Chapter 536 Real Estate Development and the Establishment of Hehe Industrial

Chapter 536 Real Estate Development and the Establishment of Hehe Industrial

Chapter 536 Real Estate Development and the Establishment of Hehe Industrial

The layout of the entertainment industry has gradually begun to move in a new direction under the arrangements of the past few months;

Animation, film, TV series, music, four directions are developed simultaneously, and with the strong capital behind them, overseas channels are opened up to provide sufficient income for anyone involved, so as to encourage sufficient innovation;
Similar to some content entrepreneurship Internet platforms in the past, the platform does not need to create content by itself, it only needs appropriate encouragement. The core of the platform is to use high-quality content and capital to attract more users, thereby achieving a win-win situation for all three parties.

The same is true for the current Changxing Group. With good content and capital, it can expand into the Asian and even global markets.

In the 90s, when Hong Kong movies and TV dramas reached their peak, there were 3 people working in or profiting from the film and television industry. This is also a huge industry, and once it is done well it will not be eliminated because developed economies will not eliminate the service industry.

Moreover, for Yang Wendong, the developed film and television industry can also bring him some fun; and if the Hong Kong film industry is really developed, it can really cooperate with Hollywood. Although there is a possibility of being cheated, as long as there is enough long-term value on his side, there is still the possibility of cooperation.

But for now, we still need to wait for a few of Li Xiaolong's films to become popular in Asia before we can negotiate terms with Hollywood.

In mid-May, Yang Wendong gradually shifted his focus from the entertainment market. After arranging the direction, he naturally did not need to ask too much and just waited for the results.
The hottest industries in Hong Kong today are naturally real estate and the stock market. As confidence in Hong Kong's future is restored, a large amount of capital has flowed into the real estate market and the stock market. When many residential communities open for business, they will attract many scalpers queuing up to buy.

Yang Wendong also came to the headquarters of Changxing Real Estate Company, a building located on the edge of Central, which was one of the buildings purchased in 67.

Yang Wendong first asked, "Are all the people in this building now from Changxing Real Estate Company?"

"Yes, more than half of the previous tenants left in 67, and their contracts gradually expired and they were not renewed in the next two years. There were still a few who had stayed for a long time, so I gave them some subsidies and let them move to our other buildings nearby." Zheng Zhijie replied.

Yang Wendong nodded and said, "Okay, Changxing Real Estate finally has a building with a better location, but this floor is not very high."

Zheng Zhijie smiled and said, "For now, it is enough. Not all people in the company need to come to the headquarters to work. In addition, in the second half of this year, the Hong Kong government will have a reclaimed land with a good location. I have the idea of ​​acquiring it and building a larger building.

But it’s not for Changxing Real Estate, but for the group headquarters. Changxing Building is a bit crowded now.”

Yang Wendong thought for a moment and said, "How big can this building be?"

Cheng Chi-chieh replied: “The reclaimed land should be around 4 square feet, with a plot ratio of 10, so it should be able to build 40 square feet.”

"This area is only slightly larger than Changxing Building, so there is no point in replacing it." Yang Wendong shook his head and said, "If you want to replace it, replace it with something that is obviously larger, so that it won't be insufficient right away after the replacement, which would be very cumbersome."

Anyone who has moved knows how tedious it is. You may think you don’t have a lot of stuff at home, but once you move, you realize you have an incredible amount of stuff.

The same is true for company relocation. For this kind of super-large headquarters relocation, the cost is a small matter, while the impact on the daily work of the group is a big deal. Fortunately, the company’s own property can be relocated slowly, so the loss will be smaller.

Therefore, even if relocation is necessary due to development needs, it is necessary to directly move to a larger area to avoid unnecessary trouble.

Zheng Zhijie asked: "At present, the Hong Kong government does not seem to have approved the plan to build a super-tall building unless we apply for it. However, we do not have such a large piece of land in the core area of ​​Central, unless we buy some buildings and demolish them."

Central started developing a hundred years ago and was controlled by British giants. Even though Changxing Real Estate took the opportunity to acquire some properties in 67 and there are several buildings in core locations, they are not very old buildings, and it would not be cost-effective to demolish them and build super-high-rise buildings.

"No hurry. HSBC's headquarters is not doing well right now. Why should we be in a hurry?" Yang Wendong shook his head and said, "Let's wait a little longer. Hong Kong's economy is developing very fast now. According to the development model of Western countries, super-high buildings will be promoted soon. There is no need to rush for a while."

