicken farm. There is also more wasteland, so it is not a problem for us to buy more land.

It’s just that the place is a bit remote, far from Hong Kong Island and Kowloon. Considering the real estate income, the Hong Kong government may not develop this place in the next ten years.”

"Sha Tin?" Yang Wendong then took out a large map of Hong Kong from the side, which was always available in his office.

"It's at this location, here in the bay." Zheng Zhijie stepped forward and pointed to an area in Sha Tin District.

"This location is not bad." After Yang Wendong looked at it, he said, "If there is no problem with the Hong Kong government, then we can take this piece of land and not delay Carrefour's plan too much.

In addition, the area can be appropriately increased, so that it will be easier to expand the scale in the future, and the health risks during breeding will be lower.”

Shatin Town, in this era, is naturally not well developed, but it will become one of the towns that the Hong Kong government focuses on developing in the 70s, because the Hong Kong government plans to build it into a large residential town. Its most famous project is Shatin First City, which is the only large-scale project in history that the four major families of Hong Kong have worked together on. However, Yang Wendong does not know where this land is.

Now I can go there early to stock up on land and buy the prime locations first, which can also cooperate with Carrefour's business plan.

"Okay, then I will choose to acquire land in Shatin." Zheng Zhijie said: "I will immediately discuss this matter with the Hong Kong Government's Lands Department and Agriculture Bureau."

"Okay." Yang Wendong nodded and asked, "You just mentioned the first phase of the plan. How big is the expansion plan going to be later?"

Zheng Zhijie said: "I have also contacted some breeding experts about this. They said that as long as there is enough funding, it is not a problem to breed 100 million chickens a year, because Hong Kong needs so many chickens and eggs.

However, he also suggested that even in the first phase, we should do it step by step, starting with a maximum of tens of thousands of chickens, and raising them separately. After all employees are familiar with them, we can gradually expand the scale.

"One million?" Yang Wendong thought for a moment and said, "What's the average lifespan of a chicken?"

Zheng Zhijie replied: "About 6 months."

In this era, there are no fast-growing chickens. There may be hormones, but if they are not widely used, the cost may be higher than raising chickens.

Yang Wendong nodded and said, "Two million chickens came out of the cage that year? Hong Kong has a population of three million, so this number is not a lot, right?"

Zheng Zhijie smiled and said, "Mr. Yang, this may not seem like much, but it is unlikely that we can control the entire market for the supply of live chickens. Both China Resources and Southeast Asia will be competitors to us.

If one day the demand in the Hong Kong market increases, or our final cost is lower than that of imported chickens or eggs, can we expand the scale? However, even if we expand the scale, we cannot put them together, mainly because of the hygiene risks."

"Well, okay, you decide these things based on the market." Yang Wendong nodded and said.

In fact, the market for live or fresh chicken is limited because the transportation cost is too high. However, if it is processed into fried chicken, snacks, or even sausages, ham, etc. that are easy to transport, the transportation cost will be much lower.

In this era, these things are not very common, and there may be business opportunities, but this requires waiting until you have enough meat supply before considering it, otherwise no matter how creative you are, it will be useless.

"Okay, I will get this land as soon as possible." Zheng Zhijie agreed.

A week later, Zheng and Liu came again.

Zheng Zhijie reported, "Mr. Yang, Mr. Liu and I have already agreed on the investment amount with the Wu brothers. The total amount is 420 million Hong Kong dollars, and we will get 30% of the shares. This money will directly become the capital of the future joint venture company."

"That means the total market value is 1400 million?" Yang Wendong immediately did some mental calculations and got his answer.

"Yes, our previous total valuation of Maxim's Foods was HK$980 million. According to the agreement, the Wu brothers were not allowed to take the investment funds away alone, so all of them were deposited into the public account," Zheng Zhijie explained.

"Okay, I will arrange for the headquarters and the third parties to review the price." Yang Wendong nodded and said.

Regardless of whether he trusts his subordinates or not, when it comes to large investments, he will ask the headquarters and third parties to investigate.

There is basically no simple business dealings between the headquarters and the branches, and no friendship is allowed. This is a mandatory rule so that they can check and supervise each other.

As for the third party, they are even more independent and are solely responsible to Yang Wendong for large-scale acquisitions, internal audits of group subsidiaries or suppliers, etc.

Insiders or outsiders should not even think of colluding in advance, because which company to choose to participate in the review is decided on the spot by Yang Wendong. He himself does not know about it in advance, and the people around him do not know the specific situation.

"Okay." Zheng Zhijie added, "In addition, I have also contacted the Bank of East Asia. They are willing to provide 600 million Hong Kong dollars of support to Maxim's Foods. The interest rate is also lower than the market. If there is a need later, we can discuss it again."

"Okay, it's up to Maxim's to decide, as long as there are no major economic risks." Yang Wendong said, "Let them expand as quickly as possible. I hope to see Jardine Matheson follow suit."

"No problem. The Wu brothers are very ambitious now." Zheng Zhijie said with a smile.

Yang Wendong said: "That's good."

Zheng Zhijie added, "Mr. Yang, we have already acquired the land in Shatin. It is 35 square feet in total. The Hong Kong government approved it for agricultural and animal husbandry use. It is located in a remote area, so it is sold at $ per square foot."

"Only 35 in total?" Yang Wendong smiled and said, "Okay, then buy it, and then we can do whatever we need to do next."

The price of agricultural land is much cheaper than that of industrial land. If you change it to commercial land in the future, you will need to pay the difference. But this is not important. What is important is that you have control of the land. Later, when the time is right, you can just pay the difference.

However, the area of ​​Shatin is not expected to be developed on a large scale within the next ten years, so I can just focus on making it a small ranch.

Once you have gained experience in the future, you can continue to hoard land in the New Territories for breeding. It doesn’t matter even if breeding itself does not make money or even loses money, as long as the hoarded land has high enough value in the future.

Moreover, if agricultural products are expanded vertically, such as raising pigs and then turning into sausage or ham processing plants, it is impossible to make a loss.

"Okay." Zheng Zhijie agreed.

"Yes," Yang Wendong nodded, and then said, "By the way, Lao Zheng, there are two people you can check for you, named Li Zhaoji and Guo Desheng. I want all their information."

Among the four major families of Hong Kong in the future, he has already met Li Jiacheng and Zheng Yutong. Both of them have successful careers and it is not easy to invest in them. As for the other two, he has never heard of them in the upper class, which means that they have not yet gained momentum.

But after all, he didn't have Baidu Encyclopedia in his head, and he only knew the names of these two people, but he didn't know where they were in the 60s or what business they were doing.

"Li Zhaoji, Guo Desheng." Zheng Zhijie didn't ask any more questions and agreed: "Okay, I'll go investigate now."

……

PS: Please give me a monthly ticket
(End of this chapter)