As long as the economy develops, the city center must develop vertically towards the sky, which is inevitable in any country or region.

In the past, the mainland, big cities like Beijing, Shanghai and Guangzhou were all like this, because too many people poured in, whether it was office or residential space, it was very tight, and the only way was to develop upwards;
Human beings are social animals. All kinds of commercial, medical, educational and industrial development can only be maximized when concentrated together. Although it is crowded, it is also very convenient. Even many wealthy people, after living in suburban villas for a while, begin to prefer large apartments in the city. The exceptions are the wealthy who own villas in the city.

In another year or two, the future Connaught Building (Jardine House) will also be launched. It will be the tallest building in Hong Kong in the 70s and will also be our goal. It will be used as the group headquarters and can be used for at least 10 years. By the 80s, some 20-story buildings in Central will be old, so they can be demolished and real super-tall skyscrapers can be built.

"Okay." Zheng Zhijie agreed and then asked, "Then do we need to compete for this piece of land?"

Yang Wendong said: "Of course. Remember, we will take all the land and properties in Central, from buildings to shops. In the future, we need to buy large-scale properties in several towns on Hong Kong Island, just like Hong Kong Land."

The Hong Kong real estate market is estimated to be second only to some technology and Internet companies in terms of return on investment, and Central is even better. Especially now that its own butterfly effect is in place, and it is still unknown how much impact it will have on future technology companies, this market will naturally not be abandoned.

However, Changxing Real Estate Company is too large. Although it can also build residential properties, it cannot operate without limit. This market is also limited. Therefore, holding core buildings is a good direction.

Moreover, housing involves people's livelihood. If you invest too many resources into it, making it too expensive for ordinary people to buy houses, it will affect your reputation. There is no need to do this. When the time is right, you can control the future major families through financial means and let them do these things.

I can build a larger-scale real estate company, own buildings and shopping malls in Central, Admiralty, Causeway Bay, etc., and collect rent from people who run companies. This way I can make more money, but it will not directly affect ordinary people;

The rent from these places will also be a very stable income. In the past, a building in Hong Kong could make annual rent of as little as 10 billion and as much as several billion, which was completely making money without doing anything. A company that could exceed this income would have to operate very hard. Of course, in terms of social influence, this kind of rental-collecting enterprise is certainly far inferior, but these incomes are real and can be used to help the development of other industries, or even to engage in price wars to defeat competitors, and then the influence will naturally increase.

For a large conglomerate, not all industries need to make huge profits, nor does all industries need to be influential. There are very few industries that can have both functions. The simplest and most common model is to have several companies that cooperate with each other to achieve the best effect.

"Okay, then I'm going to take over this piece of land." Zheng Zhijie said with a smile: "After it's built, maybe other brother companies will need it."

"Okay, tell me when the specific data comes out." Yang Wendong nodded and said;
Unless it is a bidding for some super land king, Yang Wendong usually does not participate. He just lets his men do it and he will give the orders from behind.

"Yes, Mr. Yang," Zheng Zhijie continued, "Mr. Yang, can I report to you on the recent development of Changxing Real Estate?"

"Okay." Yang Wendong said. In the next half an hour, Zheng Zhijie told his boss about some of Changxing Real Estate's major projects, which mainly involved the development of many non-core industries' own land. After 67 years of hoarding, Changxing Real Estate's land reserves were no less than many British-owned companies.

After the report, Yang Wendong said: "This model is very good. We can develop all the land with little significance, exchange it for cash, and then hoard land with good location. At present, we should not focus on development. The purchased land can also be held for a long time."

If the land is obtained through auction from the Hong Kong government or other means, it needs to be developed within a specified time, but this does not apply to old land purchased by yourself.

Zheng Zhijie smiled and said, "Yes, we are not in a hurry to build a building on some high-quality land at present, unless the company itself needs it."

"Then keep it this way. No need to worry about profits. Buy land when you have money. Wait until the market reaches its peak, then consider changes." Yang Wendong followed.

In the first few years of the real estate bull market, there is not much meaning in pursuing profits. If you have money, you should hoard land. Even if you are really short of money in the future, you can directly get money from the bank for land in a prime location.
Yang Wendong even ignored the economic recession in 74, because compared with 67 and 83/84, the decline was not that big. It just returned to the price of 71. In the long run, it was just a small decline during a long period of growth.

"Okay, I understand. We don't need paper profits." Zheng Zhijie added, "By the way, Mr. Yang, the Hu Yingxiang you asked me to come to see me a few days ago. He said he wanted to build his own real estate company and that you had promised him that you would invest in him, so he wanted to meet you."

"Hu Yingxiang? Okay, make arrangements and have him meet me at Changxing Building." Yang Wendong nodded;
With the rapid development of Hong Kong's real estate, many traditional factories and people from other industries have become jealous and want to get a piece of the pie.
This is normal. In the past, after the 20th century, many people in the mainland who were engaged in industry entered the real estate industry and found that they could make more money in the real estate industry than in industry, and the management was much easier.
This is because real estate gathers together the economy of the next few decades in the short term and absorbs the results of all other industries. How can it not make money?

Although this economic model may bring many harms in the future, no country can escape it. Even if some countries do not engage in large-scale real estate, they will definitely find other ways to borrow money from the future to develop themselves now. Otherwise, if you do not follow other countries' example, you will inevitably lose.

Day 2, Changxing Building:

"Hello, Mr. Yang." Hu Yingxiang, under the guidance of Zheng Zhijie, met Yang Wendong and immediately said politely;
Today, Yang Wendong is the richest Chinese in Hong Kong and has a distinguished status. Although they had met two years ago and he had received Yang Wendong's business card and promise, he was not sure whether he could meet today.

Yang Wendong smiled and said, "Sit down, what would you like to drink?"

"It's up to me." Hu Yingxiang didn't dare to make any requests.

"Then let's have some tea." Yang Wendong said to the assistant beside him;

Then the assistant went to prepare, and Yang Wendong asked Hu Yingxiang: "Mr. Hu, what is the matter with you coming to see me today?"

Hu Yinglian quickly replied, "Mr. Yang, we talked about this two years ago. At that time, you said that if I set up a real estate company, you could invest. That's why I came here today."

Yang Wendong asked with a smile: "So you are planning to invest in a real estate company? What will the new company be called?"

"Hehe Industrial, this is the name I negotiated with my father." Hu Yingxiang replied.

"Hehe, this name is good." Yang Wendong nodded and said, "Then how much is your starting capital?"

Hu Yingxiang said, "3000 million Hong Kong dollars, this is half of the savings from my family's previous businesses, and now I am going to invest in real estate; because you mentioned before that you wanted to invest, I also want to confirm your opinion first."

"Sure. Real estate is definitely the most profitable business in Hong Kong right now." Yang Wendong agreed and said, "Then what proportion of my investment can you consider accepting? How much money do you need?"

Several industrial sectors within Changxing Group may not be worse than real estate in terms of profits, but this is because the time travelers know the future merits. It is very difficult for other industries to surpass real estate.

Even in the mainland of the past, when real estate was on the rise, except for the top technology companies and Internet monopoly companies, other industries were basically no match. For decades, the richest people were often the owners of real estate companies.

The same is true in Europe and the United States. It's just that because Europe and the United States have been developing for a hundred years, the population is not large, and there are restrictions on property taxes, their development speed cannot compare with that of the mainland or even Asian countries. However, the total scale is also not small, and many real estate tycoons are also financially strong, such as the New York real estate giant TNP family.

Hu Yingxiang replied: "I can accept an investment of HK$1500 million, and I can give you 33% of the shares, calculated on a pro rata basis, but I have one request."

"You say." Yang Wendong asked.

Hu Yingxiang said: "I can give Mr. Yang the corresponding voting rights, but I hope that Mr. Yang will not increase his shares, especially if Hehe can go public in the future."

"Okay, I promise you." Yang Wendong agreed readily.

It is impossible for him to swallow up any proportion of the wealth from Hong Kong real estate by himself. If he swallowed too much, it would be detrimental to social development and his own reputation, so he only needs to control office buildings and shopping malls.

As for other residential developments, in addition to owning properties, they can indirectly share the future profits of multiple Chinese real estate companies through financial models.

Stocks that can be cashed out quickly can even make more money than real estate during their peak periods.

Hu Yingxiang smiled and said, "Okay, I will draft the contract as soon as possible."

After cooperating with Changxing Group, it is a good thing for any real estate company; because with such a strong shareholder, bank loans will be easy;
With the loan, it would be hard for the company not to take off as long as it doesn't encounter a real estate crisis like the previous one.

"Okay, just contact Zheng Zhijie about this matter." Yang Wendong said, "Old Zheng, you can invest in a project with Hehe Industrial first, which can be regarded as a little help to the new company."

It doesn't really matter if we do a project. The main thing is to send out a signal and support Hehe Industrial. Then the development of Hehe Industrial will be smoother in the future.

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(End of this chapter)